Synaptics (SYNA) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $266.6 million, up 12% year-over-year, driven by 43% growth in Core IoT products and solid Enterprise & Automotive performance, partially offset by Mobile declines.

• Non-GAAP EPS grew 70% year-over-year to $0.90, while GAAP net loss was $21.8 million ($0.56 per share); non-GAAP net income was $35.3 million.

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

• Launched new Wi-Fi 7, Veros connectivity, and next-gen Touch controller products, strengthening IoT and Edge AI offerings.

• Repurchased 546,000 shares for $37.9 million in Q3; $128 million returned YTD.

Financial highlights

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

• Non-GAAP operating margin was 15.6%, up 267 bps year-over-year; GAAP operating margin was -9.9%.

• Cash and equivalents at quarter end were $360.4 million to $421.4 million, reflecting acquisition and repurchases.

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

• Operating expenses rose year-over-year due to R&D, intangible asset impairment, and restructuring costs.

Outlook and guidance

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

• Q4 non-GAAP EPS guidance is $1.00 midpoint, plus or minus $0.20.

• Revenue mix for Q4 projected at 30% Core IoT, 54% Enterprise & Automotive, 16% Mobile.

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

• Guidance reflects improving demand trends, healthy backlog, and continued innovation despite macroeconomic and tariff uncertainties.