XPERI INC., 10-K filed on 2/27/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Feb. 10, 2025
Jun. 28, 2024
Cover [Abstract]        
Entity Registrant Name XPERI INC.      
Trading Symbol XPER      
Entity Central Index Key 0001788999      
Current Fiscal Year End Date --12-31      
Entity Filer Category Accelerated Filer      
Entity Small Business false      
Entity Emerging Growth Company true      
Entity Ex Transition Period false      
Document Financial Statement Error Correction [Flag] false      
Document Type 10-K      
Document Period End Date Dec. 31, 2024      
Document Fiscal Year Focus 2024      
Document Fiscal Period Focus FY      
Amendment Flag false      
Entity Common Stock, Shares Outstanding     44,388,930  
Entity Well-known Seasoned Issuer No      
Entity Voluntary Filers No      
Entity Current Reporting Status Yes      
Entity Public Float       $ 370.3
Entity Interactive Data Current Yes      
Entity Shell Company false      
Entity File Number 001-41486      
Entity Incorporation, State or Country Code DE      
Entity Tax Identification Number 83-4470363      
Entity Address, Address Line One 2190 Gold Street      
Entity Address, City or Town San Jose      
Entity Address, State or Province CA      
Entity Address, Postal Zip Code 95002      
City Area Code 408      
Local Phone Number 519-9100      
Document Annual Report true      
ICFR Auditor Attestation Flag false      
Document Transition Report false      
Security12b Title Common Stock, par value $0.001 per share      
Security Exchange Name NYSE      
Auditor Name Deloitte & Touche LLP PricewaterhouseCoopers LLP    
Auditor Location San Jose, California San Jose, California    
Auditor Firm ID 34 238    
Auditor Opinion

We have audited the accompanying consolidated balance sheet of Xperi Inc. and subsidiaries (the "Company") as of December 31, 2024, the related consolidated statements of operations, comprehensive loss, equity, and cash flows, for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

      
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE:

Portions of the registrant’s Proxy Statement for the registrant’s 2025 Annual Meeting of Stockholders will be filed with the Commission within 120 days after the close of the registrant’s 2024 fiscal year and are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein.

      
v3.25.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 493,688 $ 521,334 $ 502,260
Operating expenses:      
Cost of revenue, excluding depreciation and amortization of intangible assets 113,756 118,628 122,946
Research and development 191,352 222,833 216,355
Selling, general and administrative 218,106 233,403 217,402
Depreciation expense 12,638 16,645 20,501
Amortization expense 43,376 57,752 62,209
Goodwill impairment     604,555
Impairment of long-lived assets 1,535 1,710 7,724
Total operating expenses 580,763 650,971 1,251,692
Operating loss (87,075) (129,637) (749,432)
Interest and other income, net 829 2,991 3,327
Interest expense - debt (3,008) (3,000) (1,512)
Gain on divestiture 100,833    
Income (loss) before taxes 11,579 (129,646) (747,617)
Provision for income taxes 12,448 10,042 13,589
Net loss (869) (139,688) (761,206)
Less: net income (loss) attributable to noncontrolling interest 13,139 (3,075) (3,722)
Net loss attributable to the Company $ (14,008) $ (136,613) $ (757,484)
Loss per share attributable to the Company:      
Basic loss per share $ (0.31) $ (3.18) $ (18.02)
Diluted loss per share $ (0.31) $ (3.18) $ (18.02)
Weighted-average number of shares used in computing net loss per share attributable to the Company - basic 45,057 43,012 42,029
Weighted-average number of shares used in computing net loss per share attributable to the Company - diluted 45,057 43,012 42,029
v3.25.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (869) $ (139,688) $ (761,206)
Other comprehensive loss:      
Change in foreign currency translation adjustment (327) 126 (3,349)
Unrealized (loss) gain on cash flow hedges (2,892) 1,128 (94)
Comprehensive loss (4,088) (138,434) (764,649)
Less: comprehensive income (loss) attributable to noncontrolling interest 13,139 (3,075) (3,722)
Comprehensive loss attributable to the Company $ (17,227) $ (135,359) $ (760,927)
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 130,564 $ 142,085
Accounts receivable, net 58,745 55,984
Unbilled contracts receivable, net 83,075 64,114
Prepaid expenses and other current assets 32,488 38,874
Assets held for sale   15,860
Total current assets 304,872 316,917
Note receivable, noncurrent 29,702  
Deferred consideration from divestiture 18,217  
Unbilled contracts receivable, noncurrent 45,396 18,231
Property and equipment, net 44,473 41,569
Operating lease right-of-use assets 30,082 39,900
Intangible assets, net 163,714 206,895
Deferred tax assets 7,228 5,093
Other noncurrent assets 24,076 32,781
Assets held for sale, noncurrent   12,249
Total assets 667,760 673,635
Current liabilities:    
Accounts payable 16,979 20,849
Accrued liabilities 94,420 109,961
Deferred revenue 23,950 28,111
Short-term debt 50,000  
Liabilities held for sale   6,191
Total current liabilities 185,349 165,112
Long-term debt   50,000
Deferred revenue, noncurrent 20,932 19,425
Operating lease liabilities, noncurrent 19,932 [1] 30,598
Deferred tax liabilities 1,491 6,983
Other noncurrent liabilities 10,979 4,577
Liabilities held for sale, noncurrent   9,805
Total liabilities 238,683 286,500
Commitments and contingencies (Note 11)
Equity:    
Preferred stock: $0.001 par value; 6,000 shares authorized as of December 31, 2024 and 2023; no shares issued and outstanding as of December 31, 2024 and 2023
Common stock: $0.001 par value; 140,000 shares authorized as of December 31, 2024 and 2023; 44,328 and 44,211 shares issued and outstanding as of December 31, 2024 and 2023, respectively 44 44
Additional paid-in capital 1,274,561 1,212,501
Accumulated other comprehensive loss (6,084) (2,865)
Accumulated deficit (839,444) (805,448)
Total Company stockholders' equity 429,077 404,232
Noncontrolling interest   (17,097)
Total equity 429,077 387,135
Total liabilities and equity $ 667,760 $ 673,635
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 6,000,000 6,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 140,000,000 140,000,000
Common stock, shares issued (in shares) 44,328,000 44,211,000
Common stock, shares outstanding (in shares) 44,328,000 44,211,000
v3.25.0.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net loss $ (869) $ (139,688) $ (761,206)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
Gain from divestitures (100,833)    
Deferred income taxes (2,933) (8,596) (9,261)
Accrued interest income from note receivable (2,026)    
Accretion of discount from deferred consideration from divestitures (1,061)    
Stock-based compensation 60,541 69,531 45,303
Amortization of intangible assets 43,376 57,752 62,209
Depreciation of property and equipment 12,638 16,645 20,501
Loss from deconsolidation of Perceive subsidiary 4,839    
Impairment of long-lived assets 1,535 1,710 7,724
Goodwill impairment     604,555
Other 1,225 748 24
Changes in operating assets and liabilities:      
Accounts receivable (5,496) 5,721 17,505
Unbilled contracts receivable (46,315) (19,386) (12,473)
Prepaid expenses and other assets 11,071 2,696 (20,439)
Accounts payable (3,041) 5,071 6,633
Accrued and other liabilities (25,325) 3,688 18,782
Deferred revenue (2,666) 4,170 (8,302)
Net cash (used in) provided by operating activities (55,340) 62 (28,445)
Cash flows from investing activities:      
Net proceeds from divestitures 67,773    
Capitalized internal-use software (11,715) (5,933) (1,104)
Purchases of property and equipment (5,043) (6,815) (13,103)
Purchases of intangible assets (195) (185) (166)
Net cash paid for mergers and acquisitions     (50,473)
Net cash used in investing activities 50,820 (12,933) (64,846)
Cash flows from financing activities:      
Repurchases of common stock (19,990)    
Withholding taxes related to net share settlement of equity awards (7,215) (4,875) (286)
Proceeds from issuance of common stock under employee stock purchase plan 7,855 11,927  
Net proceeds from capital contributions by Former Parent     83,235
Net transfers from Former Parent     52,802
Net cash (used in) provided by financing activities (19,350) 7,052 135,751
Effect of exchange rate changes on cash and cash equivalents   126 (3,028)
Net (decrease) increase in cash and cash equivalents (23,870) (5,693) 39,432
Cash and cash equivalents at beginning of period 154,434 160,127 120,695
Cash and cash equivalents at end of period 130,564 154,434 160,127
Reconciliation of cash, cash equivalents and cash classified as held-for-sale to consolidated balance sheets:      
Cash and cash equivalents 130,564 142,085 160,127
Cash and cash equivalents classified as held-for-sale, current (Note 7)   12,349  
Total cash, cash equivalents and cash classified as held-for-sale in consolidated balance sheets 130,564 154,434 160,127
Supplemental disclosure of cash flow information:      
Income taxes paid, net of refunds 19,122 21,333 13,416
Interest paid 3,008 3,000 756
Supplemental disclosure of noncash investing and financing activities:      
Note receivable in exchange for consideration from divestiture 27,676    
Deferred consideration from divestiture 17,156    
Property and equipment included in accounts payable 516 $ 1,343 184
Costs capitalized for internal-use software included in accrued liabilities $ 414    
Debt issued in connection with acquisition     $ 50,000
v3.25.0.1
Consolidated Statements Of Cash Flows (Parenthetical)
$ in Millions
Dec. 31, 2023
USD ($)
Statement of Cash Flows [Abstract]  
Cash and cash equivalents classified as held for sale $ 12.3
v3.25.0.1
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Net Investment by Former Parent
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Noncontrolling Interest
Beginning balance at Dec. 31, 2021 $ 1,015,957     $ 1,025,838 $ (676)   $ (9,205)
Issuance of common stock and reclassification of net transfers from Former Parent (in shares)   42,024,000          
Issuance of common stock and reclassification of net transfers from Former Parent   $ 42 $ 1,038,062 (1,038,104)      
Net transfers from Former Parent 100,915     100,915      
Net capital contribution from and tax settlement with Former Parent 82,931   82,931        
Change in ownership interest of the Company (1,423)   82       (1,505)
Vesting of restricted stock units, net of tax withholding (286)   (286)        
Vesting of restricted stock units, net of tax withholding (in shares)   42,000          
Stock-based compensation 15,541   15,541        
Foreign currency translation adjustment (3,349)       (3,349)    
Unrealized gain (loss) on cash flow hedges (94)       (94)    
Net (loss) income (761,206)     $ (88,649)   $ (668,835) (3,722)
Ending balance at Dec. 31, 2022 448,986 $ 42 1,136,330   (4,119) (668,835) (14,432)
Ending balance (in shares) at Dec. 31, 2022   42,066,000          
Change in ownership interest of the Company     (410)       410
Vesting of restricted stock units, net of tax withholding (4,875)   (4,875)        
Vesting of restricted stock units, net of tax withholding (in shares)   808,000          
Issuance of common stock under employee stock purchase plan (in shares)   1,337,000          
Issuance of common stock under employee stock purchase plan 11,927 $ 2 11,925        
Stock-based compensation 69,531   69,531        
Foreign currency translation adjustment 126       126    
Unrealized gain (loss) on cash flow hedges 1,128       1,128    
Net (loss) income (139,688)         (136,613) (3,075)
Ending balance at Dec. 31, 2023 387,135 $ 44 1,212,501   (2,865) (805,448) (17,097)
Ending balance (in shares) at Dec. 31, 2023   44,211,000          
Change in ownership interest of the Company     881       (881)
Loss from deconsolidation of Perceive subsidiary 4,839           4,839
Vesting of restricted stock units, net of tax withholding (7,215) $ 1 (7,216)        
Vesting of restricted stock units, net of tax withholding (in shares)   1,206,000          
Issuance of common stock under employee stock purchase plan (in shares)   1,076,000          
Issuance of common stock under employee stock purchase plan 7,855 $ 1 7,854        
Repurchases and retirement of common stock (in shares)   (2,165,000)          
Repurchases and retirement of common stock (19,990) $ (2)       (19,988)  
Stock-based compensation 60,541   60,541        
Foreign currency translation adjustment (327)       (327)    
Unrealized gain (loss) on cash flow hedges (2,892)       (2,892)    
Net (loss) income (869)         (14,008) $ 13,139
Ending balance at Dec. 31, 2024 $ 429,077 $ 44 $ 1,274,561   $ (6,084) $ (839,444)  
Ending balance (in shares) at Dec. 31, 2024   44,328,000          
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ (14,008) $ (136,613) $ (757,484)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

We maintain processes for identifying, assessing, and managing material risks from cybersecurity threats (as such term is defined in Item 106(a) of Regulation S-K) as part of our broader enterprise risk management program under the oversight of the Audit Committee of the Company’s Board of Directors. These processes include a wide variety of mechanisms, controls, technologies, systems, and methods that are designed to prevent, detect, or mitigate data loss, theft, misuse, unauthorized access, or other security incidents or vulnerabilities affecting data. We also use systems and processes to oversee and identify risks from cybersecurity threats associated with our third-party service providers.

Our corporate information security organization is led by our Chief Information Officer (“CIO”), who brings over 30 years of information technology experience across a wide range of industry sectors, including semiconductor and technology. Before joining Xperi, our CIO was the Chief Information Security Officer for a large technology company. Our CIO oversees our cybersecurity strategy and the development of our cybersecurity capabilities, encompassing risk management and mitigation, incident prevention, detection, and remediation. Our CIO and corporate information security organization collaborate with technical and business stakeholders across our businesses to analyze risks and devise detection, mitigation, and remediation strategies. Additionally, they engage outside legal counsel, experts, consultants, and other third parties to conduct regular audits, assist with forensic investigations, and address cybersecurity threats and incidents. When necessary, they seek input from external experts and consultants on security industry and threat trends.

Significant incidents are reviewed by a cross-functional working group to determine whether further escalation is appropriate. Any incident assessed as being or becoming potentially material is promptly escalated for further assessment and reported to designated members of senior management. Senior management is responsible for assessing the materiality of an incident, complying with any regulatory requirements, and communicating relevant information to the Audit Committee, as appropriate. We consult with outside counsel as appropriate, including on materiality analysis and disclosure matters.

Although the risks from cybersecurity threats have not materially affected our business strategy, results of operations, or financial condition to date, there can be no assurance that they will not be materially affected by such risks or a material

incident in the future, or that we have not experienced an undetected cybersecurity incident. As discussed under “Risk Factors” in Part I, Item 1A of this Annual Report, cybersecurity threats pose multiple risks to the Company, including potentially to our results of operations and financial condition. See “Risk Factors — If we or our third-party providers experience significant disruptions of our IT Systems or data security incidents, this could result in harm to our reputation, subject us to liability, cause us to modify our business practices, and otherwise materially adversely affect our business, results of operations, and financial conditions.”

The Company’s Board of Directors has oversight of our strategic and business risk management and has delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees the guidelines and policies governing the process by which management assesses and manages our exposure to risk, including material risks from cybersecurity threats. The Audit Committee receives regular updates from management, including our CIO, regarding our cybersecurity risk management program, including cybersecurity risks, threats, incidents, and mitigation strategies.

Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

The Company’s Board of Directors has oversight of our strategic and business risk management and has delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees the guidelines and policies governing the process by which management assesses and manages our exposure to risk, including material risks from cybersecurity threats. The Audit Committee receives regular updates from management, including our CIO, regarding our cybersecurity risk management program, including cybersecurity risks, threats, incidents, and mitigation strategies.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our corporate information security organization is led by our Chief Information Officer (“CIO”),our cybersecurity capabilities, encompassing risk management and mitigation, incident prevention, detection, and remediation.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee receives regular updates from management, including our CIO, regarding our cybersecurity risk management program, including cybersecurity risks, threats, incidents, and mitigation strategies.
Cybersecurity Risk Role of Management [Text Block]

Significant incidents are reviewed by a cross-functional working group to determine whether further escalation is appropriate. Any incident assessed as being or becoming potentially material is promptly escalated for further assessment and reported to designated members of senior management. Senior management is responsible for assessing the materiality of an incident, complying with any regulatory requirements, and communicating relevant information to the Audit Committee, as appropriate. We consult with outside counsel as appropriate, including on materiality analysis and disclosure matters.

