Financial Data and Key Metrics Changes - Revenue for fiscal year 2025 increased by 12% to $1,074 million, driven by strong performance in core IoT products, which grew 53% year over year [10][20] - For fiscal Q4, revenue was $282.8 million, up 14% year over year and slightly above the midpoint of guidance [10][21] - Non-GAAP gross margin for Q4 was 53.5%, in line with guidance, while non-GAAP EPS increased by 58% year over year to $1.01 [11][23] Business Line Data and Key Metrics Changes - Core IoT product sales increased by 55% year over year in Q4, accounting for 30% of total revenue [11][22] - Enterprise and automotive product revenues improved by 4% year over year but decreased by 3% sequentially, primarily due to softness in automotive demand [15][22] - Mobile touch product revenues increased by 8% sequentially, remaining roughly flat year over year [22] Market Data and Key Metrics Changes - The company is seeing strong traction in the Wi-Fi 7 solutions, with design opportunities across various customer segments including IoT, enterprise, and automotive applications [11][12] - Demand in the enterprise segment is recovering modestly, while automotive demand remains soft [15][20] Company Strategy and Development Direction - The company aims to expand its share in existing markets and explore new ones, focusing on core IoT growth and maintaining a disciplined execution strategy [9][10] - There is a strong emphasis on leveraging existing capabilities in analog mixed signal, multicore processors, and wireless connectivity to drive long-term value [8][9] - The company plans to evaluate its product portfolio and shape its roadmap for sustained success [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to gain market share during the Wi-Fi 7 technology transition and highlighted the potential of new edge AI processors [12][13] - The management acknowledged the uncertain macroeconomic environment but remains optimistic about revenue growth in core IoT, projecting a revenue midpoint of approximately $290 million for Q1 2026 [26][50] Other Important Information - The company reduced total gross debt by approximately $134 million or 14% during the fiscal year [21] - A new share repurchase program for up to $150 million was authorized, reflecting the board's confidence in the long-term strategy [24] Q&A Session Summary Question: How might the strategy change for Synaptics in the IoT market? - Management indicated excitement about the portfolio and plans to enhance the offering by integrating processors, wireless connectivity, and mixed signal capabilities [29][30] Question: Are there other building blocks needed to fill out the solution? - Management emphasized a disciplined approach to investments, focusing on organic growth while remaining open to inorganic opportunities if they align with growth in core IoT [33][34] Question: Have any low ROI investments been identified? - Management is reviewing all product categories and will provide clearer direction at the Analyst Day regarding focus areas and potential product pruning [39][40] Question: Can you elaborate on order activity and channel inventory levels? - Management noted improved order activity and healthy backlog levels, with lean channel inventories that are expected to replenish as demand trends improve [43][46] Question: How sustainable is the improvement in enterprise demand? - Management expressed confidence in the visibility of revenue trends for the upcoming quarters, although they noted typical seasonality patterns in March [50][62] Question: What is the outlook for margins? - Management indicated that improving the margin profile will depend on product mix and the introduction of new products, with long-term gross margins expected to improve [66][68]

Financial Performance - Q4 2025 revenue reached $282.8 million, a 14% year-over-year increase[5] - FY2025 revenue totaled $1.074 billion, reflecting a 12% year-over-year growth[5] - Core IoT revenue grew by 55% year-over-year in Q4 2025 and 53% year-over-year for FY2025[5, 7] - Non-GAAP gross margin for FY25 was 53.6%, and for Q4'25 it was 53.5%[7] - Non-GAAP diluted earnings per share for FY25 was $3.62, a 61% increase year-over-year[14] Segment Revenue (Q4'FY25) - Core IoT revenue was $84 million[11] - Enterprise & Auto revenue was $150 million[11] - Mobile revenue was $49 million[11] Q1'FY26 Guidance - Revenue is projected to be $290 million, plus or minus $10 million[30] - Core IoT is expected to contribute 32% to the revenue mix[30] - Enterprise & Auto is expected to contribute 53% to the revenue mix[30] - Mobile is expected to contribute 15% to the revenue mix[30]