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Xperi Inc (XPER)
NYSE:XPER
US Market

Xperi Inc (XPER) AI Stock Analysis

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Xperi Inc

(NYSE:XPER)

Rating:64Neutral
Price Target:
$8.50
▲(4.94%Upside)
Xperi Inc's overall score reflects a mixed financial recovery with strong cash flow improvements offset by revenue growth challenges. Technical stability and strategic growth initiatives are positive, though valuation concerns persist.
Positive Factors
Financial Performance
Xperi Inc. reported a significant increase in adjusted EBITDA, up 70% year-over-year, showcasing strong financial performance despite a revenue decline.
Revenue Growth Strategy
The company's TiVO OS platform strategy is expected to drive a 6.8% revenue growth for 2026 and is not affected by minimum value contract revenue recognition issues.
Valuation
Shares of Xperi Inc. trade at a lower EV/EBITDA multiple compared to the peer group average, supporting the Buy rating.
Negative Factors
Market Skepticism
Shares of Xperi Inc. trade at a lower EV/EBITDA multiple compared to a peer group average, reflecting market skepticism about the company's current valuation.
Media Platform Revenue Challenges
The revenue decline in Xperi's media platform was influenced by the timing of revenue recognition and a shift in customer ad spending, impacting financial results.
Revenue Decline
1Q25 results showed a revenue decline of 4% year-over-year, which was lighter than expected.

Xperi Inc (XPER) vs. SPDR S&P 500 ETF (SPY)

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 Inc generates revenue primarily through the licensing of its intellectual property and technology to manufacturers of consumer electronics and entertainment devices. The company's key revenue streams include licensing fees from its portfolio of audio and imaging technologies, which are embedded in products such as smartphones, TVs, and automotive systems. Additionally, Xperi earns money from its semiconductor packaging solutions, which are used in the production of microchips and related components. Significant partnerships with leading electronics manufacturers and automotive companies also contribute to its earnings, as these relationships help drive the adoption of Xperi's technologies in various products.

Xperi Inc Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 16.55%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in adjusted EBITDA growth, connected car revenue, and IPTV subscriber growth. However, these were offset by declines in overall revenue, Pay TV revenue, and media platform revenue. The company remains optimistic about future growth in its strategic areas despite current challenges.
Q1-2025 Updates
Positive Updates
Strong Adjusted EBITDA Growth
Adjusted EBITDA was $16 million for the quarter, representing 14% of revenue and a 200% increase compared to $5 million in the prior year quarter.
Connected Car Revenue Surge
Connected Car revenue rose 37% to $33 million due to minimum guarantee licensing arrangements for HD Radio, partly offset by lower automotive volumes.
IPTV Subscriber Growth
Finished the quarter with over 2.75 million video-over-broadband subscriber households, a 36% year-over-year increase.
Successful Rollout of TiVo One Ad Platform
Finished the quarter with 2.5 million monthly active users, and successfully began the rollout of a new TiVo One homepage ad unit.
Negative Updates
Overall Revenue Decline
Total revenue for the first quarter was $114 million, a decrease of 4% from last year’s $119 million.
Pay TV Revenue Drop
Pay TV revenue decreased by 12% to $50 million, with strong growth in IPTV offset by a decrease in the core Pay TV business.
Decline in Media Platform Revenue
Media platform revenue was $8 million, lower than last year by 30% due to lower middleware revenue and a time shift of advertising commitments.
Company Guidance
During the Xperi First Quarter 2025 Earnings Call, the company highlighted several key financial metrics and strategic initiatives. Xperi reported a revenue of $114 million for Q1, a decrease from the previous year due to business divestitures. However, they achieved an adjusted EBITDA of $16 million, representing 14% of revenue, a significant increase compared to $5 million in the prior year. The company also emphasized its focus on three growth solutions: connected TV advertising, in-cabin entertainment, and TiVo video-over-broadband services. Xperi ended the quarter with 2.5 million monthly active users on the TiVo One ad platform and aims to reach 5 million by year-end. The call also mentioned a 36% year-over-year increase in video-over-broadband subscriber households, totaling over 2.75 million. Despite macroeconomic uncertainties, Xperi maintained its financial outlook for the year, supported by strategic initiatives and operational efficiencies that improved adjusted operating expenses by 17% from the prior year.

