Synaptics (SYNA) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached $257.7M–$258M, up 8–8.4% year-over-year and 4% sequentially, driven by 55% growth in Core IoT and strong wireless and processor product sales.

• Non-GAAP EPS increased 56% year-over-year to $0.81, while GAAP net loss narrowed to $23.1M ($0.58 per share), reflecting improved gross and operating margins.

• Core IoT design pipeline expanded to over $3B, supporting projected 25–30% compounded revenue growth over five years.

• New product introductions and design wins in wireless, processors, and video interface segments, with Astra platform winning a 2024 EDGE Award.

• Inventory headwinds have eased, and restructuring actions were taken to focus on growth initiatives.

Financial highlights

• Q1 revenue: $257.7M–$258M; Core IoT contributed 22–23%, Enterprise & Automotive 57–59%, Mobile 17–20%.

• Non-GAAP gross margin: 53.9%; GAAP gross margin: 46.9%.

• Non-GAAP net income: $32.5M; non-GAAP EPS: $0.81; GAAP net loss: $23.1M.

• Cash and equivalents: $853.6M–$854M; cash used in operations: $11.4M, impacted by a one-time $30M IP onshoring tax payment.

• Inventory: $119.6M; days sales outstanding: 47 days; annual inventory turns: 4.

Outlook and guidance

• Q2 FY25 revenue guidance: $265M midpoint (±$15M); sequential growth expected.

• Q2 non-GAAP gross margin: 53.5% midpoint (±1%); non-GAAP EPS: $0.85 midpoint (±$0.20).

• Revenue mix for Q2: Core IoT 24%, Enterprise & Automotive 59%, Mobile 17%.

• Continued focus on expense management, investment for long-term growth, and sequential margin expansion.

• Forward visibility remains limited due to macroeconomic headwinds and market conditions.