Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 000-49602 ______________________________________________________________________________________________________ SYNAPTICS INCORPORATED (Exact name of registrant as specified in its charter) _________________ ...

Synaptics Third Quarter Fiscal 2025 Results [Financial Highlights and Business Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Outlook) The company reported solid Q3 FY2025 results with significant revenue growth driven by Core IoT products and provided a positive outlook for Q4 [Q3 Fiscal 2025 Performance](index=1&type=section&id=Q3%20Fiscal%202025%20Performance) Revenue grew 12% year-over-year to $266.6 million, driven by a 43% surge in Core IoT product sales Q3 Fiscal 2025 Performance | Metric | Value | | :--- | :--- | | Net Revenue | $266.6 million | | GAAP Gross Margin | 43.4% | | Non-GAAP Gross Margin | 53.5% | | GAAP Loss per Share | ($0.56) | | Non-GAAP Diluted EPS | $0.90 | - Total revenue increased by **over 12% year-over-year**, marking the fourth consecutive quarter of YoY growth[2](index=2&type=chunk)[4](index=4&type=chunk) - Growth was driven by **Core IoT products**, which grew **43% year-over-year** and constituted **25% of total sales**[2](index=2&type=chunk)[4](index=4&type=chunk) - The company generated **over $74 million in cash flow** from operations during the third quarter[5](index=5&type=chunk) - Approximately **546,000 shares were repurchased** for **$37.9 million**[6](index=6&type=chunk) [Q4 Fiscal 2025 Outlook](index=1&type=section&id=Q4%20Fiscal%202025%20Outlook) The company projects continued revenue growth for Q4, with revenue expected to be in the range of $280 million ± $15 million - The fourth-quarter guidance reflects **improving demand trends**, with expectations of both sequential and year-over-year revenue growth[5](index=5&type=chunk) Q4 Fiscal 2025 Guidance | Metric | GAAP Guidance | Non-GAAP Guidance | | :--- | :--- | :--- | | Revenue | $280M ± $15M | N/A | | Gross Margin | 42.5% ± 2.0% | 53.5% ± 1.0% | | Operating Expense | $150M ± $4M | $103M ± $2M | | Earnings (loss) per share | ($0.68) ± $0.30 | $1.00 ± $0.20 | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Financial statements show YoY revenue growth but a higher net loss, with a significant decrease in cash due to acquisitions and financing activities [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 revenue increased year-over-year, but a higher operating loss was driven by an intangible asset impairment charge Condensed Consolidated Statements of Income (In millions, except per share) | (In millions, except per share) | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net revenue | $266.6 | $237.3 | | Gross margin | $115.8 | $110.3 | | Operating loss | $(26.3) | $(17.4) | | Net loss | $(21.8) | $(18.1) | | Basic loss per share | $(0.56) | $(0.46) | - The company recorded a **$13.8 million intangible asset impairment charge** in Q3 2025, which was not present in the prior year's quarter[31](index=31&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased primarily due to a significant reduction in cash and cash equivalents, while liabilities fell from debt reduction Condensed Consolidated Balance Sheets (In millions) | (In millions) | March 2025 | June 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $360.4 | $876.9 | | Total current assets | $712.6 | $1,162.3 | | Total assets | $2,554.3 | $2,825.0 | | Long-term debt | $834.2 | $966.9 | | Total liabilities | $1,167.3 | $1,358.2 | | Total stockholders' equity | $1,387.0 | $1,466.8 | [Condensed Consolidated Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Cash%20Flows) Operating activities generated cash, but this was offset by significant cash usage for acquisitions, debt repayment, and stock repurchases Condensed Consolidated Cash Flows (In millions) | (In millions) | Nine Months Ended March 2025 | Nine Months Ended March 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $84.8 | $70.9 | | Net cash used in investing activities | $(289.0) | $(146.7) | | Net cash used in financing activities | $(313.0) | $(20.4) | | Net decrease in cash and cash equivalents | $(516.5) | $(96.6) | - Key uses of cash in the nine-month period included **$198.8 million for a business acquisition**, **$112.3 million for stock repurchases**, and **$583.5 million for debt repayment**[36](index=36&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details adjustments from a GAAP net loss of $21.8 million to a non-GAAP net income of $35.3 million for Q3 FY2025 Q3 FY2025 GAAP Net Loss to Non-GAAP Net Income Reconciliation (In millions) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(21.8)** | | Acquisition and integration related costs | $32.8 | | Share-based compensation | $19.9 | | Intangible asset impairment | $13.8 | | Other adjustments (Restructuring, Legal, etc.) | $1.3 | | Non-GAAP tax adjustments | $(11.4) | | **Non-GAAP net income** | **$35.3** | Q3 FY2025 GAAP EPS to Non-GAAP EPS Reconciliation | Description | Per Share Amount | | :--- | :--- | | **GAAP net loss per share** | **$(0.56)** | | Adjustments (Acquisition, SBC, Impairment, etc.) | $1.75 | | Non-GAAP tax adjustments | $(0.29) | | **Non-GAAP net income per share - diluted** | **$0.90** | [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) The company utilizes non-GAAP measures to provide a clearer view of core operating performance by excluding certain non-recurring or non-cash items - The company uses Non-GAAP measures to supplement GAAP results, believing they provide a better view of **core operating performance** by excluding certain items[13](index=13&type=chunk) - Key adjustments include **acquisition and integration-related costs**, such as amortization of purchased intangibles and legal costs associated with acquisitions[14](index=14&type=chunk)[15](index=15&type=chunk) - **Share-based compensation** is excluded because it is a non-cash expense and its amount can vary based on market forces beyond the company's control[16](index=16&type=chunk) - Other excluded items are **intangible asset impairment charges**, restructuring costs, site remediation accruals, and legal settlements[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Forward-looking statements, including financial guidance, are subject to significant risks and uncertainties that could impact actual results - The press release contains forward-looking statements, including **financial guidance for Q4 FY2025**, which are not guarantees of future performance[25](index=25&type=chunk) - Key risks that could impact future results include **macroeconomic uncertainties**, supply chain disruptions, dependence on large customers, and industry cyclicality[25](index=25&type=chunk) - The company also highlights risks related to **global and geopolitical tensions**, the ability to retain key personnel during a **CEO transition**, and the ability to realize benefits from its transaction with Broadcom[25](index=25&type=chunk)

