Xperi Inc. (NYSE: XPER) COMPANY OVERVIEW Updated February 2026 1 © 2025 Xperi. All rights reserved. © 2026 Xperi. All rights reserved. Safe Harbor This Presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Presentation that do not relate to matters of historical fact should be considered forward- looking statements, including, without limitation, statements regarding: expectations regarding our future r ...

Core Insights - Xperi Inc. reported a sequential growth of 30%, reaching 4.8 million monthly active users on the TiVo One platform [1][7] - The company signed its tenth TiVo OS partner and multiple advertising partnerships aimed at expanding its media platform in 2026 [1][2] - Xperi reiterated its full-year revenue guidance of $440-460 million and an adjusted EBITDA margin of 15-17% [1][9] Financial Performance - For Q3 FY25, Xperi's revenue was $111.6 million, down from $132.9 million in Q3 FY24 [3][9] - The GAAP operating loss improved to $1.4 million from a loss of $18.6 million year-over-year [3][9] - Non-GAAP operating income was $17.5 million, compared to $24.5 million in the same quarter last year [3][9] - Non-GAAP net income decreased to $12.8 million from $23.3 million year-over-year, with earnings per share at $0.28 compared to $0.51 [3][9] Strategic Developments - The company achieved significant milestones in its media platform and connected car segments, including over 13 million vehicles on the AutoStage platform [2][5] - Xperi's average revenue per user (ARPU) for the TiVo One platform was reported at $8.75 as of September 30, 2025 [7] - The company announced a workforce reduction of approximately 250 employees to enhance cost efficiency and align with long-term strategies, expecting annual savings of $30-35 million [8][9] Market Outlook - Xperi's financial outlook for fiscal year 2025 remains unchanged, with expected revenue between $440 million and $460 million [9] - The company anticipates a shift in revenue mix as its media platform expands, which may initially incur higher costs [8][9]

Core Insights - Xperi reported Q2 FY2025 earnings with GAAP revenue of $105.9 million, missing analyst expectations of $113.01 million and reflecting an 11.5% decline from the previous year on a non-GAAP basis [1][5] - Non-GAAP earnings per share were $0.11, below the anticipated $0.13, indicating ongoing challenges in top-line growth despite improved profitability margins [1][5] Financial Performance - GAAP revenue for Q2 FY2025 was $105.9 million, down from $119.6 million in Q2 FY2024, marking an 11.4% year-over-year decline [2] - Non-GAAP operating income increased to $8.8 million, a 6.0% rise from $8.3 million in the previous year [2] - Non-GAAP adjusted EBITDA rose to $15.2 million, with an adjusted EBITDA margin of 14.4%, up from 12.2% in Q2 FY2024 [2][5] Business Focus and Strategy - Xperi develops and licenses media software and platform solutions for smart TVs, automotive infotainment systems, and pay TV, aiming to enhance user experience and monetize new media consumption models [3] - The company is focusing on growth vectors such as supporting streaming technologies, improving advertising monetization, and expanding its ecosystem through hardware partnerships [4] User and Market Expansion - Monthly active users on the TiVo One advertising platform increased to 3.7 million, up from 2.5 million in the previous quarter [6] - In the connected car segment, the DTS AutoStage platform expanded to over 12 million vehicles, a 70% increase year-over-year, with new contracts signed with major automotive partners [7] - Xperi surpassed 3 million global IPTV subscriber households, achieving over 30% year-over-year growth [8] Financial Position and Guidance - As of June 30, 2025, Xperi reported a cash balance of $95.1 million, down from $130.6 million at the end of 2024, and replaced $50 million in short-term debt with $40 million in long-term debt [9] - Management maintained a revenue outlook of $440–$460 million for FY2025, reflecting a conservative stance due to market uncertainty [10]

