MaxLinear (MXL) as of March 31, 2026 shows a deeply negative liquidation recovery posture, consistent with the MFFAIS-computed cash liquidation value of approximately negative $227M. The balance sheet carries $771M in total assets against $317M in total liabilities, yielding $454M in book equity. Under liquidation haircuts, however, the recoverable asset base shrinks materially: cash and restricted cash of $90M recovers near par; AR of $41M recovers at roughly $38-39M at 90-95%; inventory of $86M recovers at approximately $51M at 60%; PP&E net of $44M recovers at $22-31M at 50-70%. The dominant asset classes are goodwill ($319M) and finite-lived intangibles ($46M), both valued at zero under the liquidation lens — together representing $365M of gross book assets that contribute nothing to recovery. On the liability side, $317M is held at face: current liabilities of $147M (including $60M accrued liabilities, $33M AP, $27M employee-related, $9.4M current lease), non-current debt of $124M (term loan under June 2021 credit agreement, SOFR plus 225 bps, maturing June 2028), $28.7M other long-term liabilities (inclusive of $15M deferred jointly-funded R&D repayable under contingent conditions), and $18M non-current lease. Total contractual obligations per the prior annual filing were $210M, with $153M remaining in 2026 alone (inventory purchase and software obligations), which do not extinguish on wind-up. The operating lease undiscounted commitment is $30M, and the ASC 842 lease liability stands at $27.4M. The Silicon Motion arbitration (Singapore International Arbitration Centre, seeking damages in excess of the termination fee) and related stockholder litigation represent unquantified contingent liabilities accrued at zero — management has not accrued any material loss contingency. A material adverse arbitration outcome would directly reduce recovery to equity, potentially consuming the remaining cash and requiring drawdown of the $100M undrawn revolving facility (extended to March 2028 per April 22, 2026 amendment). The revolving facility draws would be secured against substantially all assets, increasing effective senior claim on the asset pool. The $28.9M total restricted cash (of which $27.4M is non-current) likely reflects cash held in connection with the jointly-funded R&D arrangement and/or letter-of-credit support — filing does not separately tag the purpose of all restricted cash in XBRL. Deferred tax assets of $52M are subject to valuation allowances on state, certain federal, and certain foreign components; under liquidation these would recover at zero absent a buyer who can monetize them in an acquisition context.
▼ Community Notes