Synaptics Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kevin Cassidy - Rosenblatt Securities Inc - Analyst : Yeah, thanks for taking my question and congratulations on the great results. And welcome, Rahul. And my question is for Rahul. I'm certain at the Analyst Day, you'll go into more details, but you had great success in the IoT market at Qualcomm. And I just want to know how this strategy might change as you come to the Synaptics platform?

Question: Kevin Cassidy - Rosenblatt Securities Inc - Analyst : That's great color. Thank you for that. And maybe just one other is the, are there other building blocks you might need to acquire to fill out the whole solution, maybe some other types of connectivity aside from the wireless connectivity?

Question: Kevin Cassidy - Rosenblatt Securities Inc - Analyst : Great, thank you.

Question: Christopher Rowland - Susquehanna - Analyst : Hey guys, thanks for the question and perhaps following on Kevin's. So welcome, Rahul. My questions are going to be a little bit more targeted. So have you identified some areas of perhaps product pruning or like low ROI investments? And then alternatively, have you found you might have some areas of pricing power or pricing optimization that you may be able to implement? And then lastly, Synaptics has historically not had a great channel presence. Have you thought about how to beef that up?

Question: Christopher Rowland - Susquehanna - Analyst : Excellent. And then this one is probably for you, Ken. I think in your prepared remarks, you said order activity, backlog and channel inventory levels have improved. Perhaps you can talk a little bit more about that order activity, like I don't know, like percentage of book versus turn that you need,

Question: Christopher Rowland - Susquehanna - Analyst : Awesome, thank you guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 9:00PM, SYNA.OQ - Q4 2025 Synaptics Inc Earnings Call

Question: Krish Sankar - Cowen and Company LLC - Analyst : Yeah, hi, thanks for taking my question. Welcome, Rahul. And Ken, first one for you, just to follow up on the previous question. Channel inventory is getting lower, backlog is improving. It looks like you're seeing some signs of improvement, especially on enterprise. I'm very curious how sustainable is this given the fact that IT spending budgets are still very tepid? How should we think about December or March quarter revenue trends overlaying any kind of seasonality we should expect?

Question: Krish Sankar - Cowen and Company LLC - Analyst : Super helpful, Ken. And then just as a follow-up for Rahul. I understand you're going to talk more about your strategy at the Analyst Day. But you kind of mentioned about scaling Synaptics larger, focus more on organic. I'm kind of curious, Synaptics historically has not had strength in industrial IoT. Is it a segment you think it's worth pursuing? Or is it tough to get traction organically or maybe you have to do an acquisition? Or is it something that doesn't make sense for Synaptics? Thank you.

Question: Krish Sankar - Cowen and Company LLC - Analyst : Thanks, well, very helpful. Thank you.

Question: Peter Peng - JPMorgan Chase & Co - Analyst : Yeah, thanks for taking my questions and welcome, Rahul. Just when you look at just your three business segments, where do you -- any kind of color on whether you're going to be prioritizing certain segments? And where do you think Synaptics is in terms of this transformation journey to an IoT company? Is there a certain -- is divestiture something that you're considering? Maybe we'll start there.

Question: Peter Peng - JPMorgan Chase & Co - Analyst : Got it. Okay. Perfect. And then just maybe a more near-term question. Is there any signs of demand pull forward? And you alluded some typical seasonal trends in March. What is typical seasonality to you guys?

Question: Peter Peng - JPMorgan Chase & Co - Analyst : Thank you.

Question: Jacob Grandstaff - Mizuho Securities USA LLC - Analyst : Hey guys, This is Jacob on for Vijay at Mizuho. Thanks for letting ask question. And Rahul, welcome as well. First one is going to be on margins. You

Question: Jacob Grandstaff - Mizuho Securities USA LLC - Analyst : Awesome. I appreciate the color, and that's a good segue into my second one. I wanted to ask on Astra. So we talked last quarter, I think, Ken, you mentioned $300 million incremental design funnel from Astra. So just wondering what that looks like now, and how quickly you guys think you can ramp wins because you mentioned revenue starting with second half of '26. Thanks, guys.

Question: Nick Doyle - Needham & Company - Analyst : Hey guys, thanks for taking my questions and also welcome, Rahul. Congrats on a successful Astra tape out. I think that was executed a bit ahead of expectations. That Core IoT audio OEM marquee wins, I mean you listed the reasons why, but could you just expand on that win? How are you able to win so quickly after the first tape out? What does that audio customer really need that you're offering? And what kind of other opportunities are you looking at near term for that Astra SOC? Thanks.

Question: Nick Doyle - Needham & Company - Analyst : Yeah, that's helpful. Near term, I mean, very strong Core IoT growth embedded in the guide. I mean, what's driving that? Is that more Wi-Fi, more Bluetooth, seeing some market growth there, and that's what's driving it? Like any more color would be really helpful. Thanks.

Question: Nick Doyle - Needham & Company - Analyst : Thank you.