Synaptics (SYNA) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue was $266.6 million, up 12% year-over-year, driven by 43% growth in Core IoT sales, while Mobile declined and Enterprise & Automotive grew 14% YoY but fell sequentially.

• Non-GAAP EPS rose 70% YoY to $0.90; GAAP net loss was $21.8 million ($0.56 per share), impacted by higher R&D, impairment, and restructuring costs.

• Completed $198 million acquisition of Broadcom's Mobile Android Wi-Fi Business, expanding Core IoT portfolio and expected to add $40M+ in annualized sales.

• Launched Wi-Fi 7 and new wireless devices, next-gen Touch controllers, and expanded Astra Edge AI platform.

• Repurchased 546,000 shares for $37.9 million in Q3 FY25.

Financial highlights

• Non-GAAP gross margin was 53.5%; GAAP gross margin was 43.4%.

• Non-GAAP operating margin was 15.6%; GAAP operating margin was -9.9%.

• Cash and equivalents at quarter end were $360.4 million, down from $596.1 million in the prior quarter.

• Cash flow from operations was $74 million for Q3 FY25; nine-month net cash from operations was $84.8 million.

• Operating expenses rose to $142.1 million, including $13.8 million intangible asset impairment and $0.5 million restructuring costs.

Outlook and guidance

• Q4 FY25 revenue expected at $280 million midpoint, plus or minus $15 million; non-GAAP gross margin projected at 53.5% ±1.0%.

• Non-GAAP net income per diluted share anticipated at $1.00 midpoint, plus or minus $0.20.

• Revenue mix guidance: 30% core IoT, 54% enterprise/automotive, 16% mobile.

• Management expects Broadcom Wi-Fi acquisition to generate over $40 million in annualized Core IoT sales.

• Macroeconomic, tariff, and trade uncertainties persist, but backlog and bookings remain healthy.