XPER

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Chief Executive Officer - Jon E. Kirchner Chief Financial Officer - Robert J. Andersen Operator: Good day, everyone, and thank you for standing by. Welcome to the Xperi Second Quarter 26 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the call will be open for questions. I would now like to turn the call over to Samuel Levenson from Arbor Advisory Group. Samuel? Please go ahead. Samuel Levenson: Good afternoon, and thank you for joining us as Xperi reports its second quarter 26 financial results. With me on today's call are Jon E. Kirchner, Chief Executive Officer and Robert J. Andersen, Chief Financial Officer. In addition to today's earnings release, there is an earnings presentation on our Investor Relations website at investor.xperi.com. We encourage you to download the presentation and follow along with today's commentary. Before we begin, I would like to provide a few reminders. First, I would like to note that unless otherwise stated, all comparisons are to the same period in the prior year. Second, today's discussion contains forward-looking statements about our anticipated business and financial performance as well as market and industry dynamics. That are predictions, projections, or other statements about future events. Which are based on management's current expectations and beliefs and therefore, subject to risks, uncertainties and changes in circumstances. For more information on the risks and uncertainties that could cause our actual results to differ materially, from what we discussed today, please refer to the risk factors and MD and A sections in our SEC filings including our Form 10-K for the year ended 12/31/2025 and our Form 10 Q for the quarter ended 06/30/2026 to be filed with the SEC. Please note the company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after this call. Third, we refer to certain non GAAP financial measures, which are detailed in the earnings release and are accompanied by reconciliations to their most directly comparable GAAP measures, which can be found in the Investor Relations section of our website. Last, a replay of this conference call will be available on our website shortly after the conclusion of this call. I will now turn the call over to Xperi's CEO, Jon E. Kirchner. Jon E. Kirchner: Thank you, Samuel, and thank you everyone for joining us on our second quarter 26 earnings call. The results of the second quarter clearly demonstrate strong execution against our strategic plan. Including accelerated advertising and related revenue growth of over 50%. We continued to scale our platforms in both the home and automotive markets which we believe provides sustainable competitive differentiation and drives long term growth. During the quarter, we continued to expand our TiVo 1 footprint advanced our advertising capabilities and partner integrations, and saw continued momentum in our growth areas within media platform connected car, and pay TV. Turning to our financial results for the quarter. We were pleased with our performance. Let me summarize a few of the achievements. Overall revenue grew 8% year over year to finish at $114 million. non-GAAP operating expenses decreased by 6% Adjusted EBITDA finished at 21% of revenue. Up 7 percentage points from last year. non-GAAP earnings per share finished at $0.28, more than double last year's number and the company generated $15 million of operating cash flow. Let me now go through each of our 4 business areas starting with media platform. TiVo 1 monthly active users totaled 6.3 million at quarter end, representing approximately 70% year over year footprint growth. Media platform revenue grew 44% year over year driven primarily by continued progress in advertising and related revenue. The trailing 12 month ARPU for TiVo 1 was $6.70, down slightly from the first quarter as a result of the trailing 12 month footprint growth rate exceeding the revenue growth rate. We expect ARPU to increase later this year as anticipated advertising and related revenue growth accelerates. And continue to expect we will achieve our goal of the year with an ARPU above $10. From an advertising perspective, we successfully executed home page video campaigns in The US and Europe. With global advertising brands ranging from the entertainment insurance, automotive, and technology industries. We also saw advanced integration of the TiVo 1 ad platform with key partners, including Kargo, to enable seamless transactions for our unique home page hero video inventory. Recent industry events continue to highlight the strategic value of the TV homepage as 1 of the most important discovery and monetization points in the entertainment ecosystem. The industry increasingly recognizes that TV operating systems first party data, and direct access to consumers at the start of their entertainment journey are becoming critical strategic assets. We believe this dynamic is driving greater interest from advertisers, content owners, and distribution partners in working with independent TVOS platforms like TiVo 1, that can help them reach consumers before viewing decisions are made. We successfully expanded our content with the launch of TiVo channels, adding free ad supported local content across more than 20 countries which we are confident further enhances the consumer experience, and supports potential future monetization opportunities. In terms of data related to advertising, we launched a new TiVo viewership and audience insights data in the UK market expanding the capabilities we can offer to advertisers and partners. Importantly and separately, in the US, we achieved a significant milestone and began licensing listening data and analytics to broadcasters through the broadcaster portal product that sits on top of our AutoStage platform. Given this is advertising and related revenue, we will be classifying it under media platform rather than within connected car. Moving to Connected Car, momentum in connected car continued with 42% year over year footprint growth in the second quarter. We exceeded 17 million cumulative vehicles shipped with DTS AutoStage across 13 automotive brands. And BYD joined the AutoStage program as our 14th automotive brand committing to deploy our audio and video solution across export models in its portfolio. We also expanded DTS AutoStage video powered by TiVo, now available in 100 countries across major OEM brands. Including BMW, Mercedes Benz, and Audi. Further establishing AutoStage video as a leading connected car video. As previously mentioned in media platform, we had an important win for our DTS auto stage broadcaster portal. Cumulus is 1 of the largest US broadcasters and operators of AMFM radio stations and has signed as our first licensed customer. The portal gives broadcasters a clear data driven view of listener behavior powered by large scale aggregated in car listening data. This enables more accurate audience insights, more informed programming decisions, stronger alignment with advertiser needs. In another win supporting the long term adoption of our technologies, we signed a multiyear HD radio program with a large Asian tier 1 supplier to enable future HD radio shipment growth. Additionally, automotive brands, including BMW, Toyota, Mercedes Benz, and Volkswagen, launched new vehicle models with HD Radio in The United States Canada, and Mexico. Moving to our pay TV business. As noted earlier, our IPTV subscriber household base continued to grow reaching 3.4 million global IPTV subscriber households at quarter end, representing 13% year over year growth. We also expanded our advertising reach by executing a partnership for programmatic dynamic ad insertion with NCTC, with 3 of its members, Summit Broadband, EPB, and Buckeye, adopting TiVo as their platform. In addition, we signed 3 new operators for TiVo managed service IPTV, and closed multiple renewals across our IPTV and discovery solutions demonstrating continued partner commitment to the TiVo platform. Importantly, as operators increasingly look to build their business across the broadband spectrum, they are looking for video solutions that help drive customer retention and enhance their offerings with lighter and different bundles of content from their historical pay TV solutions. TiVo has continued to achieve wins with operators as we have developed a range of solutions to meet their needs. This will continue to drive IPTV and broadband related growth in the pay TV business. Moving to our consumer electronics business. During the quarter, we continued to secure renewals and commitments that support the ongoing adoption of our consumer audio technologies. We closed a multiyear renewal for DTS Audio Solutions, including new commitments for DTS Clear Dialog across multiple TV and PC brands. We also renewed DTS agreements with leading TV, audio, and video receiver brands. Including Sony, Yamaha, Pioneer and Insignia. In addition, we renewed DTS agreements for PC and mobile devices with MSI and Tecno Mobile. Overall, these renewals reflect our strong market position with unique audio technologies across a broad range of consumer electronics categories. As we look at our progress against the 2020 growth goals we outlined earlier this year, we remain encouraged by the trajectory of the business. TiVo 1 monthly active users reached 6.3 million at quarter end, closing in on our target of more than 7 million by year end. Media platform revenue again grew at a very strong rate of 44%, reflecting continued progress in advertising and related revenue. As our footprint scales and our product capabilities expand. In connected car, auto stage continued to exceed our original footprint goals, and the addition of BYD as our 14th automotive brand further expands the long term opportunity for our connected car platform. Importantly, we are also beginning to see tangible evidence of demand for the data and analytics capabilities, as demonstrated by our first customer for the AutoStage Broadcaster Portal. Taken together, our second quarter progress reinforces our confidence in the strategic direction of the business and our ability to execute our goals for the year. Let me now turn the call over to Robert to discuss our financial results in more detail. Robert? Robert J. Andersen: Thanks, John. Let me start by reviewing the revenue results for the quarter. Overall, revenue finished at $114 million, an increase of 8% year over year and consistent with our expectations. Media platform revenue grew 44% year over year to $18 million, driven