Synaptics designs and delivers artificial intelligence-native edge solutions that bring AI closer to end users and transform how we engage with intelligent, connected devices, whether at home, at work, or on the move. The company is a strategic partner for many global original equipment manufacturers, offering standard and custom silicon and software platforms for Edge AI, Physical AI, wireless connectivity and human interface technologies. The semiconductor industry is driving transformation across applications with the use of AI, and since 2017, Synaptics has developed products with integrated neural processing engines to help customers in advancing their AI capabilities. The company focuses on three primary markets: Core IoT Applications, Enterprise and Automotive Applications, and Mobile Applications. The Core IoT market includes wireless connectivity solutions such as Wi-Fi, Bluetooth, Bluetooth Low Energy, Zigbee, Thread, Matter, GPS, GNSS, and Ultra Low Energy to address broad IoT applications, as well as the Synaptics Astra family of AI solutions including a scalable portfolio of intelligent edge processors. The Enterprise and Automotive market encompasses biometric fingerprint products under the Natural ID family, video interface solutions featuring DisplayLink and DisplayPort portfolios, touch controller solutions for robotics and humanoid use cases, and automotive solutions including integrated touch and display, local dimming and driver sensing technologies. The Mobile market offers advanced touch solutions for mobile applications with more than 500 touch-related patents and full support for next-generation OLED technologies.

The company competes against many global and local companies, with principal competitors including processor manufacturers of MPU and MCU, wireless connectivity providers of Wi-Fi, Bluetooth, BLE, Zigbee, Thread, and ULE, touch sensor and IC manufacturers, providers of systems on modules and single board computers, semiconductor and subsystem manufacturers, and embedded computing platforms and systems providers. To win, the company focuses on delivering top-quality products, advanced technology, strong technical support, flexible global delivery, reliable supply and competitive pricing. As of June 2026, Synaptics held 2,344 active patents and 661 pending patent applications worldwide that expire between 2026 and 2046, covering aspects of key technologies including touch sensing, voice processing, secure biometrics, display drivers, touch and display integration, docks and adapters, video interfaces, wired and wireless connectivity, audio processing, video processing, edge computing, open AI tools and computer vision. The company's proprietary firmware and software, including source code, are protected by copyright laws and trade secret laws, and the combination of technologies within products, along with the complexity of customer-specific customizations and the length of design cycles, provides a further barrier to replication and unauthorized use.

Synaptics generates revenue through the sale of semiconductor product solutions for incorporation into the products of OEM customers, selling through direct sales employees as well as outside sales representatives, distributors and value-added resellers. The company employs a fabless semiconductor manufacturing platform through third-party relationships, utilizing third-party semiconductor wafer manufacturers to supply silicon wafers integrating proprietary design specifications, with completed wafers forwarded to third-party package and test processors. Revenue is recognized upon the transfer of control of goods to customers in an amount that reflects the consideration expected to be received, with pricing terms negotiated independently with each customer on a stand-alone basis. The company generally supplies products to OEMs through their contract manufacturers and original design manufacturers, supply chain partners or distributors, and considers both the OEMs and their contract manufacturers or supply chain partners to be customers, as well as in some cases distributors. The majority of these customers do not have return rights except under applicable warranty provisions.

Net revenue for fiscal 2026 was $1,197.2 million ¹, compared to $1,074.3 million ² in fiscal 2025, an increase of $122.9 million ³, or 11.4% ⁴. Enterprise and Automotive product applications net revenue was $641.1 million ⁵, or 53.5% ⁶ of net revenue, increasing 5.1% ⁷ compared to $610.1 million ⁸ a year ago, primarily driven by higher unit sales of 1.9% ⁹, a better product mix, and increased license revenue from certain IP. Core IoT product applications net revenue was $389.7 million ¹⁰, or 32.6% ¹¹ of net revenue, increasing 43.1% ¹² compared to $272.4 million ¹³ a year ago, driven by an increase in units sold of 25.8% ¹⁴ and an increase in average selling prices of 8.0% ¹⁵ due to product sales mix, inclusive of the contribution from the Broadcom transaction. Mobile product applications net revenue was $166.4 million ¹⁶, or 13.9% ¹⁷ of net revenue, decreasing 13.2% ¹⁸ compared to $191.8 million ¹⁹ a year ago, primarily due to a decrease in average selling prices of 8.1% ²⁰ and lower license revenue from certain IP.

