Fubotv earnings beat by $0.10, revenue topped estimates
Xperi Inc. reported its Q2 2025 earnings, revealing a decline in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.11, falling short of the expected $0.15, and reported revenue of $105.9 million, missing the forecast of $115.89 million. As a result, Xperi’s stock experienced a 0.7% drop in aftermarket trading, closing at $5.69, which is also its 52-week low. According to InvestingPro analysis, the stock appears undervalued at current levels, with multiple indicators suggesting potential upside. Discover more insights and 12 additional ProTips for Xperi with an InvestingPro subscription.
Key Takeaways
- Xperi’s Q2 2025 EPS and revenue fell below expectations.
- Stock price decreased by 0.7% in aftermarket trading.
- The company continues to face a challenging macroeconomic environment.
- Xperi is focusing on cost management and business transformation.
- Future outlook remains cautiously optimistic with strategic goals in sight.
Company Performance
Xperi’s performance in Q2 2025 was marked by a revenue decline of 11% year-over-year, attributed primarily to lower minimum guarantee arrangements. Despite this, the company managed to increase its adjusted EBITDA by 4%, demonstrating effective cost management. The company is navigating a challenging macroeconomic landscape, characterized by weakening consumer demand and uncertain purchasing patterns.
Financial Highlights
- Revenue: $105.9 million, down 11% year-over-year
- Earnings per share: $0.11, below the forecast of $0.15
- Adjusted EBITDA: $15.2 million, a 4% increase
- Operating Cash Flow: $10 million
- Free Cash Flow: $5 million
Earnings vs. Forecast
Xperi’s Q2 2025 results showed an EPS of $0.11, missing the forecast by 26.67%. Revenue also fell short by 8.62%, coming in at $105.9 million against the anticipated $115.89 million. This marks a significant miss compared to previous quarters, highlighting the impact of the current economic challenges on the company’s financials.
Market Reaction
Following the earnings announcement, Xperi’s stock dipped by 0.7% in aftermarket trading, closing at $5.69. This price marks the company’s 52-week low, reflecting investor concerns over the earnings miss and broader market conditions. The stock’s performance contrasts with recent sector trends, where some peers have seen gains. InvestingPro technical analysis indicates the stock is currently in oversold territory, while trading at a low revenue valuation multiple. The stock has declined over 38% in the past six months, potentially presenting a value opportunity for investors seeking detailed analysis through InvestingPro’s comprehensive research tools.
Outlook & Guidance
Looking forward, Xperi maintains its full-year 2025 revenue outlook between $440 million and $460 million, with an adjusted EBITDA margin of 15-17%. The company is focusing on long-term revenue and profitability growth, aiming to achieve its strategic goals by year-end. InvestingPro analysis shows that net income is expected to grow this year, with analysts predicting profitability in 2025. The company’s overall financial health score is rated as "FAIR," suggesting balanced risk-reward potential for investors considering the stock at current levels.
Executive Commentary
CEO John Kirchner emphasized the company’s resilience amid uncertainty, stating, "We are operating in an environment with a certain degree of uncertainty." He remains optimistic about Xperi’s future, noting, "Our view of the opportunity ahead of us is really unchanged."
Risks and Challenges
- Macroeconomic pressures and weakening consumer demand
- Uncertainty in customer purchasing patterns
- Softer automotive and consumer electronics production
- Challenging advertising market conditions
- Potential impact of global economic fluctuations
Q&A
During the earnings call, analysts questioned Xperi’s strategy to navigate the uncertain market conditions and the challenges in the advertising sector. The company highlighted its focus on building scale and partnerships, as well as considering potential stock buybacks.
Full transcript - Xperi Inc (XPER) Q2 2025:
Conference Call Operator: Good day, everyone. Thank you for standing by. Welcome to the Xperi Second Quarter twenty twenty five Earnings Conference Call. During today’s presentation, all parties will be in a listen only mode. Following the presentation, the call will be opened for questions.
I would now like to turn the call over to Sam Livinson from Arbor Advisory Group. Sam, please go ahead.
