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    XPER
    Earnings call· Jun 2026(Q2 FY26)

    Xperi Q2 FY26 earnings call XPER

    Aug 5, 2026 Source

    Executive summary

    Xperi Q2 FY26 — Accelerated Advertising Revenue and Platform Scaling

    Xperi delivered a strong Q2 FY26, marked by accelerated advertising revenue growth and significant scaling of its Media Platform and Connected Car footprints. The company is making a decisive pivot towards monetization, leveraging its unique first-party data across home and automotive audiences. While core Pay TV and Consumer Electronics segments saw declines, Xperi remains confident in its strategic direction and ability to achieve its year-end goals, particularly in advertising and platform expansion.

    Highlights

    5

    • Overall revenue grew 8% year-over-year to $114 million.

    • Advertising and related revenue increased 54% year-over-year.

    • Non-GAAP earnings per share finished at $0.28, more than double last year's number.

    • Adjusted EBITDA was 21% of revenue, up 7 percentage points from last year.

    • TiVo One monthly active users totaled 6.3 million, representing approximately 70% year-over-year footprint growth.

    Concerns

    5

    • Pay TV revenue decreased 11% year-over-year to $45 million.

    • Consumer Electronics revenue decreased 35% year-over-year to $12 million.

    • Advertising and related revenue had an 8% negative gross margin in Q2 FY26.

    • Capital expenditure outlook was adjusted from a range of $15 million to $20 million to approximately $25 million due to memory market issues.

    • Trailing 12-month ARPU for TiVo One was $6.70, down slightly from the first quarter.

    Guidance & targets

    8
    CategoryTargetConfidence
    Annual Outlook
    Maintained as previously disclosed
    high materiality
    High
    TiVo One ARPU
    above $10
    medium materiality
    High
    Advertising and related revenue gross margin
    positive
    medium materiality
    Medium
    Advertising and related revenue gross margin
    60% range
    medium materiality
    Medium
    Capital expenditure outlook
    approximately $25 million
    medium materiality
    High
    Stock-based compensation outlook
    approximately $29 million
    low materiality
    High
    Pay TV business stabilization
    balancing equation
    medium materiality
    Medium
    TiVo One monthly active users
    more than 7 million
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Media Platform
    Revenue growth driven primarily by continued progress in advertising and related revenue. ARPU was down slightly due to footprint growth rate exceeding revenue growth rate.
    TiVo One monthly active users: 6.3M (+70% YoY)Trailing 12-month ARPU for TiVo One: $6.70 (down slightly from Q1)
    		$18M44%——
    Connected Car
    Revenue growth due primarily to the signing of 2 significant minimum guarantee deals. Exceeded original footprint goals.
    Cumulative vehicles shipped with DTS AutoStage: 17M (+42% YoY)Automotive brands with DTS AutoStage: 14 (BYD added)
    		$40M60%——
    Pay TV
    Revenue decrease driven by a decrease in core Pay TV revenue, partially offset by continued growth from IPTV solutions revenue.
    Global IPTV subscriber households: 3.4M (+13% YoY)IPTV revenue: $26M (+10% YoY)
    		$45M-11%——
    Consumer Electronics
    Expected decrease due to minimum guarantee arrangements for Kodak and audio solutions recorded in last year's revenue.
    		$12M-35%——

    Operational metrics

    10
    Non-GAAP operating expenses
    -6%YoY
    Q2 FY26

    Decrease primarily due to workforce reductions over the past year.

    Adjusted EBITDA
    $24Mover 60% compared to last year
    Q2 FY26

    Improvement in Adjusted EBITDA.

    Non-GAAP EPS
    $0.28more than double last year's number
    Q2 FY26

    Non-GAAP earnings per share.

    Cash and cash equivalents balance
    $91Mincrease of $20M from last quarter
    Q2 FY26

    Cash and cash equivalents balance at quarter end.

    Advertising and related revenue gross margin
    -8%
    Q2 FY26

    Current gross margin for advertising and related revenue, expected to turn positive as fixed cost base is amortized.