Core Financial Results - Synaptics reported net revenue of $266.6 million for Q3 fiscal 2025, representing a year-over-year increase of over 12% [2][3] - The GAAP net loss for the quarter was $21.8 million, equating to a loss of $0.56 per basic share, while the non-GAAP net income was $35.3 million, or $0.90 per diluted share [2][6] Business Performance - The growth was primarily driven by Core IoT products, which saw a 43% year-over-year increase and accounted for 25% of total sales [3] - The company launched several new products during the quarter, including Wi-Fi 7 solutions and next-generation Touch controllers, enhancing its portfolio for long-term growth [3] Future Outlook - The company anticipates improving demand trends for Q4 fiscal 2025, with expectations of both sequential and year-over-year revenue growth [4] - Synaptics generated over $74 million in cash flow from operations in Q3, indicating strong underlying business strength [4] Financial Guidance for Q4 - For Q4 fiscal 2025, Synaptics expects revenue in the range of $280 million ± $15 million, with a GAAP gross margin of approximately 42.5% ± 2.0% and a non-GAAP gross margin of 53.5% ± 1.0% [5][6] - Projected non-GAAP earnings per share is expected to be around $1.00 ± $0.20, while GAAP loss per share is projected at ($0.68) ± $0.30 [5][6] Share Repurchase and Cash Flow - The company repurchased approximately 546,000 shares for $37.9 million during the quarter [6] - The balance sheet remains strong, with cash and cash equivalents totaling $360.4 million at the end of March 2025 [26]

Core Insights - Synaptics and Murata Manufacturing are collaborating to create a next-generation turnkey wireless connectivity module specifically for automotive Tier 1 suppliers and OEMs [1] - The partnership will leverage Synaptics' Veros™ Wi-Fi and Bluetooth combo systems on chips (SoCs), which are designed for high performance, low cost, and low power consumption in automotive applications [1][2] Company Overview - Synaptics is focused on innovation in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments [4] - The company offers a range of solutions including Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions [4] - Murata Manufacturing is a leader in the design and manufacture of ceramic-based passive electronic components and communication modules, committed to advanced electronic materials and high-density modules [5] Product Development - Synaptics' Veros portfolio includes products like SYN4383 (Wi-Fi 6E) and SYN4384 (Wi-Fi 7), which are compatible and offer software upgradability [2] - The SYN4390 product provides high-throughput Wi-Fi 7 capabilities for automotive applications, indicating a solid wireless roadmap for future innovations [2] - The collaboration aims to combine Synaptics' SoCs with Murata's expertise in compact and reliable module design, enhancing the performance and integration of wireless modules for the automotive market [3]

Core Insights - Synaptics has launched its first family of Wi-Fi 7 systems-on-chips (SoCs) for IoT, including the SYN4390 and SYN4384, which support bandwidths up to 320 MHz and deliver peak speeds of 5.8 Gbps with low latency [1][3][4] - The new SoCs integrate Wi-Fi 7 with Bluetooth 6.0 and Zigbee/Thread, designed to minimize system costs and power consumption while enhancing user experiences across various applications [1][2][4] - ABI Research forecasts that annual shipments of Wi-Fi 7 chipsets will exceed 2 billion by 2029, with a compound annual growth rate (CAGR) of 56% from 2024 to 2029 [3] Product Features - The Wi-Fi 7 IoT family supports Matter and features a triple combo design, enabling interoperability across Wi-Fi, Bluetooth, and Zigbee/Thread networks [5] - The SYN4390 is currently available for sale, while the SYN4384 is available in limited quantities for evaluation [5] - Key specifications include peak speeds of up to 5.8 Gbps, 320 MHz channel bandwidth, integrated RF front-end, and power management IC to reduce system costs and power consumption [6] Market Opportunity - The growing adoption of Wi-Fi 7 in wireless networking infrastructure presents significant opportunities for diverse Wi-Fi 7-enabled IoT devices [3][4] - Synaptics aims to provide a versatile solution for high-performance, low-power IoT devices, facilitating the development of next-generation connected and AI-enriched IoT products [3][4] - The expansion of Wi-Fi 7 across multiple IoT segments is expected to reach billions of annual device shipments in the coming years [4]

