Xperi Inc.

Good day, everyone. Thank you for standing by. Welcome to the Xperia fourth quarter 2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the call will be open for questions. I would now like to turn the call over to Sam Levinson from Arbor Advisory Group. Sam, please go ahead.

Thank you, operator. Good afternoon and thank you for joining us as Xperia reports its fourth quarter and full year 2025 financial results. With me on today's call are John Kirchner, Chief Executive Officer, and Robert Anderson, Chief Financial Officer. In addition to today's earnings release, there's an earnings presentation on our investor relations website at investor.expery.com. We encourage you to download the presentation and follow along with today's commentary. Before we begin, I would like to provide a few reminders. First, I would like to note that unless otherwise stated, all comparisons are to the same period in the prior year. Second, today's discussion contains forward-looking statements about our anticipated business and financial performance that are predictions, projections, or other statements about future events, which are based on management's current expectations and beliefs, and therefore subject to risks, uncertainties, and changes in circumstances. For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discussed today, please refer to the risk factors and MD&A sections in our SEC filings, including our Form 10-K for the year ended December 31st, 2025, to be filed with the SEC. Please note that the company does not intend to update or alter these full looking statements to reflect events or circumstances arising after this call. Third, we refer to certain non-GAAP financial measures, which are detailed in the earnings release and accompanied by reconciliations to the most directly comparable GAAP measures. can be found in the investor relations section of our website. Last, a replay of this conference call will be available on our website shortly after the conclusion of this call. I'll now turn the call over to Experian CEO, John Kirshner.

