ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A.
The primary categories by which we classify risks include those related to: (i) our business, (ii) cybersecurity, reliability and data privacy, (iii) intellectual property, (iv) macroeconomic conditions, (v) financial matters, (vi) regulatory and legal matters, (vii) our Separation from Adeia Inc.
(our Former Parent ), and (viii) ownership of our common stock.
Overview We are a leading media and entertainment technology company.
Our technologies are integrated into consumer devices, connected cars, and a variety of media platforms worldwide, enabling our unique audiences to connect with entertainment content in a more intelligent, immersive, and personal way.
As our audiences engage with content on our platform, we operate a global, cross-screen advertising solution that enables brands to reach millions of engaged consumers across our rapidly expanding digital entertainment ecosystem, driving increased value for our partners, customers, and consumers.
In November 2025, we approved a restructuring plan designed to improve cost efficiency and better align our operating structure with our long-term strategies and prevailing market conditions that included a reduction of approximately 250 employees across all business and functional areas.
For further information, refer to Note 15 Restructuring Activities of the Notes to Consolidated Financial Statements.
Video content delivery is rapidly shifting from linear broadcast to over-the-top streaming platforms, impacting not just how users consume content, but also the ad-supported programming ecosystem and commercial model.
7 Market Need for an Independent Media Platform : Roughly half of all Smart TVs each year are shipped into Western Europe and North America by leading electronics manufacturers who do not currently support the technology, content, and monetization capabilities of a proprietary Smart TV OS and streaming media platform.
REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 7A.
The primary categories by which we classify risks include those related to: (i) our business, (ii) cybersecurity, reliability and data privacy, (iii) intellectual property, (iv) macroeconomic conditions, (v) financial matters, (vi) regulatory and legal matters, (vii) our Separation from our Former Parent, and (viii) ownership of our common stock.
or foreign taxation laws or regulations; litigation, claims, regulatory inquiries, investigations, and other legal proceedings; evolving state and federal laws and regulations relating to our advertising, marketing and sales directly to consumers; Risks Related to the Separation failure of the Former Parent s distribution (the Distribution ) of 100% of the shares of Xperi s common stock to holders of our Former Parent s common stock upon the spin-off to qualify for non-recognition treatment for U.S.
Overview We are a leading consumer and entertainment technology company.
We believe we create extraordinary experiences at home and on the go for millions of consumers around the world, enabling our unique audiences to connect with content in a more intelligent, immersive, and personal way.
Powering smart devices, connected cars, entertainment experiences and more, we bring together ecosystems designed to reach highly-engaged consumers, allowing us and our ecosystem partners to uncover significant new business opportunities, now and in the future.
Our technologies are integrated into consumer devices and a variety of media platforms worldwide, driving increased value for our partners, customers, and consumers.
In December 2023, we entered into a definitive agreement with Tobii AB ( Tobii ), an eye tracking and attention computing company, pursuant to which we agreed to sell our AutoSense in-cabin safety business and related imaging solutions (the AutoSense Divestiture ).
The AutoSense Divestiture was completed in January 2024, and has streamlined our business and further enhanced our focus on entertainment markets.
In August 2024, we entered into an Asset Purchase Agreement with Amazon.com Services LLC to sell substantially all of the assets and certain liabilities of Perceive Corporation (later known as Xperi Pylon Corporation and subsequently dissolved in December 2024), a subsidiary focused on edge inference hardware and software technologies, for a gross amount of $80.0 million in cash, including a holdback of $12.0 million to be held for 18 months after the closing of the transaction (the Perceive Transaction ) to secure our and Perceive Corporation s indemnification obligations.