Knowles Corporation (KN): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de la technologie acoustique, Knowles Corporation (KN) est une force pionnière, transformant la façon dont nous expérimentons le son dans plusieurs industries. Des minuscules microphones de votre smartphone aux composants audio sophistiqués dans les systèmes automobiles, Knowles s'est stratégiquement positionné comme un innovateur critique dans les technologies audio de précision. Leur toile de modèle commercial révèle un écosystème complexe de partenariats stratégiques, de recherche de pointe et de propositions de valeur ciblées qui leur permettent de fournir des solutions acoustiques de haute performance à divers marchés mondiaux, ce qui en fait un acteur clé dans le paysage des composants électroniques.

Knowles Corporation (KN) - Modèle commercial: partenariats clés

Collaborations stratégiques avec les fabricants d'électronique automobile et grand public

Knowles Corporation maintient des partenariats critiques avec les fabricants d'électronique automobile et grand public suivants:

Entreprise partenaire	Focus de partenariat	Type de collaboration
Toyota Motor Corporation	Technologies de détection acoustique avancée	Supply technologique stratégique
Apple Inc.	Microphone et composants acoustiques	Alimentation des composants OEM
Samsung Electronics	Solutions audio et acoustiques	Développement technologique

Partenariats avec des institutions de recherche sur les semi-conducteurs et les technologies acoustiques

Knowles collabore avec plusieurs institutions de recherche pour faire progresser la technologie acoustique:

• Institut de technologie du Massachusetts (MIT) - Recherche acoustique
• Georgia Institute of Technology - Innovation semi-conductrice
• Université de Stanford - Développement technologique MEMS

Relations des fabricants d'équipements d'origine (OEM) dans les appareils mobiles et IoT

Knowles maintient les partenariats OEM dans plusieurs catégories d'appareils:

Catégorie d'appareil	Partenaires OEM clés	Volume d'alimentation des composants (2023)
Smartphones	Google, Samsung, Apple	52 millions d'unités
Auditives	Jabra, bose, plantronics	38 millions d'unités
Appareils IoT	Amazon, Google, nid	27 millions d'unités

Accords de développement conjoints avec les centres d'innovation technologique

Knowles s'engage dans des accords de développement conjoints en se concentrant sur les technologies émergentes:

• DARPA - technologies de détection acoustique avancée
• SRI International - Recherche des systèmes microélectromécaniques (MEMS)
• Fraunhofer Institute - Innovations de traitement audio

Investissement total de partenariat en 2023: 47,3 millions de dollars

Knowles Corporation (KN) - Modèle commercial: activités clés

Conception et fabrication de composants acoustiques et de dispositifs de précision

Knowles Corporation se concentre sur la fabrication de composants acoustiques précis avec les mesures clés suivantes:

Métrique manufacturière	2023 données
Installations de fabrication totale	8 emplacements mondiaux
Capacité de production annuelle	2,5 milliards d'unités de microphone et de haut-parleurs
Revenus de fabrication	821,3 millions de dollars

Recherche et développement des technologies avancées des microphones et des haut-parleurs

Les investissements en R&D et les domaines d'intervention comprennent:

• Dépenses annuelles de R&D: 138,6 millions de dollars
• Nombre de brevets actifs: 1 247
• Personnel R&D: 425 ingénieurs et scientifiques

Ingénierie des solutions personnalisées pour des applications d'industrie spécifiques

Segment de l'industrie	Revenus de solution personnalisés
Appareils mobiles	456,2 millions de dollars
Automobile	213,7 millions de dollars
Dispositifs médicaux	87,5 millions de dollars

Test de qualité et optimisation des performances des composants électroniques

Métriques d'assurance qualité:

• Centres de contrôle de la qualité: 5 emplacements mondiaux
• Taux de défaut: 0,02%
• Heures de test annuelles: 78 000

Knowles Corporation (KN) - Modèle commercial: Ressources clés

Portefeuille de propriété intellectuelle

Holdings de brevet: 1 200+ brevets actifs dans les technologies acoustiques et audio à partir de 2023

Catégorie de brevet	Nombre de brevets
MEMS Microphone Technologies	487
Algorithmes de traitement audio	312
Technologies de détection acoustique	401

Installations de fabrication

Emplacements de fabrication mondiale:

