Xperi Inc. Q4 FY2025 earnings call

• Key progress areas: TiVo One ad platform reached 5.3M MAU (+250% Y/Y), connected car DTS AutoStage had 14M vehicles (+40% Y/Y), pay TV video over broadband subscriber count grew 25% to 3.25M.
• Media platform: Added new capabilities to TiVo OS, entered new advertising agreements, saw revenue growth in advertising. Connected car: Signed Mercedes-Benz, added radio broadcasters, saw HD radio adoption. Pay TV: IPTV subscriber base grew, signed multi-year agreements. Consumer electronics: Expanded IMAX Enhanced program, signed renewals and agreements.

Consolidated revenue was $117 million, down 6 million from last year. Media platform reached 5.3 million monthly active users on TiVo One ad platform. Connected car's DTS AutoStage had 14 million vehicles, 40% growth. Pay TV video over broadband subscriber count grew 25% to 3.25 million. Consumer electronics continued IMAX Enhanced program expansion. Media platform had 15% revenue growth, connected car 5% growth, consumer electronics down 21%, pay TV down 7%. Adjusted EBITDA was $22 million for the quarter, $77 million for the year (17% of revenue).

Full-year 2026 revenue expected to be $440 - $470M. Adjusted EBITDA margin 17 - 19%. Operating cash flow $15 - $25M. Capital expenditures $15 - $20M. Non-GAAP tax expense ~$20M. Diluted share count 48 - 49M. Stock-based compensation expense ~$31M (25% lower than 2025). Media platform revenue expected to double in 2026.

Uncertainties related to memory and supply chain challenges, macroeconomic uncertainties, legacy pay TV product line declines, and consumer electronics unit volume disruptions due to supply issues.

Q: Quick question on smart TV side mix between European and domestic markets.

A: TiVo 1 installed base is roughly 60% in Europe, 40% in US, near term more European weighted.

Q: Expectations for home screen ads contribution.

A: Home screen ad unit is valuable, part of monetization opportunities with video ads and data monetization driving revenue growth.

Q: Clarification on ARPU for T01.

A: ARPU declined due to user base growing faster than advertising revenue, ARPU is lagging indicator over 4 trailing quarters.

Q: Done with cash expense side of cost savings.

A: Will have some costs in Q1 as well.

Q: Monetizing auto stage platform timeline.

A: Data-related monetization starts mid-year, ad monetization to follow, unique platform with valuable data.

Q: Geographic bias to connected car monetization.

A: Initially North America based, but with European element and potential further expansion.

Q: Confidence in reaching $20 ARPU.

A: Confidence from robust markets, unique audiences, and working with partners, timing depends on execution and ad market plug-in.

Q: Supply chain impact on 2026 consumer electronics outlook.

A: Cautious view due to supply chain issues, tariff environment, and unit-based business impact.