Xperi (XPER) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $114.5M, up 8% year-over-year, driven by a 54% increase in advertising and related revenue and strong growth in Media Platform and Connected Car segments.

• Adjusted EBITDA rose 61% year-over-year to $24.5M (21.4% margin), and non-GAAP EPS more than doubled to $0.28.

• Net loss narrowed to $1.5M from $14.8M year-over-year; operating cash flow improved to $15M and free cash flow reached $8M.

• TiVo ONE monthly active users grew 70% to 6.3M, and the AutoStage platform footprint expanded 42% to 17M vehicles.

• Completed restructuring in H1 2026, reducing headcount by 250 and incurring $0.3M in charges, with expected annualized savings of $30–35M.

Financial highlights

• GAAP revenue for Q2 FY26 was $114.5M, up from $105.9M in Q2 FY25.

• Media Platform revenue grew 44% year-over-year; Connected Car revenue surged 60% year-over-year; Pay TV revenue declined 11% but IPTV subscribers rose 13% to 3.4M households.

• Consumer Electronics revenue fell 35% year-over-year, despite multi-year renewals with major brands.

• Non-GAAP net income was $13.6M, with non-GAAP diluted EPS of $0.28, up from $0.11.

• Cash and cash equivalents ended at $91M, up $20M sequentially.

Outlook and guidance

• FY26 revenue guidance is $440M to $470M, with adjusted EBITDA margin expected between 17% and 19%.

• Capital expenditures outlook increased to ~$25M due to memory market constraints and partner-driven investments.

• Stock-based compensation outlook lowered to ~$29M, reflecting workforce reductions.

• Operating cash flow expected between $15M and $25M; non-GAAP tax expense projected at ~$20M.