Synaptics Incorporated (SYNA)

Pretax margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before tax but after interest (EBT)	US$ in thousands	-113,500	-124,600	126,000	320,500	120,100
Revenue	US$ in thousands	1,074,300	959,400	1,355,100	1,739,700	1,339,600
Pretax margin		-10.57%	-12.99%	9.30%	18.42%	8.97%

June 30, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $-113,500K ÷ $1,074,300K
= -10.57%

Over the period from June 30, 2021, to June 30, 2025, Synaptics Incorporated's pretax margin has exhibited notable fluctuations. In fiscal 2021, the company reported a pretax margin of approximately 8.97%, indicating a modest level of profitability before taxes. This margin increased substantially in fiscal 2022 to approximately 18.42%, reflectng improved operational efficiency or enhanced profitability from core activities. However, in fiscal 2023, the pretax margin declined sharply to around 9.30%, suggesting a diminution in profitability relative to the previous year, potentially due to increased expenses, margin pressures, or other operational challenges.

The trend shifts markedly in fiscal 2024, whereby the pretax margin turns negative, at approximately -12.99%. This indicates that the company's pre-tax earnings not only declined but resulted in a pre-tax loss during this period. Similarly, in fiscal 2025, the negative margin persists, albeit slightly improved at roughly -10.57%. The persistent negative margins in these years may be attributable to significant expenses, restructuring costs, impairments, or other extraordinary items adversely impacting pre-tax income.

Overall, the pretax margin trajectory suggests considerable variability in Synaptics' profitability pre-tax over these years, with an initial growth phase culminating in a peak in 2022, followed by a substantial deterioration leading to pre-tax losses in subsequent years.