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Xperi Inc (XPER)
NYSE:XPER
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Xperi Inc
(NYSE:XPER)
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Rating:66Neutral
Price Target:
$6.50
▲(9.98% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by improved 2025 profitability/cash flow and reduced leverage, supported by constructive earnings-call guidance on monetization and cash generation. These positives are tempered by continued revenue declines and mixed technicals (still below the 200-day average), while valuation is less supportive due to a negative P/E and no dividend yield data.
Positive Factors
Diversified monetization model (IP + platform)
A dual revenue model of long-lived IP licensing royalties plus product/software and platform fees provides durable cash flow sources. Royalties scale with device shipments while platform/ad revenue can grow with user engagement, reducing single-segment dependence over the medium term.
Material improvement in profitability and cash generation
Profitability and cash conversion improved materially in 2025, with adjusted EBITDA and operating cash flow reversing prior losses. Sustained cost discipline and positive free cash flow at guidance midpoints would enhance financial flexibility and support reinvestment or deleveraging over coming quarters.
Growing platform adoption: TiVo MAUs and AutoStage footprint
Rapid user growth and expanding auto footprint reflect stronger product-market fit and distribution. Higher scale in TiVo and AutoStage increases monetization optionality (ads, data, OEM deals) and creates structural leverage as ARPU and commercial partnerships mature.
Negative Factors
Sustained revenue decline
Top-line declines across several years erode operating leverage and make margin gains more fragile. Continued revenue contraction forces heavier reliance on cost cuts and monetization assumptions to sustain profitability, increasing execution risk over the next several quarters.
ARPU volatility and monetization lag
Rapid MAU growth with below-target ARPU creates uncertainty in revenue per user and timing of ad monetization. If ARPU improvement is slower than expected, revenue and cash-flow forecasts tied to platform scaling could prove optimistic, pressuring sustained margin expansion.
Exposure to legacy CE/Pay TV declines and supply risks
Significant exposure to shrinking consumer-electronics and legacy Pay TV markets, plus memory/supply-chain pressures, creates structural top-line headwinds. Recontracting risk and OEM demand cyclicality mean growth depends on successful transition to newer platforms and customers.
Xperi Inc (XPER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$277.59M
Dividend YieldN/A
Average Volume (3M)493.02K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth-10.74%
EPS GrowthN/A
CountryUS
Employees1,620
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.24
Shares Outstanding46,969,803
10 Day Avg. Volume510,419
30 Day Avg. Volume493,024
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.33
Price to Sales (P/S)1.42
P/FCF Ratio4.08
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit0.72
Enterprise Value/Ebitda6.86
Forecast
1Y Price Target
$11.33Price Target Upside91.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.99
Revenue Forecast (FY)$461.00M
Xperi Inc Business Overview & Revenue Model
Company DescriptionXperi Inc. operates as a consumer and entertainment product and intellectual property licensing company. The Company invents, develops, and delivers technologies integrated into smart devices, media platforms, and semiconductors.
How the Company Makes MoneyXperi generates revenue through a combination of licensing agreements and product sales. The company licenses its proprietary technologies, such as DTS audio and imaging solutions, to OEMs (original equipment manufacturers) and service providers, which form a significant portion of its revenue. These licensing agreements often involve upfront fees and ongoing royalties based on the volume of products sold that incorporate Xperi's technologies. Additionally, Xperi earns revenue from the direct sale of its products and services, including software solutions and hardware related to its imaging and audio technologies. Strategic partnerships with major tech companies and continuous innovation in its product offerings also contribute to its earnings.
Xperi Inc Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful strategic and operational progress: rapid TiVo One MAU growth (+250% YoY), a large and expanding Connected Car footprint (+40% YoY), Media Platform advertising momentum (quarterly Media Platform revenue +15%) and materially improved profitability and cash flow (adjusted EBITDA $77M for the year, opex down 18% YoY, operating cash flow roughly neutral vs. prior year usage). At the same time, near-term top-line pressure remains from Consumer Electronics and legacy Pay TV declines (FY revenue -9%), ARPU volatility as new footprint monetizes, and ongoing supply-chain/memory risks. Management’s forward guidance (Media Platform revenue doubling in 2026, ARPU > $10 by year-end, adjusted EBITDA margin 17–19%, and operating cash flow positive) indicates optimism about an inflection toward advertising-led monetization, offsetting existing headwinds. Overall, strong strategic execution and margin/cash improvements set a positive long-term trajectory, while short-term revenue and supply-chain challenges create headwinds to be managed.Q4-2025 Updates
Positive Updates
TiVo One Monthly Active Users (MAU) Surge
Reached 5.3 million MAUs on TiVo One at year-end, surpassing the 5.0M goal and representing ~250% growth year-over-year (from ~1.5M to 5.3M). Management targets >7M MAUs in 2026.
