MaxLinear, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Balance Sheet Details

Balance Sheet Details

3 Months Ended

Mar. 31, 2025

Balance Sheet Related Disclosures [Abstract]

Cash, cash equivalents and restricted cash consist of the following:


	March 31, 2025		December 31, 2024
	(in thousands)
Cash and cash equivalents	$	102,773	$	118,575
Short-term restricted cash	1,267		1,003
Long-term restricted cash	25		25
Total cash, cash equivalents and restricted cash	$	104,065	$	119,603

As of March 31, 2025 and December 31, 2024, cash and cash equivalents included money market funds of approximately $59.3 million and $59.1 million, respectively. As of March 31, 2025 and December 31, 2024, the Company had restricted cash of approximately $1.3 million and $1.0 million, respectively. The cash is restricted in connection with guarantees for certain import duties and office leases.

Inventory consists of the following:


	March 31, 2025		December 31, 2024
	(in thousands)

Work-in-process	$	53,605	$	53,979
Finished goods	32,400		36,364


	$	86,005	$	90,343

Inventory decreased $4.3 million from $90.3 million as of December 31, 2024 to $86.0 million as of March 31, 2025, as the Company’s management continued to lower inventory levels.

Property and equipment, net consists of the following:


	Useful Life (in Years)	March 31, 2025		December 31, 2024
		(in thousands)
Furniture and fixtures	5	$	3,927	$	3,937
Machinery and equipment	3-5	83,244		80,804
Masks and production equipment	5	63,898		63,803
Software	3	11,310		11,178
Leasehold improvements	1-5	35,012		34,981
Construction in progress	N/A	384		898
		197,775		195,601
Less: accumulated depreciation and amortization		(142,229)		(136,301)
		$	55,546	$	59,300

Depreciation expense for the three months ended March 31, 2025 and 2024 was $5.8 million and $5.5 million, respectively.

In March 2022, the Company entered into a note receivable with a supplier for $10.0 million. In October 2024, the terms of this note receivable were renegotiated, and the first initial repayment of $0.5 million was due by March 31, 2025, $1.5 million is due by March 31, 2026, and annual repayments of $2.0 million per year are due annually thereafter by March 31, from 2027 through 2030, provided that certain production utilization targets for the prior year are met. Previously, repayments of $2.0 million per year were due annually by March 31, in years 2024 through 2027.

During the year ended December 31, 2024, a portion of the note receivable, or $0.5 million, was written off to other expense in the consolidated statement of operations. The amount written off represents the portion of the payment associated with production utilization that is anticipated to be less than target. The balance of the note receivable has been classified as a long-term asset based on expected timing of receipt of repayment. The long-term portion of the note receivable is included in other long-term assets as of March 31, 2025 and December 31, 2024, respectively.

Accrued price protection liability was $47.7 million at March 31, 2025 and $43.4 million at December 31, 2024. The increase in price protection liability was driven by new rebate activity, offset by payments of rebates, as reflected in the table below:


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Beginning balance	$	43,401	$	71,684

Charged as a reduction of revenue	7,753		12,606
Reversal of unclaimed rebates	—		(474)
Payments	(3,471)		(18,583)
Ending balance	$	47,683	$	65,233

Accrued expenses and other current liabilities consist of the following:


	March 31, 2025		December 31, 2024
	(in thousands)


Accrued technology license payments	$	3,627	$	4,336
Accrued professional fees	9,542		7,103
Accrued engineering and production costs	3,509		3,080
Accrued restructuring	13,335		11,022

Accrued royalty	375		438
Short-term lease liabilities	9,888		9,413

Accrued customer credits	2,876		1,011

Income tax liability	891		745
Customer contract liabilities	64		114
Accrued obligations to customers for price adjustments	56,185		42,954
Accrued obligations to customers for stock rotation rights	246		252
Contingent consideration - current portion	2,600		2,600
Other	3,856		4,340
	$	106,994	$	87,408

The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component:


	Cumulative Translation Adjustments		Pension and Other Defined Benefit Plan Obligation		Total
	(in thousands)
Balance at December 31, 2024	$	(8,089)	$	1,266	$	(6,823)
Other comprehensive loss before reclassifications, net of tax	857		—		857


Balance at March 31, 2025	$	(7,232)	$	1,266	$	(5,966)