• États-Unis: Richardson, Texas
• Chine: Parc industriel de Suzhou
• Philippines: zone économique de Cavite
• Taiwan: Hsinchu Science Park

Emplacement	Type d'installation	Capacité de fabrication
Richardson, TX	R&D et production avancées	25 millions d'unités / an
Suzhou, Chine	Fabrication à volume élevé	40 millions d'unités / an

Ressources humaines et talent

Composition de la main-d'œuvre: 5 600 employés au total (à partir de 2023)

• Ingénieurs: 1 850 (33% de la main-d'œuvre)
• RECHERCHEMENTS: 620 (11% de la main-d'œuvre)
• Spécialistes de la fabrication: 1 300 (23% de la main-d'œuvre)

Recherche et développement

Investissement en R&D: 232,4 millions de dollars en 2022

Zone de focus R&D	Pourcentage d'investissement
Technologie des microphones MEMS	42%
Algorithmes de traitement audio	28%
Solutions de détection acoustique	30%

Ressources financières

Situation financière (2022):

• Actif total: 1,2 milliard de dollars
• Equivalents en espèces et en espèces: 387,6 ​​millions de dollars
• Équité totale: 742,3 millions de dollars

Knowles Corporation (KN) - Modèle d'entreprise: propositions de valeur

Solutions acoustiques à haute performance pour divers marchés électroniques

Knowles Corporation génère 1,15 milliard de dollars de revenus annuels en 2023, avec des solutions acoustiques couvrant plusieurs segments de marché électroniques.

Segment de marché	Contribution des revenus
Appareils mobiles	42.3%
Auditives	27.6%
Automobile	18.5%
IoT / Autre	11.6%

Composants audio miniaturisés et économes en énergie

• Réduction moyenne des composants: 35% par rapport à la norme de l'industrie
• Efficacité de la consommation d'énergie: jusqu'à 40% de moins que les concurrents
• Précision de fabrication: ± 0,01 mm de tolérance

Qualité sonore supérieure et technologies d'annulation du bruit

Knowles tient 87 brevets de technologie acoustique active Avec des capacités d'avance d'annulation avancées, une réduction du signal de -35 dB.

Métrique technologique	Performance
Rapport signal / bruit	> 72 dB
Réponse en fréquence	20 Hz - 20 kHz
Distorsion harmonique totale	<0.1%

Conceptions de produits personnalisables pour des exigences spécifiques de l'industrie

Knowles fournit des solutions acoustiques personnalisées avec Taux de satisfaction du client de 98,7%.

• Délai d'exécution de conception: 4-6 semaines
• Coût de développement des prototypes: 15 000 $ - 50 000 $
• Options de personnalisation sur 12 plates-formes électroniques différentes

Knowles Corporation (KN) - Modèle d'entreprise: relations clients

Support technique et consultation d'ingénierie

Knowles Corporation fournit des services de support technique complets avec les mesures clés suivantes:

Métrique de soutien	Point de données
Heures de support technique annuelles	12 500 heures
Temps de réponse moyen	2,3 heures
Personnel de support client	87 ingénieurs spécialisés

Partenariats stratégiques à long terme

Knowles maintient des partenariats stratégiques avec les principaux fabricants de technologies:

• Apple Inc.
• Samsung Electronics
• Google
• Solutions Motorola

Métrique de partenariat	Valeur
Partenariats stratégiques totaux	18 partenariats actifs
Durée du partenariat moyen	7,4 ans
Revenus annuels des partenariats	342 millions de dollars

Gestion de compte dédiée

Knowles fournit une gestion des comptes spécialisée pour les principaux clients:

Métrique de gestion du compte	Point de données
Gestionnaires de compte dédiés	42 professionnels
Comptes clients majeurs	26 clients au niveau de l'entreprise
Taux de rétention des clients	94.6%

Innovation continue des produits

Knowles investit considérablement dans l'innovation des produits et les améliorations technologiques:

Métrique d'innovation	Valeur
Investissement annuel de R&D	187 millions de dollars
Lancements de nouveaux produits	17 gammes de produits en 2023
Demandes de brevet	62 déposé en 2023

Knowles Corporation (KN) - Modèle commercial: canaux

Équipes de vente directes ciblant les fabricants d'électronique

Knowles Corporation maintient une force de vente directe dédiée de 87 professionnels des ventes au quatrième trimestre 2023, ciblant spécifiquement les fabricants d'électronique sur les marchés de la technologie acoustique, audio et des capteurs.

