Core Insights - The collaboration between Danghong Technology and Xperi aims to enhance the application and market expansion of the DTS AutoStage in the Chinese automotive industry [1] Company Collaboration - Danghong Technology and Xperi held a joint event in Hangzhou on November 12 to announce their deep cooperation in the automotive overseas ecosystem [1] - The partnership focuses on promoting the DTS AutoStage in Chinese automotive companies' international ventures [1]

Core Insights - Hangzhou Donghong Technology Co., Ltd. has partnered with Xperi Inc. to enhance the in-car entertainment experience for Chinese automakers entering overseas markets [1][2] - The collaboration aims to address the challenges faced by Chinese car manufacturers in accessing mainstream content services abroad, thereby improving the functionality of in-car entertainment systems [1][2] - The DTS AutoStage platform aggregates global content and supports various entertainment formats, providing a unified management system for in-car content [1][2] Group 1 - The partnership provides a global content aggregation platform for Chinese automakers, reducing the need for individual negotiations and adaptations for different markets [2] - Donghong Technology leverages its video enhancement technology to improve the display quality of in-car screens, offering a cinema-like audio-visual experience [2] - The 5D immersive smart cockpit developed by Donghong Technology enhances the in-car entertainment experience, providing realistic spatial audio effects [2][3] Group 2 - The first mass-produced vehicle equipped with DTS AutoStage, the Jishi ADAMAS, was showcased at the event, highlighting the successful collaboration between Donghong Technology and Xperi [3] - The integration of leading in-car entertainment solutions with development capabilities is crucial for supporting Chinese automakers in expanding their overseas presence [3] - The competition in the new energy vehicle market has shifted towards user experience, making in-car audio and video capabilities a core competitive advantage [3]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $132.9 million, a decrease of $21.3 million, or 16%, compared to the same period in 2024, primarily due to a $31.9 million decline in Pay-TV revenue[158] - Revenue for the nine months ended September 30, 2025, was $331.6 million, a decline of $39.7 million, or 11%, primarily due to divestitures and a decrease in Pay-TV revenue[161] Expense Management - Total operating expenses for the three months ended September 30, 2025, were $113.0 million, a decrease of $38.5 million, or 25%, compared to the same period in 2024[163] - Research and development expenses for the three months ended September 30, 2025, were $29.9 million, a decrease of $23.7 million, or 44%, primarily due to lower spending following the Perceive Transaction[168] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $42.5 million, a decrease of $14.0 million, or 25%, attributed to reduced employee headcount and lower stock-based compensation expenses[171] - Stock-based compensation (SBC) expense decreased by $5.6 million (37%) to $9.6 million for the three months ended September 30, 2025, compared to $15.2 million in the same period of 2024[173] - Depreciation expense increased by $0.6 million (19%) to $3.5 million for the three months ended September 30, 2025, compared to $2.9 million in the same period of 2024[174] - Amortization expense decreased by $2.9 million (27%) to $7.8 million for the three months ended September 30, 2025, compared to $10.7 million in the same period of 2024[176] Strategic Actions - The company completed the divestiture of its AutoSense in-cabin safety business in January 2024, enhancing focus on entertainment markets[152] - The company sold substantially all assets of Perceive Corporation for $80.0 million in cash, completed in October 2024, allowing a focus on entertainment-based solutions[153] - The company approved a restructuring plan on November 1, 2025, to reduce its global workforce by approximately 250 employees, expecting annualized cost savings of $30.0 million to $35.0 million[155] - A restructuring plan was approved on November 1, 2025, to reduce the global workforce by approximately 250 employees, with estimated charges between $16.0 million and $18.0 million[202] Cash Flow and Liquidity - Cash and cash equivalents decreased by $33.8 million to $96.8 million as of September 30, 2025, from $130.6 million as of December 31, 2024[189] - Net cash used in operating activities was $4.6 million for the nine months ended September 30, 2025, compared to $56.6 million in the same period of 2024[192] - Net cash used in investing activities was $14.6 million for the nine months ended September 30, 2025, compared to $12.9 million in the same period of 2024[195] - The company believes its current cash and cash equivalents, along with borrowings under the AR Facility, will be sufficient for at least the next 12 months[203] - The company may need to supplement cash and cash equivalents with additional outside sources as part of its liquidity strategy[203] - Poor financial results or unanticipated expenses could lead to additional financing requirements sooner than expected[204] - The company is monitoring its earnings and cash flow to assess its ability to access capital markets as needed[205] Debt and Interest Rate Exposure - The company issued a senior unsecured promissory note of $50.0 million in connection with the acquisition of Vewd, with an interest rate of 6.00% per annum, maturing on July 1, 2025[199] - On February 21, 2025, the company borrowed $40.0 million under the AR Facility, with expected interest payments of approximately $2.6 million for the next 12 months[201] - The company is exposed to interest rate risk, with $40.0 million of indebtedness under the AR Facility subject to variable interest rates, estimating a 1% increase in SOFR would raise interest expense by approximately $0.4 million annually[210] - The AR Facility is scheduled to terminate on February 21, 2028, unless terminated earlier[200] Financial Health Indicators - The current ratio improved to 2.4 as of September 30, 2025, compared to 1.6 as of December 31, 2024, indicating better short-term financial health[189] - There were no significant changes in critical accounting estimates during the nine months ended September 30, 2025[206]

