Xperi (XPER) investor relations material

Business overview and strategy

• Focuses on technology and solutions for connected car, pay TV, consumer electronics, and media platforms, monetizing content consumption through brands like TiVo, DTS, and HD Radio.

• Media platform, especially the TiVo One ad platform, is positioned as the primary growth driver, leveraging smart TV OS and cross-screen ad monetization.

• Growth solutions are supported by established core businesses with higher margins, enabling investment in new areas.

• Diverse customer base and deep industry relationships underpin long-term strategic positioning.

• Strategic goals include expanding TV OS partners and monthly active users, with a target of 5 million users and $10 ARPU by year-end.

Product and market developments

• TiVo OS now has nine partners, 3.7 million monthly active users, and is present in over 40 countries and 80 brands.

• AutoStage, a next-gen in-car infotainment platform, has signed two new OEM programs, expanding reach to 12 million vehicles.

• IPTV subscriber base grew over 30% in North America and LatAm, surpassing the 3 million subscriber goal mid-year.

• Renewals and new contracts secured with major CE brands for DTS and IMAX Enhanced technologies.

• Launched ClearDialogue, an AI-based TV dialogue enhancement, with first market entry expected in the first half of next year.

Financial performance and outlook

• Q2 revenue declined year-over-year due to prior minimum guarantee arrangements, but operating expenses fell significantly from ongoing cost transformation.

• Adjusted EBITDA increased slightly year-over-year, balancing lower revenue with reduced expenses.

• Ended Q2 with $95 million in cash, generating $10 million in cash and $5 million in free cash flow for the quarter.

• Revenue guidance for the year set at $440–460 million, with adjusted EBITDA margin targeted at 15–17%.

• Cash flow expected to be neutral for the year, with no anticipated need for external financing.