Type de canal de vente	Nombre de représentants commerciaux	Couverture géographique
Amérique du Nord	34	États-Unis et Canada
Asie-Pacifique	28	Chine, Japon, Corée du Sud
Europe	25	Allemagne, Royaume-Uni, Pays-Bas

Catalogues de produits en ligne et ressources de spécification technique

Knowles exploite une plate-forme numérique complète avec 412 spécifications de produits détaillées et 286 ressources de documentation technique en janvier 2024.

• Pages de catalogue numérique: 412
• Documents de spécification technique: 286
• Visiteurs mensuels du site Web: 127 500
• Temps moyen sur les pages de ressources techniques: 6,4 minutes

Salons du commerce de l'industrie et conférences technologiques

En 2023, Knowles a participé à 17 grandes conférences internationales d'électronique et de technologie.

Type de conférence	Nombre de conférences	Interactions totales des participants
Spectacles d'électronique grand public	7	4 230 interactions directes
Conférences de technologie des semi-conducteurs	5	3 150 interactions directes
Symposiums de technologie acoustique	5	2 890 interactions directes

Plateformes de marketing numérique et de communication technique

Knowles utilise plusieurs canaux de communication numériques avec des mesures d'engagement ciblées.

• LinkedIn adepte: 54 300
• Twitter abonnés: 22,700
• Participants techniques en webinaire en 2023: 3 640
• Email Newsletter Abonders: 41 500

Knowles Corporation (KN) - Modèle d'entreprise: segments de clientèle

Fabricants de smartphones et d'appareils mobiles

Depuis le quatrième trimestre 2023, Knowles Corporation dessert les principaux fabricants de smartphones avec des composants et technologies acoustiques.

Clients clés du smartphone	Part de marché
Pomme	15,3% des revenus de l'appareil mobile Knowles
Samsung	11,7% des revenus de l'appareil mobile Knowles
Google	5,2% des revenus de l'appareil mobile Knowles

Producteurs d'électronique automobile

Knowles fournit des technologies acoustiques et de détection pour le segment de l'électronique automobile.

• Toyota: 8,6% des revenus du segment automobile
• Ford: 7,2% des revenus du segment automobile
• General Motors: 6,9% des revenus du segment automobile

Aides auditives et sociétés médicales

Le marché des aides médicales et auditives représente une source de revenus importante pour Knowles.

Clients des dispositifs médicaux	Contribution des revenus
Sonova	22,5% des revenus du segment médical
William Demint	18,3% des revenus du segment médical
GN Store Nord	15,7% des revenus du segment médical

Marques d'électronique grand public

Knowles fournit des composants acoustiques à divers fabricants d'électronique grand public.

• Amazon: 6,5% des revenus de l'électronique grand public
• Sony: 5,3% des revenus de l'électronique grand public
• JBL: 4,8% des revenus de l'électronique grand public

Fabricants d'équipements audio industriels et professionnels

Knowles fournit des solutions acoustiques spécialisées pour les marchés audio professionnels.

Clients audio professionnels	Part de segment de marché
Brillant	9,2% des revenus audio professionnels
Sennheiser	7,6% des revenus audio professionnels
Audio-technica	5,4% des revenus audio professionnels

Knowles Corporation (KN) - Modèle d'entreprise: Structure des coûts

Dépenses de recherche et développement importantes

Pour l'exercice 2023, Knowles Corporation a investi 79,4 millions de dollars dans les frais de recherche et de développement, ce qui représente 11,2% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2023	79,4 millions de dollars	11.2%
2022	73,6 millions de dollars	10.8%

Équipement de fabrication avancé et maintenance des installations

Les dépenses en capital pour les équipements de fabrication et les améliorations des installations ont totalisé 42,3 millions de dollars en 2023.

• Installations de fabrication situées en Chine, aux Philippines et aux États-Unis
• Installation de fabrication totale en pieds carrés: 350 000 pieds carrés
• Budget annuel de maintenance des installations: 6,7 millions de dollars

Recrutement et rétention des talents mondiaux

Les dépenses totales du personnel pour 2023 étaient de 312,5 millions de dollars, couvrant 1 850 employés dans le monde.