Core Viewpoint - Xperi reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, but down from $0.51 per share a year ago, indicating a mixed performance in earnings despite a positive surprise this quarter [1][2]. Financial Performance - The company achieved revenues of $111.63 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.02%, but down from $132.89 million year-over-year [2]. - Over the last four quarters, Xperi has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2]. Stock Performance - Xperi shares have declined approximately 38% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $117.4 million, and for the current fiscal year, it is $0.84 on revenues of $447.87 million [7]. - The outlook for the Technology Services industry, where Xperi operates, is relatively strong, ranking in the top 39% of over 250 Zacks industries, indicating potential for better performance compared to lower-ranked industries [8].

Financial Data and Key Metrics Changes - Consolidated revenue for the third quarter was $112 million, lower than the prior year due to a large minimum guarantee arrangement with Panasonic [9][20] - Non-GAAP adjusted operating expenses decreased approximately 20% year-over-year, primarily due to cost transformation efforts and the divestiture of the perceived business [9][22] - Non-GAAP earnings per share was 28 cents, compared to 51 cents in the same quarter last year [22] Business Line Data and Key Metrics Changes - The pay-TV business saw a revenue decrease of $32 million, or 39%, primarily due to the prior year's Panasonic agreement [20] - IPTV subscribers increased by 32% year-over-year, reaching 3.2 million households, with revenue up 18% [16][20] - The connected car segment's revenue grew by $9 million, or 36%, due to long-term arrangements [21] Market Data and Key Metrics Changes - The media platform business revenue was approximately flat year-over-year, indicating stability despite fluctuations in other segments [21] - The consumer electronics market revenue grew by $3 million, or 20%, driven by new agreements and higher per-unit revenue from audio technologies [21] Company Strategy and Development Direction - The company is focused on media monetization as a significant growth opportunity, with ongoing partner rollouts of the TiVo One CTV advertising platform [5][6] - The company aims to grow average revenue per user (ARPU) for TiVo One, which was calculated at $8.75, approaching a target of $10 by year-end [12][19] - The company is transitioning away from the DVR hardware business under the TiVo brand to focus on video over broadband and smart TV solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching a key inflection point in business growth, particularly in the media platform and connected car markets [6][19] - The company reiterated its annual revenue guidance range of $440 to $460 million and an adjusted EBITDA margin of 15 to 17% for 2025 [26][27] - Management acknowledged the impact of minimum guarantee arrangements on revenue recognition and emphasized their strategic value [24][37] Other Important Information - The company announced a workforce reduction of approximately 250 employees, representing about 15% of its workforce, to improve profitability and cash flow generation [26] - The company expects to incur one-time restructuring charges of $16 to $18 million but anticipates annualized savings of $30 to $35 million from these reductions [26] Q&A Session Summary Question: What drives the initially lower gross margin in the media platform business? - Management indicated that semi-fixed costs and custom deals impact initial margins, but they expect margin acceleration as revenue scales [29] Question: Will targeted ads in automotive face similar fixed costs before achieving higher margins? - Management suggested that the costs are more amortized through the existing platform, allowing for a compelling solution for partners [30] Question: What was the TVO MAU progress last year? - Management noted that the previous MAU figures were significantly lower, in the low millions, and emphasized the growth achieved [31][32] Question: What is the critical mass needed for meaningful ad revenue on the TVO One platform? - Management expects material progress in 2026, with scale being important for advertisers [34] Question: When will platform revenue stabilize? - Management indicated that meaningful growth in 2026 would lead to less volatility in media revenue [38]