SAN JOSE, Calif., April 15, 2025 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) today announced that it will report financial results for the third quarter of fiscal 2025 on Thursday, May 8, 2025, after the market closes. The Company will host a corresponding conference call for analysts and investors at 2:00 p.m. PT (5:00 p.m. ET), to discuss the results. To participate on the live call, analysts and investors should pre-register at Synaptics Q3 FY2025 Earnings Call Registration.https://registe ...

SAN JOSE, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (NASDAQ:SYNA) today announced its S3930 series breakthrough touch controllers purpose-built to meet the unique technical challenges and high-performance demands of foldable OLED mobile device displays. The S3930's innovative approach delivers exceptional responsiveness, accuracy, and energy efficiency for the thin, larger panels used in a new generation of foldable devices, a market growing at 42% (CAGR).1 "Foldable OLED large pane ...

Core Insights - Synaptics has launched the S3930 series touch controllers designed for foldable OLED mobile device displays, addressing the unique technical challenges of this rapidly growing market, which is expanding at a 42% CAGR [1][2]. Technology Innovations - The S3930 series incorporates innovations to mitigate challenges such as high background capacitance and extreme display noise, enhancing touch responsiveness and accuracy [2][3]. - Key technology includes multi-frequency-region parallel sensing (MFRPS), which reduces the sensing bursts needed for large touch sensors, making the sensing process more efficient and cost-effective [3]. Processor and Performance - The S3930 features an upgraded processor, the E7 MCU core from Si-Five, and Synaptics' Hydra vector co-processor, enabling effective handling of complex algorithms for noise removal and mistouch mitigation [4]. - The Hydra vector co-processor is specifically designed to accelerate machine learning algorithms that require extensive matrix arithmetic [4]. Design and Optimization - The design of the S3930 supports larger OLED panels, including LTPO and polarizer-less options, while allowing for ultra-narrow bezels, contributing to thinner and lighter devices [5]. - The S3930 has a compact footprint of 5.1 × 6.8 mm, providing more space for additional features like larger batteries in device designs [5]. Availability and Market Impact - The S3930 series is currently in the sampling phase, with mass production expected to begin in July 2025, and multiple OEMs and LCMs are evaluating it for next-generation devices [6].

Core Insights - Synaptics has launched the SYN461x family of ultra-low-power SoCs, targeting a market opportunity of approximately $3.2 billion, optimized for embedded Edge AI IoT applications [1][3] - The SYN461x family enhances the Veros™ Triple Combo connectivity portfolio, featuring Wi-Fi, Bluetooth, and Zigbee capabilities, designed for various consumer and industrial applications [1][4] Product Features - The SYN461x supports tri-band Wi-Fi across 2.4, 5, and 6 GHz, low-power Bluetooth/BLE with advanced features, and IEEE 802.15.4 (Thread/Zigbee) for seamless interoperability [5] - It delivers reliable connectivity of up to 50 Mbps while extending battery life and maximizing range, with a low-density packaging option that reduces board costs by 25% [4][5] Market Positioning - The introduction of the SYN461x is seen as a strategic move to capture a significant share of the growing low-power IoT market, leveraging Synaptics' expertise in wireless connectivity and AI [3][4] - The product is positioned to meet the diverse connectivity needs of various low-power IoT applications, emphasizing the importance of domain expertise in this sector [4]

Core Insights - Synaptics has launched the SR-Series high-performance adaptive microcontroller units (MCUs) as an extension of its Astra AI-Native platform, aimed at scalable context-aware Edge AI applications [1][3] - The SR-Series includes three tiers of operation: performance (100 GOPS), efficiency, and ultra-low-power (ULP) always-on (AON), designed to deliver intelligence across various power levels [1][3] - The MCUs are optimized for multimodal Internet of Things (IoT) workloads, featuring a rich set of peripherals and supporting integration into devices like security cameras, sensors, and digital signage [1][4] Technical Highlights - The SR-Series consists of three MCUs: SR110, SR105, and SR102, all utilizing a Cortex-M55 core with Arm Helium technology running up to 400 MHz [4] - The SR110 includes a Cortex-M4 core and Arm Ethos-U55 NPU, while the SR105 and SR102 have varying configurations of the Ethos-U55 NPU and Cortex-M55 core [4][6] - The Machina Micro kit provides an "out-of-the-box" AI development experience, catering to both beginners and experts [4] Market Implications - The introduction of ultra-low-power AI processing at the edge is expected to revolutionize applications in retail and smart home sectors, addressing increasing performance demands [3] - The SR-Series aims to enhance situational awareness in intelligent edge devices through scalable multimodal processing solutions [3]