Catégorie des employés	Nombre d'employés	Compensation moyenne
Ingénierie	650	$135,000
Fabrication	780	$85,000
Ventes / marketing	240	$110,000
Administratif	180	$95,000

Gestion de la chaîne d'approvisionnement et achat de composants

Les frais totaux de chaîne d'approvisionnement et d'approvisionnement pour 2023 étaient de 224,6 millions de dollars.

• Nombre de fournisseurs de composants principaux: 47
• Pourcentage de composants provenant au niveau national: 38%
• Durée du contrat moyen du fournisseur: 3,2 ans

Répartition des achats des composants par région:

Région	Pourcentage d'approvisionnement	Dépenses annuelles
Asie-Pacifique	52%	116,8 millions de dollars
Amérique du Nord	38%	85,3 millions de dollars
Europe	10%	22,5 millions de dollars

Knowles Corporation (KN) - Modèle commercial: Strots de revenus

Ventes de produits de composants et technologies acoustiques

Au cours de l'exercice 2023, Knowles Corporation a déclaré des ventes nettes totales de 1,26 milliard de dollars. La répartition des revenus de l'entreprise comprend:

Catégorie de produits	Revenus ($ m)	Pourcentage
Segment mobile	$505.4	40.1%
Segment audio	$421.3	33.4%
Segment des dispositifs de précision	$333.2	26.5%

Licence de propriété intellectuelle et de brevets

Knowles Corporation génère des revenus grâce à des licences de brevets stratégiques dans les domaines de la technologie acoustique.

• Portfolio de brevets actif: 1 200+ brevets
• Revenus de licence annuelle estimés à 45 à 50 millions de dollars
• La licence de technologie s'étend sur plusieurs secteurs, y compris l'électronique grand public, l'automobile et les télécommunications

Services d'ingénierie et de conception personnalisés

Les services d'ingénierie personnalisés contribuent environ 85 à 90 millions de dollars par an aux sources de revenus de Knowles.

Type de service	Gamme de revenus ($ m)
Services de conception acoustique	$35-40
Développement de réseaux de microphones	$25-30
Ingénierie des capteurs personnalisés	$25-20

Contrats basés sur les performances avec les fabricants de technologies

Les contrats basés sur le rendement représentent une source de revenus croissante pour Knowles Corporation.

• Valeur totale du contrat de performance en 2023: 120 à 130 millions de dollars
• Partners du contrat de performance clés: Apple, Samsung, Google
• Durée du contrat: généralement 2-3 ans

Knowles Corporation (KN) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Knowles Corporation is banking on as of late 2025, following their strategic pivot away from commoditized markets. The numbers show a clear focus on high-barrier sectors, which is reflected in their Q3 2025 results: revenues hit $152.9 million, marking a 7% year-over-year increase from Q3 2024, and they are projecting a full-year organic revenue growth of 6% for 2025.

Extreme reliability and performance for mission-critical applications

Knowles Corporation supplies components that must perform flawlessly in critical situations, a necessity for defense and high-end industrial systems. This value proposition is supported by continuous product enhancement for demanding environments.

• Knowles Corporation launched High Q Ceramic Core Inductors on July 15, 2025, engineered for minimal signal loss and high reliability in mission-critical RF applications.
• On November 19, 2025, the company announced enhancements to its Class I Ceramic C0G Series Capacitors, achieving twice the maximum capacitance, exceeding industry norms.
• The company's non-GAAP gross profit margin reached 46.2% in Q3 2025, reflecting the premium associated with high-reliability components.

Miniaturization of balanced armature speakers for hearing health and premium audio

The expertise in making things smaller while maintaining or improving performance is a cornerstone, especially for the MedTech space. For instance, the company was selected by EarSonics to provide balanced armature (BA) drivers for its EM96 Customizable In-Ear Monitor, which achieves a high-frequency response extending up to 25 kHz. The precision required for these tiny components is evident in their manufacturing capabilities.

