“By the end of the third quarter, we achieved nearly all of our strategic growth goals for 2025,” said Jon Kirchner, Chief Executive Officer of TiVo, DTS AutoStage and HD Radio parent Xperi. That’s good news for investors, as the company beat the street on its earnings per share and revenue estimates.
“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,” Kirchner added, as Q3 revenue on a non-GAAP basis moved to $111.6 million from $132.9 million and net income shifted downward to $12.8 million ($0.28 per share) from $23.3 million ($0.51).
The EPS beat analysts’ forecasts by 14 cents per share.
While the results were positive for Wall Street, they were nevertheless downward in their trajectory. As a result, Xperi is moving ahead with a workforce reduction “that reflects our commitment to invest in significant growth opportunities while managing the business for improved profitability,” Kirchner said.
The restructuring plan, approved by Xperi on November 1, involves reducing its global workforce by approximately 250 employees and impacts all business and functional areas.
“In connection with this plan, we estimate that we will incur between $16 million and $18 million of restructuring and related charges, substantially all of which consists of employee severance and related costs,” the company shared alongside its Q3 results. The restructuring activities are expected to be completed by the end of the first half of 2026. Xperi expects the payroll clip to generate savings of $30 million to $35 million on an annualized basis. “These expense reductions are intended to help offset an expected revenue mix shift as our media platform expands in 2026, which we expect will initially have higher cost of sales than other parts of our business,” Xperi shared.
Speaking on the company’s earnings call, CFO Robert Andersen noted that Xperi’s Connected Car revenue was up by $9 million, or 36% due, to a higher level of long-term arrangements in this year’s number, including a “significant” Asia-based program. More than 13 million vehicles now have DTS AutoStage in place.
A total of six mentions were given to HD Radio on the earnings call, and new vehicle models were launched by companies such as Audi, Hyundai, Tesla, Mercedes-Benz, and Lexus during the quarter. “Notably, we also signed a significant multiyear HD radio contract with a large Asia-based Tier 1 supplier, which is expected to help HD Radio continue to grow with Japanese car brands,” Kirchner remarked.
