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• The proposed merger with onsemi may be delayed or fail, with a $235.0M Synaptics termination fee or $320.0M onsemi regulatory termination fee in specified scenarios, and a fixed 1.350 share exchange ratio that has already lost value as onsemi's stock declined.
• Revenue is heavily concentrated in cyclical Core IoT, Enterprise, Automotive, and Mobile markets, where demand swings, price erosion, and customer order cancellations can sharply affect results.
• New U.S. tariffs, including a January 2026 25% tariff on certain imported semiconductors, plus China trade tensions and Middle East conflict, threaten supply chains, component costs, and customer demand.
• The company depends on a concentrated base of OEM/ODM customers and outsourced Asian manufacturing without long-term supply or volume commitments, exposing it to forecasting errors, inventory imbalances, and component shortages.
• Fiscal 2026 included a $6.8M IPR&D impairment and a $5.0M cost-method investment impairment, showing acquisition-related write-down risk.
• Debt obligations, including 4.000% Senior Notes due 2029 and 0.75% Convertible Senior Notes due 2031, limit financial flexibility and create potential liquidity and dilution risk.

Our principal executive offices, as well as our principal research and development, sales, marketing and administrative functions, are located in San Jose, California, where we lease office space of approximately 111,000 square feet. We also have other U.S.-based research and development functions in other leased facilities in California and Georgia. Our principal facilities outside of the United States include leased facilities for research and development in India, Israel, Japan and Taiwan. The facilities in Japan and Taiwan also accommodate sales and administrative functions. We have leased facilities in Taiwan and Hong Kong for logistics operations. Other leased facilities are located in China, Korea, and Switzerland for sales and support and in France, Germany, Poland and the U.K. for research and development.

We are party to various litigation matters and claims arising from time to time in the ordinary course of business. While the results of such matters cannot be predicted with certainty, we believe that the final outcome of such matters will not have a material adverse effect on our business, financial condition, results of operations or cash flows. For further information regarding current legal proceedings, see “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 12. Commitments and Contingencies.”

• Net revenue rose 11.4% to $1,197.2M, led by Core IoT growth of 43.1% to $389.7M, including the Broadcom transaction contribution.
• Enterprise and Automotive revenue rose 5.1% to $641.1M on higher unit sales, better mix, and increased IP license revenue, while Mobile fell 13.2% to $166.4M on lower ASPs and license revenue.
• Gross margin stayed flat at 44.7% despite revenue growth, as the company's fabless model makes margin largely insensitive to shipment volume.
• Operating expenses rose to $602.5M, driven by higher share-based compensation, personnel costs, and $10.9M in professional fees tied to the pending onsemi merger.
• A $411.4M income tax provision, mainly from a full valuation allowance against U.S. deferred tax assets, produced a net loss of $490.8M versus a $47.8M loss in fiscal 2025.
• Cash and equivalents rose $51.0M to $442.5M, with $149.4M from operations partly offset by $92.7M in share repurchases; the company expects to close its merger with onsemi in mid-2027.

• Foreign-currency-denominated costs were about 17% of total costs in fiscal 2026 and 2025, while all net revenue was in U.S. dollars.
• A hypothetical 10% adverse currency move would have increased operating loss and net loss by roughly $22.0 million for fiscal 2026, assuming no hedges.
• Foreign-currency accounts payable rose to about 5% of total accounts payable as of June 2026, from 3% a year earlier.
• A 50-basis-point change in interest rates on cash, cash equivalents, and short-term investments would change interest income by about $2.0 million.
• Outstanding long-term debt carried fixed interest rates as of June 2026, so interest-rate risk on interest expense and cash flows is minimal.
• The company notes its currency sensitivity analysis has limitations because exchange rates can move in opposite directions and gains in one currency may not offset losses in another.

• KPMG audited the consolidated financial statements for the three fiscal years ended June 27, 2026 and issued unqualified opinions on both the financial statements and internal control over financial reporting.
• The sole critical audit matter was valuation of inventories, which totaled $156.4 million as of June 27, 2026 and required subjective judgments about excess, obsolete, or unmarketable inventory.
• Total assets declined to $2,102.0 million from $2,584.4 million, while total stockholders' equity fell to $929.5 million from $1,394.9 million.
• Net revenue grew to $1,197.2 million in fiscal 2026 from $1,074.3 million in fiscal 2025, but the company reported a net loss of $490.8 million versus a $47.8 million loss in the prior year.
• The fiscal 2026 net loss was driven primarily by a $411.4 million income tax provision, including a $425.3 million non-cash charge to establish a full valuation allowance against U.S. federal deferred tax assets.
• The company entered into a merger agreement with ON Semiconductor Corporation on June 25, 2026, under which each Synaptics share would convert into 1.350 shares of onsemi common stock, with closing expected in mid-2027.