Maxlinear (MXL) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.21
• Revenue Growth: -15.65%
• EPS Growth: -7.18%
• Country: US
• Employees: 1,294
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 87,080,500
• 10 Day Avg. Volume: 1,227,948
• 30 Day Avg. Volume: 1,749,236
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: -7.62
• 1Y Price Target: $19.57
• Price Target Upside: 29.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 48 Neutral
• Price Target: $15.00 ▼(-0.99% Downside)

Maxlinear's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and negative profitability. While the technical analysis provides a more neutral outlook, the negative valuation metrics further weigh down the score. Immediate strategic improvements are necessary to enhance financial stability and investor confidence.

Positive Factors

Infrastructure Performance

The infrastructure business is performing very well with new products gaining momentum in optical interconnects, storage accelerators, and wireless infrastructure.

Product Momentum

Analyst recommends a Buy rating and increases the target price to $25 due to recovering end markets and accelerating new product momentum.

Strategic Growth

MaxLinear reported solid results and even stronger guidance as the company benefits from strength across its strategic growth markets, notably high-speed optical interconnects, and a continued recovery in the core business.

Negative Factors

Earnings Pressure

Despite the now higher expected revenue, it is not translating into meaningfully higher EPS in 2025/26 due to slightly higher OpEx and FX related expenses.

Industrial Sector Struggles

Industrial was perhaps the biggest disappointment with a -30% QOQ decline versus expectations for +50% QOQ growth, particularly affected by pricing pressures in China.

Stock Trading Concerns

The stock is trading meaningfully higher after-hours, now trading at a level that may be capped heading into the arbitration hearing with SIMO.

Maxlinear Business Overview & Revenue Model

Company Description

MaxLinear, Inc. provides radiofrequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. Its products integrate various portions of a high-speed communication system, including RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression, networking layers, and power management. The company offers broadband radio transceiver front ends, data converters, embedded systems and software architecture, and architecture and system design for highly integrated end-to-end communication platform solutions. Its products are used in various electronic devices, such as cable data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; and fiber-optic modules for data center, metro, and long-haul transport networks, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

How the Company Makes Money

MaxLinear generates revenue primarily through the sale of its semiconductor products, which are utilized in various applications across multiple sectors. The company's revenue model is driven by a mix of direct sales to original equipment manufacturers (OEMs) and distributors, as well as partnerships with key players in the broadband and data center markets. Significant revenue streams come from its broadband communications products, including cable modem and set-top box chipsets, as well as its data center offerings, like Ethernet transceivers. Additionally, MaxLinear benefits from ongoing collaborations with major technology firms, which help expand its market reach and drive sales growth. The company also invests in research and development to continually innovate and meet the evolving demands of the semiconductor industry, further enhancing its profitability.

Maxlinear Financial Statement Overview

Summary

Maxlinear faces significant financial challenges, with declining revenues, negative profitability, and cash flow difficulties. The balance sheet remains relatively stable but shows signs of increased leverage and decreasing equity. Immediate attention to strategic and operational improvements is essential to address these concerns.

Income Statement

Maxlinear's financial performance shows a concerning trend with declining revenues and negative profitability. The TTM period saw a decrease in revenue and gross profit margins, and the net profit margin is significantly negative due to substantial net losses. The EBIT and EBITDA margins are also negative, indicating operational challenges. This reflects a significant downturn compared to past performance.

Balance Sheet

The balance sheet shows stability in terms of equity but highlights leverage concerns. The debt-to-equity ratio is moderate, but the decline in stockholders' equity over time is notable. Despite these issues, the equity ratio remains reasonably strong, suggesting a stable asset base. However, the negative return on equity indicates profitability challenges.

Cash Flow

Cash flow analysis shows negative operating cash flows and free cash flows in the TTM period, highlighting liquidity pressures. The free cash flow to net income ratio is unfavorable, exacerbating concerns about the company's ability to generate cash from operations amidst net losses. This poses risks to sustainability without a turnaround.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	378.01M	360.53M	693.26M	1.12B	892.40M	478.60M
Gross Profit	210.68M	194.78M	385.66M	649.77M	495.83M	212.80M
EBITDA	-166.72M	-173.70M	9.53M	255.86M	145.27M	-29.28M
Net Income	-209.92M	-245.20M	-73.15M	125.04M	41.97M	-98.59M
Balance Sheet
Total Assets	863.74M	864.64M	1.08B	1.18B	1.05B	1.02B
Cash, Cash Equivalents and Short-Term Investments	108.62M	118.58M	187.29M	205.88M	130.57M	148.90M
Total Debt	147.67M	149.36M	157.75M	155.60M	339.68M	392.60M
Total Liabilities	375.41M	348.36M	393.99M	503.64M	561.19M	631.33M
Stockholders Equity	488.33M	516.28M	686.26M	676.38M	489.20M	391.12M
Cash Flow
Free Cash Flow	-69.61M	-68.74M	23.56M	336.29M	121.48M	58.31M
Operating Cash Flow	-59.48M	-45.30M	43.37M	388.73M	168.23M	73.59M
Investing Cash Flow	-18.32M	-23.45M	-15.94M	-91.76M	-91.76M	-175.29M
Financing Cash Flow	1.30M	1.29M	-26.36M	-240.40M	-91.90M	159.65M

Maxlinear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MXL, the sentiment is Positive. The current price of 15.15 is below the 20-day moving average (MA) of 15.57, above the 50-day MA of 14.79, and above the 200-day MA of 14.95, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 23.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MXL.

Maxlinear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%
IMOS	58 Neutral	$548.63M	113.03	0.66%	5.42%	0.15%	-92.08%
AOSL	56 Neutral	$785.52M	―	-11.32%	―	5.92%	-746.07%
COHU	56 Neutral	$927.10M	―	-10.09%	―	-21.27%	-207.30%
UCTT	53 Neutral	$1.04B	38.78	-19.47%	―	14.28%	-1644.64%
MXL	48 Neutral	$1.25B	―	-37.97%	―	-15.65%	-7.18%
ICHR	46 Neutral	$610.68M	―	-2.98%	―	15.45%	49.82%

Maxlinear Corporate Events

MaxLinear’s 2025 Annual Meeting Key Decisions

MaxLinear held its 2025 Annual Meeting of Stockholders on May 20, 2025, where several key decisions were made. Daniel A. Artusi was re-elected as a Class I director, while the proposed executive officer compensation and amendment to the 2010 Equity Incentive Plan were not approved by stockholders. The appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025 was ratified.