SYNAPTICS INCORPORATED

Red flags

• Net loss widened to $490.8 million from $47.8 million, while diluted loss was $12.62 per share; 3.1 million potentially dilutive shares were excluded from fiscal 2026 EPS.
• Total debt was $850.0 million against $442.5 million of cash and equivalents, implying gross debt nearly twice cash; the 2031 Notes had an estimated fair value of $658.0 million versus a $439.6 million carrying amount.
• The company recorded a full valuation allowance on U.S. deferred tax assets as of June 2026, reflecting its assessment that realization was not more likely than not.
• Two customers represented 24% of accounts receivable at June 2026, indicating meaningful receivables concentration even though no individual customers were identified.
• Inventory increased to $156.4 million from $139.5 million, while the business acknowledges exposure to customer cancellations, demand declines, product obsolescence and losses on contract-manufacturer purchase commitments.
• The proposed consideration is stock-only and variable in economic value: each Synaptics share converts into 1.350 onsemi shares, with closing subject to stockholder and regulatory approval.