Xperi Inc Financial Statement Overview

Summary
Xperi Inc is experiencing financial recovery with positive net income and strong free cash flow growth in the TTM period. However, the company faces challenges with revenue growth and operational efficiency, as evidenced by negative EBIT margins and low return on equity.
Income Statement
55
Neutral
Xperi Inc has shown volatility in its revenue growth with significant fluctuations over the years. The company reported a positive net income in TTM, indicating an improvement from previous losses. However, margins such as the gross profit and EBITDA are under pressure, reflecting challenges in maintaining profitability. The EBIT margin remains negative, suggesting operational inefficiencies.
Balance Sheet
65
Positive
The balance sheet of Xperi Inc indicates a relatively stable financial position. The debt-to-equity ratio is low, highlighting manageable leverage levels. However, the equity ratio has decreased over time, showing a decline in the proportion of equity financing. The company's return on equity is still low, which points to the limited ability to generate returns on shareholder investments.
Cash Flow
70
Positive
Xperi Inc's cash flow statements reveal a strong recovery in free cash flow in the TTM period. The free cash flow growth rate is impressive, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting effective cash management. However, historical negative free cash flow indicates past challenges in cash sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue462.51M493.69M388.79M502.26M486.48M376.10M
Gross Profit378.51M379.93M270.16M379.31M360.86M298.31M
EBITDA87.16M70.60M-53.53M-54.44M-33.93M-37.69M
Net Income10.93M-14.01M-136.61M-761.21M-181.86M-141.29M
Balance Sheet
Total Assets736.91M667.76M673.63M736.91M1.23B2.70B
Cash, Cash Equivalents and Short-Term Investments160.13M130.56M142.09M160.13M120.69M257.13M
Total Debt109.86M85.28M95.36M109.86M63.74M857.24M
Total Liabilities287.93M238.68M286.50M287.93M212.75M1.25B
Stockholders Equity463.42M429.08M404.23M463.42M1.03B1.46B
Cash Flow
Free Cash Flow321.82M-72.29M-12.87M-42.82M-32.53M-30.81M
Operating Cash Flow319.39M-55.34M62.00K-28.45M-23.45M-23.78M
Investing Cash Flow49.36M50.82M-12.93M-64.85M-21.48M26.52M
Financing Cash Flow-60.29M-19.35M7.05M135.75M83.33M34.24M

Xperi Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.10
Price Trends
50DMA
7.76
Positive
100DMA
7.84
Positive
200DMA
8.57
Negative
Market Momentum
MACD
0.06
Negative
RSI
56.76
Neutral
STOCH
77.48
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 8.1 is above the 20-day moving average (MA) of 7.91, above the 50-day MA of 7.76, and below the 200-day MA of 8.57, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.48 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$450.44M19.4921.69%-14.48%46.79%
74
Outperform
$369.51M24.5423.57%5.24%-13.18%-12.06%
64
Neutral
$370.07M-4.71%-4.77%84.82%
63
Neutral
£564.00M24.42-6.00%2.45%3.52%-29.29%
59
Neutral
$1.21B-26.43%-16.95%-2.47%
51
Neutral
$304.03M-375.37%-10774.57%
40
Neutral
$120.32M-180.49%-9.62%-30.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XPER
Xperi Inc
8.10
0.30
3.85%
AEHR
Aehr Test Systems
15.13
3.84
34.01%
WOLF
Wolfspeed
0.77
-23.00
-96.76%
NVEC
NVE
76.39
8.60
12.69%
NVTS
Navitas Semiconductor
6.32
2.21
53.77%
BZAI
Blaize Holdings
2.99
-8.20
-73.28%

Xperi Inc Corporate Events

Executive/Board Changes
Xperi Inc. Announces New Executive Bonus Plan
Neutral
Jan 24, 2025

On January 21, 2025, Xperi Inc.’s Board of Directors’ Compensation Committee approved a new Annual Bonus Plan, which awards cash incentives to executive officers based on pre-set performance criteria. The 2025 target bonuses for executives Jon Kirchner, Robert Andersen, and Geir Skaaden are tied to the company’s financial performance, with Skaaden’s bonus also linked to operational objectives. The target bonus amounts remain unchanged, and the awards are subject to the company’s clawback policy and relevant regulatory requirements.

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.Date of analysis: Jun 25, 2025