Although the risks from cybersecurity threats have not materially affected our business strategy, results of operations, or financial condition to date, there can be no assurance that they will not be materially affected by such risks or a material

incident in the future, or that we have not experienced an undetected cybersecurity incident. As discussed under “Risk Factors” in Part I, Item 1A of this Annual Report, cybersecurity threats pose multiple risks to the Company, including potentially to our results of operations and financial condition. See “Risk Factors — If we or our third-party providers experience significant disruptions of our IT Systems or data security incidents, this could result in harm to our reputation, subject us to liability, cause us to modify our business practices, and otherwise materially adversely affect our business, results of operations, and financial conditions.”

The Company’s Board of Directors has oversight of our strategic and business risk management and has delegated cybersecurity risk management oversight to the Audit Committee of the Board. The Audit Committee oversees the guidelines and policies governing the process by which management assesses and manages our exposure to risk, including material risks from cybersecurity threats. The Audit Committee receives regular updates from management, including our CIO, regarding our cybersecurity risk management program, including cybersecurity risks, threats, incidents, and mitigation strategies.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Senior management is responsible for assessing the materiality of an incident, complying with any regulatory requirements
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Senior management is responsible for assessing the materiality of an incident, complying with any regulatory requirements, and communicating relevant information to the Audit Committee, as appropriate. We consult with outside counsel as appropriate, including on materiality analysis and disclosure matters.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
The Company and Description of Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Description of Business

NOTE 1 – THE COMPANY AND DESCRIPTION OF BUSINESS

Xperi is a leading consumer and entertainment technology company. The Company creates extraordinary experiences at home and on the go for millions of consumers around the world, enabling audiences to connect with content in a way that is more intelligent, immersive, and personal. Powering smart devices, connected cars, entertainment experiences and more, the Company brings together ecosystems designed to reach highly engaged consumers, allowing it and its ecosystem partners to uncover significant new business opportunities, now and in the future. The Company’s technologies are integrated into consumer devices and a variety of media platforms worldwide, driving increased value for its partners, customers, and consumers. The Company operates in one operating and reportable business segment and groups its revenue into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform.

Xperi Spin-Off

In June 2020, Xperi Holding Corporation (“Xperi Holding,” “Adeia,” or the “Former Parent”) announced plans to separate into two independent publicly traded companies (the “Separation”), one comprising its intellectual property (“IP”) licensing business and one comprising its product business (“Xperi Product”). On October 1, 2022 (the “Separation Date”), the Former Parent completed the Separation (the “Spin-Off”) through a pro-rata distribution (the “Distribution”) of all the outstanding common stock of its product-related business (formerly known as Xperi Product, and hereinafter “Xperi Inc.”, “Xperi” or the “Company”) to the stockholders of record of the Former Parent as of the close of business on September 21, 2022, the record date (the “Record Date”) for the Distribution. Each Xperi Holding stockholder of record received four shares of Xperi common stock, $0.001 par value, for every ten shares of Xperi Holding common stock, $0.001 par value, held by such stockholder as of the close of business on the Record Date. As a result of the Distribution, Xperi became an independent, publicly traded company and its common stock is listed under the symbol “XPER” on the New York Stock Exchange. In connection with the Separation and the Distribution, Xperi Holding was renamed and continues as Adeia Inc. and also changed its stock symbol to “ADEA” on the Nasdaq Global Select Market.
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”).

The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting.

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2024, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the consolidated balance sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 7, the Former

Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company.

Prior to the Separation, the consolidated statements of operations and comprehensive loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement, and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount, or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.

During the periods prior to the Separation that are presented in the accompanying consolidated financial statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these consolidated financial statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the consolidated financial statements of the Company. Similarly, the tax treatment of certain items reflected in the consolidated financial statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the consolidated statements of operations for periods prior to the Separation Date are not necessarily representative of the taxes that arose when the Company filed its income tax returns independent from the Former Parent’s returns for the tax year ended December 31, 2022. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the Separation Date.

In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”, later known as Xperi Pylon Corporation), a subsidiary focused on edge inference hardware and software technologies. In October 2024, Perceive sold substantially all of its assets and certain liabilities to Amazon.com Services LLC. Refer to Note 7—Acquisitions and Divestitures for details concerning an asset sale transaction related to Perceive.

As of December 31, 2024, Perceive was completely dissolved after all of its remaining assets and liabilities were transferred to the Company. At the time of its dissolution, the Company recognized a loss of $4.8 million within interest and other income, net, on its consolidated statements of operations upon the derecognition of the remaining balance of the noncontrolling interests in Perceive.

Principles of Consolidation

Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2024, the Company’s financial statements were prepared on a consolidated basis and include the accounts of the Company and its wholly owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.

Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined business of the Company have been eliminated.

Foreign Currency Remeasurement and Transactions

The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical exchange rates. Revenue and expenses are remeasured at the exchange rates in effect on the day the transaction occurs, except

for those expenses related to non-monetary assets and liabilities, which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in interest and other income, net in the consolidated statements of operations.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the fair value of note receivable and deferred consideration in connection with the AutoSense Divestiture (as described in Note 7—Acquisitions and Divestitures), the assessment of useful lives and recoverability of other intangible assets and long-lived assets, purchase accounting resulting from business combinations, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and valuation of performance-based awards with a market condition. Actual results experienced by the Company may differ from management’s estimates.

Net Investment by Former Parent

Net investment by Former Parent on the consolidated balance sheets and consolidated statements of equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit.

Net Loss Per Share Attributable to the Company

Net loss per share attributable to the Company is computed by dividing net loss attributable to the Company for the period by the weighted-average number of common shares outstanding during the period. For periods prior to the Separation, the calculations of basic and diluted loss per share were based on the number of shares outstanding on October 1, 2022, the Separation Date. In addition, it is assumed that there were no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See Note 3—Revenue for detailed discussion on revenue recognition and disaggregation of revenue.

Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information and manages the business on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment. For additional information, see Note 15—Geographic and Segment Related Information.

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of deposits maintained in domestic and foreign financial institutions.

Non-Marketable Equity Investments

Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in interest and other income, net, in the consolidated statements of operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values,

are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash equivalents, accounts receivable, accounts payable, accrued liabilities, and short-term debt approximates fair value due to the short-term nature of these instruments. Note receivable, deferred consideration from divestitures, and long-term debt are carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes.

Derivative Instruments

The Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in interest and other income, net immediately.

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable, unbilled contracts receivable, a note receivable and deferred consideration from divestiture. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations.

The Company believes that any concentration of credit risk in its accounts receivable and unbilled contracts receivable are substantially mitigated by its evaluation process and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral.

For the years ended December 31, 2024, 2023, and 2022, no customer accounted for 10% or more of total revenue. As of December 31, 2024 and 2023, no customer represented 10% or more of the Company’s net balance of accounts receivable.

As described in Note 7—Acquisitions and Divestitures, in the first quarter of 2024, the Company received a note receivable and deferred consideration from Tobii AB (“Tobii”) as part of the consideration for divesting its AutoSense in-cabin safety business and related imaging solutions (the “AutoSense Divestiture”). Both of these instruments are exposed to credit risk arising from default on repayment from Tobii. The credit risk associated with the note receivable is mitigated by establishing a floating lien and security interest in certain of Tobii’s assets, rights, and properties, whereas the deferred consideration is not secured by any collateral. The Company utilizes valuation methodologies such as internally generated cash flow projections on the principal and interest of each instrument, along with the review of certain other data points, to determine the likelihood that the note receivable or deferred consideration will be repaid. Further, the Company assesses each instrument for credit losses and provides a reserve when full payment on the instruments may not occur as expected, in which case the reserve reflects the excess of the amortized cost basis over the results of the cash flow projections. Based on the results of the internally generated cash flow projections, the Company expects Tobii to make full payment on both instruments in accordance with the underlying agreement. Accordingly, no allowance for credit losses was recorded as of December 31, 2024.

Accounts Receivable and Allowance for Credit Losses

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection.

Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component.

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.

Inventory

Inventories consist primarily of finished DVRs, TiVo Stream 4K, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions.

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Computer equipment and software

 

1 to 5 years

Capitalized internal-use software

 

3 years

Office equipment and furniture

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years

Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred.

Capitalization of Cloud Computing Costs

The Company capitalizes certain costs related to its enterprise cloud computing arrangements during the application development stage. During the post-implementation stage, these costs are amortized as hosting fees on a straight-line basis over the term of the hosting arrangements.

Acquisitions

The Company accounts for acquisitions using the acquisition method of accounting in accordance with Accounting Standard Codification Topic ASC 805, Business Combinations (“ASC 805”). Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.

When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key

assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets.

Identified Intangible Assets and Goodwill Impairment

Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from acquisitions, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. Identified indefinite-lived intangible assets include legacy TiVo tradenames and trademarks resulting from acquisitions.

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired. Goodwill was not amortized, but rather evaluated for potential impairment annually. As part of its annual goodwill impairment test using the quantitative approach, the Company recognized a goodwill impairment charge of $604.6 million for the year ended December 31, 2022. See Note 8—Goodwill Impairment and Intangible Assets, Net for more detail regarding the goodwill impairment.

Impairment of Long-Lived Assets

Long-lived assets include property and equipment, operating lease right-of-use (“ROU”) assets, and intangible assets. The Company reviews its long-lived assets for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets.

For identified indefinite-lived intangible assets resulting from acquisitions, the Company evaluates their carrying value on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and ROU assets calculation.

As a practical expedient, the Company elected to account for lease components and non-lease components such as common area maintenance costs for all data center, office, and facility leases separately.

Research and Development

Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred.

Stock-based Compensation

Prior to the Separation, certain Company employees participated in the Former Parent’s equity programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses.

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period.

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model.

Income Taxes

Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these consolidated financial statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties.

Advertising Costs

Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the consolidated statements of operations. Advertising expenses for the years ended December 31, 2024, 2023 and 2022, were $9.9 million, $8.1 million, and $5.5 million, respectively.

Contingencies

From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Recent Accounting Pronouncements

Accounting Standards Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the Company to disclose interim and annual disclosures on significant segment expenses and other segment related items and is applicable to companies with a single reportable segment. The Company adopted the annual disclosure requirements effective for the fiscal year ended December 31, 2024, on a retrospective basis, with the interim disclosure requirements becoming effective in the first quarter of 2025. The adoption did not have a material impact on the Company’s consolidated financial statements. For further information, refer to Note 15—Geographic and Segment Related Information.

Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. This guidance is effective on a prospective or retrospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard requires that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. The standard will become effective for the Company’s 2027 annual financial statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date or retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements.
v3.25.0.1
Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 3 – REVENUE

Revenue Recognition

General

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers which are subsequently remitted to governmental authorities.

Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are separately accounted for if they are distinct. In an arrangement with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative standalone selling price (“SSP”) basis. The determination of SSP considers market conditions, the size and scope of the contract, customer and geographic information, and other factors. When observable prices are not available, SSP for separate performance obligations is generally based on the cost-plus-margin approach, considering overall pricing objectives.

When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of technology or when a license of technology is the predominant item to which the variable consideration relates, revenue is recognized at the later of when the subsequent sale or usage occurs or the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied or partially satisfied.

Description of Revenue-Generating Activities

The Company derives the majority of its revenue from licensing its technologies and solutions to customers within the Pay-TV, Consumer Electronics, Connected Car and Media Platform product categories. Refer to Part I, Item 1 of this Form 10-K for detailed information regarding these product categories.

Pay-TV

Customers within the Pay-TV category are primarily multi-channel video service providers, consumer electronics (“CE”) manufacturers, and end consumers. Revenue in this category is primarily derived from licensing the Company’s Pay-TV solutions, including Electronic Program Guides, TiVo video-over-broadband (“IPTV”) Solutions, Personalized Content Discovery and enriched Metadata.

For these solutions, the Company provides on-going media or data delivery, either via on-premise licensed software, hosting or access to its platform. The Company generally receives fees on a per-subscriber per-month basis or as a monthly fee, and revenue is recognized during the month in which the solutions are provided to the customer. For most of the on-premise licensed software arrangements, substantially all functionality is obtained through the Company’s frequent updating of the technology, data and content. In these instances, the Company typically has a single performance obligation related to these ongoing activities in the underlying arrangement, and revenue is generally recognized over the period the solution is provided. There are certain fixed fee on-premise licensed software arrangements where revenue is recognized immediately upon the delivery of the licensed technology. Hosted solutions and access to our platform is considered a single performance obligation with revenue being recognized over the period the solution is provided.

Consumer Electronics

The Company licenses its audio technologies to CE manufacturers or their supply chain partners.

The Company generally recognizes royalty revenue from licenses based on units shipped or manufactured. Revenue is recognized in the period in which the customer’s sales or production are estimated to have occurred. This may result in an adjustment to revenue when actual sales or production are subsequently reported by the customer, generally in the month or quarter following sales or production. Estimating customers’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities shipped or manufactured by customers, which could have a material impact on the amount of revenue it reports on a quarterly basis.

Certain customers enter into fixed fee or minimum guarantee agreements, whereby customers pay a fixed fee for the right to incorporate the Company’s technology in the customer’s products over the license term. In arrangements with a minimum guarantee, the fixed fee component corresponds to a minimum number of units or dollars that the customer must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. The Company generally recognizes the full fixed fee as revenue at the beginning of the license term when the customer has the right to use the technology and begins to benefit from the license. If applicable, revenue is recognized net of the effect of any significant financing components calculated using customer-specific, risk-adjusted lending rates, with the related interest income being recognized over time on an effective rate basis. For minimum guarantee agreements where the customer exceeds the minimum, the Company recognizes revenue relating to any additional per-unit fees in the periods it estimates the customer will exceed the minimum and adjusts the revenue based on actual usage once that is reported by the customer.

Connected Car

The Company licenses its digital radio solutions, automotive infotainment and related offerings to automotive manufacturers or their supply chain partners.

The Company generally recognizes royalty revenue from these licenses based on units shipped or manufactured, similar to the revenue recognition described above in “Consumer Electronics”. Certain customers may enter into fixed fee or minimum guarantee agreements, also similar to the revenue recognition described above in “Consumer Electronics”. Automotive infotainment and related revenue is generally recognized over time as the customer obtains access to the solutions and underlying data.

Media Platform

The Company generates revenue from advertising, TV viewership data, and licensing of the core middleware solutions.

Advertising revenue is generally recognized when the related advertisement is provided. TV viewership data revenue is generally recognized over time as the customer obtains the underlying data. License revenue for the Vewd solutions is generally recognized either on a per-unit royalty or a minimum guarantee or fixed fee basis, similar to as described in the “Consumer Electronics” section above.

Hardware Products, Services and Settlements/Recoveries

The Company sells hardware products, primarily to end consumers, within the Pay-TV, Media Platform and Consumer Electronics product categories. Hardware product revenue is generally recognized when the promised product is delivered.

The Company also generates non-recurring engineering (“NRE”) revenue within all of its product categories. The Company recognizes NRE revenue as progress is made toward completion, generally using an input method based on the ratio of costs incurred to date to total estimated costs of the project.

Revenue from each of advertising, NRE services, and hardware products was less than 10% of total revenue for all periods presented.

The Company actively monitors and enforces its technology licenses, including seeking appropriate compensation from customers that have under-reported royalties owed under a license agreement and from third parties that utilize the Company’s technologies without a license. As a result of these activities, the Company may, from time to time, recognize revenue from periodic compliance audits of licensees for underreporting royalties incurred in prior periods, or from license disputes. These settlements and recoveries may cause revenue to be higher than expected during a particular reporting period and such settlements and recoveries may not occur in subsequent periods. The Company recognizes revenue from settlements and recoveries when a binding agreement has been executed or a revised royalty report has been received and the Company concludes collection is probable.

Disaggregation of Revenue

The Company’s revenue that is recognized over time consists primarily of per unit royalties, per-subscriber per-month or monthly license fees, single performance obligations satisfied over time, and NRE services. Revenue that is recognized at a point in time consists primarily of fixed fee or minimum guarantee licensing contracts, hardware products, advertising and settlements/recoveries.