Sam Livinson, Investor Relations Representative, Arbor Advisory Group: Good afternoon, and thank you for joining us as Xperia reports its second quarter twenty twenty five financial results. With me on today’s call are John Kirchner, Chief Executive Officer and Robert Anderson, Chief Financial Officer. In addition to today’s earnings release, there is an earnings presentation on our Investor Relations website at investor.xperi.com. We encourage you to download the presentation and follow along with today’s commentary. Before we begin, I would like to provide a few reminders.
First, I would like to note that unless otherwise stated, all comparisons are to the same period in the prior year. Second, today’s discussion contains forward looking statements about our anticipated business and financial performance that are predictions, projections or other statements about future events, which are based on management’s current expectations and beliefs and therefore subject to risks, uncertainties and changes in circumstances. For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today, please refer to the Risk Factors and MD and A sections in our SEC filings, including our most recent Form 10 ks for the year ended 12/31/2024, and our Form 10 Q for the quarter ended 06/30/2025, could be filed with the SEC. Please note that the company does not intend to update or alter these forward looking statements to reflect events or circumstances arising after this call. Third, we refer to certain non GAAP financial measures, which are detailed in the earnings release and accompanied by reconciliations to their most directly comparable GAAP measures, which can be found in the Investor Relations section of our website.
Last, a replay of this conference call will be available on our website shortly after the conclusion of this call. I will now turn the call over to Xperia’s CEO, Don Kirschner. Thank you, Sam, and thank you, everyone, for joining us on our second quarter twenty twenty five earnings call. Over this past quarter, we’ve been operating in an increasingly difficult environment, which has had an impact on our business. Nevertheless, we are excited about the significant progress we continue to make on our strategic initiatives that are critical to meeting our longer term growth plans as exemplified by growth in our TiVo ONE monthly active users, connected car auto stage footprint and IPTV subscriber households.
I’ll cover all of this in a in a little bit more detail in a moment. Let me first address the financial outlook update we made early last week. The combination of macro uncertainty, tariffs and a weakening consumer environment began to meaningfully impact our customers’ decisions, production outlook and purchasing patterns in the latter part of the second quarter. The impact of these conditions is being felt broadly across our business as we look ahead to the remainder of 2025 and touches areas like slower than expected IPTV subscriber growth, softer second half automotive production volumes, weaker consumer electronics production and end market demand, and a more challenging advertising market. Robert will provide additional color later on this call.
I’ll now provide a summary of our results for the quarter. For the quarter, we posted revenue of $106,000,000 Despite lower year over year revenue, our adjusted EBITDA rose 4% to $15,000,000 or 14% of revenue due primarily to continued business transformation efforts and cost management. We continue to work on lowering our cost profile in support of long term margin expansion. Our non GAAP earnings per share was $0.11 We posted $10,000,000 of operating cash flow in the quarter and recorded $5,000,000 of positive free cash flow. Now as we turn to the bigger picture, we continue to make significant progress on our strategic growth initiatives.
As a reminder, we generally discuss our business in terms of growth where we see strong potential for new revenue growth and core solutions, which encompass our more mature, long standing product lines. Our growth solutions encompass three main areas. First, connected TV and streaming devices that support the TiVo One ad platform, where we monetize ad supported viewing, viewership data, and home page engagement across smart TVs powered by TiVo and TiVo video over broadband devices. Second, in cabin entertainment, where DTS AutoStage combines radio, rich metadata, and video streaming services to enhance the automotive experience. We expect this solution to enable long term revenue through a mix of license fees, upselling features, advertising, and listener data.
And third, IPTV, where we offer video over broadband on our industry leading content first streaming platform for our customers’ IPTV linear video households as well as broadband only households, where revenue is primarily generated by monthly subscriptions. Our progress in each of these growth areas is best measured against specific goals that we’ve set out for the year, and we believe we’re on track to meet or exceed these goals in 2025. Let me first provide more detail on our growth initiatives. First is the TiVo One ad platform, which we believe is the most significant potential to drive our overall long term revenue growth trajectory. Over the past few years, we’ve built the TiVo One ad platform, a cross screen advertising platform that connects smart TVs and IP TV set top boxes powered by TiVo into a cross screen ad platform for maximizing engagement and monetization on streaming devices.
