Xperi 2025 Q2 Earnings 52% Earnings Loss Improvement

Xperi (XPER) reported its fiscal 2025 Q2 earnings on August 7, 2025. The results showed a meaningful improvement in earnings despite a revenue decline, with the company narrowing its net loss by 51.7%. Xperi maintained its full-year revenue guidance of $440 million, signaling confidence in ongoing strategic initiatives.

Revenue
Xperi’s total revenue for Q2 2025 declined by 11.4% year-over-year to $105.93 million, compared to $119.59 million in the same period of 2024. The drop reflects broader market challenges and headwinds in key business areas.

Earnings/Net Income
The company improved its loss per share by 52.2%, reducing it from $0.67 to $0.32 in Q2 2025. Similarly, the net loss narrowed to $14.78 million from $30.63 million in the prior year. Despite this progress, the company has posted losses for four consecutive years during this quarter, underscoring the need for continued operational improvements.

Price Action
Xperi’s stock price saw mixed performance in the short term: it rose 4.52% in the latest trading day but fell 0.17% for the week and declined 25.25% month-to-date.

Post-Earnings Price Action Review
A strategy of buying XPER following the earnings report and holding for 30 days yielded a -44.63% return, significantly lagging the 68.90% benchmark return. The strategy was marked by a maximum drawdown of 0.00%, a Sharpe ratio of -0.39, and high volatility of 49.38%, indicating poor risk-adjusted performance and lack of investor confidence post-earnings.

CEO Commentary
Jon Kirchner, CEO, emphasized progress in strategic initiatives, including a 30% year-over-year increase in IPTV subscriber households, 12 million vehicles in the AutoStage footprint, and 3.7 million TiVo One Monthly Active Users. He expressed optimism about TiVo One advertising and plans for expansion in 2026. Despite ongoing challenges, the CEO highlighted key growth areas and market responsiveness to recent initiatives.

Guidance
Xperi reaffirmed its 2025 revenue guidance of $440 million but did not provide specific EPS guidance. The company reported a GAAP diluted loss per share of $0.32 and a non-GAAP earnings per share of $0.11 for Q2, aligning with ongoing efforts to improve profitability and cash flow.

Additional News
On the same day, Xperi issued a statement regarding its 2025 Q2 earnings in Chinese, noting that despite a 11% revenue decline, cash flow has turned positive. The statement also included a note instructing JavaScript and cookie enablement for continued access, suggesting potential technical or regulatory considerations. There were no announcements regarding M&A activity, C-level changes, or dividend/buyback news within the three weeks surrounding the earnings report.