Xperi cuts 2025 outlook amid macroeconomic uncertainty

Published 28/07/2025, 21:36
Xperi cuts 2025 outlook amid macroeconomic uncertainty

SAN JOSE - Xperi Inc. (NYSE:XPER), a $344 million market cap entertainment technology company currently trading below its InvestingPro Fair Value, reported preliminary second quarter 2025 financial results on Monday, showing adjusted EBITDA of $15.2 million on revenue of $105.9 million, while reducing its annual outlook due to macroeconomic uncertainty.

The entertainment technology company generated $10 million in positive operating cash flow and $5 million in free cash flow during the quarter ended June 30. Despite posting a GAAP net loss of $14.8 million, or $0.32 per share, Xperi achieved non-GAAP net income of $4.8 million, or $0.11 per share. The company maintains strong financial health with a current ratio of 2.27 and operates with a moderate debt-to-equity ratio of 0.18, according to InvestingPro data.

"We made significant progress in the quarter toward our strategic growth initiatives. However, as the quarter progressed, the changing macroeconomic environment created increased uncertainty for our customers, ultimately impacting our financial results," said Jon Kirchner, chief executive officer of Xperi.

The company reduced its fiscal year 2025 revenue outlook to between $440 million and $460 million, down from its previous guidance of $480 million to $500 million. Adjusted EBITDA margin expectations were also lowered to 15-17% from the previous 16-18% range.

Despite financial challenges, Xperi reported progress on key growth metrics, surpassing 3.7 million TiVo One Monthly Active Users, three million global IPTV subscriber households, and 12 million vehicles on the DTS AutoStage platform.

The company’s revenue decreased compared to the $119.6 million reported in the same quarter of 2024, though its adjusted EBITDA margin improved to 14.4% from 12.2% in the prior-year period.

Xperi, which invents and develops technologies for consumer devices and media platforms under brands including DTS, HD Radio, and TiVo, plans to release complete financial and operating results after market close on Wednesday, August 6, 2025, according to the press release statement.

In other recent news, Xperi Inc. reported its first-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue expectations. The company recorded an EPS of $0.16, just under the forecasted $0.17. Additionally, Xperi’s revenue was $114 million, falling short of the anticipated $120.94 million. Despite these shortfalls, the company’s stock saw a rise in aftermarket trading. The financial results reflect the company’s current performance and investor sentiment. There were no other major announcements such as mergers or acquisitions. Analyst upgrades or downgrades were not reported in conjunction with these earnings results. These developments are part of the recent updates concerning Xperi Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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