Xperi Inc (XPER) AI Stock Analysis

• Market Cap: $249.75M
• Dividend Yield: N/A
• Average Volume (3M): 493.02K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.17
• Revenue Growth: -10.74%
• EPS Growth: N/A
• Country: US
• Employees: 1,620
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.24
• Shares Outstanding: 46,335,384
• 10 Day Avg. Volume: 510,419
• 30 Day Avg. Volume: 493,024
• PEG Ratio: -0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 4.08
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: 0.99
• 1Y Price Target: $12.00
• Price Target Upside: 122.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $5.50 ▲(2.04% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by improving financial performance in 2025 (profitability, cash flow, and lower leverage). This is tempered by weak technicals (below key moving averages with negative MACD) and a relatively high P/E without dividend support. Earnings call takeaways were mixed: strong user/platform growth and cost actions, but revenue decline and workforce reduction add risk.

Positive Factors

Diversified monetization

Xperi’s dual revenue model — recurring IP licensing plus product/software/platform fees — creates durable cash channels. Licensing yields royalty visibility while platform revenues scale with deployments, lowering single-stream reliance and supporting long-term reinvestment and margin expansion.

Low and falling leverage

Material debt reduction and a very low debt/equity ratio materially reduce financial risk. That balance sheet flexibility supports sustained R&D, IP enforcement, and strategic deals without heavy interest burden, improving resilience through device-cycle volatility.

Stronger cash generation in 2025

A meaningful operating cash flow and free cash flow rebound increases internal funding for product development and platform rollouts. High cash conversion in 2025 improves self-funding prospects for growth initiatives and reduces dependence on external capital.

Negative Factors

Declining revenue trend

Two consecutive years of revenue decline indicate structural pressure on top-line scale. For a licensing and device-linked business, shrinking revenue undermines royalty growth, limits scale benefits for platform monetization, and makes long-term margin and investment plans harder to sustain.

Prior profitability weakness / ROE

A history of negative ROE and multi-year losses weakens confidence that recent profits are sustainable. Past earnings volatility and legacy losses suggest the company must convert improved metrics into persistently positive returns to justify continued investment and validate its expanded asset base.

Significant workforce reduction

A 15% headcount cut reduces near-term opex but risks eroding product development, partner support, and commercialization capacity. If cuts impair execution on platform monetization or OEM relationships, revenue recovery and long-term growth targets could be harder to achieve.

Xperi Inc Business Overview & Revenue Model

Company Description

Xperi 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 Money

Xperi 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 Financial Statement Overview

Summary

2025 shows a meaningful turnaround with strong profitability and cash generation and improving leverage. Offsetting this, revenue has declined for two consecutive years and prior-year earnings/cash flow volatility plus the reported 2025 gross margin data gap reduce 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.

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.

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.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	443.39M	493.69M	521.33M	502.26M	486.48M
Gross Profit	0.00	379.93M	402.71M	379.31M	360.86M
EBITDA	239.86M	70.60M	-52.25M	-663.39M	-33.93M
Net Income	111.08M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 5.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPER, the sentiment is Negative. The current price of 5.39 is below the 20-day moving average (MA) of 5.49, below the 50-day MA of 5.81, and below the 200-day MA of 6.58, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XPER.

Xperi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	81 Outperform	$334.15M	22.84	23.36%	6.28%	-9.48%	-14.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XPER	59 Neutral	$249.75M	35.77	1.74%	―	-10.74%	―
ALMU	51 Neutral	$320.38M	-126.97	-13.80%	―	307.44%	14.77%
AIP	47 Neutral	$709.74M	-18.99	―	―	20.45%	12.28%
BZAI	45 Neutral	$136.69M	-0.48	-1331.73%	―	―	-1827.24%
WOLF	44 Neutral	$908.54M	-1.25	-349.80%	―	―	―