Xperi Inc.

Xperi said Q2 revenue was $114 million, up 8% year over year. Media platform revenue grew 44% to $18 million; Connected Car revenue grew 60% to $40 million; Pay TV revenue fell 11% to $45 million; and consumer electronics revenue was $12 million. Non-GAAP EPS was $0.28, more than double last year’s level, adjusted EBITDA was $24 million and 21% of revenue, and operating cash flow was $15 million; free cash flow was $8 million. GAAP net loss was $1.5 million, or $(0.03) per share. For the full year, management kept its outlook but raised capex from $15 million-$20 million to approximately $25 million and lowered stock-based compensation from approximately $31 million to approximately $29 million.

Jon Kirchner framed the quarter as evidence that Xperi is executing on a pivot from building the platform to monetizing it, especially in connected TV and automotive audiences. He highlighted accelerated advertising growth, the expanding TiVo 1 footprint, new automotive wins like BYD, and the first broadcaster customer for the AutoStage broadcaster portal as signs that the strategy is gaining traction. His tone was confident and constructive, emphasizing that the company has a unique independent position in both the home and the car.

Robert Andersen emphasized that the quarter was consistent with expectations, with $114 million of revenue, $24 million of adjusted EBITDA, and $15 million of operating cash flow. He noted that cash and cash equivalents ended at $91 million, up $20 million from last quarter, helped by the final $12 million Perceive payment received at the start of the quarter. He also explained the guidance changes: capex rises to approximately $25 million because customers want lower-memory software and memory equipment costs are higher, while stock-based compensation falls to approximately $29 million due to workforce reductions. He added that advertising and related revenue has crossed the 10% threshold of total revenue and will now be reported separately, and said the current 8% negative gross margin there should turn positive as the business enters 2027.

Analysts focused on whether the Roke acquisition and other industry changes could expand Xperi’s opportunity as an independent TV operating system provider. Management said yes, arguing that market consolidation validates the value of the TV home screen and first-party CTV data, and that Xperi’s low-memory, cost-efficient platform could become even more attractive as OEMs look to cut BOM costs. Questions also centered on Connected Car demand, the Cumulus broadcaster portal deal, pay TV trends, and the pace of TiVo 1 MAU and AutoStage growth. Management said the Cumulus product was built with customer input, expects more broadcaster deals, sees pay TV core declining while IPTV grows toward balancing in the mid-2027 to mid-2028 range, and expects BYD to contribute meaningfully to AutoStage growth over time.