Synaptics (SYNA) risk factors, FY2025 10-K

Risks Related to Our Industry and Business

1. 01Changes to international trade policies, export controls, and foreign operations expose us to legal, regulatory, and operational risks
2. 02Additionally, our international operations, including in Taiwan, China, South Korea, Hong Kong, and throughout Europe and Asia, expose us to risks such as unexpected regulatory changes, labor law shifts, currency fluctuations, public health emergencies, and environmental compliance burdens
3. 03We face intense competition and our success depends on our ability to deliver innovative, high-performance solutions
4. 04Our growth depends on the successful development of emerging markets, including Core IoT, which may be slower, more competitive, or more regulated, which could result in our losing or failing to gain market share and suffering reduced revenue
5. 05In addition, unfavorable developments with respect to global laws and regulations—including those affecting artificial intelligence and data governance—could slow or limit adoption of products in these markets, impede our strategic plans, or require changes to our offerings
6. 06We depend on third parties for manufacturing and supply, and face risks from inventory imbalances, demand uncertainty, and component shortages that may disrupt our operations and reduce margins
7. 07Defects, security vulnerabilities, or performance failures in our products could result in liability, reputational harm, and lost revenue opportunities
8. 08If we fail to manage our growth and scale our operations effectively, our infrastructure and resources could be strained, our ability to effectively manage our business could be diminished and our operating results could suffer
9. 09Our ability to protect our intellectual property, avoid infringement of third-party rights, and manage licensing compliance, including with open source software, is critical to our competitiveness and subject to legal risk
10. 10Foreign exchange rate volatility could adversely affect our margins, pricing and competitiveness
11. 11We face risks associated with security breaches or cyberattacks

Risks Related to Acquisitions and Strategic Alliances

1. 12Any acquisitions or strategic alliances that we undertake could be difficult to execute or integrate, may not achieve expected results, and could disrupt our business or dilute stockholder value

Risks Related to Our Employees

1. 13We depend on key personnel who would be difficult to replace and our business will likely be harmed if we lose their services, cannot hire additional qualified personnel or do not manage transitions effectively
2. 14If we are unable to obtain stockholder approval of share-based compensation award programs or additional shares for such programs, we could be at a competitive disadvantage in the marketplace for qualified personnel or may be required to increase the cash element of our compensation program
3. 15We may need to raise additional capital to support our growth, and failure to do so on acceptable terms could limit our ability to compete
4. 16We have significant outstanding indebtedness, including our 4.000% Senior Notes due 2029 and our 0.75% Convertible Senior Notes due 2031 (“2031 Notes”). We may incur additional debt under our credit agreement or the indentures, which could amplify the risks described below
5. 17settlement method, to settle the principal amount of the 2031 Notes in cash, and any conversion involving cash settlement could significantly affect our liquidity
6. 18We may incur material environmental liabilities as a result of prior operations at an acquired company
7. 19Changes in U.S. and foreign tax laws, implementation of Pillar Two and OBBBA, or adverse audit outcomes could materially affect our effective tax rate, financial position, and cash flows
8. 20We are subject to governmental laws, regulations and other legal obligations related to privacy and data protection
9. 21Environmental, social and governance (“ESG”) matters may adversely affect our relationships with customers and investors
10. 22The market price of our common stock has been and may continue to be volatile