primarily by continued growth in advertising and related revenue from a host of sources including homepage video campaigns, new advertising clients, and the scaling of our ad related capabilities. Our Connected Car revenue grew 60% year over year to $40 million, due primarily to the signing of 2 significant minimum guarantee deals in the second quarter that represent additional long term commitments to our HD Radio platform. Pay TV revenue decreased 11% as expected to finish at $45 million, driven by a decrease in core pay TV revenue partially offset by continued growth from our IPTV solutions revenue. IPTV revenue increased 10% year over year to $26 million. Lastly, consumer electronics recorded $12 million of revenue and expect a decrease of 35% year over year due to minimum guarantee arrangements for codec and audio solutions that were recorded in last year's revenue. Given the significant growth within media platform from advertising and related revenue, we have surpassed an accounting threshold of 10% of total revenue this quarter will now be separately reporting advertising and related revenue along with the associated cost of revenue on our income statement going forward. It is important to note that cost of advertising and related revenue includes a fixed cost base that will be amortized over time. Thus, while we currently show an 8% negative gross margin, for the advertising and related revenue category, we expect margin to turn positive as we enter 2027 and then to be accretive growth contributor going forward as we move toward comparable industry media platform margins, in the 60% range. Looking at overall financial results, our GAAP operating expenses excluding cost of revenue, improved 10% year over year and non GAAP adjusted operating expense improved 6% year over year due primarily to workforce reductions that have occurred over the past year. We posted non GAAP adjusted EBITDA of $24 million, an improvement of over 60% compared to last year. On a percentage basis, adjusted EBITDA was 21% of revenue, an improvement of 7 percentage points from last year. GAAP net loss was $1.5 million or a net loss of $0.03 per share and non GAAP earnings per share was $0.28 Turning now to the balance sheet and statement of cash flow. We finished the second quarter of 26 with $91 million of cash and cash equivalents, an increase of $20 million from last quarter and keeping us on solid financial footing. Operating cash flow was $15 million in the second quarter of 26, an improvement of $5 million from the second quarter of 25. Had $8 million of free cash flow in the quarter an improvement of $3 million from last year. Also, at the beginning of the quarter, we received the final $12 million payment related to the sale of Perceive to Amazon, of which $11.3 million was categorized as cash flow from financing activities within our statement of cash flows and the balance was classified within operating activities. In terms of financial outlook for the year, we are maintaining our annual outlook as previously disclosed with 2 updates. First, we are adjusting our capital expenditure outlook from a range of $15 million to $20 million to approximately $25 million This change is primarily due to longer persistent issues in the memory market that have caused customers to request our engineering team to modify our software platforms to reduce memory requirements. We are also seeing significant memory related cost increases in the purchase of NEST necessary capital equipment. As a result, we expect these investments will position TiVo OS to continue to take market share as a highly cost efficient media platform for our OEM partners. Second, we are lowering our stock based compensation outlook from approximately $31 million to approximately $29 million This change is primarily due to recent workforce reductions that reduced the forecasted stock based compensation expense below our original expectation. Jon E. Kirchner: Let me now turn the call back over to John for a few closing remarks before we go to Q and A. Robert J. Andersen: Thanks, Jon. Jon E. Kirchner: Overall, we are very pleased with the continued strong execution against our strategic growth plan. In 2026, we are making a decisive pivot from years of investment in building our foundation toward accelerated monetization of our connected TV and automotive audiences. With over 6 million TiVo 1 monthly active users, over 3 million global IPTV households, and over 17 million vehicles equipped with DTS AutoStage we believe we have a unique and sustainable competitive advantage to leverage our increasingly scaling first party data and empowering advertisers to monetize these significant audiences. The results of our efforts are bearing fruit. Q2 advertising and related revenue increased 54% year over year We began monetization of our automotive audience in the quarter by licensing Cumulus as our inaugural launch partner for advanced analytics in our DTS AutoStage broadcaster portal, and we added BYD as our 14th automotive OEM. With DTS AutoStage. These are just a few of the tangible examples of the operation and financial progress that we are achieving and they demonstrate the continued progress we have made thus far in 2026. I would like to take this opportunity to thank the entire Global Xperi team for their commitment to our success and to working to drive long term shareholder value. With that, let me now turn the call over to the operator so that we can take your questions. Operator? Operator: Thank you. And we will now begin Q&A session. If you have dialed in If you would like to withdraw your question, simply press 1 a second time. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your questions. Again, it is 1 to join the queue. And our first question comes from the line of Jason Kreyer with Craig-Hallum. Your line is open. Jason Kreyer: All right. Thanks, guys. So John, I wanted to get your thoughts on the recent acquisition of Roke. It seems like with the takeout of Roke and then Visio getting taken up before that, there is a void in this industry for an independent OS platform. Just wondering if you think that creates opportunity for expansion at TiVo. Whether that be, you know, more OEMs that want to partner or perhaps just shifting a greater mix of their inventory in to TiVo. So wondering if your outlook for the opportunity changes at all. Jon E. Kirchner: I think yes to all of the above is the is the short answer. Jason, I think, you know, that act the Fox's acquisition of Roke could really validate the strategic value of the tvOS, the home screen, having first party CTV data, and direct to consumer access at the start of the entertainment journey. And I think you know, we are uniquely positioned as an independent who has a business model you know, that aligns well with in terms of incentives across OEMs and advertisers, content providers, etcetera. Where I think we you know, we are gonna see you know, we are gonna see as the market narrows in some places, you know, to create more strategic opportunity for us. So, know, not dissimilar from some of the other industry changes we have seen over the past, you know, 2 years. I think in many ways, it only bolsters you know, the case that we are not only making but continuing to advance in the marketplace. And perhaps that goes a step further with Robert's recent comment about know, memory and kind of the low memory requirements of the TiVo platform. Jason Kreyer: Correct? Jon E. Kirchner: Correct. And I and I think, you know, historically, we have been 1 of the most efficient you know, tvOS implementations. We have got a lot of technical expertise as to, you know, how to do this. That being said, you know, the memory crunch and the cost element of that you know, has people looking at everything saying, you know, we need to figure out how to know, have this delivered for even lower. You know? BOM costs, lower memory usage, etcetera. So you know, given that we have both demand saying, hey. Look. If you can help us figure this out, there is more business potentially gonna come your direction. You know, we have we have jumped all over that in order to support our partner, you know, and customer base as best we can. And I and I think that, these efforts, these investments in the near term you know, will really, prove to be very beneficial as we get into 2027 and beyond. Okay. And then as a follow-up, I wanted to pivot to automotive. So we have seen a bunch of volatility in the automotive over the last year or 2. You just talk about, in your discussions, your view of the landscape in automotive and perhaps just what demand looks like today for that premium infotainment solution that you provide. I do not think there is any question that across the board infotainment remains an area of focus and a point of differentiation for automakers. I think our continued signing of longer term multiyear deals around things like HD Radio and the adoption of AutoStage. As well as, you know, implementing AutoStage beyond just the audio but into video. I think, you know, evidence is that is a point of for our customers. So while I think the ultimate unit volumes in automotive naturally are impacted by a bunch of trends, inflation, tariffs, trade, as well as, you know, you know, some of the supply chain slash, you know, memory type issues. You know, I think the reality that the in cabin experience is a key differentiator in the purchase journey Yeah. It remains, you know, very strong. I think we are very well positioned in that. And I think uniquely, if I link maybe your 2 questions together a little bit, you know, we are truly unique in that we are building a media platform that has very unique first party data coverage coming out of not only the living room and terms of CTV, but inside the cabin. And that dataset is increasingly of interest to advertisers. Certainly has gotten you know, I think, a ton of interest within the radio world as people look for better know, targeting, as well as measurement and better understanding what is happening actually inside the car in a world that is large been you know, somewhat limited in terms of its data access. So I think all of you know, all of what is happening in CAR plus kind of the continued advancement of what is happening in the living room you know, bodes well for the business strategy that we laid out. How we are gonna differentiate ourselves in what is a highly competitive, highly valuable market. Jason Kreyer: that is a great point you made. Thanks, John. Operator: And our next question comes from