[Management View]
MaxLinear management emphasized a return to non-GAAP profitability and positive free cash flow, driven by substantial backlog and demand in infrastructure, broadband, and high-speed optical interconnect segments. Strategic investments are focused on next-generation storage accelerators and advanced PAM4 DSPs, with expectations for further revenue ramp and customer adoption into 2026 and sustainable growth in profitability.

[Outlook]
The company projects Q3 2025 revenue between $115 million and $135 million, with GAAP gross margin expected to be 55%-58% and non-GAAP gross margin expected to be 57.5%-60.5%. GAAP operating expenses are expected to be $84 million–$90 million, and non-GAAP operating expenses are projected to be $55 million–$61 million. The company anticipates continued momentum in key product launches and steady end-market demand, except for optical interconnects where order timing introduces forecast uncertainty.

[Financial Performance]
- Total Revenue: $108.8 million in Q2 2025, a 13% sequential increase from $95.9 million in Q1 2025, and an 18% increase from $92 million in Q2 2024.
- Non-GAAP Gross Margin: 59.1% in Q2 2025.
- Segment Revenue Breakdown: Infrastructure ($35 million), Broadband ($48 million), Connectivity ($21 million), Industrial Multi-market ($6 million).
- Non-GAAP Operating Income: 7% of net revenue; GAAP loss from operations was 22% of net revenue.
- Net Operating Cash Flow: $10.5 million.
- Cash Position: $110 million in cash, cash equivalents, and restricted cash.

[Q&A Highlights]
Question 1: Can you give more granularity on how the segments are going to perform in Q3, and which segment could potentially be stronger than the others?
Answer: Infrastructure is expected to continue its strong performance, particularly in the back half of the year. Broadband and connectivity are also gaining traction with newer products and market recovery. Industrial multi-market, which has struggled, is expected to see a recovery.

Question 2: How much of the broadband growth is driven by inventory replenishment versus new products?
Answer: The growth is beyond recovery, driven by CapEx deployment by service providers and cable companies upgrading their infrastructure. The company is gaining market share and winning in the market due to the value of its products and customer support.

Question 3: Can you provide more details on the design wins and qualifications for Rushmore and Keystone?
Answer: Keystone design wins are strong, particularly on the front side of the network. The company is engaged with all major module makers and is in various stages of call and pilot ramp phases. Rushmore is expected to be a tipping point, building on Keystone's success, with a focus on low power and superior performance.

Question 4: Why was OpEx higher than expected, and what were the investments?
Answer: OpEx was below the midpoint of guidance, with some expenses pushed into Q3. The company is making strategic investments in AI-related data center technologies and cost reduction improvements to maintain and improve gross margins.

Question 5: What is the outlook for the Panther product line in AI infrastructure?
Answer: Panther storage accelerators are very valid for AI infrastructure, with significant advantages in power savings and efficiency. The company is engaged in proof of concept with major players and expects the product line to grow significantly in the coming years.

[Sentiment Analysis]
Analysts were positive about the company's recovery and growth prospects, particularly in infrastructure and optical interconnects. Management's tone was confident, emphasizing strategic investments and strong customer traction.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|----------------------------|---------------|---------------|---------------|
| Total Revenue | $108.8 million| $95.9 million | $92 million |
| Non-GAAP Gross Margin | 59.1% | - | - |
| Non-GAAP Operating Income | 7% | - | - |
| Net Operating Cash Flow | $10.5 million | - | - |
| Cash Position | $110 million | - | - |

[Risks and Concerns]
- Foreign exchange costs impacted interest and other expenses.
- Uncertainty in optical interconnect order timing.
- Competitive pressures in the market, particularly in China.

[Final Takeaway]
MaxLinear demonstrated strong growth in Q2 2025, driven by infrastructure and high-speed optical interconnect segments. The company returned to non-GAAP profitability and generated positive free cash flow. Strategic investments in next-generation technologies and strong customer traction position the company for continued growth into 2026. However, foreign exchange costs and competitive pressures remain concerns. Overall, the outlook for MaxLinear is positive, with expectations for further revenue ramp and sustainable profitability.