John Kirshner Thank you, Sam, and thank you, everyone, for joining us on our fourth quarter and full year 2025 earnings call. As we finish the year, it seems an appropriate time to look at the investments made over the past few years appreciate our recent progress in hitting key metrics that set the stage for future growth, and discuss the next phase of focus for the business, substantive revenue increases through advertising and data monetization. Let me first provide an overview of the progress we made during the quarter against this past year's goals, progress that continues to give us confidence in our belief that we're reaching a key inflection point as a business. There are three key areas of progress over the past year. First, at the end of 2025, we reached 5.3 million monthly active users on our TiVo One ad platform, surpassing the year's goal of 5 million and registering an increase of over 250% over the course of the year. As I've noted in the past, footprint growth is critical for us to reach larger scale in the US and the larger European countries. which in turn is expected to facilitate more effective monetization of our installed base. Next, in the connected car market, our DTS AutoStage footprint also continued to grow, reaching over 14 million vehicles, 40% growth when compared to the prior year. We believe AutoStage is a unique platform, both in terms of scale and reach, and we're already seeing signs of the platform's value as we progress advertising and data monetization trials with ecosystem partners. And finally, in our pay TV business, our video over broadband subscriber count grew 25% year over year to reach 3.25 million subscriber households. Subscription based revenue from IPTV continues to build, which we believe will provide a balance within our pay TV business as revenue from our older pay TV products is expected to continue to decrease. Thus, we expect the pay TV business will level out over the next several years as our IPTV business continues to serve those customers that want a flexible IPTV streaming bundle in a modern, rich, and compelling user interface. We also anticipate broadband households will provide additional streaming monetization opportunities. Turning to our summary financial results for the quarter, we recorded consolidated revenue of $117 million. a decrease of 6 million compared to last year, as growth in media platform and connected car were more than offset by a combination of anticipated decrease in consumer electronics, driven by lower demand and memory cost and supply chain issues, and pay TV, which benefited from minimum guarantee arrangements recorded in 2024 that didn't occur in 2025. During 2025, we proactively reduced non-gap adjusted operating expense. lowering it by 13% compared to 2024. This change was primarily due to workforce reductions that were implemented over the past year. We achieved adjusted EBITDA of $22 million for the quarter, bringing the year's adjusted EBITDA to $77 million, or 17% of revenue, which was at the high end of our outlook range for the year. We also recorded operating cash flow of $4 million in the quarter, bringing operating cash flow close to neutral overall for the year. Let me now go through each of our four business areas, starting with media platform. As noted earlier, we reached a key milestone for our TiVo One ad platform by hitting 5.3 million monthly active users at year end, a remarkable achievement for both growth on the platform and acceptance of our TiVo operating system into the market. We continue to add new capabilities for the TiVo operating system, including the deployment of Black Nut cloud gaming and demonstrations of the operating system directly on high-end mini-LED smart TVs, set-top boxes, and sound bars. We also deployed a video-based homepage ad unit to provide advertisers with more ways to reach our audiences. Within Media Platform, we achieved significant revenue growth in advertising when compared to a year ago, with average revenue per user for TiVo 1 finishing the year at $7.80, down slightly from the prior quarter due to our user base growing faster than related monetization revenue. We expect ARPU to take a bit of time to normalize, as both revenue and footprint growth are expected to accelerate on the platform. Advertising partnerships continue to be an important foundation for our goal of accelerating revenue growth, And during the quarter, we entered into new agreements with Titan Ads, Open Glass, and Enoki, all well-known industry resellers of premium CTV inventory, such as home screen video ads in the European and U.S. markets. We also launched Freewheel as a new supply-side demand partner and began generating revenue through the partnership. Our advertising business also saw progress through our direct sales efforts, with homepage ad campaigns executed for clients including Hallmark Media, Freeform, NBC Universal, and TNT. Moving to connected car, the momentum for DTS Auto Stage continued with the signing of Mercedes-Benz to launch DTS Auto Stage video service powered by TiVo. This win adds another major OEM launching on our connected car video platform. which we believe cements our position as a leading supplier of media platforms to automotive OEMs. It's worth noting that Mercedes is the first car brand to offer all four of Xperia's connected car solutions, HD radio, DTSX immersive sound, auto stage audio, and video powered by TiVo. As a leading brand that often sets direction for the automotive industry, we believe Mercedes' support furthers momentum for our media platform, and technology solutions. At year end, AutoStage had a footprint of over 14 million vehicles from many automotive brands. Also during the quarter, we added a significant number of radio broadcasters across the US, Europe, Australia, LATAM, and Africa, further expanding the global services connected to the AutoStage platform. Our HD radio solution saw continued adoption with several new models from Toyota, Honda, Audi, and others launching in the fourth quarter. We also signed a multi-year agreement with a large US-based Tier 1 supplier that is expected to provide a cost-optimized HD radio implementation over the next few years, which we believe will further propel the growth of HD radio among major car brands. Finally, we also signed a multi-year DTS Audio deal with a large Asian Tier 1 supplier which is expected to secure a DTS decoder in a number of future CAR programs. Moving to our pay TV business, as noted earlier, our IPTV subscriber base continued to grow, increasing by 25% year over year to hit 3.25 million subscriber households at year end. For our managed IPTV service, we posted wins with Prism Fiber and Midtel in the US and with Celerity and MOPC in Canada. We also continued to grow our broadband-only winds, including new deals with Bluestream Fiber, Buckeye, Prism Fiber, Midtel, Carnegie, Hickory, and Velocity. During the quarter, we signed multi-year agreements with Claro VTR for IPTV services in Latin America and with Frontier Communications in the U.S. for content discovery services. In addition, we signed a notable multi-year agreement for Classic Guides Technology with Canadian-based telecom operator Cogeco. Moving to our consumer electronics business, during the quarter we continued to expand the IMAX Enhanced program with new product categories, such as high-end earbuds. We also saw adoption of the program by Yamaha and the signing of a key renewal with Onkyo. Now all major audio-video receiver manufacturers are participating in the IMAX Enhanced program, which we believe reflects its position as the premium audio video solution in the marketplace. We also signed a decoder and post-processing renewal with Sound United, which owns premium brands like Denon and Marantz. Lastly, we signed a multi-year agreement with a leader in the PC space covering sound technologies for consumer products, as well as extending audio technology penetration into its commercial products. In a few moments, I'll turn to a discussion of our pivot to audience monetization, advertising and growth. But let me first turn the call over to Robert to discuss our financial results in more detail. Robert?