Xperi (XPER) Q2 2026 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $114.5 million, with strong execution in Media Platform and Connected Car segments and over 50% growth in advertising and related revenue.

• Adjusted EBITDA more than doubled to $24.5 million (21.4% margin), reflecting strong operational leverage and platform expansion.

• Operating cash flow improved to $15 million, with free cash flow at $8 million and cash and equivalents at $91 million at quarter end.

• GAAP net loss narrowed to $1.5 million ($0.03 per share); non-GAAP EPS was $0.28, up from $0.11 last year.

• Accelerated scaling in home and automotive platforms, expanding TiVo ONE and Connected Car footprints.

Financial highlights

• Media Platform revenue grew 44% year-over-year to $18 million, with ARPU at $6.70 and TiVo One monthly active users up 70% to 6.3 million.

• Connected Car revenue surged 60% year-over-year to $40 million, with AutoStage footprint expanding 42% to 17 million vehicles.

• Pay TV revenue declined 11% to $45 million, while IPTV subscriber households rose 13% to 3.4 million.

• Consumer electronics revenue dropped 35% to $12 million, despite multi-year renewals with major brands.

• Non-GAAP net income was $13.6 million, with non-GAAP adjusted EBITDA up over 60% year-over-year to $24.5 million (21.4% margin).

Outlook and guidance

• FY 2026 revenue guidance is $440 million to $470 million, with adjusted EBITDA margin expected between 17% and 19%.

• Capital expenditures outlook raised to ~$25 million due to memory market constraints and partner-driven investments.

• Stock-based compensation outlook lowered to ~$29 million due to workforce reductions.

• Operating cash flow forecasted at $15 million to $25 million; non-GAAP tax expense projected at ~$20 million.

• Expect ARPU to exceed $10 by year-end as advertising revenue accelerates.