Xperi (XPER) - 2025 Q2 - Quarterly Results

Xperi Inc. Q2 2025 Preliminary Results and Outlook Update Preliminary Second Quarter 2025 Financial Results The company reported preliminary Q2 2025 revenue of $105.9 million, with an improved operating loss and positive cash flow Q2 2025 vs Q2 2024 Financial Highlights | Metric ($ millions, except per share) | Q2 FY25 | Q2 FY24 | | :--- | :--- | :--- | | GAAP Results | | | | Revenue | $105.9 | $119.6 | | GAAP Operating Loss | $(11.1) | $(21.9) | | GAAP Net Loss | $(14.8) | $(30.3) | | GAAP Diluted Loss Per Share | $(0.32) | $(0.67) | | Non-GAAP Results | | | | Non-GAAP Operating Income | $8.8 | $8.3 | | Non-GAAP Net Income | $4.8 | $5.6 | | Non-GAAP Earnings Per Share | $0.11 | $0.12 | | Non-GAAP Adjusted EBITDA | $15.2 | $14.6 | | Non-GAAP Adjusted EBITDA Margin | 14.4% | 12.2% | - The company generated $10 million in positive operating cash flow and $5 million in free cash flow during the second quarter[1] - Financial results were impacted by a changing macroeconomic environment creating increased customer uncertainty[2] Fiscal Year 2025 Financial Outlook Update The company lowered its full-year 2025 financial outlook due to macroeconomic uncertainty impacting customers Updated Fiscal Year 2025 Outlook | Category | Prior Outlook | Updated Outlook | | :--- | :--- | :--- | | Revenue | $480M to $500M | $440M to $460M | | Non-GAAP Adjusted EBITDA Margin | 16% to 18% | 15% to 17% | - The full-year financial outlook was updated due to the market backdrop and increased uncertainty for its customers[2] Operational Highlights and Strategic Progress The company reports continued progress on long-term growth initiatives, achieving key user and device milestones - The company continues to demonstrate progress on its longer-term growth goals and strategic initiatives, with key milestones including[3]: - Surpassing 3.7 million TiVo One Monthly Active Users - Reaching three million global IPTV subscriber households - Exceeding 12 million vehicles on the DTS AutoStage platform Non-GAAP Financial Measures and Reconciliations This section defines non-GAAP financial measures and provides reconciliations to their comparable GAAP figures Definition of Non-GAAP Measures Key non-GAAP metrics are defined by excluding specific items like stock-based compensation from GAAP measures - Non-GAAP measures provide perspective into ongoing business performance by excluding certain items[14][15][17]: - Non-GAAP Operating Income excludes stock-based compensation, amortization, and transaction/restructuring costs - Non-GAAP Net Income excludes the same items as above and their related tax effects - Non-GAAP Adjusted EBITDA excludes interest, taxes, stock-based compensation, and depreciation/amortization from GAAP Net Income GAAP to Non-GAAP Reconciliations Detailed tables reconcile Q2 2025 GAAP Net Loss and Operating Loss to their non-GAAP counterparts Q2 2025 Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | GAAP net loss | $ (14,781) | | Interest expense | $ 915 | | Provision for income taxes | $ 4,636 | | Stock-based compensation | $ 10,327 | | Depreciation expense | $ 3,448 | | Amortization of intangible assets | $ 9,144 | | Amortization of capitalized cloud computing costs | $ 1,081 | | Transaction, integration and restructuring costs | $ 73 | | Severance and retention | $ 365 | | Non-GAAP Adjusted EBITDA | $ 15,208 | Q2 2025 Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (in thousands) | Description | Amount | | :--- | :--- | | GAAP operating loss | $ (11,133) | | Stock-based compensation | $ 10,327 | | Amortization of intangible assets | $ 9,144 | | Transaction, integration and restructuring costs | $ 73 | | Severance and retention | $ 365 | | Non-GAAP operating income | $ 8,776 | Important Disclosures This section contains a Safe Harbor Statement for forward-looking statements and a financial disclosure advisory - The financial data presented is preliminary and may differ from actual results upon completion of quarter-end review[9] - The press release contains forward-looking statements regarding future results and growth, which involve risks and uncertainties[8]