The following table summarizes revenue by timing of recognition (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Recognized over time

 

$

362,713

 

 

$

410,865

 

 

$

401,668

 

Recognized at a point in time

 

 

130,975

 

 

 

110,469

 

 

 

100,592

 

Total revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

The following table summarizes revenue by product category (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Pay-TV

 

$

259,712

 

 

$

244,708

 

 

$

249,457

 

Consumer Electronics

 

 

81,993

 

 

 

132,355

 

 

 

128,395

 

Connected Car

 

 

111,144

 

 

 

94,864

 

 

 

84,201

 

Media Platform

 

 

40,839

 

 

 

49,407

 

 

 

40,207

 

Total revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

 

The following table summarizes revenue by geographic location (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

237,829

 

 

 

48

%

 

$

267,998

 

 

 

51

%

 

$

278,920

 

 

 

56

%

Japan

 

 

80,773

 

 

 

16

 

 

 

83,138

 

 

 

16

 

 

 

65,551

 

 

 

13

 

Europe and Middle East

 

 

46,442

 

 

 

9

 

 

 

41,113

 

 

 

8

 

 

 

42,846

 

 

 

9

 

Latin America

 

 

38,772

 

 

 

8

 

 

 

31,863

 

 

 

6

 

 

 

27,212

 

 

 

5

 

South Korea

 

 

36,926

 

 

 

8

 

 

 

27,099

 

 

 

5

 

 

 

27,870

 

 

 

5

 

China

 

 

24,824

 

 

 

5

 

 

 

35,809

 

 

 

7

 

 

 

30,932

 

 

 

6

 

Other

 

 

28,122

 

 

 

6

 

 

 

34,314

 

 

 

7

 

 

 

28,929

 

 

 

6

 

Total revenue

 

$

493,688

 

 

 

100

%

 

$

521,334

 

 

 

100

%

 

$

502,260

 

 

 

100

%

A significant portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., principally in Asia, Europe, the Middle East, and Latin America, and it is expected that this revenue will continue to account for a significant portion of total revenue in future periods.

Contract Balances

Contract Assets

A contract asset represents a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where revenue is recognized upon the completion of performance obligations, but in advance of billings. The amount of unbilled contracts receivable may not exceed their net realizable value and is classified as noncurrent if the amounts are expected to be invoiced more than one year from the reporting date.

Contract Liabilities

Contract liabilities are mainly comprised of deferred revenue, which arises when cash payments are received in advance of performance obligations being satisfied. Deferred revenue generally consists of prepaid licenses or other fees for which the Company is paid in advance while the promised good or service is transferred to the customer at a future date or over time.

The following table presents additional revenue disclosures (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of the period

 

$

25,202

 

 

$

20,620

 

 

$

24,307

 

Performance obligations satisfied in previous periods (true
ups, recoveries, and settlements) (1)(2)

 

$

9,999

 

 

$

11,863

 

 

$

30,561

 
(1)
True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees that are generally received in the following period, and may include other changes in estimates. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of disputes or litigation during the period for past royalties owed.
(2)
For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.

Remaining Performance Obligations

Remaining performance obligations represent contracted revenue that has not yet been recognized. As of December 31, 2024, the Company’s remaining performance obligations and the period over which they are expected to be recognized were as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

57,544

 

2026

 

 

30,564

 

2027

 

 

16,308

 

2028

 

 

7,139

 

2029

 

 

2,077

 

Thereafter

 

 

144

 

Total

 

$

113,776

 

Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

1,906

 

 

$

190

 

 

$

1,950

 

 

$

369

 

 

$

2,255

 

 

$

468

 

Provision for credit losses

 

 

(172

)

 

 

308

 

 

 

497

 

 

 

52

 

 

 

799

 

 

 

(99

)

Recoveries/charge-off

 

 

(788

)

 

 

1

 

 

 

(541

)

 

 

(231

)

 

 

(1,104

)

 

 

—

 

Balance at end of period

 

$

946

 

 

$

499

 

 

$

1,906

 

 

$

190

 

 

$

1,950

 

 

$

369

 
v3.25.0.1
Composition of Certain Financial Statement Captions
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Composition of Certain Financial Statement Captions

NOTE 4 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS

Other current assets consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Prepaid expenses

 

$

21,027

 

 

$

19,913

 

Prepaid income taxes

 

 

8,295

 

 

 

4,813

 

Finished goods inventory

 

 

1,061

 

 

 

7,279

 

Other

 

 

2,105

 

 

 

6,869

 

Total

 

$

32,488

 

 

$

38,874

 

Property and equipment, net consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Computer equipment and software

 

$

54,737

 

 

$

52,740

 

Capitalized internal-use software

 

 

23,384

 

 

 

11,224

 

Office equipment and furniture

 

 

10,773

 

 

 

11,074

 

Building

 

 

17,876

 

 

 

17,876

 

Land

 

 

5,300

 

 

 

5,300

 

Leasehold improvements

 

 

10,778

 

 

 

11,758

 

Construction in progress

 

 

1,979

 

 

 

3,319

 

Total property and equipment

 

 

124,827

 

 

 

113,291

 

Less: accumulated depreciation and amortization(1)

 

 

(80,354

)

 

 

(71,722

)

Property and equipment, net

 

$

44,473

 

 

$

41,569

 

 

(1)
Includes $4.1 million and $1.6 million as of December 31, 2024 and 2023, respectively, of accumulated amortization associated with capitalized internal-use software.

Due to the global downsizing of its real estate footprint, the Company vacated a number of its leased office facilities, resulting in the impairment of the leasehold improvements completed at those facilities. For the years ended December 31, 2024, 2023, and 2022, the Company recorded impairment charges of $0.6 million, $0.4 million, and $2.9 million on leasehold improvements, respectively. See Note 10—Leases for more detail.

The following table summarizes the capitalization and amortization of internal-use software for the years ended December 31, 2024, 2023 and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Costs capitalized associated with internal-use software

 

$

12,160

 

 

$

5,933

 

 

$

1,104

 

Amortization of capitalized internal-use software

 

 

2,547

 

 

 

1,503

 

 

 

61

 

Accrued liabilities consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Employee compensation and benefits

 

$

33,360

 

 

$

44,095

 

Accrued expenses

 

 

16,108

 

 

 

24,307

 

Current portion of operating lease liabilities

 

 

15,353

 

 

 

14,760

 

Accrued other taxes

 

 

8,370

 

 

 

6,464

 

Accrued income taxes

 

 

6,259

 

 

 

1,991

 

Third-party royalties

 

 

5,171

 

 

 

8,478

 

Other

 

 

9,799

 

 

 

9,866

 

Total

 

$

94,420

 

 

$

109,961

 
v3.25.0.1
Financial Instruments
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments

NOTE 5 – FINANCIAL INSTRUMENTS

Non-marketable Equity Securities

As of December 31, 2024 and 2023, other noncurrent assets included equity securities accounted for under the equity method with a carrying amount of $4.7 million and $4.9 million, respectively. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the years ended December 31, 2024, 2023, and 2022.

Derivatives Instruments

The Company uses a foreign exchange hedging strategy to hedge local currency expenses and reduce variability associated with anticipated cash flows. The Company’s derivative financial instruments consist of foreign currency forward contracts. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves, and credit default swap pricing.

Cash Flow Hedges

The Company designates certain foreign currency forward contracts as hedging instruments pursuant to ASC 815, Derivatives and Hedging. The effective portion of the gain or loss on the derivatives are reported as a component of accumulated other comprehensive loss (“AOCL”) in stockholders’ equity and reclassified into earnings in the consolidated statements of operations in the period upon which the hedged transactions are settled.

The notional and fair values of all derivative instruments were as follows (in thousands):

 

 

 

 

December 31,

 

 

 

Location in Balance Sheet

 

2024

 

 

2023

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

Fair value—foreign exchange contract assets, net amount

 

Prepaid expenses and other current assets

 

$

—

 

 

$

1,184

 

Fair value—foreign exchange contract liabilities, net amount

 

Accrued liabilities

 

$

1,858

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Notional value held to buy U.S. dollars in exchange for other currencies

 

 

 

$

5,074

 

 

$

738

 

Notional value held to sell U.S. dollars in exchange for other currencies

 

 

 

$

57,329

 

 

$

45,468

 

All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparty to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company’s consolidated balance sheets on a net basis.

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s consolidated balance sheets were as follows (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Gross amount of recognized assets

 

$

173

 

 

$

1,300

 

Gross amount of recognized liabilities

 

 

(2,031

)

 

 

(116

)

Net (liabilities) assets

 

$

(1,858

)

 

$

1,184

 

The changes in AOCL related to the cash flow hedges consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning balance

 

$

1,034

 

 

$

(94

)

 

$

—

 

Other comprehensive (loss) gain before reclassification

 

 

(2,107

)

 

 

1,190

 

 

 

(94

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(785

)

 

 

(62

)

 

 

—

 

Net current period other comprehensive (loss) gain

 

 

(2,892

)

 

 

1,128

 

 

 

(94

)

Ending balance

 

$

(1,858

)

 

$

1,034

 

 

$

(94

)

The following table summarizes the gains recognized upon settlement of the hedged transactions in the consolidated statement of operations for the years ended December 31, 2024 and 2023 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Research and development

 

$

690

 

 

$

841

 

Selling, general and administrative

 

 

74

 

 

 

192

 

Total

 

$

764

 

 

$

1,033

 

There were no gains or losses recognized in the year ended December 31, 2022 as there was no settlement of any hedged transactions.

Undesignated Derivatives

For derivatives that were not designated as hedge instruments, they were measured and reported at fair value as a derivative asset or liability in the consolidated balance sheets with their corresponding changes in the fair value recognized as gains or

losses in interest and other income, net in the consolidated statements of operations. These instruments were all re-designated as foreign currency cash flow hedges in July 2023.
v3.25.0.1
Fair Value
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value

NOTE 6 – FAIR VALUE

The Company follows the authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. The Company carries its financial instruments at fair value with the exception of its long-term debt. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets.

Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs.

The Company’s derivative financial instruments (as described in Note 5—Financial Instruments), consisting of foreign currency forward contracts, are reported at fair value on a recurring basis and classified as Level 2.

Financial Instruments Not Recorded at Fair Value

The following table presents the fair value hierarchy for the Company’s assets and liabilities recorded at their carrying amount, bur for which the fair value is disclosed (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Note receivable, noncurrent

 

$

29,702

 

 

$

28,223

 

 

$

—

 

 

$

—

 

Deferred consideration from divestiture

 

 

18,217

 

 

 

18,342

 

 

 

—

 

 

 

—

 

Total assets

 

$

47,919

 

 

$

46,565

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Senior Unsecured Promissory Note

 

$

50,000

 

 

$

50,000

 

 

$

50,000

 

 

$

49,659

 

The fair value of the note receivable, including accrued interest, and the deferred consideration resulting from the AutoSense Divestiture and the Perceive Transaction (as described in Note 7—Acquisitions and Divestitures) were estimated based on an income and market approach with valuation inputs such as the U.S. Treasury constant maturity yields, comparable bond yields, and credit spreads over the term of the same or similarly issued instruments. They are classified within Level 2 of the fair value hierarchy.

The senior unsecured promissory note (as described in Note 9—Debt) was classified as current in the Company’s consolidated balance sheets as of December 31, 2024, at a fair value approximating its carrying amount. The Company classifies the senior unsecured promissory note within Level 2 of the fair value hierarchy.
v3.25.0.1
Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2024
Business Combinations [Abstract]  
Acquisitions and Divestitures

NOTE 7 – ACQUISITIONS AND DIVESTITURES

Vewd Software Holdings Limited

On July 1, 2022, the Company acquired all common stock of Vewd Software Holdings Limited (“Vewd,” and the “Vewd Acquisition”). Vewd is a leading global provider of streaming and hybrid TV solutions. The Vewd Acquisition establishes the Company as a leading independent streaming media platform through its TiVo brand and one of the largest independent providers of Smart TV middleware globally. The total consideration was approximately $102.9 million, consisting of approximately $52.9 million of cash and $50.0 million of debt. See Note 9—Debt for additional information on this debt.

Purchase Price Allocation

The Vewd Acquisition was accounted for as a business combination, using the acquisition method. The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date (fair value amounts in thousands):

 

 

Estimated
Useful
Life (years)

 

 

 

 

 

Estimated
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

 

Technology

 

7

 

 

 

28,050

 

 

 

 

Customer relationships - large

 

7

 

 

 

4,900

 

 

 

 

Customer relationships - small

 

4

 

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

 

870

 

 

 

 

Trade name

 

 

5

 

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

 

(307

)

Total purchase price

 

 

 

 

 

 

 

$

102,913

 

Identifiable Intangible Assets

Identifiable intangible assets primarily consist of technology, customer relationships, non-compete agreements and trade name. In determining the fair value, the Company utilized various forms of the income and cost approaches depending on the asset being valued. The estimation of fair value required significant judgment related to cash flow forecasts, discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined using historical data supplemented by current and anticipated market conditions, and growth rates. The technology was valued using the excess earnings method. Significant assumptions used under this method include forecasted revenue and growth, estimated technology obsolescence, contributory asset charges, and the discount rate. The customer relationships were valued using the cost approach, based on estimated customer acquisition costs.

Goodwill

The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed was recognized as goodwill. The goodwill is generated from operational synergies and cost savings the Company expects to achieve from the consolidated operations, as well as the expected benefits from future technologies that do not meet the definition of an identifiable intangible asset and Vewd’s knowledgeable and experienced workforce.

Transaction and Other Costs

In connection with the Vewd Acquisition, the Company incurred significant one-time expenses such as transaction-related costs, including transaction bonuses, legal expenses and consultant fees, and severance and retention costs. For the year ended December 31, 2022, transaction-related costs and severance and retention costs were $7.4 million and $4.0 million, respectively.

Supplemental Pro Forma Information

The following unaudited pro forma financial information assumes the Vewd Acquisition was completed as of January 1, 2021. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the Vewd Acquisition had taken place on January 1, 2021, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The following table presents the pro forma operating results as if the acquired operations of Vewd had been included in the Company’s consolidated statements of operations as of January 1, 2021 (unaudited, in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

Revenue

 

$

508,636

 

Net loss attributable to the Company

 

$

(769,483

)

The unaudited supplemental pro forma information above includes the following pro forma adjustments: adjustments for transaction-related costs and severance and retention costs, adjustments for amortization of intangible assets, adjustments for interest and related expenses associated with Vewd’s historical debt, elimination of inter-company transactions between Vewd and the Company, and adjustments for the related income tax impact. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies.

AutoSense In-cabin Safety Business and Related Imaging Solutions

In December 2023, the Company entered into a definitive agreement with Tobii in connection with the AutoSense Divestiture. The AutoSense Divestiture represented a 100% equity sale transaction of two of the Company’s wholly-owned subsidiaries and was expected to streamline the Company’s business to further focus its business on entertainment-related products and services. All of the assets and liabilities associated with the AutoSense Divestiture were classified as held for sale as of December 31, 2023.

The following table summarizes the carrying amounts of assets and liabilities classified as held for sale in connection with the AutoSense Divestiture on the Company’s consolidated balance sheets as of December 31, 2023 (in thousands):

 

 

December 31, 2023

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,349

 

 

$

—

 

 

$

12,349

 

Accounts receivable, net

 

 

1,323

 

 

 

—

 

 

 

1,323

 

Unbilled contracts receivable, net

 

 

1,209

 

 

 

5,320

 

 

 

6,529

 

Prepaid expenses and other current assets

 

 

979

 

 

 

—

 

 

 

979

 

Property and equipment, net

 

 

—

 

 

 

2,391

 

 

 

2,391

 

Operating lease right-of-use assets

 

 

—

 

 

 

3,346

 

 

 

3,346

 

Other noncurrent assets

 

 

—

 

 

 

1,192

 

 

 

1,192

 

Total assets held for sale (1)

 

$

15,860

 

 

$

12,249

 

 

$

28,109

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

244

 

 

$

—

 

 

$

244

 

Accrued liabilities

 

 

4,821

 

 

 

—

 

 

 

4,821

 

Deferred revenue

 

 

1,126

 

 

 

—

 

 

 

1,126

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

2,741

 

 

 

2,741

 

Other noncurrent liabilities

 

 

—

 

 

 

7,064

 

 

 

7,064

 

Total liabilities held for sale

 

$

6,191

 

 

$

9,805

 

 

$

15,996

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

9,669

 

 

$

2,444

 

 

$

12,113

 
(1)
Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.