the line of Matthew Galinko with Maxim Group. Matthew Galinko: Hey, thanks for taking my questions. Maybe my first is around Cumulus deal. Can you maybe go into a little bit more detail on maybe how long you were working on that? What the structure might look like, and if it increases the likelihood of you know, signing additional partners in that area. Jon E. Kirchner: Maybe going in reverse. I Matthew, I think absolutely. Do I expect there to be more? I think we have a very robust pipeline of interest. it is something we have been working on for some time. Partially as we have developed the broadcaster portal product in, you know, in conjunction with working with our customers and, you know, our broadcast partners identifying what their real needs were and where the gaps were in terms of the information. You know, coming you know, coming off, you know, radio in general and out of the car. So, you know, it is it is been a product that was designed you know, you know, very you know, let's call it interactively with a number of our key customers Cumulus has been part of that. We are very proud to have them as our first customer. The business model is licensing subscriptions. Access to information based on, the number of stations and the amount of coverage, across, The US that are relevant, priced on that basis. So I think, you know, the deals will you know, range in size in part based on some of those attributes with fellow broadcasters, but I do fully expect that we will have a number of others, and I think there is growing intensity in and around the amazing you know, your real time data people are getting off our vehicles as we now approach know, 17 million worldwide and you know, well more than half that active in The US. it is just people are seeing data they have never seen before. And I think that is, that is a tremendous position for us to be in. Thank you. Matthew Galinko: And I guess maybe just as a follow-up, specifically on the Pay TV business, I think this was a relatively steeper drop on the core side of it than, you know, maybe in prior quarters. But maybe an acceleration on the IPTV side. Can you maybe go a little bit deeper into the trends that we are seeing on the 2 sides of the pay TV business? And that kind of a run rate we should be thinking about for the coming quarters or how is there anything anomalous in 2Q? Robert J. Andersen: This is Robert. I am not sure if there was anything specific in Q2 from a comparability standpoint. I think if we look at it overall, that core part does continue to decline. And you know, that is that also has been impacted to some extent by us exiting the hardware business and the attendant subscriptions that would ultimately go with it. So that is continued to decrease year over year. And I think we have seen as you noted, pretty good positive growth still in the double digits for IPTV. I think maybe the broader question is when do those start to balance each other? And you know, I think as we have looked out over the next year or 2, we do see a balancing equation whereby we expect the Alexa Pay TV business would be balanced by the growth in IPTV probably in the mid 27 to mid 28 time frame. Somewhere along those lines. But I do not think anything specific to your original question around this quarter to it can vary a little bit. Yeah. Jon E. Kirchner: I would I would just add to that, you know, you have got you know, you have got active cord cutting in certain parts of the market You also have us exiting largely the consumer facing. that is the hardware and subscription piece. And as those tails kinda roll off, you know, depending on the exact timing of how these things are hitting, you know, on a year over year basis, that is what you are seeing. But the big the big place we have been working towards, you know, achieving is know, when does that bottom out become stable and then ultimately, know, you see the benefit of all the work you have done over the past few years in growing your IPTV you know, business, which is strong, and that continues to grow, you know, in some of our partners. So as that happens here in the in the not too distant future, I think I think the discussion of, you know, declines begins to you know, to know, fade into, you know, just what does, you know, neutral to growth look like? Operator: And our next question comes from the line of Dave Storms with Stonegate. Your line is open. Analyst: Maybe wanted to start with, TiVo monthly active users had a nice growth. Sequentially there. It looks like your well on track to hit the 7 million stated goal. Just about maybe the cadence of that, should we expect that to maybe be smooth and linear, or is this going to be more dependent on any partnerships that are in the pipeline that might make that a little more lumpy. Just any commentary there would be great. Jon E. Kirchner: Yeah. I think as you have as you have seen it, it is not it does not tend to be linear. It kind of depends in part based on what territories activations are happening in, partner launches, retail timing, you know, what sell through looks like, etcetera. So there is there is a bunch of factors. We obviously we knew kind of coming into this year that we might see it lighter early in the year, and then we would see a meaningful pickup. And I think at this point, we would look ahead to year end feel like the 7 million goal that we set a couple of years ago, will be achieved. But I think this is this is an area where we continue to invest a lot of time because we believe that we can continue to grow that footprint. You know, over time. And then as we do so and continue to optimize what advertising and or what content engagement looks like on the platforms and ultimately attach the advertising to that, you know, with a useful life of, you know, 5+ years for a lot of these TVs, there is a lot of revenue downstream that can come from that. So, it is a good question, but it is not linear. It will bounce around. that is great commentary. I appreciate that. Similar question. On the auto stage vehicles. Great to see they added BYD. It looks like you have been growing roughly a million or so vehicles per quarter for the last couple quarters. How quickly could the integration from BYD accelerate that growth? Or will that maybe take some time from a logistics standpoint? I think it will contribute meaningfully given the size of, you know, their current installed base and where they are going, there are some vehicles that are likely to be included in some over the area the over the air updates as well as new models. So while I do not have the and I am not really at liberty to speak to the specific plans there. You know, BYD is the world's largest electric vehicle manufacturer. And they have got quite the presence, of course, outside the United States. So 2 things are important about that. 1 is that volume obviously positively accrues to continued growth in auto stage. Secondly, the fact that they have a very strong presence in Europe and we believe the auto stage listening and analytics and data play has a lot of potential upside in Europe as well is a huge positive. And I would say, you know, thirdly, it gives others in the marketplace that maybe are not adopting at the same level, seeing somebody like BYD making a critical strategic choice, which is to go all in on Xperi solutions for both AutoStage audio and video you know, across the board. I think, sends a pretty strong message of industry progress and support. Analyst: that is great. Thank you for taking my questions, and good luck on the next quarter. Thank you. Thank you, Dave. Operator: And our final question comes from Amit Khorsand with BWS Financial. Your line is open. Hamed Khorsand: Hi. Could you just talk a little bit more about the minimum guarantees in auto that you were talking about for HD Radio? How that will play out for the rest of the year as far as your auto revenue is concerned? Robert J. Andersen: Sure. This is Robert. We obviously had a very strong quarter from Connected Car perspective, and that was indeed driven by minimum guarantees. I think as we generally think of the overall year and how we expect things to progress, certainly, we have other minimum guarantees that will occur in the second half of the year. Hard to say what the exact mix is going to be. But, certainly, we expect automotive to be up for the year. And generally speaking, around minimum guarantees, you know, they have been historically in the low to mid single digits. I think for this year, it is going to be a little bit weighted toward yeah. So I think that kind of gives you a sense. it is it is probably mid twenties. Mid 20s. Sorry. Single digits. Mid twenties for this year. Okay. Alright. Percentage of revenue. Hamed Khorsand: And then the other question I had was just given how you have grown, TiVo 1 subscribers so quickly, Does that play a role as to what could happen as far as your ARPU is concerned, as far as dilution because you are growing so rapidly on that count? Jon E. Kirchner: Yeah. I think I think 1 of the things to understand, we talk about ARPU. You know, there is 2 components of course, revenue growth and footprint growth. And in periods where the footprint is growing faster than the revenue, you know, it tends to drive down your ARPU. You know, until you are at a more normalized base state and you are just more in the optimization mode with what you have got where the relative gains are let's call it smaller. On a percentage. So that is kind of what you saw in this past quarter. You know, with a slight dip in ARPU was a function of the user base MAUs growing faster than the revenue. However, you know, as we think about it, for example, for 2026, we expect, you know, to end the year at around 7 million And based on that and our expectation that we are going to have a very strong back half in terms of advertising, we think that will drive up ARPU, consistent with our expectations, right around $10. So I think over time, though, you know, I think you are going to continue to see us as we take regular steps to you know, to tweak and optimize kind of the platform improving things like fill rates and as well as providing, you know, various data augmentation to drive up CPMs, among other things to ultimately drive more value out of the inventory that we have. I think you will see continued gains that, you know, are not dissimilar from what you have seen on other platforms that, you know, if you will, cut their teeth and launched years ago, and then, you know, they saw a similar ramp. I think we