Synaptics’ trailing twelve-month free cash flow fell 58.1% in FY2027 Q1, to $64.8 million. Operating cash flow declined, and capital expenditure increased, leaving less cash after investment. Net income was also sharply negative: the trailing twelve-month result was a loss of $487.9 million, with a net margin of −40.7%.
The gap between the two measures needs care. The percentage declines alone do not show that cash generation held up well: free cash flow was lower, and its margin fell. The figures do show that the deterioration in net income was steeper than the deterioration in free cash flow. They do not explain the accounting or operating items behind that difference.
Operating cash flow and investment
Operating cash flow over the trailing twelve months was $103.7 million, down 43.5% year on year. Capital expenditure was $38.9 million, up 34.6%. Since free cash flow is operating cash flow less capital expenditure, the combination of lower cash from operations and higher spending on property, plant and equipment reduced the cash remaining after investment.
Revenue grew 8.1% over the same trailing twelve-month period, to $1,198.7 million. Cash generation therefore weakened while sales increased. That divergence is a useful description of the period, though the aggregate figures do not identify whether working capital, earnings adjustments or another operating factor drove the decline in cash flow.
The margin figures add scale. Free cash flow was 5.4% of revenue, down 8.5 percentage points from the year-earlier trailing twelve months. In Synaptics’ own prior history, this margin ranked in the 6th percentile across 34 prior trailing twelve-month observations. The current margin is near the low end of that record, although it remains above the historical minimum of 3.2%.
| Measure | FY2027 Q1, trailing twelve months | Year-on-year change |
|---|---|---|
| Revenue | $1.2 billion | up 8.1% |
| Operating cash flow | $103.7 million | down 43.5% |
| Capital expenditure | $38.9 million | up 34.6% |
| Free cash flow | $64.8 million | down 58.1% |
| Free-cash-flow margin | 5.4% | down 8.5 percentage points |
| Net income | loss of −$487.9 million | — |
Net income fell further
Net income’s decline was greater in percentage terms than free cash flow’s, but the current net loss means that a growth rate alone is a blunt way to compare the two. The more direct evidence is the contrast between the $487.9 million trailing twelve-month net loss and positive free cash flow of $64.8 million. Net margin was −40.7%.
Operating margin was also negative, at −4.7%, despite improving 3.3 percentage points year on year. These improvements are counterevidence to a reading that every part of the income statement deteriorated; they did not translate into positive trailing twelve-month operating or net income. The supplied cash-flow data do not identify which income-statement items account for the large net loss or its divergence from cash flow.
What the cash flow means for value
The cash-flow decline matters to Fundamentalytics’ model through the free-cash-flow margin. If the past year’s 8.5 percentage-point margin reduction persisted, our model implies a 69.8% lower value, holding its other assumptions constant. That is a conditional sensitivity, not a forecast that the margin decline will continue. The next filings can show whether cash flow recovers, capital spending eases, or the lower margin persists.
These are model values under stated assumptions, not a comparison with the share price.
For the company’s wider financial history, see Synaptics’ full company analysis.
