Xperi 2025 Q1 Earnings Misses Targets as Net Loss Widens 37.4%

Xperi (XPER) reported its fiscal 2025 Q1 earnings on May 08th, 2025. Xperi's revenue for the first quarter of 2025 came in at $114.03 million, a decline from the $118.84 million reported in the same quarter of 2024, missing analyst expectations. The company maintained its fiscal year 2025 revenue guidance in the range of $480 million to $500 million, with anticipated non-GAAP adjusted EBITDA margins between 16% and 18%. Despite ongoing financial headwinds, Xperi continues to monitor macroeconomic conditions closely.

Revenue
Total revenue for Xperi in the first quarter of 2025 experienced a 4% decline compared to the previous year, reaching $114.03 million. The Pay-TV segment contributed $49.86 million, while Consumer Electronics generated $22.80 million. The Connected Car sector added $33.29 million, and the Media Platform segment brought in $8.09 million. This comprehensive segment breakdown highlights the varied contributions across Xperi's business lines.

Earnings/Net Income
Xperi's losses expanded significantly, with earnings per share falling to $0.41 in 2025 Q1, compared to a $0.29 loss per share in 2024 Q1, marking a 41.4% wider loss. The net loss also grew to $-18.37 million, a 37.4% increase from the $-13.37 million loss in the previous year. These figures indicate a challenging quarter for Xperi, underscoring ongoing financial struggles.

Price Action
The stock price of Xperi has jumped 10.77% during the latest trading day, has jumped 10.47% during the most recent full trading week, and has surged 19.35% month-to-date.

Post-Earnings Price Action Review
Investing in Xperi shares following a quarter-over-quarter revenue decline and holding for 30 days has produced mixed outcomes over the last five years. This strategy's compound annual growth rate stood at -0.21%, coupled with a maximum drawdown of 27.62% and a Sharpe ratio of -0.46. Despite brief periods of positive returns, the overall strategy performance has been underwhelming, suggesting it may not be a viable investment approach for Xperi. Investors need to consider alternative strategies given the lackluster historical results of this approach.

CEO Commentary
“The first quarter marked the entry of the TiVo One ad platform into the North American market,” said Jon Kirchner, Chief Executive Officer of Xperi. He noted the achievement of 2.5 million monthly active users, primarily in Europe, and expressed satisfaction with the positive feedback from partners and end users. Kirchner highlighted that adjusted EBITDA increased over 200% due to business transformation efforts, including cost reductions and divestitures, aligning with profitability and cash flow goals for the year.

Guidance
Xperi maintains its fiscal year 2025 outlook, expecting revenue between $480 million and $500 million. The company anticipates a non-GAAP adjusted EBITDA margin of 16% to 18%, while continuing to monitor macroeconomic conditions.

Additional News
Xperi has been focusing on strategic initiatives, including the rollout of the TiVo One ad platform in North America. The company has also launched Sharp TVs powered by TiVo, expanding its consumer electronics footprint. Furthermore, Xperi has seen significant growth in its connected car segment, driven by new HD radio agreements and the introduction of DTS AutoStage in various vehicle models. This expansion reflects Xperi's strategic emphasis on diversifying its product offerings and strengthening its market position in the consumer technology sector. Investors are keenly observing these developments for their potential impact on the company's future growth trajectory.