    GAAP operating expenses (excluding cost of revenue)
    -10%YoY
    Q2 FY26

    Improvement in GAAP operating expenses.

    Stock-based compensation outlook
    $29Mlowered from $31M
    FY26

    Revised stock-based compensation outlook for the full fiscal year, due to workforce reductions.

    Perceive sale payment
    $12M
    Q2 FY26

    Final payment related to the sale of Perceive to Amazon.

    HD Radio minimum guarantees as % of auto revenue
    mid-20s
    FY26

    Expected percentage of automotive revenue from minimum guarantees for the full year.

    Trailing 12-month ARPU for TiVo One
    $6.70down slightly from the first quarter
    Q2 FY26

    ARPU decreased as a result of the trailing 12-month footprint growth rate exceeding the revenue growth rate.

    Industry KPIs

    5
    MetricValueDetails
    Capacity CAPEX$25MUSD
    Revenue growth$114MUSD
    Customer account count6.3Musers
    Large deal new logo metrics14brands
    Operating FCF margin rule of 4021%%

    Product announcements

    4
    ProductTypeDetails
    TiVo channelslaunch
    TiVo viewership and audience insights data solutionlaunch
    AutoStage broadcaster portallaunch
    DTS AutoStage Video powered by TiVoexpansion

    Deals & partnerships

    10
    BYDDeployment of DTS AutoStage audio and video solution

    BYD joined the AutoStage program as Xperi's 14th automotive brand, committing to deploy the audio and video solution across export models in its portfolio.

    Teads and KargoAdvanced integration of TiVo One ad platform

    Advanced integration of the TiVo One ad platform with key partners, Teads and Kargo.

    CumulusLicensing of AutoStage broadcaster portal

    Signed as the first licensed customer for the DTS AutoStage broadcaster portal, providing data-driven view of listener behavior to broadcasters.

    NCTCProgrammatic dynamic ad insertion

    Executed a partnership for programmatic dynamic ad insertion with NCTC, with 3 of its members (Summit Broadband, EPB, and Buckeye) adopting TiVo as their platform.

    Multiple operatorsTiVo managed service IPTV

    Signed 3 new operators for TiVo managed service IPTV.

    VariousRenewals for IPTV and Discovery solutions

    Closed multiple renewals across IPTV and Discovery solutions.

    Various TV and PC brandsMultiyear renewal for DTS audio solutionsmultiyear

    Secured renewals and commitments for DTS audio solutions, including new commitments for DTS Clear Dialogue across multiple TV and PC brands.

    Sony, Yamaha, Pioneer, InsigniaRenewals for DTS agreements

    Renewed DTS agreements with leading TV, audio, and video receiver brands.

    MSI and Tecno ReallytekRenewals for DTS agreements

    Renewed DTS agreements for PC and mobile devices.

    Large Asian Tier 1 supplierMultiyear HD Radio programmultiyear

    Signed a multiyear HD Radio program to enable future HD Radio shipment growth.

    Capital programs

    1
    Capital expenditure for memory reductionunderwayapproximately $25M

    Benefit: position TiVo OS to continue to take market share as a highly cost-efficient Media Platform

    Adjusted capital expenditure outlook for FY26 from $15M-$20M to $25M. This change is primarily due to longer persistent issues in the memory market that have caused customers to request engineering team to modify software platforms to reduce memory requirements and significant memory-related cost increases in capital equipment.

    Risks & headwinds

    5
    Pay TV core revenue declineQ2 FY26

    11% YoY decrease to $45M

    Mitigation: Continued growth in IPTV solutions (10% YoY increase to $26M); expectation for legacy decline to balance with IPTV growth in mid-2027 to mid-2028.

    Consumer Electronics revenue declineQ2 FY26

    35% YoY decrease to $12M

    Mitigation: Attributed to prior year's minimum guarantee arrangements; focus on securing renewals and commitments for ongoing adoption of audio technologies.

    Memory market issuesFY26

    Capital expenditure outlook increased from $15M-$20M to $25M

    Mitigation: Customers requesting software modifications to reduce memory requirements; investments to position TiVo OS as a highly cost-efficient Media Platform.