are kind of on that journey. Ourselves, but the hardest thing to do, Amit, is get footprint. it is a hypercompetitive market in part because that real estate is incredibly valuable. And I think we continue to do so very successfully You know, as an independent platform, I think we continue to have a lot of interest and I think based on that, we are going to be able to increasingly monetize that over time. Hamed Khorsand: Okay. Great. Thank you. Thank you, Amit. Operator: And that concludes our Q&A session. I will now turn the conference back over to Mr. Jon Kirchner for closing remarks. Jon E. Kirchner: Thanks, operator. As we move back into the back half of the year and continue to expect to see momentum in our business. We are grateful for the continued support of our customers, partners, and shareholders. Our multiyear pivot is taking shape in the collection of assets we have spanning the home and the car is quite unique in the industry. We look forward to sharing further updates on our next quarterly conference call. And thanks, everyone, for joining today. Operator, that concludes our remarks. And ladies and gentlemen, this concludes today's call, and we thank you for your participation. Before you buy stock in Xperi, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xperi wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xperi (XPER) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Xperi Inc.? Here are five stocks we like better. Xperi’s second-quarter revenue rose 8% year over year to $114 million, while adjusted EBITDA increased to $24 million, or 21% of revenue, and non-GAAP EPS more than doubled to $0.28. Growth was led by the Media Platform and Connected Car businesses: media revenue climbed 44% on advertising gains, while connected-car revenue rose 60% following minimum-guarantee deals and broader DTS AutoStage adoption. Xperi maintained its full-year outlook but raised expected capital expenditures to about $25 million, citing memory-market pressures and customer software modifications; the company ended the quarter with $91 million in cash. Xperi (NYSE:XPER) reported second-quarter 2026 revenue growth of 8% year over year to $114 million, supported by gains in its media platform and connected-car businesses. The company said advertising and related revenue increased more than 50%, while cost reductions contributed to improved profitability. Chief Executive Officer Jon Kirchner said the quarter reflected execution on the company’s strategy to scale its connected-TV and automotive platforms and increase monetization of their audiences. Xperi reported $24 million of adjusted EBITDA, equal to 21% of revenue and up seven percentage points from a year earlier. Non-GAAP earnings per share were $0.28, more than double the prior-year result, while operating cash flow totaled $15 million. → No Hangover: Revisiting Microsoft One Week After Earnings Media Platform revenue rose 44% year over year to $18 million, driven primarily by advertising and related revenue. TiVo ONE monthly active users reached 6.3 million at the end of the quarter, representing approximately 70% year-over-year footprint growth. The trailing 12-month average revenue per user for TiVo ONE was $6.70, slightly below the first-quarter level because user growth outpaced revenue growth, Kirchner said. However, the company continues to expect to exit 2026 with ARPU above $10, anticipating faster advertising and related revenue growth during the second half of the year. → MarketBeat Week in Review – 08/03 - 08/07 Xperi said it ran homepage video campaigns in the United States and Europe for brands in entertainment, insurance, automotive and technology. It also expanded integrations with advertising partners Teads and Kargo for its homepage hero video inventory. During the quarter, the company launched TiVo Channels, which adds free ad-supported local content in more than 20 countries. It also introduced a TiVo viewership and audience-insights data offering in the United Kingdom. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Because advertising and related revenue exceeded 10% of total revenue in the quarter, Xperi said it will begin separately reporting that revenue category and its associated cost of revenue on its income statement. Chief Financial Officer Robert Andersen said the category currently has an 8% negative gross margin because of a fixed-cost base, but management expects margins to turn positive in 2027 and eventually approach media-platform margins in the 60% range. Connected Car revenue increased 60% year over year to $40 million, primarily due to two significant minimum-guarantee deals signed during the quarter for Xperi’s HD Radio platform. Andersen said the company expects additional minimum guarantees during the second half and expects automotive revenue to increase for the full year. DTS AutoStage’s cumulative vehicle shipments exceeded 17 million across 13 automotive brands at quarter-end, up 42% from a year earlier. BYD became the 14th automotive brand to join the AutoStage program, committing to deploy Xperi’s audio and video solution across its export-model portfolio. Xperi also expanded DTS AutoStage video powered by TiVo to 100 countries across major original equipment manufacturers, including BMW, Mercedes-Benz and Audi. Kirchner said the company sees infotainment as an ongoing differentiator for automakers despite volatility in broader vehicle demand. The company began monetizing automotive data through its DTS AutoStage Broadcaster Portal. Cumulus, a U.S. radio broadcaster and operator of AM/FM stations, became the first licensed customer for the product, which provides listener-behavior insights based on aggregated in-car listening data. Kirchner said the portal is sold through subscription licenses that vary based on station count and geographic coverage, and that Xperi has a pipeline of additional broadcaster interest. Pay-TV revenue declined 11% to $45 million, reflecting a decrease in core pay-TV revenue that was partly offset by IPTV growth. IPTV revenue rose 10% to $26 million, while global IPTV subscriber households reached 3.4 million, up 13% year over year. Xperi said it signed three new operators for TiVo managed-service IPTV and completed several renewals for IPTV and discovery offerings. It also partnered with NCTC on programmatic dynamic ad insertion, with Summit Broadband, EPB and Buckeye adopting TiVo as their platform. Andersen said the legacy pay-TV business continues to decline, including from Xperi’s exit from consumer-facing hardware and associated subscriptions. Management expects IPTV growth to balance declines in the legacy business sometime between mid-2027 and mid-2028. Consumer electronics revenue was $12 million, down 35% year over year. Andersen attributed the decline to minimum-guarantee arrangements for Kodak and audio solutions that had been recorded in the prior year. Xperi said it renewed multiyear DTS agreements with brands including Sony, Yamaha, Pioneer, Insignia, MSI and Realtek. Xperi maintained its annual financial outlook but raised its capital-expenditure forecast to approximately $25 million from a prior range of $15 million to $20 million. Andersen said the increase reflects persistent memory-market issues that have led customers to request software modifications to reduce memory requirements, as well as higher memory-related costs for capital equipment. The company lowered its stock-based compensation forecast to approximately $29 million from about $31 million, citing workforce reductions over the past year. Non-GAAP operating expenses declined 6% year over year, while GAAP operating expenses excluding cost of revenue declined 10%. Xperi ended the quarter with $91 million in cash and cash equivalents, up $20 million from the prior quarter. Free cash flow was $8 million, compared with a $3 million improvement from the prior-year quarter. The company also received the final $12 million payment tied to its sale of Perceive to Amazon. Xperi Inc (NYSE: XPER) is a global technology company that develops and licenses audio, imaging and semiconductor packaging solutions. The company was formed in 2016 through the spin-off of Tessera Technologies' product divisions and expanded its product portfolio in 2019 with the acquisition of TiVo Corporation. Headquartered in San Jose, California, Xperi's technologies underpin a range of consumer electronics, automotive, mobile and broadcast products around the world. In its technology licensing segment, Xperi offers a broad portfolio of semiconductor packaging and interconnect solutions designed to improve performance and energy efficiency in chips and devices. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xperi Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Xperi (XPER) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this media software company would post earnings of $0.2 per share when it actually produced earnings of $0.23, delivering a surprise of +15%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Xperi, which belongs to the Zacks Technology Services industry, posted revenues of $114.49 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.89%. This compares to year-ago revenues of $105.93 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xperi shares have added about 35.7% since the beginning of the year versus the S&P 500's gain of 13%. While Xperi has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Xperi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $114.47 million in revenues for the coming quarter and $0.85 on $458.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Red Cat Holdings, Inc. (RCAT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has been revised 4.4% lower over the last 30 days to the current level. Red Cat Holdings, Inc.'s revenues are expected to be $22.31 million, up 592.