Xperi Expands AutoStage Reach As HD Radio Footprint Grows.

Digital radio license holder Xperi says it continues to make inroads as its HD Radio footprint continued to grow during the second quarter with several new vehicle models launched with partners, including BMW, Honda, Hyundai and Volkswagen. Xperi also signed a multiyear agreement with an integrated chip provider for HD Radio. But the biggest audio-centric news came from the growing adoption of AutoStage, its connected car system.

“We broadened the ecosystem for AutoStage by expanding the number of global broadcasters that support the platform and are now aggregating content from broadcasters in over 60 countries,” CEO Jon Kirchner said during an earnings call with analysts. DTS AutoStage unifies the connected car in-dash experience by bringing together radio, audio, video, and gaming content. “Broadcasters are key partners in the longer-term AutoStage platform monetization strategy as they provide both metadata to enrich the user experience and ad placement slots that we expect will drive auto-based digital ad monetization over the long term,” he explained.

Xperi says the DTS AutoStage global installed base of vehicles now tops 12 million, up two million from February, and a 70% increase from a year earlier. The company says new model launches during the second quarter included the BMW 5-Series, Kia EV9, and Hyundai Ioniq 5 and Ioniq 9. “We expect this solution to enable long-term revenue through a mix of license fees, upselling features, advertising and listener data,” Kirchner said.

Beyond the connected car, Kirchner said that he is encouraged by its progress toward meeting or exceeding its strategic goals by year-end 2025. “We expect this strategic progress will, in turn, position us to generate more revenue and profitability growth over the long term,” he said.

Even with the gains in its automotive business, Xepri reported an 11% decline in revenue during the second quarter compared to a year ago. It totaled $105.9 million, well short of what Wall Street had been expecting. Its connected car revenue decreased by $6 million due to a lower amount of minimum guarantee agreements recorded in the quarter compared to last year. From a profitability perspective, earnings remained positive, however, climbing 4% to $15.2 million for the quarter.

Kirchner told analysts that the combination of macro uncertainty, tariffs, and a weakening consumer environment began to meaningfully impact their customers’ decisioning and purchasing patterns in the latter part of the second quarter. Looking ahead, the company still expects its full-year revenue to total between $440 million and $460 million, with an adjusted EBITDA margin of 15% to 17%.

But hurdles remain. CFO Robert Andersen said they are also expecting “softer” second half production volumes in their automotive business based on the macroeconomic environment, including higher tariffs and weaker consumer demand. And while its TiVo unit saw monthly active users reach 3.7 million during Q2 and they still think they will reach 5 million by year-end, Xperi’s streaming television business was also hurt by a more challenging ad market.

“Over this past quarter, we’ve been operating in an increasingly difficult environment, which has had an impact on our business,” Kirchner said. “Nevertheless, we are excited about the significant progress we continue to make on our strategic initiatives that are critical to meeting our longer-term growth plans.”

Investors seem to agree. Xperi’s stock rose 6% during Thursday trading in New York.