Xperi (NYSE:XPER) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Xperi (NYSE:XPER) announced its earnings results on Wednesday. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.07, FiscalAI reports. The firm had revenue of $114.49 million during the quarter, compared to analyst estimates of $112.66 million. Xperi had a negative net margin of 10.22% and a positive return on equity of 1.09%.

Here are the key takeaways from Xperi’s conference call:

• Second-quarter revenue rose 8% year over year to $114 million, while non-GAAP adjusted EBITDA increased more than 60% to $24 million, reaching 21% of revenue. Non-GAAP EPS more than doubled to $0.28, and operating cash flow was $15 million.
• Media Platform revenue grew 44% to $18 million, with advertising and related revenue up 54%. TiVo ONE reached 6.3 million monthly active users, and management expects year-end ARPU to exceed $10 as advertising monetization accelerates.
• Connected Car momentum remained strong, with the AutoStage footprint growing 42% to more than 17 million vehicles across 13 brands; BYD became the 14th automotive OEM. Xperi also signed Cumulus as the first customer for its data-driven Broadcaster Portal, creating a new automotive analytics monetization opportunity.
• Pay TV revenue declined 11% year over year to $45 million as the legacy business contracted, although IPTV revenue rose 10% to $26 million. Management expects IPTV growth to offset legacy declines only around mid-2027 to mid-2028.
• The company raised its 2026 capital-expenditure outlook to approximately $25 million from $15 million-$20 million because of persistent memory-market issues and higher equipment costs. Advertising and related revenue currently carries an 8% negative gross margin, though management expects it to turn positive in 2027.

Xperi Trading Down 12.6%

Shares of NYSE:XPER traded down $0.99 during midday trading on Thursday, reaching $6.84. The company had a trading volume of 1,056,033 shares, compared to its average volume of 423,777. The company has a fifty day simple moving average of $7.79 and a two-hundred day simple moving average of $6.78. The firm has a market cap of $330.36 million, a price-to-earnings ratio of -6.91 and a beta of 1.43. Xperi has a 1-year low of $5.07 and a 1-year high of $8.75. The company has a debt-to-equity ratio of 0.10, a quick ratio of 2.36 and a current ratio of 2.36.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC acquired a new stake in shares of Xperi during the fourth quarter valued at approximately $327,000. Invesco Ltd. boosted its stake in Xperi by 3.4% in the 4th quarter. Invesco Ltd. now owns 72,959 shares of the company’s stock worth $428,000 after purchasing an additional 2,397 shares during the period. Susquehanna Fundamental Investments LLC acquired a new position in Xperi in the 4th quarter worth approximately $93,000. Oxford Asset Management LLP purchased a new position in Xperi during the 4th quarter worth approximately $141,000. Finally, Millennium Management LLC grew its position in Xperi by 66.7% during the 4th quarter. Millennium Management LLC now owns 54,090 shares of the company’s stock worth $317,000 after purchasing an additional 21,640 shares in the last quarter. 94.28% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have commented on XPER. Zacks Research upgraded shares of Xperi from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. BWS Financial reiterated a “buy” rating and set a $12.00 price objective on shares of Xperi in a research note on Monday, June 22nd. Wall Street Zen cut Xperi from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 25th. Rosenblatt Securities restated a “buy” rating and issued a $10.00 target price on shares of Xperi in a research report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Xperi in a research note on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $11.00.

Xperi Company Profile

Xperi Inc (NYSE: XPER) is a global technology company that develops and licenses audio, imaging and semiconductor packaging solutions. The company was formed in 2016 through the spin-off of Tessera Technologies’ product divisions and expanded its product portfolio in 2019 with the acquisition of TiVo Corporation. Headquartered in San Jose, California, Xperi’s technologies underpin a range of consumer electronics, automotive, mobile and broadcast products around the world.

In its technology licensing segment, Xperi offers a broad portfolio of semiconductor packaging and interconnect solutions designed to improve performance and energy efficiency in chips and devices.