Due to the estimated fair value less cost to sell exceeding the carrying amount of the assets and liabilities presented above, the Company did not recognize an impairment loss related to the assets held for sale in the year ended December 31, 2023.

On January 31, 2024, the AutoSense Divestiture was completed for total consideration of $44.3 million, comprised of $10.8 million of cash, a note receivable from Tobii (the “Tobii Note”) of $27.7 million, and deferred consideration (as described under Deferred Consideration below) totaling $15.0 million, which was estimated to have a fair value of $5.8 million based on a present value factor as of January 31, 2024. The $10.8 million of cash included in the total consideration represents the cash balance that was transferred to Tobii upon completion of the AutoSense Divestiture to support operations during the transition and was subsequently returned to the Company, and as such, this amount is included in the assets sold as of January 31, 2024 and in the total consideration received. In addition, there may be potential earnout payments (as described under Contingent Consideration below) payable in 2031, contingent upon the future success of the divested AutoSense in-cabin safety business.

In connection with the AutoSense Divestiture, the Company also recorded a liability of $7.1 million for potential indemnification of certain pre-closing date matters.

As of January 31, 2024, the Company derecognized the carrying amounts of the following assets and liabilities (in thousands):

 

 

January 31, 2024

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,025

 

 

$

—

 

 

$

11,025

 

Accounts receivable, net

 

 

3,392

 

 

 

—

 

 

 

3,392

 

Unbilled contracts receivable, net

 

 

1,398

 

 

 

5,320

 

 

 

6,718

 

Prepaid expenses and other current assets

 

 

812

 

 

 

—

 

 

 

812

 

Property and equipment, net

 

 

—

 

 

 

2,291

 

 

 

2,291

 

Operating lease right-of-use assets

 

 

—

 

 

 

3,272

 

 

 

3,272

 

Other noncurrent assets

 

 

—

 

 

 

2,887

 

 

 

2,887

 

Total assets held for sale (1)

 

$

16,627

 

 

$

13,770

 

 

$

30,397

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

248

 

 

$

—

 

 

$

248

 

Accrued liabilities

 

 

4,933

 

 

 

—

 

 

 

4,933

 

Deferred revenue

 

 

1,114

 

 

 

—

 

 

 

1,114

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

2,708

 

 

 

2,708

 

Other noncurrent liabilities

 

 

—

 

 

 

7,064

 

 

 

7,064

 

Total liabilities held for sale

 

$

6,295

 

 

$

9,772

 

 

$

16,067

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

10,332

 

 

$

3,998

 

 

$

14,330

 
(1)
Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.

Upon the completion of the AutoSense Divestiture, the Company recognized a pre-tax gain of $22.9 million.

The AutoSense Divestiture did not represent a strategic shift that would have a major effect on the Company’s consolidated results of operations, and therefore, its results of operations were not reported as discontinued operations.

Note Receivable from Tobii AB

The Tobii Note, with a fixed interest rate of 8% per annum, matures on April 1, 2029 and is payable in three annual installments. Tobii may, at any time and on any one or more occasions, prepay all or any portion of the outstanding principal amount, along with accrued interest, without any penalty. In the event of default, an additional interest of 2% per annum may be applied to the outstanding balance of the Tobii Note, and the Company has the right to demand full or partial payment on the outstanding balance with unpaid interest.

The Tobii Note is secured by a floating lien and security interest in certain of Tobii’s assets, rights, and properties, and contains customary affirmative and negative covenants including the restrictions on incurring certain indebtedness, and certain change of control and asset sale events, but does not include any financial covenants.

The Tobii Note has the following scheduled principal repayments (in thousands):

Date of Principal Payment:

 

Amount

 

April 1, 2027

 

$

10,000

 

April 1, 2028

 

 

10,000

 

April 1, 2029

 

 

7,676

 

Total principal payments

 

$

27,676

 

 

The Company elected to present accrued interest within the carrying amount of note receivable, noncurrent, in the consolidated balance sheets. As of December 31, 2024, the carrying amount of the Tobii Note is as follows (in thousands):

 

 

December 31, 2024

 

Outstanding principal amount

 

$

27,676

 

Add: interest accrued to date

 

 

2,026

 

Carrying amount—note receivable, noncurrent

 

$

29,702

 

For the year ended December 31, 2024, the Company recognized interest income of $2.0 million.

Deferred Consideration

The deferred consideration consists of guaranteed future cash payments, which are scheduled to be made by Tobii in four annual payments as follows (in thousands):

Date of Payment:

 

Amount

 

February 15, 2028

 

$

3,000

 

February 15, 2029

 

 

2,250

 

February 15, 2030

 

 

4,500

 

February 15, 2031

 

 

5,250

 

Total future payments

 

$

15,000

 

At the closing date of the Tobii Note, there was $9.2 million of discount on the deferred consideration to be accreted as interest income up to the date of the final payment. For the year ended December 31, 2024, the Company accreted $1.0 million of the discount as interest income.

As of December 31, 2024, the net carrying amount of the deferred consideration is as follows (in thousands):

 

 

December 31, 2024

 

Total deferred consideration

 

$

15,000

 

Less: unamortized discount on deferred consideration

 

 

(8,197

)

Net carrying amount

 

$

6,803

 

Contingent Consideration

The earnout represents potential incremental cash consideration, and the payment is contingent upon the achievement of certain targeted shipments, between January 1, 2024 and December 31, 2030, of qualified automotive products featuring the AutoSense in-cabin safety technology and the related imaging solutions.

At the closing date of the AutoSense Divestiture, the Company elected to apply the gain contingency guidance under ASC 450—Contingencies, as it could not reasonably estimate shipment amounts. As a result, the Company deferred the recognition of the contingent consideration until it becomes realized or realizable.

Perceive Corporation

On August 14, 2024, the Company and its subsidiary, Perceive (now known as Xperi Pylon Corporation) (“Seller”), of which the Company owned approximately 76.4% of the equity interests, entered into an Asset Purchase Agreement (the “Agreement”) with Amazon.com Services LLC (“Buyer”) pursuant to which Buyer has agreed to purchase and assume from Seller substantially all the assets and certain liabilities of Seller for $80.0 million in cash, including a holdback of $12.0 million to be held for 18 months after the closing of the transaction to secure the Company’s and Seller’s indemnification obligations (the “Perceive Transaction”). The Perceive Transaction was subsequently completed on October 2, 2024 (the “Closing Date”).

The Perceive Transaction did not represent a strategic shift that would have a major effect on the Company’s consolidated results of operations, and therefore, its results of operations were not reported as discontinued operations.

As of October 2, 2024, the Company derecognized the carrying amounts of the following assets and liabilities (in thousands):

 

 

October 2, 2024

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

$

1,306

 

 

$

—

 

 

$

1,306

 

Property and equipment, net

 

 

—

 

 

 

95

 

 

 

95

 

Operating lease right-of-use assets

 

 

—

 

 

 

72

 

 

 

72

 

Other noncurrent assets

 

 

—

 

 

 

4

 

 

 

4

 

Total assets held for sale

 

$

1,306

 

 

$

171

 

 

$

1,477

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accrued liabilities

 

 

67

 

 

 

—

 

 

 

67

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

6

 

 

 

6

 

Total liabilities held for sale

 

$

67

 

 

$

6

 

 

$

73

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

1,239

 

 

$

165

 

 

$

1,404

 

Upon the completion of the Perceive Transaction in 2024, the Company recognized a pre-tax gain of $77.9 million, of which $59.5 million was attributable to the Company.

Holdback Consideration

The holdback consideration of $12.0 million was estimated to have a fair value of $11.3 million based on a present value factor as of the Closing Date, resulting in a discount of $0.7 million. For the year ended December 31, 2024, the amount of discount accreted as interest income was insignificant.

As of December 31, 2024, the net carrying amount of the holdback consideration is as follows (in thousands):

 

 

December 31, 2024

 

Holdback consideration

 

$

12,000

 

Less: unamortized discount on holdback consideration

 

 

(586

)

Net carrying amount

 

$

11,414

 
v3.25.0.1
Goodwill Impairment and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Impairment and Intangible Assets, Net

NOTE 8 – GOODWILL IMPAIRMENT AND INTANGIBLE ASSETS, NET

Goodwill Impairment

Goodwill was evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicated the carrying amount of goodwill may not be recoverable. The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit. The Company concluded it operated in one reporting unit for all periods presented.

During the third and fourth quarters of 2022, sufficient impairment indicators were identified by the Company that it was more-likely-than-not that goodwill was impaired, and a quantitative interim goodwill impairment test was performed in each of the reporting periods. These impairment indicators included a sustained decline in the Former Parent’s stock price during the third quarter of 2022 and a further significant decline in the trading price of Xperi’s common stock during the fourth quarter of 2022, along with continued decline in macroeconomic conditions. A fair value assessment was completed for the reporting unit using the market approach capitalization, and when compared to the carrying value of this reporting unit, goodwill was considered impaired. As a result, a goodwill impairment charge of $604.6 million was recognized for the year ended December 31, 2022. As a result of this impairment charge, the Company’s goodwill balance was completely written off as of December 31, 2022.

Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

 

 

 

 

December 31, 2024

 

 

 

Useful
Life
(Years)

 

Gross
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

17,281

 

 

$

(5,687

)

 

$

11,594

 

Existing technology / content database

 

5-10

 

 

219,912

 

 

 

(194,041

)

 

 

25,871

 

Customer contracts and related relationships

 

3-9

 

 

493,685

 

 

 

(389,251

)

 

 

104,434

 

Trademarks/trade name

 

4-10

 

 

39,313

 

 

 

(38,898

)

 

 

415

 

Non-compete agreements

 

1-2

 

 

3,101

 

 

 

(3,101

)

 

 

—

 

Total finite-lived intangible assets

 

 

 

 

773,292

 

 

 

(630,978

)

 

 

142,314

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

794,692

 

 

$

(630,978

)

 

$

163,714

 

 

 

 

 

 

December 31, 2023

 

 

 

Useful
Life
(Years)

 

Gross
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

17,281

 

 

$

(3,478

)

 

$

13,803

 

Existing technology / content database

 

5-10

 

 

219,717

 

 

 

(181,713

)

 

 

38,004

 

Customer contracts and related relationships

 

3-9

 

 

493,685

 

 

 

(365,074

)

 

 

128,611

 

Trademarks/trade name

 

4-10

 

 

39,313

 

 

 

(34,453

)

 

 

4,860

 

Non-compete agreements

 

1-2

 

 

3,101

 

 

 

(2,884

)

 

 

217

 

Total finite-lived intangible assets

 

 

 

 

773,097

 

 

 

(587,602

)

 

 

185,495

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

794,497

 

 

$

(587,602

)

 

$

206,895

 

Total intangible assets excluded certain finite-lived intangible assets with a gross amount of $35.2 million, which were fully amortized and classified as held for sale as of December 31, 2023 in connection with the Divestiture (as described in Note 7).

As of December 31, 2024, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

34,838

 

2026

 

 

31,508

 

2027

 

 

30,665

 

2028

 

 

30,327

 

2029

 

 

14,341

 

Thereafter

 

 

635

 

Total amortization

 

$

142,314

 
v3.25.0.1
Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt

NOTE 9 – DEBT

In connection with the Vewd Acquisition as disclosed in Note 7, on July 1, 2022, TiVo Product Holdco LLC, which was subsequently renamed Xperi Inc., issued a senior unsecured promissory note (the “Promissory Note”) to the sellers of Vewd in a principal amount of $50.0 million. Indebtedness outstanding under the Promissory Note bears an interest rate of 6.00% per annum, payable in cash on a quarterly basis. If a certain qualified spin-off transaction occurs, the interest rate will be increased to the greater of (a) 6.00% and (b) the sum of (i) the highest interest rate payable under any credit facility or bonds, debentures, notes or similar instruments where the Company or any guarantor borrows money or guarantees obligations on a secured basis

on or after the date of such spin-off transaction, plus (ii) 2.00%. It was determined that the Spin-Off completed on October 1, 2022 did not trigger any change in the interest rate of the debt. The Promissory Note matures on July 1, 2025. The Company may, at any time and on any one or more occasions, prepay all or any portion of the outstanding principal amount, plus accrued and unpaid interest, if any, under the Promissory Note without premium or penalty. In addition, the Promissory Note has mandatory prepayment provisions upon certain change of control or asset sale events.

The Promissory Note includes certain covenants that restrict the Company and each guarantor’s ability to, among other things, incur certain indebtedness or engage in any material line of business substantially different from those lines of business conducted by the Company on the closing date of the acquisition. The Promissory Note does not contain any financial covenants.

The principal amount of $50.0 million on the Promissory Note was classified as current in the consolidated balance sheets as of December 31, 2024. Interest expense on the Promissory Note was $3.0 million for the years ended December 31, 2024 and 2023, and $1.5 million for the year ended December 31, 2022.

v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

NOTE 10 – LEASES

The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date.

The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses.

The Company began the effort of optimizing its global real estate footprint and decided to vacate and sublease certain offices following the Spin-Off in October 2022. Due to the change in how the office facilities were being used, a significant decrease in the expected market price of the operating lease ROU assets, and expected delays in subleasing the space based on the condition of the commercial real estate market, the Company recorded impairment charges of $1.5 million, $1.7 million and $7.7 million in the years ended December 31, 2024, 2023 and 2022, respectively, to reduce the carrying amount of certain operating lease ROU assets, including the related leasehold improvements.

The components of operating lease costs were as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Fixed lease cost (1)

 

$

16,966

 

 

$

20,306

 

 

$

20,581

 

Variable lease cost

 

 

4,164

 

 

 

5,130

 

 

 

5,365

 

Less: sublease income

 

 

(8,192

)

 

 

(9,896

)

 

 

(9,498

)

Total operating lease cost

 

$

12,938

 

 

$

15,540

 

 

$

16,448

 

 

(1)
Includes short-term leases expensed on a straight-line basis.

The following table presents supplemental cash flow information arising from lease transactions (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash payments included in the measurement of operating lease liabilities

 

$

17,669

 

 

$

19,968

 

 

$

20,307

 

Operating ROU assets obtained in exchange for lease obligations

 

$

5,975

 

 

$

11,563

 

 

$

14,360

 

 

The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Weighted-average remaining lease term (in years)

 

 

2.9

 

 

 

3.4

 

Weighted-average discount rate

 

 

5.5

%

 

 

5.3

%

Future minimum lease payments and related lease liabilities as of December 31, 2024 were as follows (in thousands):

 

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2025

 

$

16,941

 

 

$

(6,333

)

 

$

10,608

 

2026

 

 

11,184

 

 

 

(1,563

)

 

 

9,621

 

2027

 

 

5,249

 

 

 

(368

)

 

 

4,881

 

2028

 

 

3,019

 

 

 

(379

)

 

 

2,640

 

2029

 

 

1,841

 

 

 

(291

)

 

 

1,550

 

Thereafter

 

 

277

 

 

 

—

 

 

 

277

 

Total lease payments

 

 

38,511

 

 

$

(8,934

)

 

$

29,577

 

Less: imputed interest

 

 

(3,226

)

 

 

 

 

 

 

Present value of operating lease liabilities:

 

$

35,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: operating lease liabilities, current portion

 

 

(15,353

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

19,932

 

 

 

 

 

 

 
(1)
Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 11 – COMMITMENTS AND CONTINGENCIES

Unconditional Purchase Obligations

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as of December 31, 2024 were as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

47,867

 

2026

 

 

37,497

 

2027

 

 

16,210

 

2028

 

 

10,150

 

2029

 

 

10,066

 

Thereafter

 

 

16,104

 

Total

 

$

137,894

 

Indemnifications

In the normal course of business, the Company provides indemnifications of varying scopes and amounts to certain of its licensees, customers, and business partners against claims made by third parties arising from the use of the Company's products, intellectual property, services, or technologies. The Company cannot reasonably estimate the possible range of losses that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include, but are not limited to: the scope of the contractual indemnification obligation; the nature of the third party claim asserted; the relative merits of the third party claim; the financial ability of the third party claimant to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party;

and the willingness of such party to engage in settlement negotiations. The Company has received requests for indemnification, but to date none has been material, and no liability has been recorded in the Company’s financial statements.