Media Platform Advertising Momentum
Media Platform revenue grew ~15% in the quarter driven by advertising. TiVo One ARPU finished the year at $7.80 (with some quarter-to-quarter volatility). New supply and demand partnerships include Titan Ads, OpenGlass, Anoki, FreeWheel and direct homepage ad campaigns for Hallmark Media, Freeform, NBCUniversal and TNT. Company expects Media Platform revenue to double in 2026 and ARPU to exceed $10 by year-end 2026, with a long-term ARPU goal north of $20.
Connected Car Footprint Expansion
DTS AutoStage footprint exceeded 14 million vehicles, a ~40% year-over-year increase. Signed Mercedes-Benz (first brand to adopt all 4 Xperi Connected Car solutions). Connected Car revenue grew ~5% in the quarter and 12% year-over-year (full year) aided by minimum guarantee arrangements; new Tier 1 and OEM agreements and HD Radio adoption with Toyota, Honda, Audi.
IPTV Subscriber and Pay TV Transition
IPTV subscriber households grew 25% year-over-year to 3.25 million. Multiple managed IPTV and broadband-only wins (Prism Fiber, MIDTEL, ClaroVTR, Frontier, Cogeco) supporting a transition from legacy Pay TV to IPTV subscription revenue that management expects will help level the Pay TV business over time.
Improved Profitability and Expense Reductions
Non-GAAP adjusted operating expenses fell 13% in the quarter and 18% for the year (down $60M to $274M). Adjusted EBITDA was $22M in Q4 (19% of revenue) and $77M for FY2025 (17% of revenue), an improvement of ~2 percentage points versus prior year. Management expects stock-based compensation to decline ~25% in 2026 to ~$31M.
Stabilized Operating Cash Flow and Liquidity
Q4 operating cash flow was $4M. Full-year operating cash flow was near neutral ( ~$0.5M usage) vs. $55M usage in prior year, demonstrating significant improvement. Cash and cash equivalents at quarter end were $97M. 2026 outlook targets operating cash flow of $15M–$25M and positive free cash flow at the midpoint.
Strategic Partnerships and Product Extensions
Exceeded smart TV partner goal (10 partners vs. initial goal of 4). Expanded product capabilities (Blacknut Cloud Gaming, home screen video ad units, demos on mini LED TVs), renewed key CE agreements (Sound United, Onkyo), and extended IMAX Enhanced into new categories (e.g., high-end earbuds), supporting broader platform distribution and monetization opportunities.
Negative Updates
Consolidated Revenue Decline
Consolidated revenue was $117M in Q4 (-5% year-over-year) and $448M for FY2025 (-9% year-over-year). Revenue declines were driven primarily by decreases in Consumer Electronics and legacy Pay TV products.
Consumer Electronics Weakness and Supply-Chain Pressure
Consumer Electronics revenue decreased 21% in Q4 and 5% for the full year due to lower customer demand, memory cost pressures and supply chain disruptions. Management cites challenging 2026 comps from multiyear deals and expects recontracting risk into 2027.
Pay TV Legacy Revenue Pressure
Pay TV revenue fell 7% in Q4 and 21% for the year due to a difficult comparison with a prior-year multiyear minimum guarantee and ongoing decline in end-of-life DVR consumer business. While IPTV is growing, legacy Pay TV declines continue to pressure top-line results in the near term.
ARPU Volatility for TiVo One
Average revenue per user (ARPU) for TiVo One was $7.80 at year-end, down slightly from the prior quarter as MAU growth outpaced monetization (new devices and users lag in generating ad revenue), creating short-term ARPU variability.
Revenue Timing Volatility from Minimum Guarantees
Results are influenced by upfront recognition of minimum guarantee arrangements (noted in Connected Car and prior Pay TV), which creates timing-driven swings in year-over-year revenue comparisons and complicates near-term comparability.
Ongoing Restructuring Costs and Near-Term Cash Use
Although operating expenses were reduced, management expects additional cash costs related to headcount reductions in Q1. Free cash flow usage was $2M in the quarter and some restructuring cash expenses remain.
Macroeconomic and Supply Risks in 2026 Outlook
Company guidance for 2026 (revenue $440M–$470M) explicitly reflects risks from memory/supply chain challenges and other macro uncertainties that could pressure Consumer Electronics and near-term revenue performance.