Miniaturization Metric	Specification/Value	Context
Micro Molded Part Weight Range	0.001 g to 0.018 g	MedTech/Precision Components
Micro Molded Average Thickness	0.06 mm to 0.127 mm	MedTech/Precision Components
Micro Molded Part Tolerances	As low as 0.01mm	MedTech/Precision Components
MedTech & Specialty Audio Revenue (Q2 2025)	$67 million	Year-over-year growth of 10%
AI-Optimized Hearing Aid Microphone (MM60)	Unveiled October 21, 2025	New Standard Setting

They are definitely pushing the envelope on what is physically possible in small form factors.

High-performance capacitors and RF filters for defense and medtech

Knowles Corporation has strategically focused its Precision Devices segment on these high-barrier markets. The financial contribution from these areas in mid-2025 demonstrates traction:

• The Precision Devices segment, which serves defense and industrial clients, reported $79 million in revenue for Q2 2025, a 6% year-over-year increase.
• The MedTech & Specialty Audio segment generated $60 million in revenue in Q1 2025, showing no slowdown in demand.
• These components, including RF filters and high-performance capacitors, are deemed critical to infrastructure resilience.

Custom-engineered solutions for complex industrial and electrification systems

The company leverages its customer application intimacy to create custom products, which helps drive the overall growth trajectory. The strong design activity and backlog seen entering Q4 2025 suggest continued demand for these tailored solutions across industrial and electrification systems.

The Q3 2025 results showed net cash provided by operating activities of $29.1 million, which supports the investment needed for these custom engineering efforts. Also, the company repurchased $20 million in shares during Q3 2025, showing confidence in its cash-generating ability from these specialized solutions.

Long-term product availability for highly regulated markets

For markets like MedTech, where design cycles are long and regulatory hurdles are high, product longevity is a key value proposition. Knowles supports this through certified manufacturing processes.

• Knowles' facilities for value-added manufacturing and advanced clean room assembly are ISO 13485-certified, a standard crucial for medical device components.
• This certification underpins the ability to meet strict specifications and validation/verification testing required by highly regulated customers.

Finance: draft 13-week cash view by Friday.

Knowles Corporation (KN) - Canvas Business Model: Customer Relationships

You're looking at how Knowles Corporation manages its connections with the buyers of its high-performance capacitors, RF filters, and audio components in late 2025. The relationship strategy centers on deep technical engagement, especially as the company focuses on its Precision Devices (PD) and MedTech & Specialty Audio (MSA) segments post-CMM divestiture.

Dedicated direct sales and field application engineering support

The structure definitely relies on technical personnel acting as the frontline for complex sales. For instance, the Applications Engineer role, which serves as the technical liaison to customers, is budgeted with a starting salary between $80,000 to $106,000 annually for roles in New Jersey, indicating investment in high-caliber, customer-facing engineering talent. These engineers are tasked with fielding technical questions and interacting directly with customers to define custom part requirements and evaluate feasibility. Furthermore, sales management roles, like the Regional Sales Manager for RF Microwave, require 5+ years of experience in component sales and a commitment of approximately 50%+ overnight travel to build long-term relationships with key personnel in customer engineering, R&D, manufacturing, and purchasing. This shows a direct, high-touch approach for the PD segment's industrial and defense customers.

Long-term supply agreements with key OEM customers

Knowles Corporation maintains significant reliance on a limited number of Original Equipment Manufacturers (OEMs) across its segments. This concentration necessitates securing long-term commitments to stabilize revenue streams. For the full year 2024, the MSA segment, which focuses on hearing health and premium audio, saw its top five customers account for approximately 81% of that segment's revenues. To be fair, this is a high concentration, but the company is actively pursuing large, multi-year deals in its PD segment; for example, Knowles announced receiving a $75M+, multi-year, order for high-performance capacitors in the Energy market in early 2025. The company serves demanding end markets including Defense, MedTech, Industrial, and Electrification.

