Xperi (XPER) Stock Forecast & Price Target

Xperi Inc. demonstrated significant financial improvement with adjusted EBITDA margins increasing to 17.0% in 2024, up from 15.0% in the previous year, indicating effective cost management and operational efficiency. The company’s gross margins also showed positive momentum, rising to 78.2% in the fourth quarter of 2024, reflecting a solid performance compared to 76.5% the previous year, along with an annual average of 77.8%. With a projected increase in the number of users and revenue growth anticipated for 2025 and beyond, Xperi is well-positioned for continued expansion in its Consumer Electronics segment, supporting a favorable outlook for sustained financial performance.

Xperi Inc is experiencing significant challenges in its core segments, particularly in Legacy Pay TV, which suffered a 23% decline due to ongoing subscriber losses, alongside a 7% drop in Consumer Electronics and a 15% decline in the Media Platform segment year-over-year. The company's projections face heightened risk as the Legacy business may decline faster than anticipated, raising concerns about the scalability of its IPTV offerings, compounded by difficulties related to cable churn and a tough year-over-year comparison from a large renewal deal with Panasonic. Furthermore, the company's EBITDA margins are projected to fall short of expectations, indicating demand challenges and consistent subscriber churn that adversely impact its legacy operations, thereby raising doubts about Xperi's ability to achieve targeted average revenue per user (ARPU).