Financial Highlights - Q1 revenue was $114 million[6] - GAAP operating expenses, including cost of revenue, decreased by 14%[8] - Non-GAAP adjusted operating expense decreased by 17% due to cost transformation initiatives and divestitures[8] - GAAP net loss attributable to the Company was ($18 million), while Non-GAAP Adjusted EBITDA was $16 million, representing 14% of revenue, up more than 200% compared to Q1 2024[8] - GAAP loss per share was ($0.41), and non-GAAP earnings per share was $0.16[8] Business Segment Performance - Pay TV revenue decreased by 12%, with Core Pay TV declining by 30% and IPTV increasing by 25%[25] - Consumer Electronics revenue decreased by 13%, or 5% excluding Perceive[25, 26] - Connected Car revenue increased by 37%[25] - Media Platform revenue decreased by 30%[25] - Reached 2.5 million TiVo One Monthly Active Users as of Q1 2025[13, 14] - Finished with over 2.75 million video-over-broadband (IPTV) subscriber households, up 36% year over year[18] Future Outlook - The Company maintains its outlook for fiscal year 2025 with revenue between $480 million and $500 million and Adjusted EBITDA Margin between 16% and 18%[30]

Financial Performance - Q1 FY25 revenue was $114.0 million, compared to $118.8 million in Q1 FY24, indicating a slight decline [4]. - Non-GAAP net income for Q1 FY25 was $7.4 million, a turnaround from a loss of $2.0 million in Q1 FY24 [4]. - Adjusted EBITDA grew by 200% year-over-year, reflecting successful business transformation efforts and cost reductions [3]. - Non-GAAP adjusted EBITDA for Q1 FY25 was $16.4 million, with a margin of 14.4%, up from 4.5% in Q1 FY24 [4]. - Non-GAAP net income for the three months ended March 31, 2025, was $7,425 thousand, a significant improvement compared to a non-GAAP net loss of $2,044 thousand in the same period of 2024 [30]. - Non-GAAP Adjusted EBITDA for the three months ended March 31, 2025, was $16,423 thousand, with a margin of 14.4%, compared to $5,405 thousand and a margin of 4.5% in 2024, reflecting a substantial increase in profitability [34]. Market Expansion - Xperi achieved 2.5 million TiVo One Monthly Active Users, primarily in Europe, marking a significant expansion of its monetization platform [3]. - The TiVo One advertising platform has expanded its footprint in the U.S., signing over 30 new customers [10]. - DTS AutoStage reached a footprint of 11 million vehicles in over 130 countries, indicating strong market penetration [10]. - The company launched over 80 additional streaming services on the TiVo OS platform, enhancing content offerings [10]. - The company signed multi-year HD Radio agreements with Tier-1 manufacturers, expanding its technology's adoption [10]. Financial Position - Total assets decreased from $667,760 thousand as of December 31, 2024, to $633,476 thousand as of March 31, 2025, representing a decline of approximately 5.1% [26]. - Net loss for the three months ended March 31, 2025, was $18,366 thousand, compared to a net loss of $13,371 thousand for the same period in 2024, indicating an increase in loss of approximately 37.3% [28]. - Cash and cash equivalents decreased from $130,564 thousand at the beginning of the period to $87,988 thousand at the end of the period, a decline of approximately 32.4% [28]. - Total current liabilities decreased from $185,349 thousand as of December 31, 2024, to $117,743 thousand as of March 31, 2025, a reduction of approximately 36.5% [26]. - Total equity decreased from $429,077 thousand as of December 31, 2024, to $418,902 thousand as of March 31, 2025, a decline of approximately 2.7% [26]. Cost Management - Stock-based compensation expense for the three months ended March 31, 2025, was $12,102 thousand, down from $14,757 thousand in the same period of 2024, a decrease of approximately 18.0% [30]. - The company repaid $50,000 thousand in short-term debt during the three months ended March 31, 2025 [28]. - Accounts receivable decreased slightly from $58,745 thousand as of December 31, 2024, to $58,185 thousand as of March 31, 2025, a decrease of approximately 1.0% [26].