The TiVo One ad platform connects our unique audience of monthly active users through industry leading supply side platforms directly to ad buyers and demand side platforms. Our TiVo One ad platform strategy leverages the large and growing market for streaming content and advertising. To support this media platform monetization strategy, we launched TiVo OS for smart TVs in December 2023. And today, we’ve signed nine partners shipping over 80 television brands across 40 countries and through more than 30 major retailers. Consumer reviews of the TVs have been very strong, and we continue to take market share and build the scale necessary in key markets to attract more advertisers, ad volume, and ultimately drive more aggressive monetization growth.
We are increasingly winning in this competitive market by differentiating in a number of different ways. First, delivering the best in class TV operating system and a set top box user interface and discovery experience. Second, we are an independent OS provider that does not compete with our TV partners by making our own TVs. Third, we share advertising revenue and data with our partners. Fourth, we focus on our partners’ branding throughout the experience, allowing our partners to retain brand visibility by shipping a co branded experience that is powered by TiVo.
And fifth, our technology enables a lower cost hardware solution, which we believe in many cases is meaningfully lower than key competitors while still being highly performant and able to scale on a global basis. Our goal for the TiVo One ad platform in 2025 has been to build an initial connected TV and video over broadband device footprint of 5,000,000 monthly active users. As q two came to a close, we saw substantial progress toward building scale for the TiVo One ad platform. We now have 3,700,000 monthly active users, putting us well on the way to achieving our twenty twenty five goal. We also announced a total of nine TiVo OS partners to date with just one more needed to hit our 2025 goal of 10 partners, which we expect will yield significant increases in footprint over time.
As our monthly active user footprint grows, we’re beginning to recognize advertising revenue from our TiVo ONE ad platform with our year end exit goal of reaching $10 of annual revenue per user still within our sites. We have recently expanded the selling of homepage ad units to leading streaming services in Europe, and interest from potential advertising partners in our footprint and viewership data is growing. To further advertise our interest in our platform, we’ve recently signed key partnerships with Whirl, Cargo, and FreeWheel that we expect will bring additional scale and benefits to advertisers and brands interested in targeting our growing and largely unexposed installed base. Within the connected car category, we made significant progress expanding penetration of our DTS auto stage solution by signing two new OEM programs and by launching in several new car models, including the BMW five series, Kia EV nine, and the Hyundai IONIQ five and IONIQ nine. We broaden the ecosystem for auto stage by expanding the number of global broadcasters that support the platform and are now aggregating content from broadcasters in over 60 countries.
Broadcasters are key partners in the longer term auto stage platform monetization strategy as they provide both metadata to enrich the user experience and ad placement slots that we expect will drive auto based digital ad monetization over the long term. On HD Radio, we signed a multiyear agreement with an integrated chip provider, and our footprint continued to grow as several new vehicle models launched partners, including BMW, Honda, Hyundai, and Volkswagen. Turning to Pay TV, the operator market continues to evolve. And as such, we offer our customers several solutions as follows. First, our IPTV solutions.
These solutions provide a full content lineup for operators who whose customers are paying subscriptions for live linear content. With our content forward user interface, this solution showcases bringing all video entertainment content together, including not only live linear, but subscription video on demand, transactional video on demand, and free ad supported television from leading streaming partners. Second, broadband TV. Broadband TV is a is a subscription based product like IPTV with the fundamental difference of being lower cost and and offering a more limited lineup of channels. Lastly, TiVo broadband.
TiVo broadband is effectively the same solution as broadband TV, except there are no subscription channels or fees. We believe all of these household solutions enable a device footprint that has advertising and monetization opportunities for our monthly active users. Against this backdrop, our IPTV solutions in North America and Latin America continued strong growth of over 30% on a year over year basis, reaching an installed base of over 3,000,000 subscriber households. Approximately half the installed base is in North America and the other half in Latin America. When accounting for both geographic and ASP mix within the markets and solutions, IPTV revenue growth was 24%.
