Xperi Inc. Reports 8% Revenue Growth to $114.5 Million in Q2 2026

Xperi Inc. reported a total revenue of $114.5 million for the second quarter of 2026, marking an increase of 8% from $105.9 million in the same period last year. The growth was driven by a 3% rise in licensing and other revenue, which reached $99.5 million, and a significant 54% increase in advertising and related revenue, totaling $15.0 million. For the first half of 2026, total revenue was $228.7 million, up from $220.0 million in the prior year. Despite the revenue growth, the company recorded a net loss of $1.5 million for the quarter, an improvement from a loss of $14.8 million in Q2 2025, and a net loss of $9.3 million for the first half of 2026, compared to a loss of $33.1 million in the same period last year.

Xperi's operational expenses decreased by 5% to $111.6 million in the second quarter, primarily due to reduced costs in research and development, which fell by 27% to $21.8 million, and a 10% decrease in the cost of licensing and other revenue. The company attributed these reductions to restructuring efforts that included a workforce reduction of approximately 250 employees, aimed at improving cost efficiency. The restructuring plan is expected to yield annual savings of $30 million to $35 million. Additionally, the company reported a decrease in stock-based compensation expenses, which fell to $6.8 million from $10.3 million in the prior year.

In terms of strategic developments, Xperi completed the acquisition of a managed media advertising business in April 2026, which contributed to the increase in advertising revenue. The company also received a $12 million indemnification holdback payment related to the divestiture of its Perceive Corporation subsidiary, which bolstered its cash position. As of June 30, 2026, Xperi had cash and cash equivalents of $90.6 million, down from $96.8 million at the end of 2025, reflecting cash used in operations and capital expenditures.

Geographically, Xperi's revenue distribution showed that the U.S. and Canada accounted for 51% of total revenue in Q2 2026, while the Asia Pacific region contributed 37%. The company reported a notable increase in Connected Car revenue, which rose by $15 million, driven by higher minimum guarantee revenue from HD Radio and music metadata. However, revenue from Consumer Electronics and Pay-TV segments declined, reflecting challenges in those areas.

Looking ahead, Xperi remains cautious about macroeconomic conditions, including inflationary pressures and geopolitical conflicts, which could impact its business. The company anticipates continued growth in its advertising revenue as it expands its digital entertainment ecosystem and enhances its advertising products. Xperi's management expressed confidence in its restructuring efforts and strategic initiatives to drive future profitability, although they acknowledged the uncertainties in the market environment.