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xperi Inc. (XPER) : Free Stock Analysis Report Red Cat Holdings, Inc. (RCAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Advertising and Related Revenue Grew 54% Year-Over-Year Monthly Active Users on the TiVo One Ad Platform Grew 70% Year-Over-Year Adjusted EBITDA Increased 61% Year-Over-Year SAN JOSE, Calif., August 05, 2026--(BUSINESS WIRE)--Xperi Inc. (NYSE: XPER) (the "Company" or "Xperi"), a media and entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced second quarter 2026 financial results for the period ended June 30, 2026. "Our financial results continue to demonstrate positive momentum in our business and the effectiveness of our strategy to grow both footprint and revenue on our platforms. Monthly active users on the TiVo One platform grew 70 percent from last year, to 6.3 million, which we believe positions us to achieve our year-end goal of 7 million users. This footprint expansion helped drive 54 percent year-over-year growth in advertising and related revenue. Our AutoStage platform footprint grew 42 percent year-over-year to reach 17 million vehicles, and began generating revenue from listener analytics and data," said Jon Kirchner, chief executive officer of Xperi. "Overall, we are pleased with our first half performance and believe our business continues to build momentum." Financial Highlights Recent Key Operating Achievements Media Platform Growth in footprint, product enhancements, and expanded advertising partnerships continue to accelerate advertising and related revenue Ended the quarter with 6.3 million TiVo One Monthly Active Users, representing 70% year-over-year footprint growth. Media Platform revenue grew 44% year-over-year and trailing 12-month ARPU reached $6.70. Successfully executed homepage video campaigns in the U.S. and Europe including global advertising brands ranging from the entertainment, insurance, automotive and technology industries. Advanced integration of the TiVo One ad platform with key partners, including Teads and Kargo, to enable seamless transactions for TiVo One’s unique homepage video inventory. Connected Car Continued growth in AutoStage platform footprint as well as new automotive OEM programs are beginning to accelerate advertising and related revenue DTS AutoStage platform footprint grew 42% year-over-year, reaching 17 million cumulative vehicles shipped with DTS AutoStage across 13 automotive brands. BYD, the largest electric vehicle manufacturer in the world by global sales, joined the AutoStage program as the 14th automotive brand and committed to deploy our audio and video platform across export models in its portfolio. Signed Cumulus, one of the largest U.S. broadcasters and operators of AM/FM radio stations, as the first customer for advanced analytics in our DTS AutoStage broadcaster portal. This revenue is advertising-related and will be recognized within Media Platform. Signed a multi-year HD Radio program with a large Asian Tier 1 supplier to enable future HD Radio shipment growth. In addition, automotive brands BMW, Toyota, Mercedes-Benz, and Volkswagen launched new vehicle models with HD Radio in the U.S., Canada and Mexico. Pay TV Continued double-digit subscriber growth in video-over-broadband along with key design wins demonstrate partner commitment to the TiVo platform Ended the quarter with 3.4 million global IPTV subscriber households, representing 13% year-over-year growth. Expanded our advertising reach by executing a partnership agreement for Programmatic Dynamic Ad Insertion (PDAI) with the National Cable Television Cooperative (NCTC). Entered into agreements with NCTC member operators Summit Broadband, EPB, and Buckeye to adopt TiVo as their PDAI platform. Consumer Electronics Continued trend of securing long-term renewals with commitments to our technology Closed a multi-year renewal for DTS audio solutions, including new commitments for DTS Clear Dialogue across multiple TV and PC brands. Renewed DTS agreements with leading TV, audio, and video receiver brands, including Sony, Yamaha, Pioneer, and Insignia. Renewed DTS agreements for PC and mobile devices with MSI and Tecno Reallytek. Financial Outlook The Company maintains its guidance with respect to Revenue, Adjusted EBITDA Margin, Operating Cash Flow, Non-GAAP Tax Expense and Share Count. The Company has increased its Capital Expenditures outlook to approximately $25 million, from a prior range of $15-20 million, due primarily to continued constraints in the memory market that resulted in price increases in planned capital equipment purchases. In addition, the Company is responding to partner demand for incremental investment to reduce memory requirements in the Company’s software platforms. The Company has lowered its anticipated Stock-based Compensation outlook to approximately $29 million, from a prior estimate of $31 million, due primarily to the impact of workforce reductions. Conference Call Information The Company will hold its second quarter 2026 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Wednesday, August 5, 2026. To access the call toll-free, please dial 1-888-596-4144, otherwise for USA/International dial 1-646-968-2525 and Canada-Toronto 1-647-495-7514. The conference ID is 5483252. All participants should dial in 15 minutes prior to the start of the call using the conference ID listed above. Alternatively, the call can be accessed via the following webcast link: Q2 2026 Earnings Call Webcast Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding: expectations regarding our future results of operations and financial position, and overall growth, including, without limitation, revenue, footprint and Adjusted EBITDA Margin growth, improved profitability, long-term shareholder value, objectives for future operations, expected capital expenditures and stock-based compensation, and ongoing strategies and operating initiatives, including, without limitation, expectations regarding TiVo One platform growth and certain investments. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In some cases, you can identify forward-looking statements by the words "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "target," "goal," and similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the Securities and Exchange Commission (the "SEC"), and our other filings with the SEC from time to time. Any forward-looking statements speak only as of the date of this press release and are based on information available to the Company as of the date of this press release, and the Company does not assume any obligation to, and does not intend to, publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. About Xperi Inc. Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®), are integrated into consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences, including IMAX® Enhanced, a certification and licensing program operated by IMAX Corporation and DTS, Inc. Xperi has created a unified ecosystem that reaches highly engaged consumers, driving increased value for partners, customers and consumers. ©2026 Xperi Inc. All Rights Reserved. Xperi, TiVo, DTS, HD Radio and their respective logos are trademark(s) or registered trademark(s) of Xperi Inc. or its subsidiaries in the United States and other countries. IMAX is a registered trademark of IMAX Corporation. All other trademarks and content are the property of their respective owners. Definition for TiVo One Monthly Active User Xperi defines a "TiVo One Monthly Active User" as a unique device that has connected to the TiVo video service, which includes the TiVo One advertising platform, at least once within the last 30 days. The TiVo One advertising platform integrates with the device’s operating system on certain "Powered by TiVo" devices, including smart TVs and video-over-broadband products. Calculation of Average Revenue Per User for TiVo One Average Revenue Per User (ARPU) for TiVo One is calculated by dividing advertising and related revenue (excluding automotive-related revenue) for the trailing four quarters by the average number of TiVo One Monthly Active Users during that same period. This metric helps investors and management measure how effectively the Company monetizes its media platform through advertising and data. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company’s press release contains non-GAAP financial measures, including Non-GAAP Operating Income/(Loss), Non-GAAP Net Income/(Loss), Non-GAAP Net Income/(Loss) Per Share, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Free Cash Flow, and Non-GAAP Tax Expense. Non-GAAP Operating Income/(Loss) is defined as GAAP Operating Income/(Loss), less the impact of stock-based compensation; amortization of intangible assets; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance. Non-GAAP Net Income/(Loss) is defined as GAAP Net Income/(Loss) excluding the impact of stock-based compensation; amortization of intangible assets; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance; and related tax effects for each adjustment. Non-GAAP Net Income/(Loss) Per Share is defined as Non-GAAP Income/(Loss) divided by Non-GAAP weighted average shares outstanding - diluted. Non-GAAP Adjusted EBITDA is defined as GAAP Net Income/(Loss), less the impact of interest expense; provision for income taxes; stock-based compensation; depreciation expense; amortization of intangible assets; amortization of capitalized cloud computing costs; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance. Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA divided by total revenue. Free Cash Flow is defined as net cash from operating activities, less cash investments for capitalized internal-use software and purchases of property and equipment. Non-GAAP Tax Expense is defined as the GAAP provision for income taxes, adjusted to reflect the net direct and indirect income tax effects of the various non-GAAP pretax adjustments. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of the Company’s reported GAAP to non-GAAP financial measures. XPER-E View source version on businesswire.com: https://www.businesswire.com/news/home/20260805202128/en/ Contacts Xperi Investor Contact: Idalia RodriguezArbor Advisory Group+1 [email protected] Media Contact: Tom Huntington+1 [email protected]