Additionally, we extended our relationships with key customers by signing significant multiyear renewals with Liberty Latin America and Cable One. And lastly, we executed international metadata agreements with Korea Telecom and Proxima Proximus in Europe. In the consumer electronics market, we advanced our DTS sound based technology solutions by signing key minimum guarantee contract renewal agreements during the quarter with TPB Phillips, TCL, and Sony. We also entered into a separate renewal agreement with Sony for the inclusion of IMAX excuse me, IMAX Enhanced technology in Sony’s TVs, sound bars, receivers, and projectors, which continues to bring best in class entertainment to consumers in the home. We signed our first customer TV contract for our Clear Dialogue enhancement technology with a major TV OEM.
Our Clear Dialogue solution leverages AI to give users control over improving the intelligibility of dialogue across all sources, a key pain point for consumers around the world who struggle to make out what people are saying when watching TV. Clear Dialog has won multiple industry awards, and we’ve spent the last eighteen months porting the solution onto integrated chips where we expect market avail availability in the 2026. Let me now summarize where we stand with respect to our 2025 exit goals. In media platform, we made substantial progress growing monthly active users utilizing the TiVo One ad platform to 3,700,000, and we’ve signed an additional smart TV partner bringing the total to nine. In Pay TV, we’ve now exceeded our annual footprint goal of 3,000,000 IPTV subscriber households while also beginning to deploy the TiVo ONE ad platform to certain operators in North America.
In Connected Car, we’ve increased the number of vehicles with our DTS AutoStage solution to over 12,000,000. Overall, we’re encouraged by our progress toward meeting or exceeding these strategic goals by year end 2025. We expect this strategic progress will, in turn, position us to generate more revenue and profitability growth over the long term. With that, I’ll turn the call over to Robert to discuss our financials. Robert?
Robert Anderson, Chief Financial Officer, Xperi: Thanks, John. As in past quarters, I’ll be covering two main areas during this call. I’ll first go through the financial results and provide commentary for the quarter, and second, I’ll discuss our financial outlook. Let me begin with the quarter’s revenue results. Total revenue for the second quarter was $106,000,000 a decrease of 11% from last year’s $120,000,000 and lower by 10% when adjusting for the perceived divestiture.
This year over year revenue decrease was primarily attributable to certain minimum guarantee arrangements recorded in the prior year period within Pay TV and Connected Car. As a reminder, in any given year, approximately 20% to 25% of our revenue across the business is categorized as point in time, most of which consist of minimum guarantee arrangements with our customers. While the revenue from these agreements is recognized during the period in which it is signed, many of these agreements regularly renew in a multiyear cycles and provide the benefit of long term predictability, certainty, and commitment to our technologies. When unit volumes under these agreements are exceeded, we recognize the overage revenue on a per unit basis in reported periods. Within the pay TV category, we recognized revenue of $50,000,000, a decrease of 18% from last year.
This decrease was largely due to certain minimum guarantee revenue recognized last year relating to our Classic Guide product line and was partially mitigated by 24% revenue growth in our IPTV solutions as we saw continued subscriber year over year growth. Consumer electronics revenue was $19,000,000, an increase of 23% when excluding the divestiture of excluding the divestiture perceived. While this growth was attributable to the signing of minimum guarantee renewals for our codec and audio solutions with certain large CE customers, other agreements expected to be concluded were not signed due to market uncertainty. Connected car revenue decreased by $6,000,000 due to a lower amount of minimum guarantee agreements recorded in the quarter when compared to last year. Media platform revenue was $12,000,000 18% higher than last year due primarily to advertising revenue from a linear ad placement that was delayed from last quarter.
Looking at our income statement for the quarter, our year over year cost of revenue increased by almost $5,000,000 driven by both revenue mix and from higher costs related to certain advertising revenue. Non GAAP adjusted operating expense decreased by $19,000,000 or 23%, primarily due to ongoing business transformation and cost management efforts that John mentioned earlier. From a profitability perspective, adjusted EBITDA was $15,200,000 up 4% from last year’s $14,600,000 or 2.2 basis points of margin as our revenue decrease was more than offset by the year over year expense reduction. Our non GAAP earnings per share was $0.11 compared to $0.12 we posted in the second quarter of last year. From a balance sheet perspective, we finished the quarter with $95,000,000 in cash, up $7,000,000 from last quarter.
