Xperi Inc. Reports 11% Revenue Decline in Q2 2025, Net Loss Improves

Xperi Inc. reported a decline in financial performance for the second quarter of 2025, with revenues totaling $105.9 million, down 11% from $119.6 million in the same period last year. For the first half of 2025, revenue decreased by 8% to $220.0 million compared to $238.4 million in the first half of 2024. The decrease in revenue was primarily attributed to declines in the Pay-TV and Connected Car segments, which saw reductions of $17.1 million and $6.3 million, respectively. This was partially offset by increases in Media Platform and Consumer Electronics revenues, which rose by a combined $3.4 million.

Operating expenses for the second quarter decreased by 17% to $117.1 million, down from $141.5 million in the prior year. This reduction was driven by lower research and development costs, which fell by 34% to $29.8 million, and a 23% decrease in selling, general, and administrative expenses to $41.1 million. The company reported a net loss of $14.8 million for the quarter, a significant improvement from the $30.6 million loss reported in the same quarter of 2024. For the first half of 2025, the net loss was $33.1 million, compared to a loss of $44.0 million in the first half of 2024.

Xperi has undergone strategic changes, including the divestiture of its AutoSense in-cabin safety business and the sale of its subsidiary Perceive Corporation. The AutoSense divestiture, completed in January 2024, was aimed at streamlining operations and enhancing focus on entertainment markets. The sale of Perceive, finalized in October 2024 for $80 million, further supports this strategic shift. The company has also established an accounts receivable securitization program with PNC Bank, which allowed it to borrow $40 million to repay a senior unsecured promissory note.

As of June 30, 2025, Xperi reported cash and cash equivalents of $95.1 million, a decrease from $130.6 million at the end of 2024. The company’s current ratio improved to 2.5, indicating a stronger liquidity position. Xperi's employee headcount stood at approximately 1,620, reflecting ongoing adjustments in response to its strategic focus. The company anticipates that its current cash reserves, along with available borrowings, will be sufficient to meet its operational needs for at least the next 12 months.

Looking ahead, Xperi acknowledges the impact of macroeconomic conditions, including inflation and changes in consumer spending, which may continue to affect its business. The company remains focused on adapting to these challenges while pursuing growth opportunities in its core entertainment technology markets.