Xperi Inc. reported third‑quarter 2025 results that surpassed consensus expectations, with revenue of $111.6 million—$3.1 million above the $108.52 million forecast—and a non‑GAAP earnings per share of $0.28, beating the $0.20 estimate by $0.08 (a 40% beat). The company posted a GAAP operating loss of $1.4 million, while non‑GAAP adjusted EBITDA rose to $23.1 million, giving a margin of 20.7%—slightly below the 23.7% margin in the prior quarter but still comfortably above the 15‑17% guidance range.
Xperi’s revenue mix shifted sharply from legacy Pay TV to higher‑margin platforms. Pay TV revenue fell 39% YoY to $49.8 million, largely because the company did not repeat the large minimum guarantee it received in 2024. In contrast, Connected Car revenue grew 36% to $34.6 million, and Consumer Electronics revenue increased 11% to $18.8 million. Media Platform revenue dipped 4% to $8.4 million, but the platform’s monthly active users reached 4.8 million, a 30% sequential gain that signals strong monetization potential.
The company continued its cost‑discipline program, cutting 250 jobs and recording restructuring charges of $16‑18 million. Management expects these actions to generate $30‑35 million in annual savings, which helps offset the margin compression caused by the revenue mix shift and the one‑time restructuring costs. The operating loss of $1.4 million reflects the impact of these charges, but the non‑GAAP operating loss is not disclosed, indicating that the core operating performance remains positive.
Xperi reiterated its full‑year 2025 guidance of $440‑460 million in revenue and a 15‑17% adjusted EBITDA margin. The guidance is unchanged from the prior quarter, underscoring management’s confidence that the platform‑centric strategy will deliver sustainable growth. The company also highlighted its focus on monetization of TiVo One and AutoStage, noting that the latter’s vehicle installations surpassed 13 million and that TiVo One’s ad platform is scaling rapidly.
The earnings beat drove a 5.81% rise in aftermarket trading, with analysts citing the strong EPS beat, revenue beat, and robust user growth in TiVo One and AutoStage as key catalysts. The market reaction reflects confidence that Xperi’s transition away from legacy Pay TV toward higher‑margin platforms is progressing as planned, and that the company’s cost‑control measures are effectively offsetting the revenue decline.
"By the end of the third quarter, we achieved nearly all of our strategic growth goals for 2025," said CEO Jon Kirchner. "Our financial results reflect our continued focus on cost management, profitability, and cash generation—evidenced by a second consecutive quarter of positive free cash flow. We remain focused on our growth initiatives and continue to demonstrate progress on our longer‑term growth goals."
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.