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Xperi Inc (XPER)
NYSE:XPER
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Xperi Inc
(NYSE:XPER)
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Rating:59Neutral
Price Target:
$6.50
▲(6.04% Upside)
Action:ReiteratedDate: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
Balance sheet leverage
Xperi’s sharp debt reduction in 2025 and very low debt-to-equity (~0.06) materially lower financial risk and increase strategic optionality. Durable low leverage helps sustain R&D and licensing investments, supports deal-making or buybacks, and cushions cyclical revenue swings over the next 2–6 months.
2025 cash generation
The meaningful operating and free cash flow improvement in 2025, with free cash flow closely matching net income, indicates higher cash conversion capability. Sustained FCF provides funding for IP monetization, platform investment, and reduces reliance on external financing—supporting durable operations and growth execution.
Platform scale and user growth
Rapid TiVo One MAU growth and an expanding AutoStage footprint underpin recurring monetization levers (ARPU, ad inventory, vehicle monetization). Platform scale improves pricing power with advertisers and OEM partners and supports multi-year ARPU expansion targets, creating a structurally stronger revenue mix over time.
Negative Factors
Revenue decline trend
Two consecutive years of revenue decline weaken top-line durability and raise dependence on restoring licensing cadence and platform monetization. Even with margin gains, persistent revenue erosion can constrain long-term investment in products, reduce bargaining leverage with OEMs, and make futures cash flows harder to predict.
Cash flow/earnings volatility
Historical operating and free cash flow volatility—despite 2025 improvement—reduces confidence in repeatable cash generation. This instability complicates capital allocation, forecasting, and the sustainability of margins if platform monetization or licensing timing slips, raising medium-term execution risk.
Execution and visibility risk
A 15% workforce reduction signals meaningful cost-reset but also heightens execution and integration risk for product and commercialization initiatives. Headcount cuts can impair delivery or partner support, and combined with revenue impacts from large one-off arrangements, they increase near-term operational uncertainty.
Xperi Inc (XPER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$287.92M
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-0.01
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/Revenue0.54
Enterprise Value/Gross Profit0.75
Enterprise Value/Ebitda1.12
Forecast
1Y Price Target
$11.33Price Target Upside84.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.98
Revenue Forecast (FY)$471.15M
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:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in TiVo One and Connected Car platforms, and cost reductions improving profitability. However, overall revenue declined due to previous large agreements, and a significant workforce reduction was announced.Q3-2025 Updates
Positive Updates
TiVo One Platform Growth
Achieved 30% sequential growth in the TiVo One CTV advertising platform, reaching 4.8 million monthly active users.
Connected Car Expansion
Platform footprint reached over 13 million vehicles installed with AutoStage at quarter end, with significant collaborations initiated for monetization.
IPTV Subscriber Growth
Video over broadband subscriber count grew 32% year-over-year to 3.2 million subscriber households.
Cost Reduction and Profitability
Non-GAAP adjusted operating expenses decreased approximately 20% compared to the prior year, with a workforce reduction expected to save $30-35 million annually.
Partnerships and Renewals
Renewed agreements with key partners such as Vestel and NCTC, and expanded IMAX Enhanced program with Sony Pictures.
Negative Updates
Revenue Decline
Consolidated revenue of $112 million was lower than the prior year period due to a large minimum guarantee arrangement with Panasonic in Pay TV.
Workforce Reduction
Announced a workforce reduction of 250 employees, representing 15% of the workforce, to improve profitability and cash flow.
Company Guidance
During the Xperi Third Quarter 2025 Earnings Conference Call, the company reported significant progress in various strategic areas, highlighting a 30% sequential growth in TiVo One's monthly active users, reaching 4.8 million by quarter-end. The connected car platform, DTS AutoStage, expanded to over 13 million vehicles, and Pay TV video over broadband subscribers grew 32% year-over-year to 3.2 million households. Xperi achieved consolidated revenue of $112 million, despite a year-over-year decline due to a prior large minimum guarantee with Panasonic. Non-GAAP adjusted operating expenses decreased by approximately 20%, contributing to a non-GAAP earnings per share of $0.28 and a positive operating cash flow of $8 million. Additionally, Xperi announced a workforce reduction of 250 employees to enhance profitability and cash flow, while maintaining its full-year revenue guidance of $440 million to $460 million and an adjusted EBITDA margin of 15% to 17%. The introduction of average revenue per user (ARPU) for TiVo One, calculated at $8.75, marks a new performance indicator for the company as it aims to reach $10 by year-end and grow beyond $20 over time.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.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 | 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
Positive
6.13
Price Trends
5.79
Positive
6.06
Positive
6.55
Negative
Market Momentum
-0.03
Negative
62.30
Neutral
88.38
Negative
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 6.13 is above the 20-day moving average (MA) of 5.49, above the 50-day MA of 5.79, and below the 200-day MA of 6.55, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, 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 | $332.99M | 23.52 | 23.36% | 6.28% | -9.48% | -14.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $287.92M | -4.98 | 1.74% | ― | -10.74% | ― | |
51 Neutral | $279.22M | -110.66 | -13.80% | ― | 307.44% | 14.77% | |
49 Neutral | $889.15M | -1.23 | -349.80% | ― | ― | ― | |
47 Neutral | $772.49M | -20.67 | ― | ― | 20.45% | 12.28% | |
45 Neutral | $144.01M | ― | -1331.73% | ― | ― | -1827.24% |
* Technology Sector Average
XPER
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-24.32%
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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.