Xperi Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $114.0 million, up from $111.6 million in Q3 2025.
• Advertising and related revenue grew approximately 280% year-over-year in Q3 2026, reaching $14.9 million compared to $3.9 million in the prior year period.
• On a year-to-date basis (nine months ended September 30, 2026), Advertising and Related revenue grew 90% versus the prior year.
• GAAP operating income was $1.8 million in Q3 2026, compared to a loss of $1.4 million in Q3 2025.
• GAAP net loss was $5.2 million ($0.11 per diluted share) in Q3 2026, compared to a net loss of $6.1 million ($0.13 per diluted share) in Q3 2025.
• Non-GAAP operating income was $17.7 million in Q3 2026, compared to $17.5 million in Q3 2025.
• Non-GAAP net income was $11.7 million ($0.24 per diluted share) in Q3 2026, compared to $12.8 million ($0.28 per diluted share) in Q3 2025.
• Non-GAAP adjusted EBITDA was $23.0 million in Q3 2026, compared to $23.1 million in Q3 2025.
• Non-GAAP adjusted EBITDA margin was 20.2% in Q3 2026, down from 20.7% in Q3 2025.
• Cash and cash equivalents were $87.0 million as of September 30, 2026, down from $96.8 million as of December 31, 2025.
• Long-term debt remained constant at $40.0 million as of September 30, 2026, and December 31, 2025.
• Deferred revenue decreased to $22.8 million ($12.6 million current + $10.1 million non-current) as of September 30, 2026, from $31.2 million ($16.1 million current + $15.1 million non-current) as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $0.6 million, compared to a use of $4.6 million in the prior year period.

Guidance and Future Outlook:

• The Company narrowed its full-year 2026 revenue outlook to $450 million–$462 million, down from the prior range of $440 million–$470 million.
• The Company raised its full-year 2026 adjusted EBITDA margin outlook to 19%–21%, up from the prior range of 17%–19%.
• The Company raised its full-year 2026 operating cash flow outlook to $20 million–$30 million, up from the prior range of $15 million–$25 million.
• Capital expenditures, non-GAAP tax expense, and basic and fully diluted share count outlooks remain unchanged at approximately $25 million, approximately $20 million, and 48 million–49 million, respectively.

Business Segments and Product Lines:

• Media Platform: Media Platform revenue doubled year-over-year, driven by the acceleration in advertising and related revenue.
• TiVo One: Monthly Active Users grew 40% year-over-year to 6.8 million. TiVo One ARPU increased 14% sequentially to $7.65.
• Retail Partnerships: MediaMarktSaturn selected TiVo OS as the operating system partner for its private-label TV brand PEAQ, expanding TiVo OS to 11 OEM design partnerships.
• U.S. Distribution: TiVo OS distribution expanded with Element Smart TVs becoming available across major U.S. online retailers.
• Connected Car: The DTS AutoStage footprint reached over 18 million cars across 13 automotive brands in more than 150 countries.
• AutoStage Portal: The DTS AutoStage Broadcaster Portal expanded from 300 to 550 U.S. metro areas, with data monetization agreements signed with eight additional broadcasters.
• HD Radio: A multi-year HD Radio program was signed with a large Asian Tier 1 supplier supporting OEMs in Japan and North America. New model launches expanded HD Radio availability with Hyundai, Kia, Volkswagen, Toyota, Honda, and Subaru.
• Pay TV: The Company extended multi-year video-over-broadband agreements with Hotwire and Armstrong. Four new ISP customer wins were secured in Canada (FlexNetworks, IGS Hawkesbury, Uptern Communications, and Xplore). Global IPTV subscriber households ended the quarter at 3.42 million.
• Consumer Electronics: A multi-year IMAX® Enhanced agreement was renewed with TCL. New DTS:X agreements were executed with Holatek, Trinnov, and Evolution Digital.

Market and Competitive Landscape:

• MediaMarktSaturn, Europe's largest consumer electronics retailer with over 1,000 stores, selected TiVo OS, reinforcing Xperi's position as the leading independent Smart TV OS in the European market.
• The selection of TiVo OS by MediaMarktSaturn is expected to create new retail media and commerce opportunities across the TV experience.

Risks and Challenges:

• Forward-looking statements regarding future results, growth, and profitability involve risks and uncertainties, including restructuring, discrete tax adjustments, and tax law changes.
• Actual results may differ materially from expectations due to factors described in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
• The Company notes it is unable to provide a quantitative reconciliation of forward-looking Adjusted EBITDA Margin and Non-GAAP Tax Expense to GAAP measures with reasonable confidence due to inherent uncertainties.

Management Commentary and Tone:

• CEO Jon Kirchner stated that success in building the TiVo One footprint is driving substantial growth in advertising and related revenue.
• Kirchner highlighted the MediaMarktSaturn selection as proof of the strength of Xperi's independent media platform solution and unique competitive position.
• Management expressed pleasure in raising the full-year outlook for adjusted EBITDA margin and operating cash flow given strong strategic execution year-to-date.
• The Company announced that CFO Robert Andersen will retire in 2027 as part of a planned transition, with Andersen remaining in his role until a successor is on board.

Other Key Points:

• Xperi Inc. (NYSE: XPER) is a media and entertainment technology company operating brands including DTS, HD Radio, and TiVo.
• The earnings conference call was scheduled for November 4, 2026, at 2:00 PM Pacific Time.
• The Company reported a net decrease in cash and cash equivalents of $9.8 million for the nine months ended September 30, 2026.
• Proceeds from the settlement of holdback consideration from a divestiture totaled $11.3 million in the nine-month period.
• Stock-based compensation expense was $21.7 million for the nine months ended September 30, 2026, down from $32.1 million in the prior year period.
• Capitalized internal-use software spending was $16.8 million for the nine months ended September 30, 2026.