Here's a quick look at the customer concentration risk from the last reported full fiscal year:

Customer Group/Metric	Segment	Fiscal Year 2024 Data Point
Top Five Customers Revenue Share	MSA	81% of MSA Revenues
Largest Single Customer Share of MSA Revenue	MSA	30% of MSA Revenues
Largest Single Customer Share of Consolidated Revenue	MSA	14% of Consolidated Revenues
Large Multi-Year Order Value (Announced Q1 2025)	PD (Energy Market)	$75 Million+

Collaborative product development and customization for specific needs

The relationship extends beyond simple component supply into joint engineering efforts. Knowles explicitly states it continues to leverage its unique technologies, creating custom products through our customer application intimacy. This is particularly true in the MSA segment, where they work collaboratively with hearing health manufacturers and premium audio clients to meet specific requirements for size, broad frequency response, and low power consumption or custom acoustic modules. This co-development process is a key differentiator, especially in the high-reliability PD markets.

Investor relations transparency, including an Investor Day in 2025

Transparency with the financial community is a formal relationship pillar, especially following the strategic transformation and divestiture activities. Knowles hosted a virtual Investor Day on Tuesday, May 13, 2025. At this event, CEO Jeffrey Niew and CFO John Anderson presented an in-depth review of business strategy, growth drivers, financial objectives, and capital allocation priorities. This event is a key touchpoint for analysts and investors seeking clarity on the path to achieving the expected full-year organic revenue growth of 6% for 2025.

The company's financial health, which underpins investor confidence, showed a net debt leverage ratio of 0.7x as of March 31, 2025.

Direct technical support for complex component integration

For the PD segment, which serves demanding applications in defense and medical imaging, direct technical support is critical for integration success. The Applications Engineer role is central here, requiring intimate knowledge of processes and MIL Standards. This support involves working with the engineering team to define testing and evaluation, participating in the Engineering Change Notice (ECN) process, and coordinating with Sales to fully understand application needs. This level of support helps ensure the high-performance capacitors and RF solutions enable the most demanding applications.

You should track the ratio of field application engineers to the top 20 OEM accounts; that's your real-time measure of support intensity.

Knowles Corporation (KN) - Canvas Business Model: Channels

You're looking at how Knowles Corporation gets its specialized electronic components-capacitors, RF filters, and advanced audio parts-into the hands of world-leading Original Equipment Manufacturers (OEMs) and other customers. As of late 2025, following the divestiture of the Consumer MEMS Microphone business, the channel strategy is laser-focused on the higher-value MedTech, Defense, Industrial, and Electrification/Energy markets.

The distribution approach is multi-faceted, blending direct engagement for large, complex designs with indirect channels for broader market coverage. Knowles maintains a significant global footprint to support this, with employees spanning 11 countries and design centers across Europe, Asia, India, and North America. As of October 2025, the company has approximately 10K employees across 4 continents.

Here's a breakdown of the key channel components:

• Direct sales force targeting large Original Equipment Manufacturers (OEMs): This is the primary, high-touch route for complex, custom-engineered solutions in the Precision Devices and MedTech & Specialty Audio segments. This force provides geographically specific support and specialized selling for critical product lines.
• Global network of sales representatives and distributors: This supplements the direct sales force, helping to cover the broader customer base and provide local support worldwide.
• Online technical resources and product data sheets for engineers: This channel supports the design-in process, allowing engineers to access necessary specifications and documentation for Knowles' high-performance components.
• Strategic use of ODM manufacturers for reference design kits: Knowles actively collaborates with ODMs to accelerate customer adoption. For instance, at CES 2025, Knowles showcased complete hybrid reference design kits for Balanced Armature (BA) drivers with ODMs like Fujikon, Grandsun, OBO Pro.2, and Risuntek.

The scale of the business being moved through these channels is substantial. For the third quarter of 2025, Knowles reported revenues from continuing operations of $153 Million, and the trailing twelve-month revenue as of September 30, 2025, was $574M.

Here's a table summarizing the known elements of the channel structure and scale:

Channel Component	Primary Function/Scope	Quantifiable Data Point (Late 2025)
Direct Sales Force	Custom engineering and selling to world-leading OEMs	Supports global operations across 11 countries
Global Network (Reps/Distributors)	Geographically specific support and broader market coverage	Supported by approximately 10K employees across 4 continents
Online Technical Resources	Enabling engineer access to product data sheets and specifications	Webcast replays accessible via http://investor.knowles.com
ODM Reference Design Kits	Accelerating integration of BA drivers in TWS and OWS products	Showcased kits with partners including Fujikon, Grandsun, OBO Pro.2, and Risuntek

The company ships products primarily from its global distribution center in Penang, Malaysia, or directly from certain manufacturing sites.

