Xperi (XPER) investor relations material

Executive summary

• Q3 revenue was $113.953M, up 2% YoY; Media Platform and Pay TV growth offset declines in Consumer Electronics and Connected Car.

• GAAP operating income improved to $1.763M from a $1.362M loss; non-GAAP Adjusted EBITDA was $22.965M, or 20.2% of revenue.

• TiVo One ended Q3 at 6.8M monthly active users, up 40% YoY; ARPU was $7.65, up 14% sequentially.

Financial highlights

• Revenue was $113.953M versus $111.632M; GAAP operating expenses excluding cost of revenue declined 9% YoY.

• GAAP net loss was $5.241M versus $6.107M; non-GAAP net income was $11.718M versus $12.790M.

• GAAP EPS was $(0.11) versus $(0.13); non-GAAP EPS was $0.24 versus $0.28.

• Non-GAAP adjusted operating expenses declined 7% to $61.213M; GAAP operating expenses were $76.694M versus $83.916M.

• Operating cash flow was $4M, down $4M YoY; non-GAAP free cash flow was negative $3.4M versus positive $1.9M.

Outlook and guidance

• FY26 revenue outlook narrowed to $450M–$462M from $440M–$470M; midpoint increased $1M versus prior guidance.

• Adjusted EBITDA margin outlook rose to 19%–21% from 17%–19%; operating cash flow outlook increased to $20M–$30M from $15M–$25M.

• FY26 free cash flow outlook is negative $5M to positive $5M; capital expenditures remain ~ $25M.

• Year-end TiVo One MAUs expected above 7.5M; ARPU target is $8–$10, with midpoint at 90% of the current-year goal.

• Media Platform growth forecast near 60%, with Advertising and Related growth above 100%, partly offset by lower middleware licensing.