Xperi Inc.

What they do

Xperi operates in one reportable segment but groups revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Its technologies are integrated into consumer devices, connected cars and media platforms worldwide, and it operates a global cross-screen advertising solution that lets brands reach consumers across its ecosystem. The company has approximately 1,460 employees, is headquartered in San Jose, California, and reports more than 35 years of operating experience.

Revenue drivers

• Media Platform — Advertising and related revenue generated from the TiVo One platform; management said Media Platform revenue grew 44% year-over-year in Q2 2026, with trailing 12-month ARPU of $6.70.
• Connected Car — DTS AutoStage and HD Radio technology licensed into automotive OEMs; management reported AutoStage reached 17 million cumulative vehicles shipped across 13 automotive brands, and that the platform began generating revenue from listener analytics and data.
• Pay-TV — TiVo-related products and services, including video-over-broadband; management cited continued double-digit subscriber growth in video-over-broadband along with key design wins.
• Consumer Electronics — Licensing of DTS audio technologies such as DTS:X, DTS Virtual:X and DTS Play-Fi into consumer devices; this is one of the four revenue categories reported by the company.

Recent performance

Second quarter 2026 revenue was $114.5 million versus $105.9 million in Q2 2025. GAAP operating income was $2.9 million compared with a $11.1 million loss a year earlier, and GAAP net loss narrowed to $1.5 million, or $0.03 per diluted share, from $14.8 million, or $0.32 per share. Non-GAAP adjusted EBITDA was $24.5 million, up 61% year-over-year, at a 21.4% margin. Advertising and related revenue grew 54% year-over-year, and TiVo One monthly active users reached 6.3 million, up 70% year-over-year. Full year 2025 revenue was $448.1 million with a net loss of $56.3 million.

Strategy

The company is focused on growing footprint and revenue on its platforms, particularly the TiVo One ad platform and DTS AutoStage. It is integrating TiVo One with advertising partners including Teads and Kargo, and has signed Cumulus as the first customer for advanced analytics in its DTS AutoStage broadcaster portal. In November 2025 it approved a restructuring plan cutting approximately 250 employees, expecting $30 million to $35 million in annualized savings and substantial completion by the end of the first half of 2026. It has divested non-entertainment assets, selling AutoSense in January 2024 and the Perceive business to Amazon in October 2024 for $80.0 million gross.

Risks

• Declining revenue — Annual revenue fell from $521.3 million in 2023 to $448.1 million in 2025.
• Persistent losses — The company reported net losses in each year from 2021 through 2025, including $56.3 million in 2025.
• Restructuring execution — The November 2025 plan to cut approximately 250 employees incurred $13.9 million of charges in 2025 and is expected to be substantially complete by the end of the first half of 2026.
• Macroeconomic and supply chain pressure — The company cites inflation, interest rates, tariffs and global supply chain disruptions as factors that have adversely affected and may continue to affect its business and its customers.

Outlook

Management said it believes the business continues to build momentum and that the 6.3 million TiVo One monthly active users position the company to achieve its year-end goal of 7 million users. It expects the restructuring to generate annualized savings of approximately $30 million to $35 million and to be substantially complete by the end of the first half of 2026. The company cites streaming advertising growth as a significant market opportunity over the next 3 to 5 years.