Xperi Inc. Reports $114M Revenue in Q1 2025, Operating Loss Improves

Xperi Inc. reported a revenue of $114.0 million for the first quarter of 2025, a decrease of 4% from $118.8 million in the same period of 2024. The decline was primarily attributed to reduced revenues in the Pay-TV, Media Platform, and Consumer Electronics segments, which were partially offset by a $9.0 million increase in Connected Car revenue. The company experienced an operating loss of $16.4 million, an improvement from the $32.3 million loss reported in the prior year, while the net loss attributable to the company was $18.4 million, compared to a net loss of $13.1 million in the first quarter of 2024.

In terms of operational efficiency, Xperi's total operating expenses decreased to $130.5 million from $151.2 million year-over-year, reflecting a 14% reduction. This was driven by lower research and development costs, which fell by 22% to $39.5 million, and a 14% decrease in selling, general, and administrative expenses to $48.7 million. The company also reported a significant reduction in depreciation and amortization expenses, which contributed to the overall decrease in operating costs.

Strategically, Xperi has focused on streamlining its operations through divestitures. The company completed the sale of its AutoSense in-cabin safety business in January 2024 and the dissolution of its subsidiary, Perceive Corporation, in December 2024. These moves are intended to enhance Xperi's focus on entertainment-related products and services. As of March 31, 2025, the company had approximately 1,620 employees, reflecting ongoing adjustments in its workforce in line with its strategic objectives.

Geographically, Xperi's revenue distribution showed a shift, with the U.S. contributing $45.4 million, down from $59.8 million in the previous year. Revenue from Japan and China remained relatively stable, while the company noted a significant increase in revenue from South Korea. The company continues to monitor its international operations closely, given the complexities and risks associated with global markets, including currency fluctuations and regulatory changes.

Looking ahead, Xperi anticipates that its current cash reserves, along with the recently established accounts receivable securitization program, will provide sufficient liquidity to support its operations for at least the next 12 months. The company remains committed to exploring growth opportunities while managing its expenses and maintaining a focus on its core entertainment technology business.