Xperi (XPER) Stock Forecast & Price Target

Xperi Inc. has demonstrated significant growth in its customer base, with IPTV subscribers increasing 32% year-over-year to 3.2 million, and TiVo One's monthly active users (MAUs) reaching 4.8 million, representing a 30% quarter-over-quarter increase. The company's advancements in its TiVo One and AutoStage platforms are expected to enhance its advertising revenue streams, particularly as the number of vehicles equipped with DTS AutoStage continues to rise. Furthermore, the expectation of improved margins due to scaling revenues positions Xperi favorably for future financial growth.

Xperi Inc. has experienced a significant decline in revenue, with a 19% year-over-year drop attributed to the sale of its Perceive business and upfront revenue recognition from large minimum guarantee deals. The company faces substantial risks, including the possibility that its legacy business may decline faster than the growth of its IPTV segment, along with concerns that the FAST channel market may peak before Xperi achieves the desired scale and average revenue per user (ARPU). Additionally, the analysis indicates that while EBITDA remained relatively stable, the upfront costs could impede Xperi's cash flow generation, raising concerns about the company's ability to achieve near-term revenue growth amidst its small market capitalization.