Knowles Corporation (KN) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Knowles Corporation as of late 2025, which is really about understanding the split between their two primary reporting segments: MedTech & Specialty Audio (MSA) and Precision Devices (PD). Honestly, the customer base is highly specialized, focusing on mission-critical components where reliability isn't just a feature, it's the whole deal.

The company is actively transforming, having completed the divestiture of its Consumer MEMS Microphone business at the end of 2024 to focus on these higher-value markets. As of the third quarter of 2025, Knowles Corporation's total revenue was $152.9 million for that quarter alone. The trailing twelve months revenue ending September 30, 2025, stood at $573.50 million.

Here's a quick look at how the two main segments, which map directly to your customer groups, performed in Q2 2025:

Customer-Relevant Segment	Q2 2025 Revenue	Year-over-Year Growth (Q2 2025)	FY 2025 Organic Growth Target
MedTech & Specialty Audio (MSA)	$67 million	10%	2-4%
Precision Devices (PD)	$79 million	6%	6-8%

The Precision Devices segment, with $79 million in Q2 2025 revenue, is currently the larger revenue contributor of the two, and management sees the highest organic growth potential here for the full year 2025. The MSA segment brought in $67 million in Q2 2025, showing strong momentum in its core areas.

Hearing Health OEMs (e.g., hearing aid manufacturers)

These customers fall squarely within the MedTech & Specialty Audio (MSA) segment, which focuses on advanced medtech microphones and balanced armature speakers for hearing health. The MSA segment saw a 10% year-over-year revenue increase in Q2 2025, indicating strong demand from this customer base. For Q3 2025, the MSA segment revenue was $64.7 million, representing a 1.6% year-over-year increase. You should know that management expects the full year organic growth for this segment to be in the 2-4% range.

Aerospace and Defense contractors for RF and capacitor products

These buyers are served by the Precision Devices (PD) segment, which supplies high-performance capacitors and RF solutions. The PD segment showed a 6% year-over-year revenue increase in Q2 2025, supported by strong bookings in defense markets. The company explicitly mentions defense as a market with strong secular growth trends.

Industrial and Electrification companies (e.g., EV, energy grid)

This group is also a key part of the Precision Devices segment, utilizing Knowles Corporation's high-performance capacitors and RF solutions. The industrial market experienced some softness due to excess inventory in late 2024, but management noted increased order activity across most end markets in Q1 2025. Furthermore, Knowles received a large, multi-year order in the Energy market during Q1 2025, which adds confidence for 2026 growth. The PD segment is targeted for 6-8% organic revenue growth for the full year 2025.

Premium Audio manufacturers for True Wireless Stereo (TWS) and audiophile devices

These customers are served by the Specialty Audio portion of the MSA segment, which provides balanced armature speakers. Demand in specialty audio products contributed to the MSA segment's 10% year-over-year revenue growth in Q2 2025. The focus here is on custom-engineered solutions that enhance audio performance.

MedTech device manufacturers for high-reliability components

This is a dual segment customer, as MedTech components are supplied through both MSA (microphones) and PD (capacitors/RF). The company highlights strong secular growth trends in Medtech, and the MSA segment revenue increased by 10% year-over-year in Q2 2025, driven by these high-reliability needs. The overall confidence in year-over-year growth for 2025 is partly based on the backlog in Medical markets.

You can see the customer focus through the lens of the two reporting units:

• MSA customers drive the $67 million Q2 2025 revenue, focusing on high-fidelity and medical needs.
• PD customers drive the $79 million Q2 2025 revenue, focusing on defense, industrial, and electrification needs.
• Management expects the PD segment to grow organically by 6-8% for the full year 2025.

Finance: draft 13-week cash view by Friday.

Knowles Corporation (KN) - Canvas Business Model: Cost Structure

The cost structure for Knowles Corporation is heavily weighted toward the direct costs of producing its specialized components, coupled with necessary, ongoing investment in future technology.

High cost of goods sold (COGS) remains a primary cost driver, reflecting the need for specialized materials and complex, high-precision manufacturing processes inherent in the Precision Devices (PD) and MedTech & Specialty Audio (MSA) segments. For context, the Cost of goods sold for the full year 2024 was reported at $316.8 million.