Company Guidance
Xperi's 2026 guidance calls for full‑year revenue of $440–$470 million (vs. $448M in 2025), Media Platform revenue to double year‑over‑year, adjusted EBITDA margin of 17%–19% (2025: 17%), operating cash flow of $15–$25M, capital expenditures of $15–$20M (positive free cash flow at the midpoint), non‑GAAP tax of about $20M, diluted share count of 48–49M, and GAAP stock‑based compensation of roughly $31M (down ~25% from $41M in 2025); operational goals include growing TiVo One MAUs beyond 7M (5.3M at YE2025), exiting 2026 with ARPU above $10 (targeting $20+ over time), and expanding the AutoStage footprint past 15M vehicles (14M+ at YE2025) while beginning ads and data monetization.Xperi Inc Financial Statement Overview
Summary
Financials show a clear 2025 turnaround with improved profitability, stronger operating/free cash flow, and sharply lower debt. Offsetting this, revenue declined in 2024–2025 and prior-year earnings/cash flow volatility (plus limited visibility into gross margin from the reported 2025 gross profit/margin of 0) reduces confidence in durability.Income Statement
Profitability improved meaningfully in 2025 with solid net income (~25% of revenue) and strong EBITDA margin (~39%), marking a clear rebound from multi-year losses (2020–2024). However, revenue has been drifting down (negative growth in 2024 and 2025), and the 2025 gross profit/margin is reported as 0, which limits confidence in assessing core product economics and consistency of margins.62
Positive
Balance Sheet
Leverage looks conservative and improving: total debt fell sharply in 2025 and debt relative to equity is low (~0.06), which reduces financial risk. Equity also increased year over year. The main watch-out is that returns on equity were negative for several years (reflecting prior losses), and total assets rose substantially in 2025 versus 2024, so investors should monitor the quality and earnings power of the expanded asset base.74
Positive
Cash Flow
Cash generation strengthened significantly in 2025 with strong operating cash flow and solid free cash flow, and free cash flow closely matched net income (high conversion). That said, cash flow was weak or negative in most prior years (notably 2024 operating and free cash flow), and the reported free cash flow growth rate is extremely volatile, signaling inconsistency and higher forecasting risk.68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 448.11M | 493.69M | 521.33M | 502.26M | 486.48M |
| Gross Profit | 321.46M | 379.93M | 402.71M | 379.31M | 360.86M |
| EBITDA | 58.32M | 70.60M | -52.25M | -663.39M | -33.93M |
| Net Income | -56.34M | -14.01M | -136.61M | -757.48M | -175.62M |
Balance Sheet | |||||
| Total Assets | 1.04B | 667.76M | 673.63M | 736.91M | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 136.73M | 130.56M | 142.09M | 160.13M | 120.69M |
| Total Debt | 29.71M | 85.28M | 95.36M | 109.86M | 63.74M |
| Total Liabilities | 558.76M | 238.68M | 286.50M | 287.93M | 212.75M |
| Stockholders Equity | 480.54M | 429.08M | 404.23M | 463.42M | 1.03B |
Cash Flow | |||||
| Free Cash Flow | 156.28M | -72.29M | -12.87M | -42.82M | -32.53M |
| Operating Cash Flow | 158.09M | -55.34M | 62.00K | -28.45M | -23.45M |
| Investing Cash Flow | -40.26M | 50.82M | -12.93M | -64.85M | -21.48M |
| Financing Cash Flow | -123.51M | -19.35M | 7.05M | 135.75M | 83.33M |
Xperi Inc Technical Analysis
Positive
5.91
Price Trends
5.82
Positive
5.98
Negative
6.43
Negative
Market Momentum
0.04
Positive
52.53
Neutral
21.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPER, the sentiment is Positive. The current price of 5.91 is above the 20-day moving average (MA) of 5.83, above the 50-day MA of 5.82, and below the 200-day MA of 6.43, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 21.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPER.
Xperi Inc Risk Analysis
Xperi Inc disclosed 62 risk factors in its most recent earnings report. Xperi Inc reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xperi Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $334.10M | 21.20 | 23.47% | 6.28% | -9.48% | -14.28% | |
66 Neutral | $277.59M | -11.32 | 1.74% | ― | -10.74% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $258.65M | -41.41 | -9.33% | ― | 307.44% | 14.77% | |
47 Neutral | $702.92M | -19.92 | 361.65% | ― | 20.45% | 12.28% | |
46 Neutral | $806.64M | -1.50 | 1017.75% | ― | ― | ― | |
45 Neutral | $128.15M | ― | -869.27% | ― | ― | -1827.24% |
* Technology Sector Average
XPER
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.