Key Financial Data
- Total revenue: $111.6 million (-16% year-over)
- Net income: -$6.1 million (+64% improvement)
- Adjusted EBITDA: $23.1 million (-27%)
- Free cash flow: $2 million
- Cash on hand: $96.8 million (+33%)
- Pay TV revenue: $49.8 million (-39%)
- Consumer electronics revenue: $18.8 million (+11%)
- Connected car revenue: $34.6 million (-4%)
- Media platform revenue: $8.4 million (-4%)
- TiVo One monthly active users: 4.8 million (+30%)
- TiVo One ARPU: $8.75
- IPTV subscribers: 3.2 million households (+32%)
- Read more Q3 2025 media earnings coverage
Xperi reported a decline in total revenue during its third quarter (Q3) of the year, brought on by ongoing softness in its legacy television business despite gains in its connected car technology segment.
For the three months ended September 30, the California-based company said revenue fell 16 percent to $111.6 million from $132.9 million a year earlier. The drop was driven mainly by a 39 percent slide in its pay TV-focused business — it provides TiVo-branded solutions to cable operators and broadband companies with subscription TV products — as traditional TV operators continued to scale back investments.
Net loss attributable to the company narrowed to $6.1 million, or 13 cents a share, compared to a loss of $16.8 million, or 37 cents a share, during the same quarter last year. On a non-GAAP basis, Xperi posted net income of $12.8 million, or 28 cents a share, down from $23.3 million, or 51 cents a share, a year earlier. Adjusted EBITDA declined 27 percent to $23.1 million, representing 20.7 percent of revenue, compared with 23.7 percent in the year-ago period.
“Our financial results for the quarter reflect our continued focus on cost management, profitability, and cash generation, as evidenced by a second consecutive quarter of positive free cash flow,” Xperi CEO Jon Kirchner said in a prepared statement.
While Xperi’s revenue-related earnings were bleak, that isn’t to say that the company have a number of accomplishments during Q3.
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Notably, the number of people engaged with the company’s TiVo One ad platform rose to 4.8 million monthly active users, a 30 percent increase compared to Q3 2024. The TiVo One platforms includes the connected TV (CTV) operating system TiVo OS and Xperi’s TiVo-branded products across traditional pay TV, broadband TV and in-car platforms.
TiVo also inked a number of revenue-focused partnerships during the quarter, including one in Europe that creates a unified ad marketplace with Titan Ads. Closer to home, TiVo struck a deal with Comscore that involves cross-measurement of audiences across traditional TV, streaming and digital platforms, a move that is aimed at giving marketers greater insight into the frequency and reach of their campaigns.
The Media Platform segment was essentially flat at $8.4 million, down 4 percent from a year earlier, though Xperi reported sequential gains in monetization metrics. Average revenue per user for TiVo One was $8.75, and the company expects continued growth as its advertising partnerships expand in 2026.
Gains in its streaming business units were largely offset by ongoing pressure in the pay TV sector — Xperi doesn’t operate any cable or streaming services of its own, but the company licenses TiVo to cable and broadband companies that participate in those businesses. With ongoing churn afflicting cable partners, Xperi’s pay TV-related revenue fell sharply to $49.8 million, down 39 percent compared to last year.
Connected Car revenue rose 36 percent to $34.6 million, bolstered by wider adoption of Xperi’s DTS AutoStage platform, which is now installed in more than 13 million vehicles. The company launched a new broadcaster portal offering first-party in-car radio analytics and began advertising trials with major audio partners in the U.S. and U.K.
Looking ahead, Xperi reiterated its full-year outlook, forecasting revenue between $440 million and $460 million and an adjusted EBITDA margin of 15 to 17 percent. The company expects to remain near cash-flow neutral for the year.