Core Viewpoint - Xperi (XPER) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Implications of the Upgrade - The upgrade for Xperi suggests an improvement in the company's underlying business, which could lead to buying pressure and a higher stock price [5][10]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a proven track record of generating significant returns for top-rated stocks [7][10]. Earnings Estimate Revisions for Xperi - Xperi is expected to earn $0.93 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -4.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Xperi has increased by 11.4%, indicating positive sentiment among analysts [8]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving higher ratings based on earnings estimate revisions [9][10].

Business Operations and Strategy - The company has over 2 million activated Smart TVs powered by TiVo OS in Europe and has launched Smart TVs in the U.S. market as of February 2025[114]. - The company faces intense competition from various sources, including internal design groups at competing companies, which may impact its ability to license technology[109]. - The company's monetization strategy relies on increasing active users and content hours viewed, which is essential for generating advertising revenue[112]. - The company expects to incur significant expenses related to commercial agreements with TV manufacturers, which may not directly result in license revenue[116]. - The company divested its AutoSense and related imaging business in 2024, indicating a strategic shift in its operations[117]. - The company’s revenue from Pay-TV customers has declined due to cancellations and competition from large streaming platforms[120]. - The company’s ability to generate revenue is dependent on the willingness of advertisers to use its advertising placements and the overall demand for its technology[119]. - The company has faced challenges in maintaining relationships with key content publishers, which is critical for its monetization strategy[115]. - The company’s future growth may be adversely affected if it fails to develop and deliver innovative technologies in a competitive landscape[107]. - The company may not achieve market acceptance for new products and services, which could impact future profitability[108]. - The company has made several acquisitions and divestitures, including the recent divestiture of its AutoSense business, which may affect operational integration and stock price[129]. - The company expects significant revenue from technologies offered to consumer electronics manufacturers, but demand may decline if content in DTS audio format is insufficient[133]. - The company relies on third parties for reporting usage and volume information, and any delays or errors could harm business operations[127]. - The success of the company's solutions depends on interoperability with consumer hardware devices, which may be limited if manufacturers do not integrate the technologies[144]. - The company may face unexpected delays and revenue loss due to complex distribution agreements and reliance on third-party vendors[146]. - The company must manage its cost structure effectively to maintain profitability amid fluctuating royalties and revenue forecasts[138]. - The rapid transformation in digital content licensing and distribution has made the industry less predictable, posing risks to the company's financial condition[125]. - The company is making significant investments in new technologies, products, and services, but these may not achieve profitability or technological feasibility[147]. - The market for AI Technologies is rapidly evolving, and assumptions about cost, performance, and perceived value may be inaccurate, impacting market acceptance[150]. - The company relies on third-party providers for metadata delivery, which could affect revenue if the quality or timeliness of the metadata does not meet standards[156]. - The company is expanding internationally, where regulatory protections for non-discriminatory internet access may be limited, potentially leading to anti-competitive practices[232]. Financial Performance and Risks - The company incurred $604.6 million in goodwill impairment charges in the second half of 2022, which may lead to further evaluations of intangible assets[224]. - Total revenue for 2024 was reported as 100% of revenue, with operating expenses decreasing from 125% in 2023 to 118% in 2024, leading to an operating loss reduction from 25% to 18%[304]. - Research and development expenses decreased from 43% of revenue in 2023 to 39% in 2024, while selling, general, and administrative expenses decreased from 45% to 44%[304]. - The company reported a gain on divestitures of 20% in 2024, contributing to an income before taxes of 2% compared to a loss of 25% in 2023[304]. - The company holds a $27.7 million note receivable from Tobii and $15.0 million in deferred consideration related to the AutoSense Divestiture, with payments commencing in 2027[223]. - The company may face significant tax liabilities if the Distribution fails to qualify for non-recognition treatment under U.S. federal income tax laws[245]. - The IRS may assert that the Mergers cause the Distribution to be taxable, potentially leading to significant indemnification liability for the company[249]. - The company is jointly and severally liable for U.S. federal income