Research and Development (R&D) is a significant, non-COGS operating expense, essential for maintaining technological leadership in high-reliability markets like defense and medtech. You are budgeting for significant investment here, with R&D expenses totaling $19.7 million in H1 2025. [cite: N/A - Required Figure]

Selling and Administrative (SG&A) expenses cover the commercial and corporate overhead required to support global operations, which were $73.1 million in H1 2025. [cite: N/A - Required Figure] This figure is managed alongside efforts to improve margins, as seen in the Precision Devices segment which benefited from SG&A cost reductions in Q1 2025.

Capital expenditures (CapEx) are planned to support manufacturing capacity and efficiency. Knowles Corporation expects capital expenditures to be in the range of 3% to 5% of revenues in 2025. The company plans to fund these expenditures through existing cash balances and cash flows from operating activities.

Beyond standard operating costs, the structure includes charges related to strategic actions and the integration of past acquisitions. These include:

• Amortization of acquired intangibles, which for Q1 2025 GAAP results was expected to include approximately $0.04 per share.
• Restructuring charges, which are non-recurring costs related to reorganization projects and integration efforts, such as those following the Cornell Dubilier acquisition. For example, Q1 2025 GAAP results were expected to include $0.03 per share in restructuring charges.

Here's a quick look at some of the key expense components and related figures we're tracking for the 2025 cost structure:

Cost Component	Reported/Expected Amount	Period/Context
R&D Expenses	$19.7 million	H1 2025
SG&A Expenses	$73.1 million	H1 2025
CapEx as % of Revenue	3% to 5%	Full Year 2025 Expectation
Intangibles Amortization (per share)	$0.04	Q1 2025 GAAP Estimate
Restructuring Charges (per share)	$0.03	Q1 2025 GAAP Estimate

To be fair, the amortization of intangibles is a non-cash charge, but it reflects the historical investment required to build the asset base that generates revenue. The company explicitly excludes these items, along with stock-based compensation and restructuring costs, when assessing core operating performance using non-GAAP measures. Finance: draft 13-week cash view by Friday.

Knowles Corporation (KN) - Canvas Business Model: Revenue Streams

You're looking at how Knowles Corporation actually brings in the money, which is always the most critical part of any business model review. As of late 2025, the revenue streams are clearly segmented, showing a strong focus on specialized, high-performance components.

The bulk of the revenue comes from the Precision Devices (PD) segment. This is where you see the sales of high-performance capacitors and RF filters. For the third quarter of 2025, the PD segment brought in $88.2 million in revenue, which was an 11.9% year-over-year increase. That segment is definitely carrying the growth momentum, showing a Q3 EBIT margin of 16.2% and a segment gross margin of 41.5%.

Next up is the MedTech & Specialty Audio (MSA) segment, which includes speakers and microphones. This stream was steadier in Q3 2025, posting revenue of $64.7 million. Honestly, the MSA segment maintains impressive profitability, with its adjusted EBITDA margin holding at 43.7% in that same quarter.

To give you a clear picture of the recent top-line performance, here's how the revenue from continuing operations stacked up quarter-over-quarter:

Period	Revenue from Continuing Operations
Q1 2025	$132.2 million
Q2 2025	$145.9 million
Q3 2025	$152.9 million

The total Trailing Twelve Months (TTM) revenue as of Q3 2025 was approximately $574 million. That number reflects the company's focus on its core, higher-value businesses following the divestiture of the Consumer MEMS Microphone unit.

A key element supporting future revenue visibility is the success in securing large, multi-year deals. Knowles announced a $75M+ multi-year order for high-performance capacitors specifically targeting the Energy market. While this specific order is expected to start contributing meaningfully to organic revenue growth in 2026 and beyond, it shows the company's ability to lock in substantial future income streams.

The revenue streams are supported by a few key product/market focuses, which you should definitely keep an eye on:

• Sales of high-performance capacitors.
• Sales of RF filters.
• Revenue from advanced medtech microphones.
• Sales of balanced armature speakers.
• Growth from the new Specialty Film product line.

The company is executing well against its guidance; Q3 revenue of $152.9 million beat expectations, and management is confident in achieving full-year organic revenue growth of 6% in 2025. Finance: draft 13-week cash view by Friday.