Xperi (NYSE:XPER) reported 2% revenue growth in the third quarter of 2026 as a sharp increase in advertising revenue helped offset declines in its connected car and consumer electronics businesses. The company also raised its full-year outlook for adjusted EBITDA margin and operating cash flow.
Revenue rose to $114 million, while the company posted a GAAP net loss of $5.2 million, or $0.11 per share. Non-GAAP adjusted EBITDA was $23 million, or 20% of revenue, and non-GAAP earnings were $0.24 per share. Operating cash flow was $4 million.
CEO Jon Kirchner said advertising and related revenue accelerated during the quarter as Xperi expanded its audience and advertiser relationships. The company also announced that Chief Financial Officer Robert Andersen plans to retire in 2027, with the timing dependent on identifying and onboarding a successor.
Advertising Growth Drives Media Platform
Media platform revenue more than doubled year over year to $17 million. Advertising and related revenue across the company rose more than 280% to $15 million, supported by a larger TiVo One audience, more ad impressions and expanded partnerships. Andersen said the bulk of the growth in that revenue line came from TiVo One, though it still includes some legacy advertising business.
TiVo One monthly active users reached 6.8 million at quarter-end, up 40% from a year earlier. Xperi now expects more than 7.5 million users by year-end, ahead of its previous goal of 7 million.
TiVo One average revenue per user was $7.65, up 14% sequentially. Xperi now expects year-end ARPU of $8 to $10, citing the timing of additional users coming online and the continuing development of its advertising pipeline. Kirchner said the midpoint is about 90% of the company’s existing goal.
The company expects full-year media platform revenue growth of approximately 60%, including more than 100% growth in advertising and related revenue, partly offset by lower middleware licensing revenue. Andersen said advertising growth was somewhat slower than previously expected, while lower middleware revenue was the primary factor in the revised media platform outlook.
Advertising and related gross margin, excluding depreciation and amortization, was 31% in the quarter. That brought the year-to-date margin to a positive 5%. Andersen said further growth could improve margins as Xperi spreads fixed platform costs over more revenue.
Among its customer developments, Xperi said European electronics retailer MediaMarktSaturn selected TiVo OS for its PEAQ private-label brand, bringing the company to 11 OEM design wins. Kirchner also said engineering work to reduce the operating system’s memory requirements could lower costs for TV manufacturers and contribute to additional market share.
Other Businesses Show Mixed Results
Connected car revenue fell 14% to $30 million, primarily because of HD Radio minimum guarantee agreements signed in the prior-year quarter. AutoStage had shipped in more than 18 million vehicles across 13 automotive brands, while its broadcaster portal expanded to 550 U.S. metro areas from 300. Xperi signed data monetization agreements with eight additional broadcasters during the quarter.
Kirchner said HD Radio has about 60% penetration in new cars in North America. He described the growing AutoStage footprint as an opportunity to generate additional revenue from data and advertising.
Pay TV revenue rose 7% to $53 million, helped by classic guides, minimum guarantee arrangements and IPTV licensing growth. IPTV revenue increased 7% to $26 million, and the global IPTV subscriber base reached 3.42 million households. Consumer electronics revenue fell 28% to $14 million, reflecting a higher level of minimum guarantee revenue in the prior-year period.
Kirchner said growth in IPTV is increasingly offsetting declines in older pay TV products. He expects the decline in those legacy products to stop weighing on total pay TV results within the next 12 to 18 months, as the company moves into 2028.
Outlook Raised as CFO Plans Retirement
Xperi narrowed its 2026 revenue outlook to $450 million to $462 million from $440 million to $470 million. It raised its adjusted EBITDA margin forecast to 19% to 21% and its operating cash flow forecast to $20 million to $30 million. Full-year free cash flow is expected to range from negative $5 million to positive $5 million.
Andersen attributed the improved profitability outlook to lower expected spending and said the company was managing receivables and expenses carefully. Xperi ended the quarter with $87 million in cash and cash equivalents and used approximately $3 million in free cash flow during the period.
Management and the board are evaluating potential stock purchases under an existing repurchase authorization, Andersen said. He also said he will work with Kirchner, the board and his successor on the CFO transition and remain available to the company afterward as needed.
About Xperi (NYSE:XPER)
Xperi Inc (NYSE: XPER) is an entertainment and consumer technology company that develops software, services and technologies for connected televisions, cars and other consumer electronics. Its products are designed to help people discover, access and enjoy digital entertainment across traditional television, streaming and in-vehicle environments.
The company’s portfolio includes the TiVo entertainment platform, which provides television operating systems, content discovery, viewing guides and related services for smart-TV manufacturers, pay-TV providers and consumers.
