Xperi (XPER -0.70%), a technology licensing firm specializing in media platforms and connected devices, reported earnings for Q2 FY2025 on August 6, 2025. The company’s results showed GAAP revenue of $105.9 million, missing analyst expectations of $113.01 million (non-GAAP) and marking an 11.5% drop from the prior year’s quarter on a non-GAAP basis. Non-GAAP earnings per share came in at $0.11, falling short of the $0.13 non-GAAP EPS anticipated by analysts. Despite the misses, The company improved its GAAP operating loss and achieved better profitability margins (non-GAAP). Overall, the quarter demonstrated progress in expanding its user ecosystem across streaming, automotive, and pay TV, but revealed ongoing challenges in top-line growth and softened outlook for the year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.11 | $0.13 | $0.12 | (8.3%) |
| Revenue (GAAP) | $105.9 million | N/A | $119.6 million | (11.4 %) |
| Non-GAAP Operating Income | $8.8 million | $8.3 million | 6.0 % | |
| Non-GAAP Adjusted EBITDA | $15.2 million | $14.6 million | 4.1 % | |
| Non-GAAP Adjusted EBITDA Margin | 14.4 % | 12.2 % | 2.2 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
About Xperi: Business and Focus Areas
Xperi develops and licenses media software, data, and platform solutions for use in smart TVs, automotive infotainment systems, and pay TV. Its platform includes TiVo OS for smart TVs, DTS audio and connected car technologies, and metadata for video services and streaming. The company’s strategy is built on enabling device manufacturers, broadcasters, and content distributors to improve user experience and monetize new media consumption models.
In recent years, Xperi has focused on several growth vectors: shifting technologies to support streaming, improving advertising monetization on independent platforms, expanding its ecosystem through strategic hardware partnerships, and advancing connectivity in vehicles. Success for Xperi relies on continuing user and partner growth, winning new device integrations, and increasing revenue from advertising and data services in a competitive media and automotive technology landscape.
Quarterly Review: Operations, Segment Moves, and Key Data
The headline result was an 11.5% decline in non-GAAP revenue compared to the same period a year ago. Non-GAAP earnings per share also came in below analyst estimates. The company stated that the changing macroeconomic environment increased uncertainty for its customers, ultimately impacting financial results. Despite the revenue shortfall, GAAP operating loss improved to $11.1 million from $21.9 million, comparing Q2 FY2025 to Q2 FY2024. Non-GAAP adjusted EBITDA rose to $15.2 million, boosting non-GAAP adjusted EBITDA margin to 14.4%, up from 12.2% in Q2 FY2024.
Media platform progress was evident, with monthly active users on the TiVo One advertising platform rising to 3.7 million, up from 2.5 million in the previous quarter. The company added its ninth original equipment manufacturer (OEM) TV partner, just one shy of its 2025 goal. Xperi made strides in advertising, launching cross-market ad delivery on TiVo One and expanding its home page ad inventory, especially in Europe, while signing up industry partners such as Wurl, Kargo, and FreeWheel. Over 80 new entertainment apps came online for smart TV users, increasing the platform’s appeal to both manufacturers and end-users. However, the impact of monetization from these activities is expected to grow in the coming years rather than immediately.
In the connected car business, Xperi’s DTS AutoStage platform grew its footprint to over 12 million vehicles worldwide, a 70% increase compared to Q2 FY2024. The company added over 1 million vehicles to its AutoStage footprint, serving new models from automakers like BMW, Kia, and Hyundai. DTS AutoStage is an in-car infotainment platform that aggregates content from radio broadcasters and internet sources. Broadening its reach to 60 countries, Xperi renewed and signed new contracts with automotive partners including Volkswagen and Honda, and signed new HD Radio integration agreements. The company highlighted that growing consumer demand for vehicle connectivity, especially in electric vehicles, is driving adoption of its technology.
In the pay TV and IPTV (Internet Protocol Television) segment, Xperi surpassed 3 million global IPTV subscriber households, exceeding its 2025 target. Subscriber growth was above 30% year over year. The company renewed contracts with major operators like Liberty Latin America and Cable One, and signed new metadata deals with providers such as Korea Telecom and Proximus. In consumer electronics, it renewed DTS audio technology contracts with major TV makers TPV (Philips), TCL, and Sony, and secured its first TV customer contract for DTS Clear Dialogue, an artificial intelligence-based sound enhancement technology slated for broader market introduction in the first half of 2026.
Xperi reported a cash balance of $95.1 million as of June 30, 2025, down from $130.6 million as of December 31, 2024. It replaced $50 million in short-term debt with $40 million in new long-term debt. Tightening cost control led to research and development expenses falling by $15.3 million and selling/general/administrative costs by $12.0 million compared to Q2 FY2024.
Looking Forward: Guidance and What to Watch
Management reiterated its previously lowered guidance for FY2025, maintaining a revenue outlook of $440–$460 million and a non-GAAP adjusted EBITDA margin of 15% to 17%. This guidance reflects a more conservative stance relative to prior expectations in response to continued market uncertainty and shifts in device demand. The company emphasized its intention to continue expanding the user base, target new automotive launches for DTS AutoStage, and grow advertising activity, but did not offer new projections on when these efforts would translate into higher revenue growth.
Investors should monitor how quickly Xperi can turn its user and partner growth in TiVo and automotive platforms into scaled, recurring revenues—especially in advertising and connected car services. Continued cost management, progress on platform integrations, and the pace of new content and device launches will influence financial results in coming quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
