Xperi hopes to begin monetizing its connected car data segment in 2026 and 2027.
The entertainment technology company has brands like TiVo, DTS and HD Radio. It says its connected car platform DTS AutoStage is now in more than 13 million vehicles, with the majority in North America. Xperi says it is now aggregating content from broadcasters in approximately 60 countries. The company provided this update in a quarterly earnings call.
But it also reported that it has adopted a restructuring plan that will involve laying off 250 people or 15% of its staff in a cost-savings move.
Its revenue in Q3 was down about 16% from a year ago.
Data hopes
During the earnings call this week, Xperi CEO Jon Kirchner talked about its connected car business. He said, “Importantly, as we have now built meaningful scale, we have initiated collaboration with several leading audio media companies to monetize this unique and highly valuable footprint.”
The intended partnership between Xperi and audio media companies will seek to launch targeted advertising trials on the AutoStage platform in the U.S. and U.K. “We expect these ultimate partnerships will form the basis of additional revenue streams for advertising and data,” he said.
As we have reported, Xperi recently launched an updated version of the DTS AutoStage Broadcaster Portal, providing more granular data about consumption.
The platform “gives radio broadcasters insights into listening patterns, allows stations to fine-tune programming in near real-time, and delivers advertisers accurate measurement of the audience engagement across 250 designated market areas,” Kirchner said.
[Related: “DTS Offers More Market Insights With Updated Broadcaster Portal“]
On the call, Kirchner said this type of measurement — traditionally available on digital streaming platforms — will enable stations to deliver higher value to advertisers.
“We have now initiated commercial discussions around measurement and data licenses with leading broadcasters and media companies, taking very strong interest across the industry,” Kirchner said.
He continued: “We believe media monetization represents a large and attractive market, and after investment over the past several years, our growth strategies as an independent media platform are reaching an inflection point.”
Answering a question from an analyst on the investor call, Kirchner said the company expects to monetize the broadcaster data segment in 2026, but “it’s going to be more material in 2027.”
“In terms of HD Radio expansion, several new radio stations went on the air with HD Radio digital broadcasting. New vehicle models were launched by companies such as Audi, Hyundai, Tesla, Mercedes-Benz and Lexus during the quarter.”
Notably, the company says it signed a “significant” multi-year 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.
Staff cuts
Meanwhile Kirchner announced that Xperi is reducing staff by 250 people or 15%, which he said will save $30–35 million annually by the end of 2026. Management says it implemented a restructuring plan as a response to the anticipated revenue shift as media platform operations scale down.
The reduction in force “will impact all business and functional areas,” according to Robert Andersen, Xperi’s chief financial officer.
Xperi reported consolidated revenue of $111.6 million in the third quarter, down from $133 million in the period a year ago, according to its financial report.
The San Jose, Calif.-based company had a net loss of approximately $6 million in the quarter ending Sept. 30, compared to a loss of $16.8 million a year earlier. It reported a positive operating cash flow of $8 million, and a second consecutive quarter of free cash flow at $2 million, according to its filing with the U.S. Securities and Exchange Commission.
Xperi says it expects full-year revenue to still fall in the range of $440 to $460 million. In a prepared statement, Kirchner said the company has already achieved nearly all of its strategic growth goals for 2025.
“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,” he said.
Xperi said most of the decline in revenue for the last quarter can be attributed to a large multi-year, minimum-guarantee agreement with Panasonic, which was recorded in the same period in 2024.
Text above has been updated. We originally quoted Jon Kirchner saying that during the quarter, new vehicle models with DTS AutoStage launched from companies such as Audi, Hyundai, Tesla, Mercedes-Benz and Lexus. His remark was about new models with HD Radio, not DTS AutoStage.
[Related: “Sports Video Streaming Deal Includes DTS AutoStage“]
