Xperi Q2 Earnings Call Highlights

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.

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. 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. 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 orig...