In January 2025, Synaptics acquired certain assets and obtained non-exclusive licenses relating to Broadcom Inc.'s Wi-Fi technology, intended to accelerate the Edge AI strategy and next-generation products and technology for the IoT markets. The acquired assets primarily include non-exclusive licenses to three developed technology products and the right to obtain licenses for eight roadmap technology intangible assets expected to be delivered at various dates through May 2028, and the company also acquired certain employees from Broadcom. On June 25, 2026, Synaptics entered into an Agreement and Plan of Reorganization with ON Semiconductor Corporation and Sonic Acquisition Corp., pursuant to which Merger Sub will merge with and into Synaptics, with Synaptics surviving as a wholly-owned subsidiary of onsemi. Under the Merger Agreement, each share of Synaptics common stock outstanding immediately prior to the Effective Time will be converted into the right to receive 1.350 ²¹ validly issued, fully paid and non-assessable shares of onsemi common stock. The transaction is expected to close in mid-2027, subject to customary closing conditions, including approval by Synaptics stockholders and the receipt of required regulatory approvals. During fiscal 2026, the company returned $92.7 million ²² to shareholders through repurchase of approximately 1.3 million ²³ shares under the share repurchase program. The company also recorded a $6.8 million ²⁴ impairment charge related to in process research and development acquired in fiscal 2025, reflecting management's decision to cease development and commercialization activities for the technology, and a $5.0 million ²⁵ impairment charge related to the cost method investment due to a significant deterioration in earnings performance of the investee.

In fiscal 2026, Synaptics achieved revenue growth with net revenue increasing 11.4% ²⁶ to $1,197.2 million ²⁷ compared to $1,074.3 million ²⁸ in fiscal 2025. Gross margin as a percentage of net revenue remained flat at 44.7% ²⁹ in both fiscal 2026 and fiscal 2025. Operating loss was $67.1 million ³⁰ for fiscal 2026 compared to $94.1 million ³¹ in fiscal 2025. Net loss was $490.8 million ³² for fiscal 2026 compared to $47.8 million ³³ in fiscal 2025, with the fiscal 2026 net loss significantly impacted by a provision for income taxes of $411.4 million ³⁴ primarily due to a non-cash tax expense associated with the establishment of a full valuation allowance against U.S. federal deferred tax assets. Cash and cash equivalents at the end of fiscal 2026 totaled $442.5 million ³⁵ compared to $391.5 million ³⁶ at the end of fiscal 2025, an increase of $51.0 million ³⁷ driven by cash provided by operating activities of $149.4 million ³⁸, partially offset by cash used in financing activities of $111.5 million ³⁹ primarily related to repurchases of common stock.

Synaptics intends to capitalize on the Edge AI and Physical AI opportunities with its processor solutions, as AI moves from the data center to the edge. The company plans to build upon its existing innovative, intuitive and intelligent semiconductor product solutions portfolio and continue to address the evolving portability, connectivity, security and functionality requirements of new markets including Edge AI, Physical AI, robotics, industrial, extended reality and wearables. The Broadcom transaction is expected to accelerate the Edge AI strategy by enhancing the ability to deliver end-to-end AI and IoT connectivity solutions for edge devices, expand the wireless product roadmap by adding Wi-Fi 8 combo, GPS, GNSS, and Wi-Fi 7 combo products to strengthen the wireless portfolio over the next five years, increase the addressable market to include augmented and virtual reality platforms, Android smartphones and consumer audio, and strengthen the wireless engineering team by adding experienced wireless engineering talent and technical capabilities.