Dolby Laboratories, Inc. DLB expects a sharp fiscal fourth-quarter rebound after third-quarter revenues fell 3.3% year over year to $305 million. The guidance midpoint points to approximately 23% growth, creating a clear test of whether newer licensing opportunities can offset uneven foundational businesses. The durability of that rebound will depend on content agreements, automotive volume and wearables, as well as how much revenue reflects contract timing rather than underlying adoption. Dolby forecasts fourth-quarter revenues of $362-$392 million, including licensing revenues of $335-$365 million. Non-GAAP earnings are projected between $1.13 and $1.28 per share. The outlook represents a substantial sequential improvement from the third quarter. Management expects the video distribution program, higher Dolby Atmos units in automobiles and new device categories to provide the main growth support. Dolby Laboratories price-consensus-eps-surprise-chart | Dolby Laboratories Quote Meta joined Dolby's video distribution program across Facebook, Instagram and WhatsApp, with a large agreement signed early in the fourth quarter. Alibaba also became a licensee, while the patent pool had 45 licensors less than a year after inception. These wins advance Dolby's goal of generating 10% of total revenues from content partners by fiscal 2028. A broader content-licensing base could reduce dependence on foundational device audio, although the pace of additional agreements remains important. Dolby has announced agreements with more than 40 automakers, up from more than 20 at fiscal 2025-end. Higher Atmos units in vehicles are expected to contribute to fourth-quarter growth, while support through Android Auto and Apple CarPlay can make the format easier to demonstrate and use. Xperi Inc. XPER is also expanding its automotive-media presence through DTS AutoStage, including an announced adoption by BYD. That activity reinforces the vehicle's growing role as an entertainment platform while underscoring competition for automaker relationships. The projected rebound is not entirely volume-driven. Fourth-quarter guidance benefits from a large agreement signed early in the period and more back-end-loaded mobile minimum commitments, which can shift revenues between quarters. Image Source: Zacks Investment Research Recoveries, true-ups and royalty reporting create additional variability. Cirrus Logic, Inc. CRUS, a supplier of audio and high-performance mixed-signal solutions for mobile and consumer applications, provides another reference point for the device ecosystem, where shipment demand can influence revenue visibility. Dolby expects a fiscal 2026 non-GAAP operating margin of approximately 34%, representing about 100 basis points of year-over-year expansion. Fourth-quarter non-GAAP gross margin is projected near 90%. The margin outlook could help convert content and automotive gains into earnings growth even if foundational audio remains uneven. Dolby also expects Atmos, Vision and imaging-patent revenues to rise roughly 15% in fiscal 2026, supporting a more favorable licensing mix. The fourth-quarter guide is meaningful, but its composition prevents treating the forecast as proof that licensing volatility has ended. Sustainable growth would require content and automotive contributions to extend beyond one quarter while device-related weakness stays contained. DLB currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. It has a VGM Score of B, Value Score of C, Growth Score of B and Momentum Score of B. The Growth Score of B supports the growth profile, the Momentum Score of B points to relatively favorable timing and the VGM Score of B reflects a supportive combined profile. The Value Score of C is more balanced. Style Scores complement the Zacks Rank rather than override it, so the Rank keeps the near-term view cautious until execution provides firmer evidence. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dolby Laboratories (DLB) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report Xperi Inc. (XPER) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Media Platform Revenue Rose 45 Percent Year-Over-Year Driven Primarily by Advertising Monetization AutoStage Footprint Grew 45 Percent Year-Over-Year to Reach 16 Million Vehicles Achieved 5.5 Million Monthly Active Users on the TiVo One Ad Platform Company Reaffirms Annual Guidance SAN JOSE, Calif., May 06, 2026--(BUSINESS WIRE)--Xperi Inc. (NYSE: XPER) (the "Company" or "Xperi"), a media and entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced first quarter 2026 financial results for the period ended March 31, 2026. "We are beginning to see the inflection in our monetization strategy as our Media Platform revenue grew 45% when compared to the first quarter of 2025. During the quarter, we made significant improvements to our ad products by enhancing targeting and measurement, further growing the TiVo One ad platform footprint, and expanding partnerships that, collectively, are expected to accelerate advertising monetization," said Jon Kirchner, chief executive officer of Xperi. "The results of the quarter clearly demonstrate the progress we are making on our strategic growth plan. We remain on track for our 2026 goals and reaffirm our financial guidance for the year." Financial Highlights Recent Key Operating Achievements Media Platform Continued growth in footprint, product enhancements, and expanded advertising partnerships are expected to accelerate advertising monetization revenue Media Platform revenue grew 45 percent on a year-over-year basis. TiVo One Monthly Active Users more than doubled year-over-year to 5.5 million. Completed integrations with U.S. and European advertising partners to improve data signals while enabling Connected TV inventory for targeted advertising and measurement. These integrations validate TiVo One’s unique audience and incremental reach in the programmatic marketplace. Signed a multi-year partnership agreement with Samba TV, adding industry-leading intelligence and measurement capabilities to enhance the value of TiVo One’s Connected TV inventory for ad buyers. Average Revenue Per User (ARPU) for TiVo One for the trailing 12 months ending March 31, 2026 was $7.10. Connected Car Continued growth in the Connected Car platform footprint as well as new automotive OEM programs are expected to accelerate monetization AutoStage footprint expanded by over 45 percent year-over-year, reaching over 16 million vehicles across 13 automotive brands. Launched the AutoStage Broadcast Portal, a subscription service that we believe delivers unprecedented visibility and insights into audience behavior and listening metrics across 300 U.S. radio markets. Signed multi-year HD Radio renewal agreements with two major Asian Tier 1 suppliers and launched HD Radio in new models, including from Audi, Honda, Mercedes, and Toyota. Pay TV Continued double-digit subscriber growth in video-over-broadband along with key design wins demonstrate partner commitment to the TiVo platform IPTV subscriber households increased by 19% year-over-year, reaching 3.28 million at quarter end. Introduced new IPTV service offerings designed to drive long-term ARPU growth including a Programmatic Dynamic Ad Insertion solution and our native Digital Rights Management (DRM) solution. Delivered an innovative 4K sports experience with multi-view capability to IPTV households for the Winter Olympics and Super Bowl. Expanded our set-top box partnership with Kaon and executed a multi-year discovery agreement with DirecTV. Consumer Electronics Continued trend of securing long-term renewals with commitments to our technology Renewed DTS decoder and post-processing contracts with leading TV brands, including Vizio, Xiaomi, TCL, and a major U.S. retailer. Entered into multi-year partnership with Tencent Music for DTS:X encoding of its music catalog, offering immersive audio as a premium feature to Tencent/QQ Music subscribers. Financial Outlook The Company reiterates its outlook for 2026 as follows: Conference Call Information The Company will hold its first quarter 2026 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Wednesday, May 6, 2026. To access the call toll-free, please dial 1-888-596-4144, otherwise dial 1-646-968-2525. The conference ID is 5483252. All participants should dial in 15 minutes prior to the start of the call using the conference ID listed above. Alternatively, the call can be accessed via the following webcast link: Xperi Q1 2026 Earnings Call. Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding: expectations regarding our future results of operations and financial position, margin expansion and overall growth, including, without limitation, 2026 goals, expectations regarding cash flow, revenue growth and Adjusted EBITDA Margin growth, improved profitability, long term shareholder value, objectives for future operations, and ongoing strategies and operating initiatives, including, without limitation, our cost management focus and monetization goals, timing, and expectations, including, without limitation, expectations regarding monetization revenue, growth in the Media Platform business, including through product enhancements and advertising partnership expectations, monetization in Connected Car, AutoStage footprint growth and strategy, ARPU growth, and other objectives. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In some cases, you can identify forward-looking statements by the words "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "target," "goal," and similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 to be filed with the Securities and Exchange Commission (the "SEC"), and our other filings with the SEC from time to time. Any forward-looking statements speak only as of the date of this press release and are based on information available to the Company as of the date of this press release, and the Company does not assume any obligation to, and does not intend to, publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. About Xperi Inc. Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®) are integrated into consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences, including IMAX® Enhanced, a certification and licensing program operated by IMAX Corporation and DTS, Inc. Xperi has created a unified ecosystem that reaches highly engaged consumers, driving increased value for partners, customers and consumers. ©2026 Xperi Inc. All Rights Reserved. Xperi, TiVo, DTS, HD Radio and their respective logos are trademark(s) or registered trademark(s) of Xperi Inc. or its subsidiaries in the United States and other countries. IMAX is a registered trademark of IMAX Corporation. All other trademarks and content are the property of their respective owners. Definition for TiVo One Monthly Active User Xperi defines a "TiVo One Monthly Active User" as a unique device that has connected to the TiVo video service, which includes the TiVo One advertising platform, at least once within the last 30 days. The TiVo One advertising platform integrates with the device’s operating system on certain "Powered by TiVo" devices, including smart TVs and video-over-broadband products. Calculation of Average Revenue Per User for TiVo One Average Revenue Per User (ARPU) for TiVo One is calculated by dividing monetization revenue within Media Platform for the trailing four quarters by the average number of TiVo One Monthly Active Users during that same period. Monetization revenue includes all advertising and data monetization revenue from the TiVo One platform and from other parts of our Media Platform business. This metric helps investors and management measure how effectively the Company monetizes its user base through advertising and data on its platforms. