MaxLinear, Inc

Greetings, and welcome to the MaxLinear Q2 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone requires operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Leslie Green, Investor Relations. Thank you, Leslie. You may begin.

Thank you, Julian. Good afternoon, everyone, and thank you for joining us on today's conference call to discuss Max Lanier's second quarter 2025 financial results. Today's call is being hosted by Dr. Kishore Sindripu, CEO, and Steve Litchfield, Chief Financial Officer and Chief Corporate Strategy Officer. After our prepared comments, we will take questions. Our comments today include forward-looking statements within the meaning of applicable securities laws, including statements relating to our guidance for the third quarter of 2025. including revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, GAAP and non-GAAP interest and other expense, GAAP and non-GAAP income taxes, and GAAP and non-GAAP diluted share count. In addition, we will make forward looking statements relating to trends, opportunities, execution of our business plan, and potential growth and uncertainties in various product and geographic markets, including, without limitation, statements concerning future financial and operating results, opportunities for revenue and market share across our target markets, new products, including the timing and production of launches of products, demand for and adoption of certain technologies, and our total addressable market. These forward-looking statements involve risks and uncertainties, including risks outlined in our risk factor section of our recent SEC filings, including our Form 10-Q for the quarter ended June 30, 2025, which we filed today. Any forward-looking statements are made as of today, and MaxLinear has no obligation to update or revise any forward-looking statements. The second quarter 2025 earnings release is available in the investor relations section of our website at maxlinear.com. In addition, we report certain historical financial metrics, including but not limited to gross margin, income from operations, operating expenses, and interest and other expense on both a GAAP and non-GAAP basis. We encourage investors to review the detailed reconciliation of our GAAP and non-GAAP presentations in the press release available on our website. We do not provide a reconciliation of non-GAAP guidance for future periods because of the inherent uncertainty associated with our ability to project certain future changes, including stock-based compensation and its related tax effects, as well as potential impairments. Non-GAAP financial measures discussed today are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. We are providing this information because management believes it is useful to investors as it reflects how management measures our business. Lastly, this call is also being webcast, and the replay will be available on our website for two weeks. And now let me turn the call over to Dr. Kishore Sindhripu, CEO of MaxLinear. Kishore?

Thank you, Leslie, and good afternoon, everyone. Our Q2 results not only reflect 13% sequential performance, and 18% year-over-year growth in our business, but also point to a strong positive inflection in our business recovery and growth trajectory. Our revenue of $109 million approximately exceeded the midpoint of our guidance. Non-GAAP gross margin was 59.1%, and we delivered a meaningful reduction in our operating expenses. With solid execution in Q2, we returned to profitability on a non-GAAP basis and generated positive free cash flow. We continue to drive strong customer and product traction in high-speed data center optical interconnects, on broadband access, Wi-Fi, and Ethernet. Our growing success in the strategic markets, robust customer order rates and backlog, coupled with increasing telco cap expanding, reinforce our confidence in the strength of our growth for 2025 and 2026. In our infrastructure end market, we're excited by the sustained growth trajectory in 2025, and expect revenue acceleration in 2026 as new design wins begin to ramp across our portfolio. In high-speed data center optical interconnects, we are on track to deliver $60 to $70 million in revenue this year, primarily from our 800-gigabit 5-nanometer keystone PAM4DSP product family. We anticipate additional 800-gigabit PAM4DSP customer calls and production rollout throughout 2025, which will drive incremental revenue growth in 26. further customer interest and design in activity for our rushmore 200 gigabit per lane 1.64 terabit pam4 dsp has been robust since our live demonstration at the optical fiber conference 2025 this year in san francisco like keystone our rushmore family of pam4 TIAs and 200 gigabit per lane DSPs for 1.6 terabit interconnects offer superior low power and performance advantages. This continues to be the basis of our competitive differentiation and expectations of design wind momentum. In wireless infrastructure, the market continues to recover with expected increases in carrier cap expending driving demand for the second half of 25 as well as 26. Our Sierra 5G wireless access, single-chip radio SOC, and our millimeter wave and microwave backhaul transceivers and modems are essential for supporting increasing mobile usage and data rates as well as new functionality such as Edge AI. We have new design wings with our Sierra-based product with two major North American telecom providers launching Sierra-based macro base station RU products in Q3. We expect to see sustained growth in 5G wireless access and backhaul, and the needs for cloud and edge AI functionality continue to increase in 2026 and beyond. Also, within our infrastructure category, we continue to see strong design and success for our Panther family of hardware storage accelerators, SOCs across Tier 1 network appliance and cloud service providers. In August, we will showcase our next generation Panther 5 storage accelerator at the Future of Memory and Storage FMS 2025 conference in Santa Clara. Also at FMS 2025, we will have a joint keynote address with Advanced Micro Devices on the Transformation of Enterprise Data Storage. Panther delivers significant advantages over traditional software-based compression including more than afford X improvement in power savings and much more efficient usage of CPUs and CPU cores and AI accelerators. Panther 5 is PCIe Gen 5 capable, and at 500 gigabits per second throughput speeds, it delivers more than two times the performance of Panther 3 to enable ultra-low latency data processing across file, block, and object storage. Moving to broadband and connectivity, we continue to see steady growth and are excited by the market outlook for meaningful increases in service provider capex spending. For example, both major North American carriers have announced plans to increase the scope and pace of their fiber pond access buildouts. These increased infrastructure investments by carriers and operators are driving continued booking strength and incremental demand for our fiber pawn cable docks and wi-fi solutions later this year we will ramp our single chip integrated fiber pawn and 10 gigabit processor gateway soc plus tri-band wi-fi 7 single chip platform solution with a second major tier 1 north american carrier this new gateway soc platform represents an exciting growth opportunity and is also a significant validation of our technology on competitive positioning in the growing fiber pawn market. In the Ethernet market, we continue to expand our 2.5 gigabit Ethernet switch and FI portfolio into commercial, enterprise, and industrial applications. MaxLinia has one of the broadest and most competitive offerings to enable the upgrade from 1 gigabit per second to Ethernet legacy data rates to 2.5 gigabit per second using existing Cat5 cabling. This upgrade is driven by edge cloud expansion, IoT gateways, and enterprise access point transition to Wi-Fi 6 and Wi-Fi 7. It represents a significant opportunity size for MaxLinear of approximately $100 million per year in revenues by 2028. In Q2, we were pleased to announce 2.5 gigabit Ethernet-based multi-port PHY and switch adoption by several notable partners, including ASUS, Hisource, and others. We look forward to closing the additional Tier 1 names in our DesignWin pipeline. In conclusion, we are proud of our strong growth, return to profitability, and positive cash flow generation in Q2. Our success in the strategic areas of our product portfolio includes and the incremental tailwind from the ongoing recovery in our core markets has enabled us to turn an important corner in our business. Our investments in high-value categories, such as high-speed interconnect for the data center, multi-gigabit PON access, Wi-Fi connectivity, Ethernet, storage accelerators, and wireless infrastructure are all driving strong product traction with Tier 1 customers and partners. We believe these positions as well for accelerated growth in 26 and beyond. With that, let me now turn the call over to Steve Litchfield, our Chief Financial Officer and Chief Corporate Strategy Officer. Steve?