As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company believes, given the absence of any such payments in the Company’s history, and the estimated low probability of such payments in the future, that the estimated fair value of these indemnification agreements is not material. In addition, the Company has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover any payments under the indemnification agreements, should they occur.

Contingencies

The Company and its subsidiaries have been involved in litigation matters and claims in the normal course of business. In the past, the Company or its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to determine infringement or validity of intellectual property rights, and to defend themselves or their customers against claims of infringement or breach of contract. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings to ensure proper and full payment of royalties by licensees under the terms of their license agreements. Accruals for loss contingencies are recognized when a loss is probable, and the amount of such loss can be reasonably estimated.

An adverse decision in any legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial results. Although considerable uncertainty exists, the Company does not anticipate that the disposition of any of these matters will have a material effect on its business or consolidated financial statements.
v3.25.0.1
Net Loss Per Share Attributable To The Company
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable To The Company

NOTE 12 – NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY

On October 1, 2022, 42,023,632 shares of the Company’s common stock, par value $0.001 per share, were distributed to the Former Parent’s stockholders of record as of September 21, 2022. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation and such shares are treated as issued and outstanding for purposes of calculating historical net loss per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation.

For periods subsequent to the Separation, actual outstanding shares are used to calculate both basic and diluted weighted-average number of common shares outstanding. Potentially dilutive common shares, such as common shares issuable upon exercise of stock options and vesting of restricted stock awards and units are typically reflected in the computation of diluted net income per share by application of the treasury stock method. Due to the net losses reported, these potentially dilutive securities were excluded from the computation of diluted net loss per share, since their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted shares (in thousands, except per share amounts):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss attributable to the Company - basic and diluted

 

$

(14,008

)

 

$

(136,613

)

 

$

(757,484

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in computing net loss per share attributable to the Company - basic and diluted

 

 

45,057

 

 

 

43,012

 

 

 

42,029

 

Net loss per share attributable to the Company - basic and diluted

 

$

(0.31

)

 

$

(3.18

)

 

$

(18.02

)

 

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Stock options

 

 

52

 

 

 

106

 

 

 

146

 

Restricted stock units

 

 

7,405

 

 

 

7,067

 

 

 

4,604

 

ESPP

 

 

60

 

 

 

81

 

 

 

—

 

Total

 

 

7,517

 

 

 

7,254

 

 

 

4,750

 

 
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity And Stock-Based Compensation

NOTE 13 – STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Prior to the Separation, certain of the Company’s employees participated in equity-based compensation plans sponsored by the Former Parent. The Former Parent’s equity-based compensation plans included incentive compensation plans and an ESPP. All grants made through September 30, 2022 were issued under those plans which are described fully in the Form 10 filed with the SEC on September 14, 2022.

On October 1, 2022, in connection with the Separation, all outstanding Former Parent equity awards were equitably adjusted to reflect the impact of the Separation. The adjustments to each type of award outstanding pursuant to the Former Parent equity incentive plans as of immediately prior to the Separation was determined in accordance with the terms of the Employee Matters Agreement by and between Adeia Inc. and Xperi Inc., dated as of October 1, 2022 (the “EMA”). In connection with this adjustment, each outstanding Former Parent equity award as of the Separation Date was converted into either (a) both Adeia and Xperi equity awards, with certain adjustments to the underlying shares and terms of outstanding awards to preserve the aggregate intrinsic value of each award immediately after the Separation when compared to the aggregate intrinsic value immediately prior to the Separation, or (b) an equity award of only Adeia common stock or only Xperi common stock, with an adjustment to the number of shares to preserve the value of the award. Following the Separation, the Adeia awards and Xperi awards related to prior grants made by the Former Parent are subject to substantially the same terms and vesting conditions that applied to the original Former Parent awards immediately prior to the Separation.

The conversion of the Former Parent equity awards was accounted for as a modification, resulting in $8.4 million of incremental stock-based compensation expense to be recognized over the remaining vesting term of the modified awards.

Equity Incentive Plan

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Equity Incentive Plan (the “2022 EIP”).

Under the 2022 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards, RSUs, stock appreciation rights, dividend equivalents and performance awards, or any combination thereof. The 2022 EIP includes an automatic annual increase to its shares reserve on January 1 of each year as set forth in the plan document.

The 2022 EIP provides for option grants designated as either incentive stock options or non-statutory options. Stock options have been granted with an exercise price not less than the value of the Company’s common stock on the grant date and have 10-year contractual terms from the date of grant and vest over a four-year period. The vesting criteria for restricted stock units has historically been the passage of time or meeting certain performance-based objectives, and continued employment through the vesting period over three or four years for time-based awards or three years for performance-based awards.

As of December 31, 2024, there were approximately 4.9 million shares reserved for future grant under the 2022 EIP.

Employee Stock Purchase Plan

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Employee Stock Purchase Plan (as amended, the “2022 ESPP”). The 2022 ESPP originally provided consecutive overlapping 24-month offering periods, with four purchase periods that were generally six months in length, commencing on each December 1 and June 1 during the term of the 2022 ESPP. The 2022 ESPP was subsequently amended, and commencing December 1, 2023, the length of the offering periods was reduced from 24 months to 12 months and the employee’s maximum participant contribution was reduced

from 100% to 15% of the employee’s after-tax base earnings and commissions up to the limit imposed by the Internal Revenue Service. The accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85% of the fair market value per share on the start date of the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.

The change in the term of the offering period (as described above) was accounted for as a modification, where the original options to purchase shares were cancelled and concurrently replaced with new options from the 12-month offering period. There was no incremental compensation expense resulting from the modification. As of December 1, 2023, total compensation expense of $5.9 million was expected to be recognized by the Company, on a straight-line basis, over an accelerated term of 12 months.

The 2022 ESPP also includes a reset provision if the fair market value per share of the Company’s common stock on any purchase date during an offering period is less than the fair market value per share on the start date of the 12-month offering period. Upon occurrence of the reset, the existing offering period will automatically terminate and a new 12-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period.

The reset provision under the 2022 ESPP was triggered on May 31, 2024, and it was considered a modification in accordance with ASC 718—Stock Based Compensation, with the incremental fair value of $2.0 million to be recognized on a straight-line basis over the new 12-month offering period.

For the years ended December 31, 2024 and 2023, the Company issued 1.1 million shares and 1.3 million shares under the 2022 ESPP, respectively, at a weighted-average purchase price of $7.30 and $8.92, respectively, net of shares withheld to satisfy withholding tax requirements for certain employees, for an aggregate net proceeds of $7.9 million and $11.9 million, respectively.

As of December 31, 2024, there were approximately 2.6 million shares reserved for future grant under the 2022 ESPP.

The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering periods in effect using the Black-Scholes option pricing model:

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Expected life (years)

 

0.5 — 1.0

 

 

0.5 — 2.0

 

Risk-free interest rate

 

4.3% — 5.4%

 

 

4.3% — 5.4%

 

Dividend yield

 

 

0.0

%

 

 

0.0

%

Expected volatility

 

44.4% — 45.6%

 

 

44.1% — 51.2%

 

Prior to the Separation, the valuation assumptions were determined by the Former Parent. The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the year ended December 31, 2022:

 

 

Year Ended December 31,

 

 

 

2022

 

Expected life (years)

 

 

2.0

 

Risk-free interest rate

 

 

1.3

%

Dividend yield

 

 

1.1

%

Expected volatility

 

 

48.5

%

The Company uses the Black-Scholes option pricing model to determine the estimated fair value of ESPP shares. The determinations of these assumptions are outlined below:

Expected life—The expected life assumption is based on analysis of the Company’s historical employee exercise patterns. The expected life of options granted under the ESPP represents the offering period of two years. Effective December 1, 2023, the expected life of options granted under the ESPP was changed to one year.

Volatility—Due to limited historical trading data, volatility is calculated based on a peer group over the most recent period that represents the remaining term of the vesting period as of the valuation date. For ESPP with the expected life of one year, volatility is calculated based on the Company’s stock price.

Risk-free interest rate—The risk-free interest rate assumption is based on the U.S. Treasury rate for issues, commensurate with the expected life of the options granted.

Dividend yield—Following the Separation in October 2022, the Company does not expect to pay dividends in the foreseeable future. Prior to the Separation, the Former Parent determined the expected dividend yield based on cash dividends declared by the board of directors for the previous four quarters and dividing that result by the average closing price of the Former Parent’s common stock for the quarter. Cash dividends were not paid on stock options, restricted stock units, or unvested restricted stock awards.

Stock Options

Stock option activity for the year ended December 31, 2024 is as follows (in thousands, except per share amounts):

 

 

Number of
Shares Subject
to Stock Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value

 

Balance at December 31, 2023

 

 

106

 

 

$

26.87

 

 

 

1.69

 

 

$

—

 

Options canceled / forfeited / expired

 

 

(54

)

 

$

22.47

 

 

 

 

 

 

 

Balance at December 31, 2024 (1)

 

 

52

 

 

$

31.48

 

 

 

0.09

 

 

$

—

 

(1) The ending balance at December 31, 2024 represents stock options that were fully vested and exercisable.

Restricted Stock Units

Information with respect to outstanding RSUs (including both time-based vesting and performance-based vesting) for the year ended December 31, 2024 is as follows (in thousands, except per share amounts):

 

 

Number of Shares
Subject to Time-
based Vesting

 

 

Number of Shares
Subject to
Performance-
based Vesting

 

 

Total Number
of Shares

 

 

Weighted Average
Grant Date Fair
Value Per Share

 

Balance at December 31, 2023

 

 

5,396

 

 

 

1,671

 

 

 

7,067

 

 

$

15.51

 

Granted

 

 

2,602

 

 

 

682

 

 

 

3,284

 

 

$

11.15

 

Vested / released

 

 

(1,864

)

 

 

(14

)

 

 

(1,878

)

 

$

14.57

 

Canceled / forfeited

 

 

(876

)

 

 

(192

)

 

 

(1,068

)

 

$

16.57

 

Balance at December 31, 2024

 

 

5,258

 

 

 

2,147

 

 

 

7,405

 

 

$

13.66

 

Performance-Based Awards

From time to time, the Company may grant PSUs to senior executives, certain employees, and consultants. The value and the vesting of such PSUs are generally linked to one or more performance goals or certain market conditions determined by the Company, in each case on a specified date or dates or over any period or periods determined by the Company and may range from zero to 200% of the grant. For PSUs subject to market conditions, the fair value per award is fixed at the grant date and the amount of compensation expense is not adjusted during the performance period regardless of changes in the level of achievement of the market condition.

In April 2023, in accordance with the EMA executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $2.9 million, which is expected to be recognized over the remaining requisite service period through April 2025.

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of RSUs and PSUs that are based on Company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant.

The following assumptions were used to value the market-based PSUs granted during the period:

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

2022

 

Expected life (years)

 

 

3.0

 

 

1.5 — 2.8

 

 

3.0

 

Risk-free interest rate

 

4.2%

 

 

4.5% — 5.0%

 

2.8%

 

Dividend yield

 

0.0%

 

 

0.0%

 

1.2%

 

Expected volatility

 

43.9%

 

 

44.1% — 51.2%

 

40.9%

 

Assumptions used in the year ended December 31, 2022 were for market-based PSUs granted by the Former Parent.

Stock Repurchase Programs

In April 2024, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to $100.0 million of its common stock (the “Program”). Under the Program, the Company may make repurchases, from time to time, through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions, or other means. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under the Program. During the year ended December 31, 2024, the Company repurchased a total of approximately 2.2 million shares of common stock, at an average price of $9.23 per share for a total cost of $20.0 million. The shares repurchased were permanently retired. No expiration date has been specified for this Program. As of December 31, 2024, the total remaining amount available for repurchase was $80.0 million.

Stock-Based Compensation

Prior to the Separation, the stock-based compensation expense was based on the expense for employees specifically identifiable to Xperi. Consequently, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the costs that the Company would have incurred as an independent company.

Total stock-based compensation expense for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

3,216

 

 

$

3,466

 

 

$

2,906

 

Research and development

 

 

20,634

 

 

 

25,276

 

 

 

21,561

 

Selling, general and administrative

 

 

36,691

 

 

 

40,789

 

 

 

20,836

 

Total stock-based compensation expense

 

$

60,541

 

 

$

69,531

 

 

$

45,303

 

Stock-based compensation expense categorized by award type for the years ended December 31, 2024, 2023 and 2022 is summarized in the table below (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

RSUs

 

$

41,516

 

 

$

45,660

 

 

$

38,233

 

PSUs

 

 

14,283

 

 

 

18,519

 

 

 

3,975

 

ESPP

 

 

4,742

 

 

 

5,352

 

 

 

2,727

 

Stock options

 

 

—

 

 

 

—

 

 

 

368

 

Total stock-based compensation expense

 

$

60,541

 

 

$

69,531

 

 

$

45,303

 

In addition, for the year ended December 31, 2022, $6.9 million of stock-based compensation expense was recognized in operating results as part of the corporate and shared functional employees’ expenses allocation.

As of December 31, 2024, unrecognized stock-based compensation expense related to unvested equity-based awards is as follows (amounts in thousands):

 

 

December 31, 2024

 

 

 

Unrecognized Stock-Based Compensation

 

 

Weighted-Average Period to Recognize Expense
(in years)

 

RSUs

 

$

44,183

 

 

 

1.7

 

PSUs

 

 

11,232

 

 

 

1.6

 

ESPP

 

 

1,277

 

 

 

0.4

 

Total unrecognized stock-based compensation expense

 

$

56,692

 

 

 

 
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 14 – INCOME TAXES

The components of income (loss) before taxes are as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

(31,758

)

 

$

(142,447

)

 

$

(667,612

)

Foreign

 

 

43,337

 

 

 

12,801

 

 

 

(80,005

)

Income (loss) before taxes

 

$

11,579

 

 

$

(129,646

)

 

$

(747,617

)

The provision for income taxes consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

3,696

 

 

$

1,398

 

 

$

—

 

Foreign

 

 

12,161

 

 

 

16,546

 

 

 

21,252

 

State and local

 

 

(476

)

 

 

694

 

 

 

1,723

 

Total current

 

 

15,381

 

 

 

18,638

 

 

 

22,975

 

Deferred:

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

(10

)

 

 

19

 

 

 

(5,431

)

Foreign

 

 

(2,748

)

 

 

(8,113

)

 

 

(3,871

)

State and local

 

 

(175

)

 

 

(502

)

 

 

(84

)

Total deferred

 

 

(2,933

)

 

 

(8,596

)

 

 

(9,386

)

Provision for income taxes

 

$

12,448

 

 

$

10,042

 

 

$

13,589

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes.

As of December 31, 2024, the Company released $1.3 million of valuation allowance associated with certain foreign deferred tax assets due to the change in circumstances that affect the realizability of those deferred tax assets.

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Loss carryforward

 

$

33,497

 

 

$

22,442

 

Research credits

 

 

14,998

 

 

 

10,513

 

Foreign tax credits

 

 

10,026

 

 

 

5,796

 

Accrued expenses

 

 

16,377

 

 

 

25,729

 

Fixed and intangible assets

 

 

6,216

 

 

 

38,899

 

Deferred revenue

 

 

9,768

 

 

 

10,652

 

Capitalized R&D

 

 

95,281

 

 

 

87,465

 

Lease liability

 

 

8,981

 

 

 

11,075

 

Other tax credits

 

 

2,378

 

 

 

2,318

 

Other

 

 

1,668

 

 

 

—

 

Gross deferred tax assets

 

 

199,190

 

 

 

214,889

 

Valuation allowance

 

 

(152,235

)

 

 

(157,595

)

Net deferred tax assets

 

 

46,955

 

 

 

57,294

 

Deferred tax liabilities:

 

 

 

 

 

 

Acquired intangible assets

 

 

(27,391

)

 

 

(36,416

)

Revenue recognition

 

 

—

 

 

 

(4,574

)

Operating ROU assets

 

 

(7,603

)

 

 

(9,758

)

Other

 

 

(6,224

)

 

 

(8,436

)

Gross deferred tax liabilities

 

 

(41,218

)

 

 

(59,184

)

Net deferred tax assets (liabilities)

 

$

5,737

 

 

$

(1,890

)

The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering both positive and negative evidence to assess the recoverability of the Company’s net deferred tax assets, the Company determined that it was not more-likely-than-not that it would realize its federal, certain state and certain foreign deferred tax assets. The Company intends to continue maintaining a valuation allowance on its federal deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of certain federal deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release depends on the level of profitability that the Company is able to achieve.

