Synaptics Incorporated (SYNA)

Pretax margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-113,500	-124,400	-120,300	-118,300	-124,600	-132,200	-81,700	-18,300	126,000	285,500	345,100	377,600	320,500	247,000	184,800	165,400	120,100	190,200	181,400	161,100
Revenue (ttm)	US$ in thousands	1,074,300	1,038,900	1,009,600	979,400	959,400	939,300	1,028,600	1,144,700	1,355,100	1,604,200	1,747,700	1,815,100	1,739,700	1,591,100	1,446,800	1,383,900	1,339,600	1,289,400	1,291,700	1,322,400
Pretax margin		-10.57%	-11.97%	-11.92%	-12.08%	-12.99%	-14.07%	-7.94%	-1.60%	9.30%	17.80%	19.75%	20.80%	18.42%	15.52%	12.77%	11.95%	8.97%	14.75%	14.04%	12.18%

June 30, 2025 calculation

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

The pretax margin of Synaptics Incorporated has exhibited notable fluctuations over the analyzed period from September 2020 through June 2025. In late 2020, the company demonstrated a stable and improving pretax margin, rising from 12.18% in September 2020 to 14.04% at the end of December 2020, and further reaching 14.75% by March 2021. During the subsequent year, the pretax margin ranged predominantly between approximately 9% and 15%, with peaks at 15.52% in March 2022 and 20.80% in September 2022, reflecting periods of enhanced profitability.

The most significant upward trend occurred during 2022, where the margin increased consistently, peaking at 20.80% in September 2022, indicating improved cost management and operational efficiency or favorable product mix during this time. However, starting in late 2022 and into 2023, a declining trend emerged, with the margin diminishing to 17.80% by March 2023 and then dropping sharply to negative territories at -1.60% in September 2023. Throughout the remainder of 2023 and into mid-2024, the pretax margin remained negative, reaching as low as -14.07% in March 2024, signaling operational challenges or significant cost pressures adversely impacting profitability.

From mid-2024 through mid-2025, the negative pretax margin persisted, though there was a gradual improvement, decreasing from -12.99% in June 2024 to approximately -10.57% in June 2025. This progression suggests some potential stabilization or minor recovery efforts but remains indicative of ongoing profitability issues.

Overall, the pretax margin pattern reveals a period of growth and relative stability into late 2022, followed by a substantial deterioration starting in late 2022 through 2023 and into 2024. The persistent negative margins in this latter period highlight challenges faced by Synaptics, necessitating further analysis to identify contributing factors such as increased costs, declining revenues, or strategic shifts affecting profitability.