This increase was principally due to the $10,000,000 of operating cash flow generated in the quarter, which was a $12,000,000 improvement from the 2,000,000 usage of operating cash flow that occurred last year. With regard to our outlook, we expect a revenue range of $440,000,000 to $460,000,000 Despite the limited direct impact from tariffs that we experienced in the first quarter, as the second quarter progressed, we noted significantly more uncertainty related to the macroeconomic environment. Customer concerns around visibility drove a reluctance to enter into certain agreements and a weakening consumer environment was reflected in lower near term forecasts. We expect these conditions to persist for the balance of the year. As such, we are forecasting slower than expected IPTV subscriber growth, softer second half production volumes in automotive, weaker consumer electronics production and end market demand in certain product categories and a more challenging advertising market.
While our revenue outlook for the year has been reduced, we are encouraged by the progress of our business transformation efforts as we continue to focus on cost management, profitability and cash flow generation. We expect an adjusted EBITDA margin range of 15% to 17%. Operating cash flow is now expected to be neutral plus or minus $10,000,000 Non GAAP tax expense is still expected to be approximately $20,000,000 capital expenditures at approximately $20,000,000 and basic and fully diluted shares are still expected to be approximately $46,000,000 That concludes our prepared remarks. Let’s now open the call for Operator?
Conference Call Operator: Your first question comes from the line of Jason Carrier with Craig Hallum. Your line is now open. Please go ahead.
Jason Carrier, Analyst, Craig Hallum: All right. Thanks for taking my question, guys. Looking for just a little bit more clarity on the volatility or maybe kind of shortfall in between Q2 and Q3, you gave some clarity on the consumer electronics side of things. Curious, those deals that didn’t, like, I guess, did the deals get signed? Did they get signed for just shorter duration?
Or do you still expect these things to get signed? And you know, curious for any clarity outside of consumer electronics, like you had mentioned the ad ad market, and I’m just curious kinda what you’re seeing there.
Sam Livinson, Investor Relations Representative, Arbor Advisory Group: Thank you.
Robert Anderson, Chief Financial Officer, Xperi: Sure. I can take that one, Jason. So what we saw in q two was a, I think I think what’s characterized it as some uncertainty in the near term outlook from our customers, which have them, I think in in the cases we saw, less likely to to take longer term deals or to kinda complete the deals we’d we’d put in front of them. And so as to whether or not they actually get signed, it’s TBD. But it was really just a delay, I think, probably how I’d characterize it right now.
As we look at the advertising market, I think we’ve seen that there has been a similar degree of uncertainty as as one looks forward. So, you know, we kinda took that into consideration into our revised range that we provided.
Jason Carrier, Analyst, Craig Hallum: That help? Okay. That that helps. A follow-up just sticking on the ad market. The the long term monetization plan, you know, you’ve got a direct sales element right now.
You also announced on the call you’ve got some new partnerships. Just curious the balance between direct sales and and these partners that you announced.
Sam Livinson, Investor Relations Representative, Arbor Advisory Group: Excuse me, Jason. It’s Sean. I I think it’s it’s obviously gonna be a combination of both. We’ve we’ve spent a lot of time working on building, connectivity to programmatic infrastructure. But I think, know, you there’s always gonna be a certain amount of campaigns that are gonna be sold direct, you know, in part, you know, based on the needs and and the nature of things.
You know, home page ad unit selling, for example, versus, you know, some of your your other, you know, programmatic ad units. But I think it’s our intent, you know, I think and and maybe building on your last question, you know, recognizing that in a in a time when advertisers are pulling back, you know, or maybe looking in some cases for for more efficient or lower cost, you know, solutions in a in a troubled, environment, you know, and there’s a move towards bigger ecosystems. And we’re still in the process of building scale. I think working with partners, you know, aggressively to help make sure that that as our footprint comes online and and our audiences, you know, can be targeted that we, you know, we tap into partners as much as we can. I think that’ll that’ll help in the near term, you know, kind of, you know, deal with or mitigate some of the environmental conditions.
