Xperi (XPER) Stock Forecast & Price Target

Xperi Inc reported an increase in Adjusted EBITDA margins, rising to 17.0% for the full year from 15.0% in the previous year, indicating improved operational efficiency. The company is on track to drive consistent revenue growth and margin expansion, supported by a significant increase in active users and strong gross margins of 78.2%, which surpassed last year's 76.5%. As Xperi continues to meet strategic goals and reduce expenses, there is a positive outlook for strong growth in 2026 and beyond, fueling further margin improvement.

Xperi Inc. faces significant challenges with a notable decline in its Legacy Pay-TV segment, which suffered a 23% drop in revenue due to ongoing subscriber losses, compounded by a competitive renewal deal with Panasonic. The Consumer Electronics (CE) segment also posted a 7% decline, indicating a broader demand issue, while the Media Platform segment saw a 15% drop year-over-year, primarily linked to a previous one-off advertising boost. Furthermore, there is concern that the scalability of the IPTV business may not progress as expected, and projected EBITDA margins are below previous consensus, suggesting a persistent struggle to achieve targeted financial metrics amidst a challenging market environment.