The company intends to develop and expand strategic relationships to enhance the ability to offer value-added semiconductor product solutions to customers, penetrate new markets and strengthen the technological leadership of product solutions. Subject to the restrictions and consent requirements under the Merger Agreement with onsemi during the interim period of the pending transaction, Synaptics also intends to evaluate potential acquisitions of companies and assets to expand technological expertise and to establish or strengthen presence and product offerings in selected target markets.

The filing does not contain specific margin or cost outlook figures for future periods.

Synaptics employs a fabless semiconductor manufacturing strategy through third-party relationships, which results in a scalable business model, enables concentration on core competencies of research and development and product design and engineering, and reduces capital expenditures and working capital requirements. The company selectively partners with foundries and backend processors to solidify longstanding key supply chain relationships. As of June 2026, the company employed approximately 1,700 ⁴⁰ employees, with 21% ⁴¹ located in North America, 70% ⁴² located in Asia Pacific and 9% ⁴³ located in Europe and the Middle East.

Research and development expenses were $381.8 million ⁴⁴ for fiscal 2026 compared to $346.8 million ⁴⁵ in fiscal 2025. The company conducts ongoing R&D programs focusing on advancing existing technologies, improving current product solutions, developing new products, improving design and manufacturing processes, enhancing quality and performance of product solutions and expanding technologies to serve new markets. Capital expenditures for property and equipment were $48.0 million ⁴⁶ during fiscal 2026. On August 5, 2025, the Board of Directors authorized a stock repurchase program to repurchase up to $150 million ⁴⁷ of common stock, though following the announcement of the Merger, share repurchase activity was suspended in accordance with the terms of the Merger Agreement. The company has never declared or paid cash dividends on common stock and currently plans to retain all earnings to finance growth, make debt payments or purchase shares under the common stock repurchase program.

The company faces headwinds from global macroeconomic factors and geopolitical conditions including military conflicts such as the ongoing conflict involving the United States, Israel, Iran and other countries in the Middle East and beyond, U.S. and foreign government policies, inflation, tariffs, interest rates, foreign exchange fluctuations, potential economic slowdowns, and evolving trade regulations and sanctions. The ongoing conflict in the Middle East has increased geopolitical tensions, including sanctions and restrictions affecting key transportation routes such as the Strait of Hormuz, contributing to volatility in global energy prices, which could result in disruptions to transportation routes and supply chains, higher transportation and logistics costs and broader inflationary pressures. Changes in international trade policies, particularly increased tariffs and other barriers or restrictions on trade between the United States and other countries including China, expose the company to legal, regulatory, and operational risks. In calendar 2025 and 2026, the U.S. government announced new tariffs on imports from several countries including China, prompting reciprocal tariffs, and in January 2026, the U.S. government implemented a 25% ⁴⁸ tariff on certain imported semiconductors and chips not intended for use in the U.S.

The continuing constrained availability and elevated pricing of certain memory components across the broader electronics supply chain have at times influenced the timing of orders for certain products, particularly for smaller customers, and limited visibility into future availability, timing, increased associated costs, and the potential for these conditions to persist could affect customer development timelines, purchasing behavior, production schedules, booking patterns, and the timing or visibility of orders in future periods. The company also faces uncertainty in the development and growth of new and emerging markets such as Core IoT, which may develop slower than anticipated or rely on competing technologies that do not include the company's product solutions.

Management's message emphasizes the company's position as a leader in human interface technologies and AI-native edge solutions, with a focus on capitalizing on the Edge AI and Physical AI opportunities as AI moves from the data center to the edge. Key strategic priorities include extending technological leadership by capitalizing on the extensive intellectual property portfolio and engineering know-how to reduce overall size, cost and power consumption of product solutions while increasing applications, capabilities and performance; growing in the Edge AI market by building upon the existing portfolio and addressing evolving portability, connectivity, security and functionality requirements of new markets including Physical AI, robotics, industrial, extended reality and wearables; and pursuing strategic relationships and acquisitions to enhance the ability to offer value-added solutions, penetrate new markets and strengthen technological leadership, subject to restrictions under the Merger Agreement with onsemi. The pending merger with onsemi, announced on June 25, 2026, is expected to close in mid-2027, with each share of Synaptics common stock to be converted into the right to receive 1.350 ⁵⁷ shares of onsemi common stock.