As of December 31, 2024, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

22,075

 

 

2027—2030

State (post-apportionment)

 

$

93,782

 

 

2025—Indefinite

As of December 31, 2024, the Company had recorded deferred tax assets for the tax effects of the following gross capital loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

78,975

 

 

2029

State (post-apportionment)

 

$

14,563

 

 

2029—2039

 

As of December 31, 2024, the Company had the following credits available to reduce future income tax expense (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal research and development credits

 

$

12,671

 

 

2031—2044

State research and development credits

 

$

20,326

 

 

Indefinite

Foreign tax credits

 

$

12,404

 

 

2033—2034

The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

157,595

 

 

$

111,779

 

 

$

101,529

 

Charged (credited) to expenses

 

 

(5,051

)

 

 

46,397

 

 

 

19,321

 

Charged (credited) to other accounts

 

 

(309

)

 

 

(581

)

 

 

(9,071

)

Balance at end of period

 

$

152,235

 

 

$

157,595

 

 

$

111,779

 

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to income (loss) before income taxes as a result of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S. federal statutory rate

 

$

2,432

 

 

$

(27,226

)

 

$

(157,032

)

State, net of federal benefit

 

 

501

 

 

 

532

 

 

 

1,974

 

Stock-based compensation

 

 

5,390

 

 

 

6,758

 

 

 

2,036

 

Executive compensation limitation

 

 

560

 

 

 

1,911

 

 

 

2,286

 

Research tax credit

 

 

(3,998

)

 

 

(6,983

)

 

 

(5,225

)

Foreign withholding tax

 

 

11,051

 

 

 

12,811

 

 

 

8,079

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

107,831

 

Restructuring and transaction costs

 

 

1,394

 

 

 

649

 

 

 

293

 

Divestiture-related activity

 

 

5,339

 

 

 

(26,915

)

 

 

—

 

Foreign rate differential

 

 

(10,651

)

 

 

(7,354

)

 

 

19,337

 

Foreign tax credit

 

 

(10,338

)

 

 

(10,124

)

 

 

(977

)

Change in valuation allowance

 

 

5,412

 

 

 

50,314

 

 

 

20,491

 

Effect of cross-border tax laws

 

 

2,580

 

 

 

10,151

 

 

 

7,656

 

Unrecognized tax benefits

 

 

(238

)

 

 

746

 

 

 

6,798

 

Change in estimates

 

 

3,387

 

 

 

3,844

 

 

 

(1,802

)

Change in other comprehensive income

 

 

(826

)

 

 

—

 

 

 

—

 

Non-deductible expense

 

 

184

 

 

 

—

 

 

 

—

 

Others

 

 

269

 

 

 

928

 

 

 

1,844

 

Total

 

$

12,448

 

 

$

10,042

 

 

$

13,589

 

At December 31, 2024, the Company asserts that it will not permanently reinvest its foreign earnings outside the United States. The Company anticipates that the cash from its foreign earnings may be used domestically to fund operations or used for other business needs. The accumulated undistributed earnings generated by its foreign subsidiaries was approximately $33.1 million. Substantially all of these earnings will not be taxable upon repatriation to the United States since they will be treated as previously taxed earnings and profits. The U.S. state income taxes and foreign withholding taxes related to the distributable cash of the Company’s foreign subsidiaries are not expected to be material.

The following table summarizes the total unrecognized tax benefits and the amounts of which that would affect the effective tax rate upon recognition of such as of December 31, 2024, 2023, and 2022 (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Total unrecognized tax benefits

 

$

15,376

 

 

$

23,587

 

 

$

19,354

 

Amount affecting the effective tax rate upon recognition of unrecognized tax benefits

 

$

1,198

 

 

$

9,592

 

 

$

8,791

 

The Company is unable to make a reasonable estimate of the timing of the long-term payments or the amount by which the unrecognized tax benefits will increase or decrease over the next 12 months.

The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Total unrecognized tax benefits at January 1

 

$

23,587

 

 

$

19,354

 

 

$

8,438

 

Changes due to Separation, mergers, and dispositions

 

 

(6,858

)

 

 

—

 

 

 

1,682

 

Increases for tax positions related to the current year

 

 

2,009

 

 

 

4,070

 

 

 

8,793

 

Increases for tax positions related to prior years

 

 

33

 

 

 

961

 

 

 

444

 

Decreases for tax positions related to prior years

 

 

(3,395

)

 

 

(798

)

 

 

(3

)

Total unrecognized tax benefits at December 31

 

$

15,376

 

 

$

23,587

 

 

$

19,354

 

It is the Company’s policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the years ended December 31, 2024, 2023, and 2022, we recognized interest and penalties related to unrecognized tax benefits of an immaterial amount, $0.3 million, and an immaterial amount, respectively. As of December 31, 2024 and 2023, accrued interest and penalties were $0.1 million and $0.4 million, respectively.

With few exceptions, the Company’s 2020 through 2024 tax years are open to examination in the United States, any net operating losses or credits that were generated in prior years, but not yet fully utilized in a year that is closed under the statute of limitations, may also be subject to examination.
v3.25.0.1
Geographic and Segment Related Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Geographic and Segment Related Information

NOTE 15 - GEOGRAPHIC AND SEGMENT RELATED INFORMATION

Geographic Information

Long-lived assets consist primarily of property and equipment and operating lease ROU assets. The following table summarizes long-lived assets by geographic region (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

U.S.

 

$

60,847

 

 

$

69,725

 

Europe

 

 

7,656

 

 

 

3,416

 

Asia and other

 

 

6,052

 

 

 

8,328

 

Total

 

$

74,555

 

 

$

81,469

 

See Note 3—Revenue for information on revenue by geographic region.

Segment Reporting

The Company has one operating and reportable segment. The Company’s technologies are integrated into consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. The Company’s Chief Executive Officer has been determined to be the chief operating decision maker (“CODM”) in accordance with the authoritative guidance on segment reporting. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance and decides how to allocate resources based on

net income (loss) that also is reported on the statements of operations as consolidated net income (loss). The measure of segment assets is reported on the balance sheet as total consolidated assets.

The following table presents information about reported segment revenue, significant segment expenses, and segment net loss for the years ended December 31, 2024, 2023, and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue, excluding depreciation and amortization of intangible assets (1)

 

 

113,756

 

 

 

118,628

 

 

 

122,946

 

Research and development (1)

 

 

191,352

 

 

 

222,833

 

 

 

216,355

 

Selling, general and administrative (1)

 

 

218,106

 

 

 

233,403

 

 

 

217,402

 

Depreciation expense

 

 

12,638

 

 

 

16,645

 

 

 

20,501

 

Amortization expense

 

 

43,376

 

 

 

57,752

 

 

 

62,209

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

604,555

 

Impairment of long-lived assets

 

 

1,535

 

 

 

1,710

 

 

 

7,724

 

Interest and other income, net

 

 

(829

)

 

 

(2,991

)

 

 

(3,327

)

Interest expense - debt

 

 

3,008

 

 

 

3,000

 

 

 

1,512

 

Gain on divestitures

 

 

(100,833

)

 

 

—

 

 

 

—

 

Provision for income taxes

 

 

12,448

 

 

 

10,042

 

 

 

13,589

 

Consolidated net loss

 

$

(869

)

 

$

(139,688

)

 

$

(761,206

)
(1)
Includes total salaries, bonuses, and employee benefits of $278.0 million, $323.4 million, and $318.5 million for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.0.1
Related Party Transactions and Net Investment By Former Parent
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions and Net Investment By Former Parent

NOTE 16 - RELATED PARTY TRANSACTIONS AND NET INVESTMENT BY FORMER PARENT

For periods prior to the Separation, the consolidated financial statements have been prepared on a standalone basis and were derived from the consolidated financial statements and accounting records of the Former Parent. The following disclosure summarizes activity prior to the Separation between the Company and the Former Parent, including affiliates of the Former Parent that were not part of the Separation.

Allocation of Corporate Expenses

Prior to Separation, the consolidated financial statements included expenses for certain management and support functions which were provided on a centralized basis within the Former Parent, as described in Note 2—Summary of Significant Accounting Policies. These management and support functions include, but are not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures of the Company and the Former Parent.

The amount of these allocations from the Former Parent was $47.6 million, which included $3.0 million for depreciation expenses and $44.6 million for selling, general and administrative for the year ended December 31, 2022.

Management believes these cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. The allocations may not, however, be indicative of the actual expenses that would have been incurred had the Company operated as a standalone public company. Actual costs that may have been incurred if the Company had been a standalone public company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by the Company’s employees, and strategic decisions made in areas such as selling, information technology and infrastructure.

Net Transfers from Former Parent

A reconciliation of net transfers from the Former Parent on the consolidated statements of equity to the corresponding amount on the consolidated statements of cash flows was as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

Total net transfers from Former Parent per consolidated statements of equity

 

$

100,915

 

Stock-based compensation

 

 

(45,303

)

Net proceeds from capital contributions by Former Parent

 

 

83,235

 

Issuance of equity to noncontrolling interest

 

 

(1,423

)

Other

 

 

(1,387

)

Total net transfers from Former Parent per consolidated statements of cash flows

 

$

136,037

 
v3.25.0.1
Benefit Plan
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Benefit Plan

NOTE 17 – BENEFIT PLAN

The Company maintains a 401(k) retirement savings plan that allows voluntary contributions by all eligible U.S. employees upon their hire date. Eligible employees may elect to contribute up to the maximum amount allowed under Internal Revenue Service regulations. The Company can make discretionary contributions under the 401(k) plan. During the years ended December 31, 2024, 2023 and 2022, the Company’s employer 401(k) match expense was approximately $3.9 million, $4.3 million, and $5.4 million, respectively.
v3.25.0.1
Subsequent Event
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Event

NOTE 18 - SUBSEQUENT EVENT

Receivables Financing Agreement

On February 21, 2025, the Company and Xperi SPV LLC (“Xperi SPV”), a wholly-owned special purpose subsidiary, entered into a Receivables Financing Agreement (the “RFA”) with PNC Bank, National Association (“PNC”), and PNC Capital Markets LLC, and a Sale and Contribution Agreement (the “SCA,” and, together with the RFA, the “RF Agreements”) among the Company, Xperi SPV and certain other wholly-owned subsidiaries of the Company (collectively, the “Originators”) to establish an accounts receivable securitization program (the “AR Facility”). The Company controls Xperi SPV and will consolidate it in its consolidated financial statements. Under the AR Facility, the Originators have agreed to periodically transfer and sell current and future accounts receivable and all related rights to Xperi SPV through the SCA. In turn, Xperi SPV may borrow funds from PNC from time to time, secured by liens on the receivables and other assets of Xperi SPV. The maximum amount potentially available to borrow, based on the eligibility of the receivables, is $55.0 million. Interest on the outstanding balance is accrued at the sum of (i) either a monthly term secured overnight financing rate (“SOFR”) or, for any day, the SOFR rate for a one-month period, as published by PNC, at the election of the Company, and (ii) 1.90%. Additional interest of 0.50% is accrued on the unused borrowing limit. Interest is payable on a monthly basis. The AR Facility matures on February 21, 2028, unless terminated earlier pursuant to its terms. Repayment of the outstanding principal is due at maturity; however, the Company may prepay all of the outstanding principal at any time, plus accrued and unpaid interest, without any premium or penalty. If, at any time, the aggregate outstanding principal exceeds the eligibility limit of the receivables, the Company is required to repay the excess amount borrowed immediately. Subject in some cases to cure periods, amounts outstanding under the RFA may be accelerated for customary events of default including, but not limited to, the failure to make payments or deposits when due, borrowing base deficiencies, and the failure to observe or comply with any covenant.

Upon entering into the RFA on February 21, 2025, the Company borrowed $40.0 million under the AR Facility.

Repayment on Senior Unsecured Promissory Note

On February 21, 2025, the Company voluntarily repaid the full $50.0 million outstanding balance of its Promissory Note (as described in Note 9—Debt) along with accrued interest, with $40.0 million borrowed from the AR Facility with PNC (as described above) and the remainder with cash on hand.
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”).

The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting.

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2024, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the consolidated balance sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 7, the Former

Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company.

Prior to the Separation, the consolidated statements of operations and comprehensive loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement, and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount, or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.

During the periods prior to the Separation that are presented in the accompanying consolidated financial statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these consolidated financial statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the consolidated financial statements of the Company. Similarly, the tax treatment of certain items reflected in the consolidated financial statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the consolidated statements of operations for periods prior to the Separation Date are not necessarily representative of the taxes that arose when the Company filed its income tax returns independent from the Former Parent’s returns for the tax year ended December 31, 2022. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the Separation Date.

In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”, later known as Xperi Pylon Corporation), a subsidiary focused on edge inference hardware and software technologies. In October 2024, Perceive sold substantially all of its assets and certain liabilities to Amazon.com Services LLC. Refer to Note 7—Acquisitions and Divestitures for details concerning an asset sale transaction related to Perceive.

As of December 31, 2024, Perceive was completely dissolved after all of its remaining assets and liabilities were transferred to the Company. At the time of its dissolution, the Company recognized a loss of $4.8 million within interest and other income, net, on its consolidated statements of operations upon the derecognition of the remaining balance of the noncontrolling interests in Perceive.
Principles of Consolidation

Principles of Consolidation

Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2024, the Company’s financial statements were prepared on a consolidated basis and include the accounts of the Company and its wholly owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.

Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined business of the Company have been eliminated.
Foreign Currency Remeasurement and Transactions

Foreign Currency Remeasurement and Transactions

The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical exchange rates. Revenue and expenses are remeasured at the exchange rates in effect on the day the transaction occurs, except

for those expenses related to non-monetary assets and liabilities, which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in interest and other income, net in the consolidated statements of operations.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the fair value of note receivable and deferred consideration in connection with the AutoSense Divestiture (as described in Note 7—Acquisitions and Divestitures), the assessment of useful lives and recoverability of other intangible assets and long-lived assets, purchase accounting resulting from business combinations, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and valuation of performance-based awards with a market condition. Actual results experienced by the Company may differ from management’s estimates.
Net Investment by Former Parent

Net Investment by Former Parent

Net investment by Former Parent on the consolidated balance sheets and consolidated statements of equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit.

Net Loss Per Share Attributable to the Company

Net Loss Per Share Attributable to the Company

Net loss per share attributable to the Company is computed by dividing net loss attributable to the Company for the period by the weighted-average number of common shares outstanding during the period. For periods prior to the Separation, the calculations of basic and diluted loss per share were based on the number of shares outstanding on October 1, 2022, the Separation Date. In addition, it is assumed that there were no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive.
Revenue Recognition

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See Note 3—Revenue for detailed discussion on revenue recognition and disaggregation of revenue.

Segment Reporting

Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information and manages the business on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment. For additional information, see Note 15—Geographic and Segment Related Information.
Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of deposits maintained in domestic and foreign financial institutions.

Non-Marketable Equity Investments

Non-Marketable Equity Investments

Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in interest and other income, net, in the consolidated statements of operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values,

are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash equivalents, accounts receivable, accounts payable, accrued liabilities, and short-term debt approximates fair value due to the short-term nature of these instruments. Note receivable, deferred consideration from divestitures, and long-term debt are carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes.

Derivative Instruments

Derivative Instruments

The Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in interest and other income, net immediately.

Concentration of Credit and Other Risks

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable, unbilled contracts receivable, a note receivable and deferred consideration from divestiture. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations.

The Company believes that any concentration of credit risk in its accounts receivable and unbilled contracts receivable are substantially mitigated by its evaluation process and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral.

For the years ended December 31, 2024, 2023, and 2022, no customer accounted for 10% or more of total revenue. As of December 31, 2024 and 2023, no customer represented 10% or more of the Company’s net balance of accounts receivable.