tax liabilities of its Former Parent's consolidated tax reporting group for periods ending before the Distribution[251]. - The company may need to adjust its tax accounts if its Former Parent utilizes certain pre-Separation tax attributes, which could negatively impact financial results[253]. - The market price of the company's common stock may fluctuate significantly due to various factors, including quarterly earnings and overall market conditions[254]. - The company cannot guarantee the timing or payment of dividends in the future, as it depends on various financial and operational factors[258]. - A stockholder's percentage ownership may be diluted due to equity issuances for acquisitions or other transactions[259]. - The company has repurchased approximately 2.2 million shares of common stock at a total cost of $20.0 million, averaging $9.23 per share[257]. - The stock repurchase program allows for up to $100.0 million in common stock repurchases, with no expiration date or obligation to repurchase a specific amount[257]. Compliance and Regulatory Risks - The company faces risks related to international operations, including compliance with complex laws and potential tariffs affecting product prices and demand[166]. - The company is subject to evolving regulations regarding data privacy, cybersecurity, and artificial intelligence, which may impose significant operational costs[227]. - The company collects and processes Personal Information, and any failure to comply with evolving data privacy laws could result in significant liabilities and negative publicity[184]. - New laws, such as the EU General Data Protection Regulation (GDPR), impose fines of up to €20 million or 4% of annual global revenue for non-compliance, which could adversely affect the company's financial condition[190]. - The company is monitoring the impact of new data privacy laws and regulations, which may restrict targeted advertising and data collection practices[193]. - Increased scrutiny from regulators on cloud service providers may lead to operational disruptions and increased costs for transferring Personal Information outside the EU[196]. - The company may need to adapt its business practices to comply with evolving data protection laws, which could hinder growth and increase operational costs[200]. - The company faces significant risks related to intellectual property litigation, which could result in substantial legal costs and harm its business operations[201]. - The company may need to seek licenses from third parties due to intellectual property infringement claims, which could hinder its ability to sell or use relevant technology[202]. - The company relies on a combination of legal agreements and laws to protect its technology and intellectual property, but failures in protection could weaken its competitive position[203]. - Compliance with environmental and social responsibility regulations may result in increased costs and scrutiny, impacting the company's financial condition[221]. - The company engages in various promotional activities that are regulated by state and federal laws, which could result in penalties if violated[243]. - The company may incur significant compliance costs due to new regulations affecting its products and services, particularly in the broadcasting and telecommunications sectors[238]. Cybersecurity Risks - The company is exposed to cybersecurity risks that could harm its reputation and financial condition if significant disruptions occur[172]. - The company faces numerous cybersecurity risks, including security breaches and unauthorized access, which threaten the confidentiality and integrity of its IT systems[174]. - Cyberattacks are expected to increase in frequency and sophistication, potentially impacting the company's ability to detect and recover from incidents[176]. - The company and its third-party providers regularly experience cyberattacks, although no material impact on operations or financial results has been reported to date[177]. - Compliance with the Payment Card Industry Data Security Standard (PCI-DSS) is critical, as non-compliance could lead to fines and restrictions on card acceptance[179]. - The European Union and the United Kingdom impose stringent cybersecurity obligations, which may increase compliance costs and complexity for multinational organizations[182]. - The company maintains processes for identifying and managing cybersecurity risks as part of its enterprise risk management program[280]. Operational Risks - The complexity of the company's products may lead to undetected defects or errors, resulting in lost revenue and market acceptance issues[155]. - The company is vulnerable to natural disasters and geopolitical conflicts, which could disrupt operations and require substantial recovery efforts[217]. - The company's operations are particularly at risk due to its location in California and reliance on suppliers in Asia, both of which are prone to natural disasters[218]. - Intense competition for qualified employees may hinder the company's ability to attract and retain essential personnel, impacting business growth[123]. - The company is involved in legal proceedings related to license agreements and intellectual property rights, but management does not anticipate a material adverse effect on its results of operations[286]. - The company may incur additional costs if the forum selection clause in its amended certificate of incorporation is found inapplicable or unenforceable[265]. - The company has significant resources and management oversight dedicated to maintaining effective internal control over financial reporting[273]. - The company leases its principal corporate headquarters in San Jose, California, with approximately 127,000 square feet of space[285]. - The company has approximately 1,680 employees and over 35 years of operating experience in the technology sector[300].