Synaptics Reports $302.5M Revenue in Q2 Fiscal 2026, Despite $14.8M Net Loss

Synaptics Incorporated reported a net revenue of $302.5 million for the second quarter of fiscal 2026, marking a 13.2% increase from $267.2 million in the same period last year. The growth was primarily driven by a significant 52.5% increase in revenue from Core IoT product applications, attributed to higher unit sales and improved average selling prices. For the first half of the fiscal year, total revenue reached $595.0 million, up 13.4% from $524.9 million in the prior year. Despite the revenue growth, the company reported a net loss of $14.8 million for the quarter, compared to a net income of $1.8 million in the same quarter last year.

The company's gross margin for the three months ended December 2025 was 43.5%, down from 45.7% in the prior year, primarily due to increased amortization of acquired intangible assets from the Broadcom acquisition. Operating expenses rose to $146.8 million, up from $137.4 million a year earlier, driven by higher research and development costs, which increased by $11.8 million to $95.1 million. This increase was largely due to higher wages and stock-based compensation related to the workforce acquired from Broadcom.

In terms of operational metrics, Synaptics reported a cash and cash equivalents balance of $437.4 million as of December 2025, an increase from $391.5 million in June 2025. The company generated $60.0 million in cash from operating activities during the first half of the fiscal year, a significant improvement from $11.4 million in the same period last year. Additionally, Synaptics repurchased $36.4 million of its common stock during the quarter, with $106.4 million remaining under its stock repurchase program.

Geographically, revenue from China and Hong Kong accounted for $144.1 million, up from $112.2 million a year ago, while revenue from Taiwan also increased to $86.2 million from $77.4 million. The company continues to face challenges related to macroeconomic conditions, including supply chain constraints and fluctuating demand across its target markets. Synaptics remains focused on its strategic initiatives, including the integration of Broadcom's assets and the development of new product solutions.

Looking ahead, Synaptics anticipates continued growth in its Core IoT and Enterprise and Automotive product applications, although it acknowledges potential risks from market volatility and supply chain dynamics. The company is committed to optimizing its operations and maintaining a strong financial position to navigate these challenges effectively.