Financial Performance - Revenue reached $111632000, a decrease of 16% year-over-year[10] - GAAP operating expenses, including cost of revenue, decreased 25% year-over-year[10] - Non-GAAP adjusted operating expense decreased 20% year-over-year[10] - GAAP net loss attributable to the Company was ($6000000), while Non-GAAP Adjusted EBITDA was $23000000, representing 21% of revenue[10] - GAAP loss per share was ($013), and non-GAAP earnings per share was $028[10] Business Segment Highlights - TiVo One monthly active users increased by 30% to reach 48 million[7, 11] - The Connected Car platform expanded to more than 13 million vehicles on the AutoStage platform[7, 14] - IPTV subscribers increased 32% year-over-year, reaching 32 million households[7, 15] Revenue Breakdown by Market - Pay TV revenue was $49781000, a decrease of 39% year-over-year[22] - Connected Car revenue was $34612000, an increase of 36% year-over-year[22] - Consumer Electronics revenue was $18802000, an increase of 11% year-over-year[22]

Core Insights - Xperi Inc. reported a sequential growth of 30%, reaching 4.8 million monthly active users on the TiVo One platform [1][7] - The company signed its tenth TiVo OS partner and multiple advertising partnerships aimed at expanding its media platform in 2026 [1][2] - Xperi reiterated its full-year revenue guidance of $440-460 million and an adjusted EBITDA margin of 15-17% [1][9] Financial Performance - For Q3 FY25, Xperi's revenue was $111.6 million, down from $132.9 million in Q3 FY24 [3][9] - The GAAP operating loss improved to $1.4 million from a loss of $18.6 million year-over-year [3][9] - Non-GAAP operating income was $17.5 million, compared to $24.5 million in the same quarter last year [3][9] - Non-GAAP net income decreased to $12.8 million from $23.3 million year-over-year, with earnings per share at $0.28 compared to $0.51 [3][9] Strategic Developments - The company achieved significant milestones in its media platform and connected car segments, including over 13 million vehicles on the AutoStage platform [2][5] - Xperi's average revenue per user (ARPU) for the TiVo One platform was reported at $8.75 as of September 30, 2025 [7] - The company announced a workforce reduction of approximately 250 employees to enhance cost efficiency and align with long-term strategies, expecting annual savings of $30-35 million [8][9] Market Outlook - Xperi's financial outlook for fiscal year 2025 remains unchanged, with expected revenue between $440 million and $460 million [9] - The company anticipates a shift in revenue mix as its media platform expands, which may initially incur higher costs [8][9]