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $122 million, down 11% from $137 million in the previous year, but up 2% when adjusted for divestitures [30] - Adjusted EBITDA for the quarter was $23 million, representing a 19% margin compared to $13 million in the prior year [10][37] - For the full year 2024, adjusted EBITDA was $74 million, yielding a margin of 15%, more than doubling from the previous year [38] Business Line Data and Key Metrics Changes - Pay TV revenue decreased by 8%, while IPTV revenue increased by 35%, offsetting declines in core pay TV [30] - Consumer Electronics revenue was up 2% when excluding divestitures, driven by strong unit volumes for game consoles [30] - Connected Car revenue increased by 9% as reported and 42% when excluding divested businesses, attributed to minimum guarantee deals [31] - Media Platform revenue decreased by 15% due to a decline in linear ad campaigns and prior year minimum guarantee deals [32] Market Data and Key Metrics Changes - The company ended 2024 with 2.6 million IPTV subscriber households, exceeding the year-end goal of 2.4 million [21] - The connected car business achieved a footprint of over 10 million vehicles, surpassing the original goal of 7 million [19] - HD Radio technology is now implemented in over 110 million vehicles, with penetration approaching 60% of new vehicles in North America [20] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV advertising, in-cabin entertainment, and TiVo Video over Broadband [12] - Goals include achieving a monetizable footprint of at least 7 million active devices in homes and over 15 million cars for DTS AutoStage [14] - The strategy emphasizes expanding partnerships with TV manufacturers and enhancing monetization through the TiVo One platform [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business transformation and its impact on profitability despite a challenging market environment [8] - The outlook for 2025 anticipates revenue in the range of $480 million to $500 million, with a focus on media platform growth and slight declines in pay TV revenue [42][44] - Management acknowledged ongoing macroeconomic uncertainties but noted improved clarity in market conditions compared to previous quarters [73] Other Important Information - The company completed a refinancing of $50 million of outstanding debt and ended the year with $131 million in cash and equivalents [11][38] - Non-GAAP tax expense for the quarter was $1 million, lower than planned due to a valuation allowance reversal [37] Q&A Session Summary Question: How does the company plan to balance adding new OEM partners versus growing volume with existing partners? - Management intends to pursue both strategies, focusing on expanding production share with current partners while also exploring new partnerships [48] Question: What are the expectations for ARPU and trends in North America versus Europe? - The company anticipates a combination of growth in ARPU as the year progresses, leveraging both North American and European markets [52] Question: What is the status of delayed TiVo OS smart TVs? - Management reported that shipments have ramped up, with several partners expected to increase shipments in the spring [59] Question: What are the critical variables for success in the media platform business? - Key metrics include active user growth and monetization, which are expected to improve as the year progresses [61][64] Question: How has the market changed since the last earnings call? - Management noted that while uncertainties remain, there is more clarity in market conditions, allowing for a more moderated guidance range [73] Question: Will 2025 be a free cash flow positive year? - The company guided for slightly positive operating cash flow, with potential for free cash flow positivity depending on performance [80] Question: What are the steps to rollout TiVo One? - The rollout involves updating existing devices and working with partners to ensure software updates are implemented effectively [87] Question: What is the competitive environment in the media platform space? - The competitive landscape remains strong, with significant barriers to entry for new players, but the company is confident in its position and strategy [90][92]