As described in Note 7—Acquisitions and Divestitures, in the first quarter of 2024, the Company received a note receivable and deferred consideration from Tobii AB (“Tobii”) as part of the consideration for divesting its AutoSense in-cabin safety business and related imaging solutions (the “AutoSense Divestiture”). Both of these instruments are exposed to credit risk arising from default on repayment from Tobii. The credit risk associated with the note receivable is mitigated by establishing a floating lien and security interest in certain of Tobii’s assets, rights, and properties, whereas the deferred consideration is not secured by any collateral. The Company utilizes valuation methodologies such as internally generated cash flow projections on the principal and interest of each instrument, along with the review of certain other data points, to determine the likelihood that the note receivable or deferred consideration will be repaid. Further, the Company assesses each instrument for credit losses and provides a reserve when full payment on the instruments may not occur as expected, in which case the reserve reflects the excess of the amortized cost basis over the results of the cash flow projections. Based on the results of the internally generated cash flow projections, the Company expects Tobii to make full payment on both instruments in accordance with the underlying agreement. Accordingly, no allowance for credit losses was recorded as of December 31, 2024.
Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection.

Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component.

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.

Inventory

Inventory

Inventories consist primarily of finished DVRs, TiVo Stream 4K, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions.
Property and Equipment

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Computer equipment and software

 

1 to 5 years

Capitalized internal-use software

 

3 years

Office equipment and furniture

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years

Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred.
Capitalization of Cloud Computing Costs

Capitalization of Cloud Computing Costs

The Company capitalizes certain costs related to its enterprise cloud computing arrangements during the application development stage. During the post-implementation stage, these costs are amortized as hosting fees on a straight-line basis over the term of the hosting arrangements.
Acquisitions

Acquisitions

The Company accounts for acquisitions using the acquisition method of accounting in accordance with Accounting Standard Codification Topic ASC 805, Business Combinations (“ASC 805”). Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.

When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key

assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets.
Identified Intangible Assets and Goodwill Impairment

Identified Intangible Assets and Goodwill Impairment

Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from acquisitions, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. Identified indefinite-lived intangible assets include legacy TiVo tradenames and trademarks resulting from acquisitions.

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired. Goodwill was not amortized, but rather evaluated for potential impairment annually. As part of its annual goodwill impairment test using the quantitative approach, the Company recognized a goodwill impairment charge of $604.6 million for the year ended December 31, 2022. See Note 8—Goodwill Impairment and Intangible Assets, Net for more detail regarding the goodwill impairment.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived assets include property and equipment, operating lease right-of-use (“ROU”) assets, and intangible assets. The Company reviews its long-lived assets for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets.

For identified indefinite-lived intangible assets resulting from acquisitions, the Company evaluates their carrying value on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value.

Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and ROU assets calculation.

As a practical expedient, the Company elected to account for lease components and non-lease components such as common area maintenance costs for all data center, office, and facility leases separately.

Research and Development

Research and Development

Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred.

Stock-based Compensation

Stock-based Compensation

Prior to the Separation, certain Company employees participated in the Former Parent’s equity programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses.

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period.

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model.

Income Taxes

Income Taxes

Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these consolidated financial statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties.
Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the consolidated statements of operations. Advertising expenses for the years ended December 31, 2024, 2023 and 2022, were $9.9 million, $8.1 million, and $5.5 million, respectively.
Contingencies

Contingencies

From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the Company to disclose interim and annual disclosures on significant segment expenses and other segment related items and is applicable to companies with a single reportable segment. The Company adopted the annual disclosure requirements effective for the fiscal year ended December 31, 2024, on a retrospective basis, with the interim disclosure requirements becoming effective in the first quarter of 2025. The adoption did not have a material impact on the Company’s consolidated financial statements. For further information, refer to Note 15—Geographic and Segment Related Information.

Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. This guidance is effective on a prospective or retrospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard requires that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. The standard will become effective for the Company’s 2027 annual financial statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date or retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Estimated Useful Life

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Computer equipment and software

 

1 to 5 years

Capitalized internal-use software

 

3 years

Office equipment and furniture

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years
v3.25.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Product Category and Timing of Recognition

The following table summarizes revenue by timing of recognition (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Recognized over time

 

$

362,713

 

 

$

410,865

 

 

$

401,668

 

Recognized at a point in time

 

 

130,975

 

 

 

110,469

 

 

 

100,592

 

Total revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

The following table summarizes revenue by product category (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Pay-TV

 

$

259,712

 

 

$

244,708

 

 

$

249,457

 

Consumer Electronics

 

 

81,993

 

 

 

132,355

 

 

 

128,395

 

Connected Car

 

 

111,144

 

 

 

94,864

 

 

 

84,201

 

Media Platform

 

 

40,839

 

 

 

49,407

 

 

 

40,207

 

Total revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

 
Schedule of Geographic Revenue Information

The following table summarizes revenue by geographic location (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

237,829

 

 

 

48

%

 

$

267,998

 

 

 

51

%

 

$

278,920

 

 

 

56

%

Japan

 

 

80,773

 

 

 

16

 

 

 

83,138

 

 

 

16

 

 

 

65,551

 

 

 

13

 

Europe and Middle East

 

 

46,442

 

 

 

9

 

 

 

41,113

 

 

 

8

 

 

 

42,846

 

 

 

9

 

Latin America

 

 

38,772

 

 

 

8

 

 

 

31,863

 

 

 

6

 

 

 

27,212

 

 

 

5

 

South Korea

 

 

36,926

 

 

 

8

 

 

 

27,099

 

 

 

5

 

 

 

27,870

 

 

 

5

 

China

 

 

24,824

 

 

 

5

 

 

 

35,809

 

 

 

7

 

 

 

30,932

 

 

 

6

 

Other

 

 

28,122

 

 

 

6

 

 

 

34,314

 

 

 

7

 

 

 

28,929

 

 

 

6

 

Total revenue

 

$

493,688

 

 

 

100

%

 

$

521,334

 

 

 

100

%

 

$

502,260

 

 

 

100

%
Schedule of Revenue Recognized in Period

The following table presents additional revenue disclosures (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of the period

 

$

25,202

 

 

$

20,620

 

 

$

24,307

 

Performance obligations satisfied in previous periods (true
ups, recoveries, and settlements) (1)(2)

 

$

9,999

 

 

$

11,863

 

 

$

30,561

 
(1)
True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees that are generally received in the following period, and may include other changes in estimates. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of disputes or litigation during the period for past royalties owed.
(2)
For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.
Schedule of Remaining Performance Obligations Company’s remaining performance obligations and the period over which they are expected to be recognized were as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

57,544

 

2026

 

 

30,564

 

2027

 

 

16,308

 

2028

 

 

7,139

 

2029

 

 

2,077

 

Thereafter

 

 

144

 

Total

 

$

113,776

 
Schedule of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

1,906

 

 

$

190

 

 

$

1,950

 

 

$

369

 

 

$

2,255

 

 

$

468

 

Provision for credit losses

 

 

(172

)

 

 

308

 

 

 

497

 

 

 

52

 

 

 

799

 

 

 

(99

)

Recoveries/charge-off

 

 

(788

)

 

 

1

 

 

 

(541

)

 

 

(231

)

 

 

(1,104

)

 

 

—

 

Balance at end of period

 

$

946

 

 

$

499

 

 

$

1,906

 

 

$

190

 

 

$

1,950

 

 

$

369

 
v3.25.0.1
Composition Of Certain Financial Statement Captions (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Current Assets

Other current assets consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Prepaid expenses

 

$

21,027

 

 

$

19,913

 

Prepaid income taxes

 

 

8,295

 

 

 

4,813

 

Finished goods inventory

 

 

1,061

 

 

 

7,279

 

Other

 

 

2,105

 

 

 

6,869

 

Total

 

$

32,488

 

 

$

38,874

 
Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Computer equipment and software

 

$

54,737

 

 

$

52,740

 

Capitalized internal-use software

 

 

23,384

 

 

 

11,224

 

Office equipment and furniture

 

 

10,773

 

 

 

11,074

 

Building

 

 

17,876

 

 

 

17,876

 

Land

 

 

5,300

 

 

 

5,300

 

Leasehold improvements

 

 

10,778

 

 

 

11,758

 

Construction in progress

 

 

1,979

 

 

 

3,319

 

Total property and equipment

 

 

124,827

 

 

 

113,291

 

Less: accumulated depreciation and amortization(1)

 

 

(80,354

)

 

 

(71,722

)

Property and equipment, net

 

$

44,473

 

 

$

41,569

 

 

(1)
Includes $4.1 million and $1.6 million as of December 31, 2024 and 2023, respectively, of accumulated amortization associated with capitalized internal-use software.
Schedule of Capitalization and Amortization of Internal-use Software

The following table summarizes the capitalization and amortization of internal-use software for the years ended December 31, 2024, 2023 and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Costs capitalized associated with internal-use software

 

$

12,160

 

 

$

5,933

 

 

$

1,104

 

Amortization of capitalized internal-use software

 

 

2,547

 

 

 

1,503

 

 

 

61

 
Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Employee compensation and benefits

 

$

33,360

 

 

$

44,095

 

Accrued expenses

 

 

16,108

 

 

 

24,307

 

Current portion of operating lease liabilities

 

 

15,353

 

 

 

14,760

 

Accrued other taxes

 

 

8,370

 

 

 

6,464

 

Accrued income taxes

 

 

6,259

 

 

 

1,991

 

Third-party royalties

 

 

5,171

 

 

 

8,478

 

Other

 

 

9,799

 

 

 

9,866

 

Total

 

$

94,420

 

 

$

109,961

 
v3.25.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Notional and Fair Values of All Derivative Instruments

The notional and fair values of all derivative instruments were as follows (in thousands):

 

 

 

 

December 31,

 

 

 

Location in Balance Sheet

 

2024

 

 

2023

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

Fair value—foreign exchange contract assets, net amount

 

Prepaid expenses and other current assets

 

$

—

 

 

$

1,184

 

Fair value—foreign exchange contract liabilities, net amount

 

Accrued liabilities

 

$

1,858

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Notional value held to buy U.S. dollars in exchange for other currencies

 

 

 

$

5,074

 

 

$

738

 

Notional value held to sell U.S. dollars in exchange for other currencies

 

 

 

$

57,329

 

 

$

45,468

 
Schedule of Gross Amounts of Foreign Currency Forward Contracts

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s consolidated balance sheets were as follows (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Gross amount of recognized assets

 

$

173

 

 

$

1,300

 

Gross amount of recognized liabilities

 

 

(2,031

)

 

 

(116

)

Net (liabilities) assets

 

$

(1,858

)

 

$

1,184

 
Schedule of Accumulated Other Comprehensive Loss (AOCL)

The changes in AOCL related to the cash flow hedges consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning balance

 

$

1,034

 

 

$

(94

)

 

$

—

 

Other comprehensive (loss) gain before reclassification

 

 

(2,107

)

 

 

1,190

 

 

 

(94

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(785

)

 

 

(62

)

 

 

—

 

Net current period other comprehensive (loss) gain

 

 

(2,892

)

 

 

1,128

 

 

 

(94

)

Ending balance

 

$

(1,858

)

 

$

1,034

 

 

$

(94

)
Summary of the Gains Recognized upon Settlement of the Hedged Transactions

The following table summarizes the gains recognized upon settlement of the hedged transactions in the consolidated statement of operations for the years ended December 31, 2024 and 2023 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Research and development

 

$

690

 

 

$

841

 

Selling, general and administrative

 

 

74

 

 

 

192

 

Total

 

$

764

 

 

$

1,033

 
v3.25.0.1
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Values

The following table presents the fair value hierarchy for the Company’s assets and liabilities recorded at their carrying amount, bur for which the fair value is disclosed (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Note receivable, noncurrent

 

$

29,702

 

 

$

28,223

 

 

$

—

 

 

$

—

 

Deferred consideration from divestiture

 

 

18,217

 

 

 

18,342

 

 

 

—

 

 

 

—

 

Total assets

 

$

47,919

 

 

$

46,565

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Senior Unsecured Promissory Note

 

$

50,000

 

 

$

50,000

 

 

$

50,000

 

 

$

49,659

 
v3.25.0.1
Acquisitions and Divestitures (Tables)
 12 Months Ended
Dec. 31, 2024
Business Acquisition [Line Items]  
Schedule of Carrying Amount of Note

The Company elected to present accrued interest within the carrying amount of note receivable, noncurrent, in the consolidated balance sheets. As of December 31, 2024, the carrying amount of the Tobii Note is as follows (in thousands):

 

 

December 31, 2024

 

Outstanding principal amount

 

$

27,676

 

Add: interest accrued to date

 

 

2,026

 

Carrying amount—note receivable, noncurrent

 

$

29,702

 
Schedule of Deferred Cash Consideration

The deferred consideration consists of guaranteed future cash payments, which are scheduled to be made by Tobii in four annual payments as follows (in thousands):

Date of Payment:

 

Amount

 

February 15, 2028

 

$

3,000

 

February 15, 2029

 

 

2,250

 

February 15, 2030

 

 

4,500

 

February 15, 2031

 

 

5,250

 

Total future payments

 

$

15,000

 
Schedule of Net Carrying Amount of Deferred Consideration

As of December 31, 2024, the net carrying amount of the deferred consideration is as follows (in thousands):

 

 

December 31, 2024

 

Total deferred consideration

 

$

15,000

 

Less: unamortized discount on deferred consideration

 

 

(8,197

)

Net carrying amount

 

$

6,803

 
Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale

The following table summarizes the carrying amounts of assets and liabilities classified as held for sale in connection with the AutoSense Divestiture on the Company’s consolidated balance sheets as of December 31, 2023 (in thousands):

 

 

December 31, 2023

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,349

 

 

$

—

 

 

$

12,349

 

Accounts receivable, net

 

 

1,323

 

 

 

—

 

 

 

1,323

 

Unbilled contracts receivable, net

 

 

1,209

 

 

 

5,320

 

 

 

6,529

 

Prepaid expenses and other current assets

 

 

979

 

 

 

—

 

 

 

979

 

Property and equipment, net

 

 

—

 

 

 

2,391

 

 

 

2,391

 

Operating lease right-of-use assets

 

 

—

 

 

 

3,346

 

 

 

3,346

 

Other noncurrent assets

 

 

—

 

 

 

1,192

 

 

 

1,192

 

Total assets held for sale (1)

 

$

15,860

 

 

$

12,249

 

 

$

28,109

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

244

 

 

$

—

 

 

$

244

 

Accrued liabilities

 

 

4,821

 

 

 

—

 

 

 

4,821

 

Deferred revenue

 

 

1,126

 

 

 

—

 

 

 

1,126

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

2,741

 

 

 

2,741

 

Other noncurrent liabilities

 

 

—

 

 

 

7,064

 

 

 

7,064

 

Total liabilities held for sale

 

$

6,191

 

 

$

9,805

 

 

$

15,996

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

9,669

 

 

$

2,444

 

 

$

12,113

 
(1)
Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.
Schedule of Net Carrying Amount of Holdback Consideration

As of December 31, 2024, the net carrying amount of the holdback consideration is as follows (in thousands):

 

 

December 31, 2024

 

Holdback consideration

 

$

12,000

 

Less: unamortized discount on holdback consideration

 

 

(586

)

Net carrying amount

 

$

11,414

 
Perceive Corporation  
Business Acquisition [Line Items]  
Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale the Company derecognized the carrying amounts of the following assets and liabilities (in thousands):

 

 

October 2, 2024

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

$

1,306

 

 

$

—

 

 

$

1,306

 

Property and equipment, net

 

 

—

 

 

 

95

 

 

 

95

 

Operating lease right-of-use assets

 

 

—

 

 

 

72

 

 

 

72

 

Other noncurrent assets

 

 

—

 

 

 

4

 

 

 

4

 

Total assets held for sale

 

$

1,306

 

 

$

171

 

 

$

1,477

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accrued liabilities

 

 

67

 

 

 

—

 

 

 

67

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

6

 

 

 

6

 

Total liabilities held for sale

 

$

67

 

 

$

6

 

 

$

73

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

1,239

 

 

$

165

 

 

$

1,404

 
Tobii AB  
Business Acquisition [Line Items]  
Schedule of Principal Payments

The Tobii Note has the following scheduled principal repayments (in thousands):

Date of Principal Payment:

 

Amount

 

April 1, 2027

 

