Synaptics Reports $266.6 Million Revenue with Net Loss of $21.8 Million for March 2025

Synaptics Incorporated reported a net revenue of $266.6 million for the three months ended March 2025, marking a 12.3% increase from $237.3 million in the same period last year. For the nine months ending March 2025, the company achieved a total revenue of $791.5 million, up 11.2% from $712.0 million in the prior year. The growth in revenue was primarily driven by strong performance in the Enterprise and Automotive product applications, which generated $153.8 million, a 14.2% increase year-over-year, and a significant 42.7% increase in Core IoT applications, which brought in $67.5 million. However, revenue from Mobile product applications declined by 18.1% to $45.3 million due to decreased demand.

Despite the revenue growth, Synaptics reported a net loss of $21.8 million for the three months ended March 2025, compared to a loss of $18.1 million in the same quarter of the previous year. The nine-month net loss improved to $43.1 million from $82.7 million year-over-year. The increase in operating expenses, which rose to $142.1 million from $127.7 million, was attributed to higher research and development costs and a $13.8 million impairment charge related to intangible assets. The gross margin for the quarter was 43.4%, down from 46.5% a year earlier, primarily due to increased amortization of acquisition-related intangibles.

In terms of strategic developments, Synaptics completed the acquisition of Broadcom's Mobile Android Wi-Fi Business for $198 million in cash, which closed on January 30, 2025. This acquisition is expected to enhance Synaptics' position in the IoT market and expand its product offerings, particularly in the Android ecosystem. The company also initiated restructuring actions aimed at improving operational efficiencies, which resulted in restructuring costs of $15.5 million for the nine months ended March 2025.

Operationally, Synaptics reported a decrease in cash and cash equivalents to $360.4 million as of March 2025, down from $876.9 million in June 2024. The decrease was largely due to cash used in financing activities, including the repayment of the Term Loan Facility and stock repurchases. The company’s employee headcount remained stable, with no significant changes reported. Looking ahead, Synaptics anticipates continued growth in its Core IoT and Enterprise and Automotive segments, although it remains cautious about potential macroeconomic challenges and market volatility that could impact demand for its products.