    Advertising and related revenue negative gross marginQ2 FY26

    -8% gross margin

    Mitigation: Expected to turn positive as fixed cost base is amortized, with a long-term target of 60% range by entering 2027.

    TiVo One ARPU dilutionQ2 FY26

    $6.70 TTM ARPU, down slightly from Q1

    Mitigation: Caused by footprint growth exceeding revenue growth; expected to increase later this year to above $10 by year-end as advertising revenue accelerates.

    What to watch in Q3 FY26

    5

    TiVo One monthly active users

    by year-end
    Current6.3 million
    Targetmore than 7 million

    Why it matters

    Achieving this target demonstrates continued platform scaling and underpins future advertising monetization.

    TiVo One monthly active users reached 6.3 million at quarter end, closing in on our target of more than 7 million by year-end.

    Q&A highlights

    6

    Do the recent acquisitions of Roku and VIZIO create a void for an independent OS platform, and does this present an expansion opportunity for TiVo with OEMs or inventory shifting?

    Management believes these acquisitions validate the strategic value of TV OS platforms and create more strategic opportunities for TiVo as an independent platform. TiVo's business model aligns well with OEMs, advertisers, and content providers, bolstering its market position.

    “I think that -- the Fox's acquisition of Roku really validates the strategic value of the TV OS, the home screen, having first-party CTV data and direct-to-consumer access at the start of the entertainment journey. And I think we are uniquely positioned as an independent who has a business model that aligns well with -- in terms of incentives across OEMs and advertisers, content providers, et cetera, where I think we're going to see as the market narrows in some places to create more strategic opportunity for us.”

    asked by Jason Kreyer · answered by Jon Kirchner

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Execution and Platform Scaling

    Xperi demonstrated strong execution against its strategic plan in Q2 FY26, with overall revenue growing 8% year-over-year to $114 million. The company is making a decisive pivot towards monetization, leveraging its growing platforms in both the home and automotive markets. This includes expanding the TiVo One footprint, advancing advertising capabilities, and securing key partnerships, reinforcing confidence in the business's strategic direction.

    02

    Accelerated Advertising and Monetization Progress

    Advertising and related revenue grew over 50% (54% in Q2) year-over-year, driven by continued progress in advertising and related revenue. The company successfully executed homepage video campaigns with global brands and advanced integration of the TiVo One ad platform with partners like Teads and Kargo. A significant milestone was achieved with the licensing of listening data and analytics through the AutoStage broadcaster portal, with Cumulus as the first customer, marking the monetization of the automotive audience.

    03

    Connected Car Momentum and Expansion

    The Connected Car segment continued its strong momentum, with a 42% year-over-year footprint growth, reaching over 17 million cumulative vehicles shipped with DTS AutoStage across 13 automotive brands. BYD joined as the 14th automotive brand, committing to deploy Xperi's audio and video solutions. DTS AutoStage Video expanded to 100 countries, and a multiyear HD Radio program was signed with a large Asian Tier 1 supplier, further solidifying Xperi's position in the automotive infotainment market.

    04

    Pay TV and Consumer Electronics Trends

    Pay TV revenue decreased 11% year-over-year to $45 million, primarily due to a decline in core Pay TV revenue, partially offset by a 10% increase in IPTV revenue to $26 million. The company expects the legacy Pay TV business to balance with IPTV growth in the mid-2027 to mid-2028 timeframe. Consumer Electronics revenue decreased 35% year-over-year to $12 million, attributed to minimum guarantee arrangements from the prior year.

    05

    Financial Performance and Capital Allocation

    Xperi reported non-GAAP EPS of $0.28, more than double last year, and Adjusted EBITDA of $24 million, up over 60% year-over-year, representing 21% of revenue. Operating cash flow was $15 million, and free cash flow was $8 million. The capital expenditure outlook for FY26 was adjusted to $25 million (up from $15M-$20M) to address memory market issues and enhance TiVo OS efficiency, while stock-based compensation outlook was lowered to $29 million.

    AI-generated summary of the company’s earnings call. Not investment advice.