Synaptics Reports Strong Growth in IoT Sales

Synaptics ( (SYNA) ) has released its Q3 earnings. Here is a breakdown of the information Synaptics presented to its investors.

Synaptics Incorporated, a leader in AI-driven edge computing and connectivity solutions, has reported its financial results for the third quarter of fiscal 2025, showcasing significant growth in its Core IoT product sales. The company, known for its innovative technology in AI, wireless connectivity, and sensing solutions, continues to drive advancements in intelligent connected devices across various sectors.

In the latest earnings report, Synaptics announced a 12% year-over-year increase in quarterly revenues, reaching $266.6 million. This growth was largely fueled by a remarkable 43% rise in Core IoT product sales, which now account for a quarter of the company’s total sales. Despite a GAAP net loss of $21.8 million, the company achieved a non-GAAP net income of $35.3 million, reflecting a strong operational performance.

Key financial metrics from the report include a GAAP gross margin of 43.4% and a non-GAAP gross margin of 53.5%. The company also repurchased approximately 546,000 shares for $37.9 million, demonstrating a commitment to returning value to shareholders. Strategic initiatives in the IoT market, including the launch of new products like Wi-Fi 7 solutions and next-generation Touch controllers, are positioning Synaptics for sustained long-term growth.

Looking ahead, Synaptics’ management remains optimistic about future growth prospects, with expectations of continued revenue increases in the fourth quarter. The company plans to focus on executing its technology roadmap and growth initiatives, while maintaining agility in response to macroeconomic and trade challenges. With a strong balance sheet and a robust cash flow from operations, Synaptics is well-positioned to deliver long-term value to its stakeholders.