Synaptics Reports 12% Revenue Increase to $1,074.3 Million, Faces Net Loss of $47.8 Million

Synaptics Incorporated reported a 12% increase in net revenue for the fiscal year ending June 28, 2025, reaching $1,074.3 million compared to $959.4 million in the previous fiscal year. The growth was primarily driven by a significant 53% increase in revenue from the Core IoT product category, which totaled $272.4 million, bolstered by strong demand for wireless connectivity products and contributions from the recent acquisition of Broadcom's Wi-Fi technology. In contrast, revenue from the Mobile product applications category decreased by 9% to $191.8 million, largely due to the end-of-life shipments to a major U.S. mobile customer.

The company's profitability, however, faced challenges, resulting in a net loss of $47.8 million, compared to a net income of $125.6 million in fiscal 2024. This decline was attributed to increased operating expenses, which rose to $574.5 million from $541.4 million, driven by higher research and development costs and restructuring expenses. The gross margin also decreased to 44.7% from 45.8%, reflecting increased amortization expenses related to the acquired intangible assets from Broadcom.

Strategically, Synaptics made significant moves to enhance its product offerings and market position. The acquisition of Broadcom's Wi-Fi technology, finalized in January 2025 for $200.3 million, is expected to accelerate Synaptics' Edge AI strategy and expand its wireless product roadmap. The company also launched new products, including the S3930 touch controller, aimed at improving touch performance in ultra-thin devices. These initiatives are part of Synaptics' broader strategy to capitalize on the growing Internet of Things (IoT) market and enhance its technological leadership.

Operationally, Synaptics employed approximately 1,700 employees as of June 2025, with a significant portion of its workforce located in Asia-Pacific. The company reported a decrease in cash and cash equivalents to $391.5 million from $876.9 million in the previous year, primarily due to cash used in financing activities, including the repayment of its Term Loan Facility. The company also returned $128.3 million to shareholders through stock repurchases during the fiscal year.

Looking ahead, Synaptics anticipates continued growth in the IoT market, although it remains cautious about potential economic volatility and competitive pressures. The company plans to leverage its technological expertise and strategic acquisitions to enhance its product offerings and maintain its market position. Synaptics' management expressed confidence in its ability to navigate the evolving landscape of the semiconductor industry while focusing on innovation and operational efficiency.