Group 1 - Xperi reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing a significant increase from $0.11 per share a year ago, resulting in an earnings surprise of 39.29% [1] - The company posted revenues of $122.36 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.02%, and down from $137.23 million year-over-year [2] - Over the last four quarters, Xperi has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - Xperi shares have underperformed the market, losing about 16% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $116.28 million, and for the current fiscal year, it is $0.90 on revenues of $480.15 million [7] Group 3 - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for Xperi is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $122 million, up 2% from the prior year after adjusting for divestitures [6][21] - Adjusted EBITDA for the quarter was $23 million, representing 19% of revenue, compared to $13 million in the prior year [7][27] - For the full year, adjusted EBITDA margin was 15%, more than doubling year over year [8][27] - The company ended the year with $131 million in cash and equivalents, providing solid operating liquidity [8][27] Business Line Data and Key Metrics Changes - Pay TV revenue was down 8%, with strong growth in IPTV (up 35%) offset by declines in core Pay TV [21][24] - Consumer Electronics revenue was up 2% when excluding divestitures, driven by strength in game console unit volumes [22][24] - Connected Car revenue was up 9% as reported and up 42% when excluding divested businesses, due to minimum guarantee deals [22][24] - Media Platform revenue was down 15% due to a decline in linear ad campaigns and middleware revenue [23][25] Market Data and Key Metrics Changes - The company achieved a footprint of over 10 million vehicles for DTS Auto Stage, exceeding the original goal of 7 million [14] - HD Radio technology is now implemented in over 110 million vehicles, with penetration approaching 60% of new vehicles in North America [15] - IPTV subscriber households reached 2.6 million, exceeding the year-end goal of 2.4 million [16] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV Advertising, in-car entertainment, and TiVo Video over Broadband [9] - Goals include achieving a monetizable footprint of at least 7 million active devices in homes and over 3.2 million IPTV households [10] - The strategy emphasizes expanding partnerships with TV manufacturers and enhancing the user experience through the TiVo One ad platform [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business transformation and its impact on profitability despite a challenging market environment [6][8] - The outlook for 2025 includes expectations for revenue growth from media platforms, connected cars, and IPTV, offset by declines in core business [19][30] - Management acknowledged ongoing macroeconomic uncertainties but indicated a more balanced view compared to previous quarters [50][51] Other Important Information - The company completed refinancing of $50 million of outstanding debt through a new three-year facility [8][27] - Non-GAAP tax expense for the quarter was $1 million, lower than planned due to a valuation allowance reversal [27] - The company repurchased $20 million worth of common stock during the year [27] Q&A Session Summary Question: How does the company plan to balance adding new OEM partners versus growing volume with existing partners? - Management intends to do both, expanding share of production with current partners while pursuing new partnerships [32] Question: What are the expectations for ARPU and trends in North America versus Europe? - Management expects ARPU to ramp through the year, with a combination of European and North American devices contributing to growth [34] Question: What is the status of TiVo OS smart TV shipments that were delayed? - Management indicated that shipments have ramped up, with several partners expected to increase shipments in the spring [40] Question: What are the critical variables for success in the media platform business? - Key factors include continued footprint growth and active user engagement, which will drive monetization [42] Question: How has the market changed since the last earnings call? - Management noted that while uncertainties remain, they have moderated expectations and set achievable guidance [50] Question: Will 2025 be a free cash flow positive year? - Management guided for slightly positive operating cash flow, with potential for free cash flow positivity depending on performance [55] Question: What are the steps to roll out TiVo1? - The rollout involves updating existing devices and working with partners to ensure software updates are implemented [59] Question: What is the competitive environment in the media platform space? - The competitive landscape remains strong, with significant barriers to entry for new entrants, but the company is well-positioned [63]

FOR IMMEDIATE RELEASE Exhibit 99.1 Xperi Inc. Announces Fourth Quarter and Full Year 2024 Results Sharp TVs with TiVo OS Have Launched in U.S. Market Achieved Video-Over-Broadband (IPTV) footprint of 2.6 million subscriber households and DTS AutoStage footprint of 10 million vehicles Doubled Year-over-Year Adjusted EBITDA 2 Attributable to the Company. 3 For further information on supplemental non-GAAP metrics included in this press release, refer to the "Non-GAAP Financial Measures" description and "GAAP t ...

Xperi Inc. (XPER) stock has gained 25.2%, underperforming the 48.9% rally of the industry and outperforming 11.1% growth of the Zacks S&P 500 composite over the past six months.XPER’s performance is significantly higher than that of its industry peers, MediaAlpha, Inc. (MAX) and VerifyMe, Inc. (VRME) . MAX and VRME have declined 16.8% and 54% in the same period, respectively.Six Months Price Performance Image Source: Zacks Investment Research As of the last trading session, the XPER stock closed at $10.2, m ...

Xperi (XPER) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ofte ...