Slide 1: Second Quarter Fiscal 2025 Earnings & New Broadcom Agreement
Second Quarter Fiscal 2025 Earnings & New Broadcom Agreement Supplemental Slides February 6, 2025 © 2025 Synaptics Incorporated 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and the Federal Securities laws. Forward-looking statements give our current expectations and projections relating to
Slide 3: New Broadcom Agreement Summary
New Broadcom Agreement Summary © 2025 Synaptics Incorporated 3
Slide 4: Strategically Compelling Transaction
Strategically Compelling Transaction 1 Accelerates Edge AI Strategy Strengthens leadership in IoT connectivity 2 Helps to Secure Wireless Product Roadmap for the Next 5+ Years Adds Wi-Fi 8 combo, UWB, GPS as well as additional Wi-Fi 7 combo products 3 Increases Addressable Market Expands field of us
Slide 5: Enabling an Ecosystem for AI at the Edge
Enabling an Ecosystem for AI at the Edge ▪ Provides centralized control for an ecosystem of edge AI devices ▪ Delivers end-to-end seamless connectivity at the edge SENSORS SMART HOME SECURITY AUTOMOTIVE WEARABLES HEALTHCARE © 2025 © 2024 Synaptics Synaptics Incorporated Incorporated 5 5
Slide 6: Broaden IoT Product Portfolio & Technology
Broaden IoT Product Portfolio & Technology ▪ Strengthens leadership in IoT Wi-Fi with high-performance & broad market Wi-Fi 8 devices ▪ Expands portfolio to include next-gen GNSS products and ultra-wideband intellectual property ▪ Increases addressable market CURRENT EXPANSION APPLICATIONS IP Camera
Slide 7: Expand IoT Wireless Engineering Team
Expand IoT Wireless Engineering Team Establishes one of the largest and most highly-qualified teams in cutting-edge FY2025 HIGHLY QUALIFIED TALENT wireless research and development ▪ Add engineering team ▪ Wi-Fi 8 Combo FY2024 MARKET EXPANSION ▪ Organic expansion into broad markets ▪ Wi-Fi 7 Combo F
Slide 8: Transaction Summary
Transaction Summary ▪ New licensing agreement with Broadcom ▪ Multiple Wi-Fi 8 roadmap products ▪ Additional Wi-Fi 7 products TRANSACTION ▪ Next-gen GNSS products ▪ Ultra-wideband intellectual property ▪ Front-end modules CONSIDERATION ▪ $198 million in total cash consideration FINANCIALS ▪ $40+ mil
Slide 9: Q2 Fiscal 2025 Financials
Q2 Fiscal 2025 Financials © 2025 Synaptics Incorporated 9
Slide 10: A High-Performance IoT Semiconductor Solutions Leader
A High-Performance IoT Semiconductor Solutions Leader Analog Mixed Signal Core IoT Product Strong Margin Revenue Semiconductors Applications Profile Broad Product Targeting $33B Non-GAAP Gross Q2’25 Revenue Portfolio SAM in FY28 Margin 53.6% in Q2’25(1) up 13% YoY ___________________________ Note: A
Slide 11: Q2'FY25 Financial Highlights
Q2’FY25 Financial Highlights • Revenue of $267 million, up 13% YoY • Revenue was up 4% QoQ. Growth in Core IoT and $47 Enterprise & Automotive $61 • Gross margins were slightly above the mid-point of guide – GAAP gross margin of 45.7% Q2’FY25 Revenue – Non-GAAP gross margin of 53.6% $267M • GAAP ear
Slide 12: Solid YoY Growth