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company’s press release contains non-GAAP financial measures, including Non-GAAP Operating Income/(Loss), Non-GAAP Net Income/(Loss), Non-GAAP Net Income/(Loss) Per Share, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Free Cash Flow, and Non-GAAP Tax Expense. Non-GAAP Operating Income/(Loss) is defined as GAAP Operating Income/(Loss), less the impact of stock-based compensation; amortization of intangible assets; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance. Non-GAAP Net Income/(Loss) is defined as GAAP Net Income/(Loss) excluding the impact of stock-based compensation; amortization of intangible assets; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance; and related tax effects for each adjustment. Non-GAAP Net Income/(Loss) Per Share is defined as Non-GAAP Income/(Loss) divided by Non-GAAP weighted average shares outstanding - diluted. Non-GAAP Adjusted EBITDA is defined as GAAP Net Income/(Loss), less the impact of interest expense; provision for income taxes; stock-based compensation; depreciation expense; amortization of intangible assets; amortization of capitalized cloud computing costs; transaction, integration and restructuring costs; severance and retention costs; and other items not indicative of our ongoing operating performance. Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA divided by total revenue. Free Cash Flow is defined as net cash from operating activities, less cash investments for capitalized internal-use software and purchases of property and equipment. Non-GAAP Tax Expense is defined as the GAAP provision for income taxes, adjusted to reflect the net direct and indirect income tax effects of the various non-GAAP pretax adjustments. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of the Company’s reported GAAP to non-GAAP financial measures. XPER-E View source version on businesswire.com: https://www.businesswire.com/news/home/20260506950258/en/ Contacts Xperi Investor Contact: Idalia Rodriguez Arbor Advisory Group +1 203-293-3325 [email protected] Media Contact: Tom Huntington +1 619-743-9057 [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Chief Executive Officer — Jon E. Kirchner Chief Financial Officer — Robert J. Andersen Head of Investor Relations — Samuel Levenson Need a quote from a Motley Fool analyst? Email [email protected] Samuel Levenson: Thank you, Abby. Good afternoon, and thank you for joining us as Xperi Inc. reports first quarter 2026 financial results. With me on today's call are Jon E. Kirchner, chief executive officer, and Robert J. Andersen, chief financial officer. In addition to today's earnings release, there is an earnings presentation on our Investor Relations website at investor.xperi.com. We encourage you to download the presentation and follow along with today's commentary. Before we begin, I would like to provide a few reminders. First, unless otherwise stated, all comparisons are to the same period in the prior year. Second, today's discussion contains forward-looking statements about our anticipated business and financial performance that are predictions, projections, or other statements about future events, which are based on management's current expectations and beliefs and are subject to risks, uncertainties, and changes in circumstances. For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today, please refer to the Risk Factors and the MD&A sections in our SEC filings, including our Form 10-K for the year ended 12/31/2025, and our Form 10-Q for the quarter ended 03/31/2026 to be filed with the SEC. Please note that the company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after this call. Third, we will refer to certain non-GAAP financial measures, which are detailed in the earnings release and accompanied by reconciliations to their most directly comparable GAAP measures, which can be found in the Investor Relations section of our website. Lastly, a replay of this conference call will be available on our website shortly after the conclusion of this call. I will now turn the call over to Xperi Inc.’s CEO, Jon E. Kirchner. Jon E. Kirchner: Thank you, Samuel, and thank you everyone for joining us on our first quarter 2026 earnings call. Overall, the first quarter results are evidence of the success we are achieving in delivering on our financial objectives, and the notable progress we have made in delivering on our monetization strategy that we outlined for the year. Let me first provide an overview of the progress we made during the quarter against our key goals and priorities, progress that gives us confidence in our ability to monetize our growing platform. During the quarter, TiVo One footprint grew to exceed 5.5 million monthly active users and our AutoStage footprint grew to over 16 million vehicles globally. In addition to footprint growth, both our product feature set and ecosystem expanded, and we continue to add advertising partners and sellers to the TiVo One platform. Taken together, this progress helped us accelerate advertising monetization, resulting in Media Platform revenue growth of 45% year over year. We have also started to reap benefits from the strategic investments made over the past few years, as evidenced by our results. Turning to our financial results for the quarter, I am very pleased with a strong start to the year, which reflects both solid execution against our strategic plan and earlier-than-planned contract signings within CE and Connected Car. As I said, I am particularly pleased with the progress we are making on driving monetization across our business. Given these results, we reaffirm the guidance we gave for the full year. Let me now go through each of our four business areas, starting with Media Platform. We recorded $12 million of revenue for Media Platform in the quarter, reflecting year-over-year growth of 45% primarily driven by growth in advertising monetization. We experienced progress through our direct sales programs as we continue to execute campaigns across our owned and operated inventory and also began to benefit from our new partnerships. As noted earlier, our footprint also continued to grow, as TiVo One monthly active users more than doubled year over year to 5.5 million. Just after the end of the quarter, we signed a multiyear partnership with Samba TV, a television technology company that offers real-time audience analytics. Through this partnership, we are adding intelligence and measurement capabilities to TiVo One connected TV inventory. This collaboration bolsters our TiVo Ads business by enriching our connected TV advertising platform with Samba’s industry-leading data and analytics, thereby improving ad targeting and campaign performance measurement. The relationship expands TiVo’s ad sales and measurement capabilities and we believe positions the TiVo One ad platform as an even more valuable cross-screen advertising solution for advertisers and agencies seeking better CTV audience targeting and comprehensive campaign insights. Average revenue per user for TiVo One was $7.10, a slight decrease from the fourth quarter as, over the trailing twelve months, the number of average monthly users grew faster than monetization revenue. As advertising monetization revenue accelerates, we expect ARPU to advance toward double-digit dollars in 2026. Moving to Connected Car, AutoStage footprint expanded over 45% year over year, reaching over 16 million vehicles across 13 automotive brands. Just after quarter-end, we launched AutoStage Broadcast Portal, a subscription service that we believe delivers unprecedented visibility and insight into audience behavior and listening metrics across 300 U.S. radio markets. In addition, we signed multiyear HD Radio renewal agreements and launched HD Radio in new models, including from Audi, Honda, Mercedes, and Toyota. We also continue to advance our Connected Car roadmap, including advanced sound features and expanding services that are expected to support broadcaster and OEM partner advertising monetization. Moving to our Pay TV business, our IPTV subscriber base continued to grow, increasing 19% year over year to reach 3.28 million subscriber households at quarter-end. During the quarter, we signed the first agreements for new service offerings such as programmatic dynamic ad insertion and our native digital rights management. In addition, we delivered an innovative 4K sports experience with multiview capability to IPTV households for the Winter Olympics and Super Bowl. We also expanded our set-top box partnership with KAON and executed a multiyear discovery agreement with DIRECTV. Moving to our Consumer Electronics business, during the quarter, we renewed DTS decoder and post-processing contracts with leading TV brands, including VIZIO, Xiaomi, TCL, and a major U.S. retailer. We also entered into a multiyear partnership with Tencent Music, China’s leading music platform, for DTS:X encoding of its music catalog, offering immersive audio as a premium feature to Tencent QQ Music subscribers. Overall, these renewals and partnerships support our focus on expanding the adoption of our consumer audio technologies. As we put our 2026 goals in context, we made strong progress toward our objectives in the first quarter. Our monthly active users on the TiVo One platform continued to grow, reaching 5.5 million at quarter-end, more than doubling from the same period last year. We remain confident in reaching our target of over 7 million monthly users by year-end. On the monetization front, Media Platform’s 45% year-over-year revenue growth was driven primarily by growth in advertising monetization. As our ecosystem and advertiser engagement expand, we believe we have a clear plan to reach our goal of doubling revenue to over $80 million. Also, as monetization revenue from advertising and data sales continues to grow in line with our expectations, we expect the TiVo One annual revenue per user, or ARPU, to finish the year above $10. Lastly, we have seen exciting progress on AutoStage, our connected car platform. While footprint continued to expand well past our original goals, we are now seeing clear demand among broadcasters and advertisers for the data coming off our platform. The first data license agreements are expected in the second quarter, with more to