For fiscal 2026, total net revenue was $1,197.2 million ⁵⁸ compared to $1,074.3 million ⁵⁹ in fiscal 2025. Net loss was $490.8 million ⁶⁰ compared to $47.8 million ⁶¹ in the prior year. Diluted earnings per share was not reported as the company reported a net loss; basic loss per share was $12.56 ⁶² for fiscal 2026 compared to $1.22 ⁶³ for fiscal 2025. Gross margin was 44.7% ⁶⁴ in both fiscal 2026 and fiscal 2025. Operating loss was $67.1 million ⁶⁵ compared to $94.1 million ⁶⁶ in fiscal 2025. The provision for income taxes was $411.4 million ⁶⁷ in fiscal 2026 compared to a benefit of $65.7 million ⁶⁸ in fiscal 2025, with the fiscal 2026 provision significantly impacted by a non-cash tax expense associated with the establishment of a full valuation allowance against U.S. federal deferred tax assets. Cash and cash equivalents were $442.5 million ⁶⁹ as of June 27, 2026, compared to $391.5 million ⁷⁰ as of June 28, 2025. Cash provided by operating activities was $149.4 million ⁷¹ in fiscal 2026 compared to $142.0 million ⁷² in fiscal 2025. Interest expense was $23.4 million ⁷³ in fiscal 2026 compared to $39.8 million ⁷⁴ in fiscal 2025, with the decrease primarily driven by the early repayment of the Term Loan Facility in November 2024. The company recorded a $6.8 million ⁷⁵ intangible asset impairment charge related to in process research and development and a $5.0 million ⁷⁶ impairment charge related to a cost method investment during fiscal 2026. Restructuring costs were $3.3 million ⁷⁷ in fiscal 2026 compared to $16.9 million ⁷⁸ in fiscal 2025. Enterprise and Automotive product applications net revenue was $641.1 million ⁷⁹, Core IoT product applications net revenue was $389.7 million ⁸⁰, and Mobile product applications net revenue was $166.4 million ⁸¹.

The completion of the proposed Merger with onsemi is subject to customary closing conditions including approval by Synaptics stockholders and receipt of required regulatory approvals, and if the Merger Agreement is terminated under specified circumstances, Synaptics would be required to pay a termination fee of $235.0 million ⁴⁹ to onsemi, while onsemi would be required to pay a regulatory termination fee of $320.0 million ⁵⁰ to Synaptics under other specified circumstances. The company depends on the Core IoT, Enterprise and Automotive and Mobile product applications markets, which are cyclical, competitive and evolving markets subject to volatility, economic risk and uncertain growth, with average selling prices of products having historically declined and this trend expected to continue. Changes to international trade policies, export controls, and foreign operations expose the company to legal, regulatory, and operational risks, including a 25% ⁵¹ tariff on certain imported semiconductors and chips implemented by the U.S. government in January 2026. The company relies on a concentrated base of OEMs and ODM customers, with a significant portion of revenue generated from a limited number of large customers, and two customers accounted for 10% or more of accounts receivable as of June 27, 2026 ⁵², while three customers accounted for 10% or more of accounts receivable as of June 28, 2025 ⁵³. The company has significant outstanding indebtedness of $850.0 million ⁵⁴ in aggregate principal, including $400.0 million ⁵⁵ in 4.000% Senior Notes due 2029 and $450.0 million ⁵⁶ in 0.75% Convertible Senior Notes due 2031, and the covenants in the credit agreement impose restrictions on the ability to incur additional indebtedness, create liens, make certain investments, merge or transfer assets, pay dividends or repurchase capital stock.