Financial Performance - Revenue for Q3 FY25 was $111.6 million, compared to $132.9 million in Q3 FY24, reflecting a year-over-year decline of approximately 16%[4] - Non-GAAP net income for Q3 FY25 was $12.8 million, down from $23.3 million in Q3 FY24, representing a decrease of about 45%[4] - Non-GAAP adjusted EBITDA for Q3 FY25 was $23.1 million, with a margin of 20.7%, compared to $31.4 million and 23.7% in Q3 FY24[4] - The company expects full-year revenue guidance of $440 million to $460 million for FY25, with an adjusted EBITDA margin of 15% to 17%[10] - Revenue for the three months ended September 30, 2025, was $111,632,000, a decrease of 16% compared to $132,891,000 for the same period in 2024[28] - Operating loss for the three months ended September 30, 2025, was $(1,362,000), significantly improved from $(18,555,000) in the prior year[28] - Net loss attributable to the Company for the nine months ended September 30, 2025, was $(39,254,000), compared to $(63,833,000) for the same period in 2024, reflecting a 38.7% reduction[32] - Non-GAAP net income attributable to the Company for the three months ended September 30, 2025, was $12,790,000, compared to $23,307,000 in 2024, reflecting a decline of 45%[34] - GAAP net loss for Q3 2025 was $6,107, compared to a loss of $19,831 in Q3 2024[38] Cash Flow and Assets - Cash and cash equivalents decreased to $96,784,000 as of September 30, 2025, down from $130,564,000 at the end of 2024[30] - Total current liabilities decreased to $113,047,000 as of September 30, 2025, from $185,349,000 at the end of 2024, indicating improved liquidity management[30] - Total assets decreased to $628,819,000 as of September 30, 2025, from $667,760,000 at the end of 2024, indicating a contraction in the asset base[30] - The Company reported a net cash used in operating activities of $(4,615,000) for the nine months ended September 30, 2025, compared to $(56,569,000) in 2024, showing significant improvement[32] Workforce and Cost Management - The workforce reduction plan will impact approximately 250 employees, with expected annualized savings of $30 million to $35 million[8] - Stock-based compensation expense for the nine months ended September 30, 2025, was $32,069,000, down from $45,309,000 in the same period of 2024[32] User Metrics and Market Growth - Achieved 30% sequential growth, reaching 4.8 million monthly active users on the TiVo One platform[2] - Average Revenue Per User (ARPU) for the TiVo One platform was $8.75 as of September 30, 2025[9] - IPTV subscribers increased by 32% year-over-year, reaching 3.2 million households[9] - The AutoStage platform has expanded to over 13 million vehicles, indicating strong growth in the connected car market[3] Partnerships and Revenue Opportunities - The company signed multiple monetization partnerships, including agreements with Titan Ads and Comscore, to enhance revenue opportunities[9] Expense Management - Interest expense decreased to $934 in Q3 2025 from $1,123 in Q3 2024[38] - Provision for income taxes increased to $4,805 in Q3 2025 from $2,899 in Q3 2024[38] - Stock-based compensation decreased to $9,640 in Q3 2025 from $15,249 in Q3 2024[38] - Depreciation expense increased to $3,470 in Q3 2025 from $2,918 in Q3 2024[38] - Amortization of intangible assets decreased to $7,987 in Q3 2025 from $10,934 in Q3 2024[38] - Transaction, integration, and restructuring costs significantly reduced to $233 in Q3 2025 from $7,961 in Q3 2024[38] - Severance and retention costs decreased to $1,006 in Q3 2025 from $9,184 in Q3 2024[38]

Core Insights - Comscore and TiVo have announced a strategic partnership to integrate TiVo's enriched program metadata into Comscore's cross-platform audience measurement, enhancing content identification across various platforms [1][2][3] Partnership Benefits - The collaboration aims to provide a unified view of audiences across linear TV, CTV, FAST, and streaming, allowing buyers and sellers to better understand audience reach and frequency without double-counting [2][5] - The integration is expected to reduce missed impressions and wasted spending, ensuring campaigns deliver as promised with fewer costly makegoods [5] - It will facilitate faster and more reliable operations, saving time and minimizing costly errors [5] - The partnership is designed to future-proof measurement capabilities, scaling with new distribution models and program variants [5] Operational Readiness - The integration is set to go live on October 27, 2025, marking a significant milestone for Comscore's next-generation measurement solutions [3] Company Background - Comscore is recognized as a trusted partner for planning, transacting, and evaluating media across platforms, combining digital and linear TV viewership intelligence [7] - TiVo focuses on enhancing viewer experience by aggregating content from various sources, targeting audiences to increase engagement [8]

Company Overview - Xperi (XPER) shares increased by 6.6% to close at $6.51, supported by higher trading volume compared to normal sessions, contrasting with a 1.6% loss over the past four weeks [1] - The company is making progress on key growth initiatives, including enhanced engagement on its TV platform, expansion in connected vehicles, and continued adoption of IPTV [1] Earnings Expectations - Xperi is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year decline of 51%, with revenues projected at $110.5 million, down 16.9% from the same quarter last year [2] - The consensus EPS estimate for Xperi has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Xperi holds a Zacks Rank of 1 (Strong Buy) within the Technology Services industry, indicating strong market sentiment [4] - Another company in the same industry, NextNav Inc. (NN), saw a 0.6% increase in its stock price, closing at $17.18, with a 9.9% return over the past month [4]