follow, and we plan to commence advertising trials with partners in the U.S. and Europe later this year. Overall, we remain very pleased with our start to 2026. Let me now turn the call over to Robert to discuss our financial results in more detail. Robert? Robert J. Andersen: Thanks, Jon. Let me start by reviewing the revenue results for the quarter. Overall revenue finished at $114 million, essentially flat year over year. ATV revenue decreased 8% as expected to finish at $46 million, driven by a decrease in core Pay TV from classic guides and end-of-life of legacy consumer products. That was partially offset by growth from our IPTV solution. Consumer Electronics recorded $18 million of revenue, a decrease of 19% primarily due to nonrecurring revenue from minimum guarantee arrangements and audit settlements in the same period last year, as well as memory-related challenges in certain end product categories. Our Connected Car business grew 14% to $38 million due primarily to a multiyear minimum guarantee arrangement signed during the quarter. Lastly, Media Platform grew 45% to $12 million, driven primarily by growth in advertising monetization from a host of sources including direct-sold revenue, new partner revenue, and a linear TV campaign spend. Looking at overall financial results, our non-GAAP adjusted operating expense decreased 14% year over year due primarily to workforce reductions that have occurred over the past year as we have focused the business on our growth areas. We posted $25 million of adjusted EBITDA, or 22% of revenue, an improvement of almost eight percentage points over the prior year. GAAP loss per share was $0.17, and non-GAAP earnings per share was $0.23. Turning to the balance sheet and statement of cash flows, we finished the quarter with $70 million of cash and cash equivalents. It is worth noting that in early April, we received the final $12 million payment related to the sale of Perceive to Amazon. As expected during our seasonally low first quarter, operating cash flow usage in the quarter was $18 million, an improvement of $4 million from 2025. Cash usage in the quarter was primarily due to the payment of accrued compensation, which occurs in the first quarter of each year, along with $8 million of payments related to employee departures from the workforce reduction announced in November. We had $23 million of free cash flow usage in the quarter, an improvement of $4 million from the same quarter last year. In terms of financial outlook for the year, we are reaffirming our annual guidance that was provided in February. As noted previously, our revenue range of $440 million to $470 million takes into account our view of broader market risks across our business. In terms of revenue timing during the year, in Q1 we executed certain agreements earlier than we had planned, and we expect to see a similar trend in Q2. Therefore, we now expect revenue for the first half and second half of the year to be relatively even, as opposed to being slightly more back-half weighted as previously projected. Let me turn the call back over to Jon. Jon E. Kirchner: Thanks, Robert. To sum things up, we are very pleased with the results of the first quarter. Customers are engaging with us earlier in the year than anticipated, highlighting our relevance and growing momentum, which positions us for an even stronger start. Further, our results clearly demonstrate the progress we are making against our monetization strategy. That concludes our prepared remarks. We will now open the call for questions. Operator? Operator: We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your questions. Again, it is star 1 to join the queue. Our first question comes from the line of Jason Michael Kreyer with Craig-Hallum Capital Group. Your line is open. Jason Michael Kreyer: Hey, thank you. This is Thomas on for Jason. Thanks for taking my question. First, Jon, you called out in the press release that you are beginning to see an inflection point in the monetization strategy. Can you talk about what the drivers are that are catalyzing this inflection? Jon E. Kirchner: I think a couple of things. First, we have worked for the last two years to build a broad enough footprint to have the scale necessary to attract advertisers and partners to our platform to reach unique audiences, and those efforts as we are now at 5.5 million MAUs are certainly a key part. Second, we have also worked in tandem to build out and connect our TiVo One ad platform to the broader advertising ecosystem, and as that gets continually worked to make sure all the plumbing is optimized, that enables more programmatic ad volume to flow. Third, as we are now making a bigger presence known and the uniqueness of what our platform offers in terms of audience engagement, that is driving advertiser interest. Through partnerships, we have more sellers out there beyond just our direct sales force, and all of this is combining to really begin to drive this business quite positively, which is why we expect this year to see Media Platform revenue double year over year. While there is still plenty of work, I am very pleased with how this is taking shape. Jason Michael Kreyer: That is great, thanks. And maybe one follow-up: when we look at your operating expenses in Q1, does that represent all the cost-cutting initiatives you put in place? I am trying to determine if this is the right cost base to build off for the remainder of the year as we move forward. Robert J. Andersen: Most of our work on the cost-cutting is complete at this point, and I would warrant that Q1 is a good representation of the run rate for the remainder of the year. Jason Michael Kreyer: That is great. Thank you, guys. Operator: As a reminder, it is star 1 if you would like to ask a question. Our next question comes from the line of Matthew Galinko with Maxim Group. Your line is open. Matthew Galinko: Hey, good afternoon. Thanks for taking my questions. Firstly, can you touch on how unit availability is today in the U.S. market and how that user growth is shaping up between the U.S. and Europe? And then I will ask a follow-up. Jon E. Kirchner: Sure. So Matt, similar to what was the case last quarter, the majority of our TiVo One connected devices are in Europe. On a relative basis, you are going to continue to see that grow faster than the U.S., the U.S. being a more competitive market. We do expect, however, there to be more TV volume in the U.S. later this year, and we have both smart TVs and connected set-top boxes through our operators. The distinction is not important because they are all connected to our TiVo One ad platform. This is about managing the home screen where content is aggregated and selected, and the ability to advertise in-stream and on the home page across these platforms. I would say you are probably looking at roughly 60% Europe, 40% U.S. Matthew Galinko: Thank you. And any thoughts on whether anything has changed about your position toward debt on the balance sheet, or how do you feel today? Jon E. Kirchner: We continue, like everyone, to be operating in an uncertain environment. Nothing has fundamentally changed with our capital allocation policy, which is that we carry a small amount of debt on the balance sheet. Our first priority is to fund our growth initiatives, and then look to opportunistically return capital through buybacks as appropriate, as you balance the need for cash internally along with debt paydown and ultimately that return of capital. As we sit here today with eighty-some million dollars in cash, I do not think our perspective broadly changes. As we start to see more material growth as we go forward, it is a conversation that we and the board have regularly, and to the extent that we want to dial up any element of that slightly more than another, it is certainly a matter of constant conversation. Operator: Our next question comes from the line of Hamed Khorsand with BWS Financial. Your line is open. Hamed Khorsand: Hi. Could you talk about the advancement in how many people are using AutoStage, and why that would not translate into higher Media Platform revenue for you right now? Jon E. Kirchner: Hi, Hamed. It ultimately will lead to more data and advertising-based monetization. One of the things we have talked about is that in the course of this year, as we exceeded the 10 to 12 million units mark, there would be enough scale to attract both advertisers and those interested in the data more meaningfully. It is simply a matter of timing. You will see a very valuable and interesting platform to both broadcasters and advertisers take shape where there is a meaningful amount of opportunity, and you will see it as we move ahead with our first data licenses happening in the broadcaster space likely this quarter. Hamed Khorsand: Okay. Thank you. Operator: We have no further questions at this time. I will now turn the conference back over to Mr. Jon E. Kirchner for closing remarks. Jon E. Kirchner: Thanks, operator. With a great start to the year, we can see momentum building in our business, and I would like to personally thank our customers and partners. Before you buy stock in Xperi, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xperi wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xperi (XPER) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Xperi (XPER) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.00%. A quarter ago, it was expected that this media software company would post earnings of $0.29 per share when it actually produced earnings of $0.24, delivering a surprise of -17.24%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Xperi, which belongs to the Zacks Technology Services industry, posted revenues of $114.21 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.95%. This compares to year-ago revenues of $114.03 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xperi shares have added about 18.4% since the beginning of the year versus the S&P 500's gain of 6%. While Xperi has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Xperi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $110.17 million in revenues for the coming quarter and $0.90 on $463.79 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, SKYX Platforms Corp. (SKYX), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SKYX Platforms Corp.'s revenues are expected to be $21.3 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xperi Inc. (XPER) : Free Stock Analysis Report SKYX Platforms Corp. (SKYX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research