You know? And over time, obviously, we’ll be we’ll be able to either make the choice to extend those agreements in in bigger ways, you know, or, as things normalize, you know, we will we will adjust accordingly. Got it. Makes sense. Thank you, gentlemen.
Robert Anderson, Chief Financial Officer, Xperi: Thank you, Jason.
Conference Call Operator: Thank you. And your next question comes from the line of Hamed Khorsand with the BWS Financial. Your line is now open. Please go ahead.
Robert Anderson, Chief Financial Officer, Xperi: Hi. So first off, could you just talk about the dynamics of your ad platform and how you’re expecting to grow that this year given that you’re you’re expecting unit volumes to decline. So wouldn’t that actually have a negative impact on what you get on the platform?
Sam Livinson, Investor Relations Representative, Arbor Advisory Group: I there may be some mixing mixing of different data data facts there, Hamed. The we expect our, monthly active user footprint to to grow. And as we said, we think we’re on track to hit, you know, 5,000,000 or more monthly active users, which would be up from where we are at 3,700,000. And so, you know, we’ll have, you know, we’ll have more viewers, and more more active users through which to tap into advertising. I think, you know, part of what’s happening behind the scenes is is, you know, that user base or those MAUs are spread out over a wider geography.
So we’re also naturally working on underneath building more scale in key markets, because it’s that scale in those key markets that ultimately makes your platform more interesting and desirable to advertisers. And, you know, the other thing we’re gonna be doing is working, as we said just a second ago to Jason, with partners, you know, to make the inventory, more available, you know, through through our partners to ultimately see revenue growth. So, you know, there is a there is a natural, you know, kind of buildup that that happens in general as you’re looking to optimize a a monetization platform and you’re trying to optimize viewing and merchandising of fast content, you know, for consumers through the interface. You know, there’s a lot of work that that, you know, goes on for, you know, a long period of time. But but I think the the point is, without footprint growth as as a fundamental starting point, you can’t, you know it’s it’s very hard to grow meaningful amounts of revenue.
Our footprint continues to be on a very strong trajectory, and we have more partners, you know, expanding what they’re doing from a TV presence perspective, you know, in Europe and and elsewhere. And, you know, as that footprint grows and we, you know, increasingly can kind of expose what, you know, our unique audience, you know, potentially offers to the advertising community, you know, we ultimately will be able to not only better sell that, but ultimately drive more monetization value.
Robert Anderson, Chief Financial Officer, Xperi: Okay. And my other question was, didn’t hear any commentary about stock buyback. At what point would you implement that strategy? Well, we we have authorization to do stock buybacks from our board, and that’s naturally a discussion we are having with the board, particularly given where the stock is at present. So I think you can see us taking a very close look at that as part of our capital allocation strategy.
Okay. Thank you. Next comment.
Conference Call Operator: We have reached the end of our call today. I’d like now to turn the call over to CEO, John Kirchner.
Sam Livinson, Investor Relations Representative, Arbor Advisory Group: Thank you, operator. I think it’s fair to say that no doubt we are operating in an environment with a certain degree of of uncertainty, which affects our industry and our customers and our competitors as well as ourselves. That said, I think we have a very clear strategy for growth, and we continue to make excellent progress toward achieving our 2025 goals, some of which we’ve already surpassed six months ahead of schedule. And in addition, you know, as the results of our second quarter, I think, demonstrate, we’ve successfully mitigated revenue pressure, I think, with significant reductions in in in our cost base and strong cost management. So our view of the opportunity ahead of us is really unchanged.
And over the back half of 2025, we remain confident in our ability to further build the strategic foundation for rising revenue and profitability as we get into ’26. And I’d like to thank clearly our entire Xperi team for their focus and strong execution on our strategic objectives as we collectively strive to create shareholder value. Thank you for joining us today, and we look forward to keeping you apprised of our progress. Operator, this ends today’s call.
Conference Call Operator: That concludes today’s call. Thank you all for joining. You may now disconnect. Everyone, have a great day.
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