Solid YoY Growth • Revenue up 13% YoY • Core IoT revenue increased 63% • Non-GAAP EPS growth of 61%(1) Revenue Core IoT Revenue Non-GAAP EPS(1) $0.92 $61 $267 13% YoY 63% YoY 61% YoY $0.57 $38 $237 Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 (1) Non-GAAP EPS is a non-GAAP measure. For a reconciliation to th
Slide 13: Quarterly Revenue Trend
Quarterly Revenue Trend Total Revenue ($M) Core IoT Revenue Mix 23% 23% 22% $267 20% $258 16% $247 $237 $237 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Note: As-reported, not pro forma for any acquisition/divestiture activity over this timeframe Prior period is reclassified to curre
Slide 14: Quarterly Gross Margin Trend
Quarterly Gross Margin Trend Non-GAAP Gross Margin(1) GAAP Gross Margin 53.4% 53.9% 53.6% 52.5% 52.9% 46.5% 46.9% 46.0% 45.8% 45.7% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Note: As-reported, not proforma for any acquisition/divestiture activity over this timeframe (1)Non-GAAP gro
Slide 15: Q2'FY25 Financial Results
Q2’FY25 Financial Results $M (except percentages & EPS) Q2'24 Q1’25 Q2'25 QoQ YoY Revenue $237.0 $257.7 $267.2 4% 13% GAAP Gross Margin % 46.0% 46.9% 45.7% -120 bps -30 bps GAAP Operating Expenses $126.9 $149.3 $137.4 (8%) 8% GAAP Operating Margin -7.5% -11.0% -5.7% 531 bps 181 bps GAAP EPS ($0.23)
Slide 16: Q2'FY25 Balance Sheet
Q2’FY25 Balance Sheet In Millions Q4’24 Q1’25 Q2’25 Cash & ST Investments $876.9 $853.6 $596.1 AR $142.4 $135.8 $146.5 Inventory $114.0 $119.6 $119.5 PP&E $75.5 $79.5 $75.3 Other $1,616.2 $1,602.7 $1,590.1 Total Assets $2,825.0 $2,791.2 $2,527.5 Current Liabilities (excluding debt) $271.2 $247.9 $22
Slide 17: Q3'FY25 Guidance
Q3’FY25 Guidance $M (except EPS) GAAP Non-GAAP Revenue $265M ± $15M NA Gross Margin* 45.2% ± 2.0% 53.5% ± 1.0% Operating Expenses** $141M ± $3M $101M ± $2M EPS*** ($0.47) ± $0.30 $0.85 ± $0.20 Revenue mix Core IoT 25% NA Enterprise & Auto 58% NA Mobile 17% NA *Projected Non-GAAP gross margin exclude
Slide 18: Appendix
Appendix © 2025 Synaptics Incorporated 18
Slide 19: GAAP to Non-GAAP Reconciliation Tables
GAAP to Non-GAAP Reconciliation Tables Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Actual Actual Actual Actual Actual Actual Actual Actual Actual GAAP gross margin $ 122.2 $ 120.9 $ 113.4 $ 110.3 $ 109.0 $ 107.1 $ 101.2 $ 172.3 $ 186.7 Acquisition & integration related costs 20.8 20.8 17.8
Slide 20: GAAP to Non-GAAP Reconciliation Tables - continued
GAAP to Non-GAAP Reconciliation Tables - continued Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Actual Actual Actual Actual Actual Actual Actual Actual Actual GAAP net income (loss) $ 1.8 $ (23.1) $ 208.3 $ (18.1) $ (9.0) $ (55.6) $ (23.4) $ 10.4 $ 22.0 Acquisition & integration related cos
Slide 21: Economic dilutive impact of a Convertible and Capped call
Economic dilutive impact of a Convertible and Capped call Dilution from (Accretion) from Stock Price Convertible (mm) Capped Call (mm) Net Dilution (mm) $75.24 0 0 0 $80.00 0 0 0 $90.00 0 0 0 $100.00 0.0 -0.0 0 $110.00 0.4 -0.4 0 $120.00 0.8 -0.8 0 $130.00 1.1 -1.1 0 $140.00 1.3 -1.3 0 $150.00 1.5 -