Synaptics (SYNA) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached $257.7M, up 8.4% year-over-year and 4% sequentially, driven by 55% growth in Core IoT and strong Mobile segment performance, partially offset by a decline in Enterprise and Automotive.

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

• Gross margin improved to 46.9% GAAP and 53.9% non-GAAP, reflecting favorable product mix and lower inventory charges.

• New product introductions and design wins in wireless, Wi-Fi 7, and edge AI processors, with Astra platform winning a 2024 EDGE Award.

• Restructuring actions in Q1 FY25 incurred $14.2M in charges to focus on growth and reduce costs.

Financial highlights

• Net revenue: $257.7M, up from $237.7M year-over-year; non-GAAP gross margin: 53.9%; GAAP gross margin: 46.9%.

• Non-GAAP operating margin: 16.7%, up 400+ bps year-over-year; non-GAAP net income: $32.5M.

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

• GAAP operating loss: $28.4M, improved from $35.2M year-over-year.

• Debt, net: $972M; shareholder equity: $1,467M as of Q1'25.

Outlook and guidance

• Q2 FY25 revenue guidance: $265M ± $15M; non-GAAP gross margin: 53.5% ± 1.0%; non-GAAP EPS: $0.85 ± $0.20.

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

• Sequential growth anticipated, but macroeconomic headwinds and limited forward visibility persist.