Core Insights - Xperi reported Q2 2025 results with non-GAAP revenue of $105.9 million, missing estimates by $10 million, and non-GAAP EPS of $0.11, two cents below consensus [1][2] - The company lowered its full-year guidance for revenue and margins due to a challenging macroeconomic environment [1][13] Financial Performance - Non-GAAP revenue decreased by 11.5% year-over-year from $119.6 million in Q2 2024 [2] - Non-GAAP EPS fell by 8.3% from $0.12 in Q2 2024 [2] - Non-GAAP operating income increased to $8.8 million, up 6.0% from $8.3 million in Q2 2024 [2] - Non-GAAP net income declined by 14.3% year-over-year to $4.8 million [2] - Adjusted EBITDA rose to $15.2 million, a 4.1% increase from $14.6 million in the previous year, with an adjusted EBITDA margin improvement to 14.4% from 12.2% [2][8] Business Overview - Xperi operates at the intersection of entertainment and technology, focusing on software platforms for Smart TVs and connected cars, with brands like TiVo and DTS [3][4] - The company aims to expand its independent media platform and DTS AutoStage infotainment system, emphasizing user growth and monetization through advertising and subscriptions [4][5] User and Device Growth - TiVo One's monthly active users increased from 2.5 million to 3.7 million, on track to exceed the goal of 5 million by the end of FY2025 [5] - DTS AutoStage expanded to 12 million vehicles, up from 11 million, with new partnerships with major automotive brands [6] Strategic Focus - Xperi's strategy includes developing technology platforms for partners, allowing them to monetize content and advertising effectively [9] - The TiVo One Advertising Platform is crucial for attracting advertising revenue, although specific financial metrics were not disclosed this quarter [10] Outlook and Guidance - Management revised FY2025 revenue guidance to $440–460 million from $480–500 million, citing increased uncertainty in the macroeconomic environment [13] - Non-GAAP adjusted EBITDA margin guidance was also lowered to a range of 15% to 17% [13]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $114 million, a decrease of 4% from $119 million in the previous year, and a 2% decrease when adjusting for divestitures [20] - Adjusted EBITDA was $16 million, representing a margin of 14%, which is over 200% increase compared to $5 million in the prior year [8][22] - Non-GAAP earnings per share improved to $0.16 from a loss of $0.05 per share in the previous year [22] Business Line Data and Key Metrics Changes - Pay TV revenue was $50 million, down 12%, with strong growth in IPTV (up 25%) offset by declines in core pay TV business [20] - Consumer Electronics revenue decreased by 5% to $23 million, primarily due to lower production volumes [20] - Connected Car revenue rose 37% to $33 million, driven by licensing agreements for HD Radio [20] - Media Platform revenue was $8 million, down 30% due to lower middleware revenue and timing shifts in advertising commitments [21] Market Data and Key Metrics Changes - IPTV subscriber households increased to over 2.75 million, a 36% year-over-year growth [16] - The Connected Car segment finished the quarter with a footprint of 11 million vehicles across over 130 countries [16] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV advertising, in-cabin entertainment, and TiVo video over broadband [8] - The TiVo One ad platform aims to maximize engagement and monetization on streaming devices [10] - The company is expanding its partnerships with TV manufacturers and expects to add 1-2 new partners this year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth goals despite macroeconomic uncertainties [6] - The company maintains its financial outlook for the year, indicating modest impacts from tariffs [25][42] - Management expects to see positive cash flow in the second half of the year [32] Other Important Information - The company completed a financing arrangement with PNC Bank for a $55 million line of credit [23] - Operating cash usage was $22 million, primarily due to the paydown of accrued liabilities [24] Q&A Session Summary Question: Regarding IPTV and user base growth - Management indicated that improvements in subscribership revenue will be seen throughout the year, with ongoing efforts to assist deployments [26] Question: Capacity to handle increased IPTV customers - Management confirmed that they are staging deployments and have the capacity to manage the increase over time [30] Question: Positive cash flow expectations - Management stated that while Q1 is typically the weakest quarter, they expect positive cash flow for the remainder of the year, particularly in the second half [32] Question: Additional OEMs in the pipeline for TV companies - Management expects to add at least one to two new TV partners this year beyond the existing eight [36] Question: Active user targets and tariff impacts - Management remains on track to reach 5 million monthly active users by year-end and anticipates reaching 7 million by the end of next year, with tariffs having a modest impact [38]

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]

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]