$

10,000

 

April 1, 2028

 

 

10,000

 

April 1, 2029

 

 

7,676

 

Total principal payments

 

$

27,676

 

 

The Company elected to present accrued interest within the carrying amount of note receivable, noncurrent, in the consolidated balance sheets. As of December 31, 2024, the carrying amount of the Tobii Note is as follows (in thousands):

 

 

December 31, 2024

 

Outstanding principal amount

 

$

27,676

 

Add: interest accrued to date

 

 

2,026

 

Carrying amount—note receivable, noncurrent

 

$

29,702

 
Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale the Company derecognized the carrying amounts of the following assets and liabilities (in thousands):

 

 

January 31, 2024

 

 

 

Current

 

 

Noncurrent

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,025

 

 

$

—

 

 

$

11,025

 

Accounts receivable, net

 

 

3,392

 

 

 

—

 

 

 

3,392

 

Unbilled contracts receivable, net

 

 

1,398

 

 

 

5,320

 

 

 

6,718

 

Prepaid expenses and other current assets

 

 

812

 

 

 

—

 

 

 

812

 

Property and equipment, net

 

 

—

 

 

 

2,291

 

 

 

2,291

 

Operating lease right-of-use assets

 

 

—

 

 

 

3,272

 

 

 

3,272

 

Other noncurrent assets

 

 

—

 

 

 

2,887

 

 

 

2,887

 

Total assets held for sale (1)

 

$

16,627

 

 

$

13,770

 

 

$

30,397

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

248

 

 

$

—

 

 

$

248

 

Accrued liabilities

 

 

4,933

 

 

 

—

 

 

 

4,933

 

Deferred revenue

 

 

1,114

 

 

 

—

 

 

 

1,114

 

Operating lease liabilities, noncurrent

 

 

—

 

 

 

2,708

 

 

 

2,708

 

Other noncurrent liabilities

 

 

—

 

 

 

7,064

 

 

 

7,064

 

Total liabilities held for sale

 

$

6,295

 

 

$

9,772

 

 

$

16,067

 

 

 

 

 

 

 

 

 

 

 

Net assets held for sale

 

$

10,332

 

 

$

3,998

 

 

$

14,330

 
(1)
Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.
Vewd  
Business Acquisition [Line Items]  
Schedule of Estimated Fair Value that Allocated to Assets and Liabilities The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date (fair value amounts in thousands):

 

 

Estimated
Useful
Life (years)

 

 

 

 

 

Estimated
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

 

Technology

 

7

 

 

 

28,050

 

 

 

 

Customer relationships - large

 

7

 

 

 

4,900

 

 

 

 

Customer relationships - small

 

4

 

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

 

870

 

 

 

 

Trade name

 

 

5

 

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

 

(307

)

Total purchase price

 

 

 

 

 

 

 

$

102,913

 
Schedule of Unaudited Pro Forma Financial Information The following table presents the pro forma operating results as if the acquired operations of Vewd had been included in the Company’s consolidated statements of operations as of January 1, 2021 (unaudited, in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

Revenue

 

$

508,636

 

Net loss attributable to the Company

 

$

(769,483

)
v3.25.0.1
Goodwill Impairment and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

 

 

 

 

December 31, 2024

 

 

 

Useful
Life
(Years)

 

Gross
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

17,281

 

 

$

(5,687

)

 

$

11,594

 

Existing technology / content database

 

5-10

 

 

219,912

 

 

 

(194,041

)

 

 

25,871

 

Customer contracts and related relationships

 

3-9

 

 

493,685

 

 

 

(389,251

)

 

 

104,434

 

Trademarks/trade name

 

4-10

 

 

39,313

 

 

 

(38,898

)

 

 

415

 

Non-compete agreements

 

1-2

 

 

3,101

 

 

 

(3,101

)

 

 

—

 

Total finite-lived intangible assets

 

 

 

 

773,292

 

 

 

(630,978

)

 

 

142,314

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

794,692

 

 

$

(630,978

)

 

$

163,714

 

 

 

 

 

 

December 31, 2023

 

 

 

Useful
Life
(Years)

 

Gross
Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

17,281

 

 

$

(3,478

)

 

$

13,803

 

Existing technology / content database

 

5-10

 

 

219,717

 

 

 

(181,713

)

 

 

38,004

 

Customer contracts and related relationships

 

3-9

 

 

493,685

 

 

 

(365,074

)

 

 

128,611

 

Trademarks/trade name

 

4-10

 

 

39,313

 

 

 

(34,453

)

 

 

4,860

 

Non-compete agreements

 

1-2

 

 

3,101

 

 

 

(2,884

)

 

 

217

 

Total finite-lived intangible assets

 

 

 

 

773,097

 

 

 

(587,602

)

 

 

185,495

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

794,497

 

 

$

(587,602

)

 

$

206,895

 

Total intangible assets excluded certain finite-lived intangible assets with a gross amount of $35.2 million, which were fully amortized and classified as held for sale as of December 31, 2023 in connection with the Divestiture (as described in Note 7).
Estimated Future Amortization Expense

As of December 31, 2024, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

34,838

 

2026

 

 

31,508

 

2027

 

 

30,665

 

2028

 

 

30,327

 

2029

 

 

14,341

 

Thereafter

 

 

635

 

Total amortization

 

$

142,314

 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Operating Lease Costs

The components of operating lease costs were as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Fixed lease cost (1)

 

$

16,966

 

 

$

20,306

 

 

$

20,581

 

Variable lease cost

 

 

4,164

 

 

 

5,130

 

 

 

5,365

 

Less: sublease income

 

 

(8,192

)

 

 

(9,896

)

 

 

(9,498

)

Total operating lease cost

 

$

12,938

 

 

$

15,540

 

 

$

16,448

 

 

(1)
Includes short-term leases expensed on a straight-line basis.
Schedule of Supplemental Cash Flow Information arising from Lease Transactions

The following table presents supplemental cash flow information arising from lease transactions (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash payments included in the measurement of operating lease liabilities

 

$

17,669

 

 

$

19,968

 

 

$

20,307

 

Operating ROU assets obtained in exchange for lease obligations

 

$

5,975

 

 

$

11,563

 

 

$

14,360

 
Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities

The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Weighted-average remaining lease term (in years)

 

 

2.9

 

 

 

3.4

 

Weighted-average discount rate

 

 

5.5

%

 

 

5.3

%
Schedule of Future Minimum Lease Payments and Related Lease Liabilities

Future minimum lease payments and related lease liabilities as of December 31, 2024 were as follows (in thousands):

 

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2025

 

$

16,941

 

 

$

(6,333

)

 

$

10,608

 

2026

 

 

11,184

 

 

 

(1,563

)

 

 

9,621

 

2027

 

 

5,249

 

 

 

(368

)

 

 

4,881

 

2028

 

 

3,019

 

 

 

(379

)

 

 

2,640

 

2029

 

 

1,841

 

 

 

(291

)

 

 

1,550

 

Thereafter

 

 

277

 

 

 

—

 

 

 

277

 

Total lease payments

 

 

38,511

 

 

$

(8,934

)

 

$

29,577

 

Less: imputed interest

 

 

(3,226

)

 

 

 

 

 

 

Present value of operating lease liabilities:

 

$

35,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: operating lease liabilities, current portion

 

 

(15,353

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

19,932

 

 

 

 

 

 

 
(1)
Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.25.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as of December 31, 2024 were as follows (in thousands):

Year Ending December 31:

 

Amounts

 

2025

 

$

47,867

 

2026

 

 

37,497

 

2027

 

 

16,210

 

2028

 

 

10,150

 

2029

 

 

10,066

 

Thereafter

 

 

16,104

 

Total

 

$

137,894

 
v3.25.0.1
Net Loss Per Share Attributable To The Company (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted shares (in thousands, except per share amounts):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss attributable to the Company - basic and diluted

 

$

(14,008

)

 

$

(136,613

)

 

$

(757,484

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in computing net loss per share attributable to the Company - basic and diluted

 

 

45,057

 

 

 

43,012

 

 

 

42,029

 

Net loss per share attributable to the Company - basic and diluted

 

$

(0.31

)

 

$

(3.18

)

 

$

(18.02

)

 
Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Stock options

 

 

52

 

 

 

106

 

 

 

146

 

Restricted stock units

 

 

7,405

 

 

 

7,067

 

 

 

4,604

 

ESPP

 

 

60

 

 

 

81

 

 

 

—

 

Total

 

 

7,517

 

 

 

7,254

 

 

 

4,750

 
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Stock Option Activity (in thousands, except per share amounts):

 

 

Number of
Shares Subject
to Stock Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value

 

Balance at December 31, 2023

 

 

106

 

 

$

26.87

 

 

 

1.69

 

 

$

—

 

Options canceled / forfeited / expired

 

 

(54

)

 

$

22.47

 

 

 

 

 

 

 

Balance at December 31, 2024 (1)

 

 

52

 

 

$

31.48

 

 

 

0.09

 

 

$

—

 

(1) The ending balance at December 31, 2024 represents stock options that were fully vested and exercisable.
Summary of Restricted Stock Awards and Units

Information with respect to outstanding RSUs (including both time-based vesting and performance-based vesting) for the year ended December 31, 2024 is as follows (in thousands, except per share amounts):

 

 

Number of Shares
Subject to Time-
based Vesting

 

 

Number of Shares
Subject to
Performance-
based Vesting

 

 

Total Number
of Shares

 

 

Weighted Average
Grant Date Fair
Value Per Share

 

Balance at December 31, 2023

 

 

5,396

 

 

 

1,671

 

 

 

7,067

 

 

$

15.51

 

Granted

 

 

2,602

 

 

 

682

 

 

 

3,284

 

 

$

11.15

 

Vested / released

 

 

(1,864

)

 

 

(14

)

 

 

(1,878

)

 

$

14.57

 

Canceled / forfeited

 

 

(876

)

 

 

(192

)

 

 

(1,068

)

 

$

16.57

 

Balance at December 31, 2024

 

 

5,258

 

 

 

2,147

 

 

 

7,405

 

 

$

13.66

 
Summary of Stock-Based Compensation Expense

Total stock-based compensation expense for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

3,216

 

 

$

3,466

 

 

$

2,906

 

Research and development

 

 

20,634

 

 

 

25,276

 

 

 

21,561

 

Selling, general and administrative

 

 

36,691

 

 

 

40,789

 

 

 

20,836

 

Total stock-based compensation expense

 

$

60,541

 

 

$

69,531

 

 

$

45,303

 
Stock-Based Compensation Expense Categorized by Award Type

Stock-based compensation expense categorized by award type for the years ended December 31, 2024, 2023 and 2022 is summarized in the table below (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

RSUs

 

$

41,516

 

 

$

45,660

 

 

$

38,233

 

PSUs

 

 

14,283

 

 

 

18,519

 

 

 

3,975

 

ESPP

 

 

4,742

 

 

 

5,352

 

 

 

2,727

 

Stock options

 

 

—

 

 

 

—

 

 

 

368

 

Total stock-based compensation expense

 

$

60,541

 

 

$

69,531

 

 

$

45,303

 
Summary of Unrecognized Stock-based Compensation Expense

As of December 31, 2024, unrecognized stock-based compensation expense related to unvested equity-based awards is as follows (amounts in thousands):

 

 

December 31, 2024

 

 

 

Unrecognized Stock-Based Compensation

 

 

Weighted-Average Period to Recognize Expense
(in years)

 

RSUs

 

$

44,183

 

 

 

1.7

 

PSUs

 

 

11,232

 

 

 

1.6

 

ESPP

 

 

1,277

 

 

 

0.4

 

Total unrecognized stock-based compensation expense

 

$

56,692

 

 

 

 
Employee Stock Purchase Plan  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Assumptions Used to Value Awards Granted

The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering periods in effect using the Black-Scholes option pricing model:

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

Expected life (years)

 

0.5 — 1.0

 

 

0.5 — 2.0

 

Risk-free interest rate

 

4.3% — 5.4%

 

 

4.3% — 5.4%

 

Dividend yield

 

 

0.0

%

 

 

0.0

%

Expected volatility

 

44.4% — 45.6%

 

 

44.1% — 51.2%

 
Prior to the Separation, the valuation assumptions were determined by the Former Parent. The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the year ended December 31, 2022:

 

 

Year Ended December 31,

 

 

 

2022

 

Expected life (years)

 

 

2.0

 

Risk-free interest rate

 

 

1.3

%

Dividend yield

 

 

1.1

%

Expected volatility

 

 

48.5

%
Market-Based Performance Stock Units  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Assumptions Used to Value Awards Granted

The following assumptions were used to value the market-based PSUs granted during the period:

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

2022

 

Expected life (years)

 

 

3.0

 

 

1.5 — 2.8

 

 

3.0

 

Risk-free interest rate

 

4.2%

 

 

4.5% — 5.0%

 

2.8%

 

Dividend yield

 

0.0%

 

 

0.0%

 

1.2%

 

Expected volatility

 

43.9%

 

 

44.1% — 51.2%

 

40.9%

 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes

The components of income (loss) before taxes are as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S.

 

$

(31,758

)

 

$

(142,447

)

 

$

(667,612

)

Foreign

 

 

43,337

 

 

 

12,801

 

 

 

(80,005

)

Income (loss) before taxes

 

$

11,579

 

 

$

(129,646

)

 

$

(747,617

)
Summary of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

3,696

 

 

$

1,398

 

 

$

—

 

Foreign

 

 

12,161

 

 

 

16,546

 

 

 

21,252

 

State and local

 

 

(476

)

 

 

694

 

 

 

1,723

 

Total current

 

 

15,381

 

 

 

18,638

 

 

 

22,975

 

Deferred:

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

(10

)

 

 

19

 

 

 

(5,431

)

Foreign

 

 

(2,748

)

 

 

(8,113

)

 

 

(3,871

)

State and local

 

 

(175

)

 

 

(502

)

 

 

(84

)

Total deferred

 

 

(2,933

)

 

 

(8,596

)

 

 

(9,386

)

Provision for income taxes

 

$

12,448

 

 

$

10,042

 

 

$

13,589

 
Component of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Loss carryforward

 

$

33,497

 

 

$

22,442

 

Research credits

 

 

14,998

 

 

 

10,513

 

Foreign tax credits

 

 

10,026

 

 

 

5,796

 

Accrued expenses

 

 

16,377

 

 

 

25,729

 

Fixed and intangible assets

 

 

6,216

 

 

 

38,899

 

Deferred revenue

 

 

9,768

 

 

 

10,652

 

Capitalized R&D

 

 

95,281

 

 

 

87,465

 

Lease liability

 

 

8,981

 

 

 

11,075

 

Other tax credits

 

 

2,378

 

 

 

2,318

 

Other

 

 

1,668

 

 

 

—

 

Gross deferred tax assets

 

 

199,190

 

 

 

214,889

 

Valuation allowance

 

 

(152,235

)

 

 

(157,595

)

Net deferred tax assets

 

 

46,955

 

 

 

57,294

 

Deferred tax liabilities:

 

 

 

 

 

 

Acquired intangible assets

 

 

(27,391

)

 

 

(36,416

)

Revenue recognition

 

 

—

 

 

 

(4,574

)

Operating ROU assets

 

 

(7,603

)

 

 

(9,758

)

Other

 

 

(6,224

)

 

 

(8,436

)

Gross deferred tax liabilities

 

 

(41,218

)

 

 

(59,184

)

Net deferred tax assets (liabilities)

 

$

5,737

 

 

$

(1,890

)
Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss and Gross Capital Loss Carryforwards

As of December 31, 2024, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

22,075

 

 

2027—2030

State (post-apportionment)

 

$

93,782

 

 

2025—Indefinite

As of December 31, 2024, the Company had recorded deferred tax assets for the tax effects of the following gross capital loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

78,975

 

 

2029

State (post-apportionment)

 

$

14,563

 

 

2029—2039

 
Schedule of Credits Available to Reduce Future Income Tax Expense

As of December 31, 2024, the Company had the following credits available to reduce future income tax expense (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal research and development credits

 

$

12,671

 

 

2031—2044

State research and development credits

 

$

20,326

 

 

Indefinite

Foreign tax credits

 

$

12,404

 

 

2033—2034
Schedule of Changes in Deferred Tax Asset Valuation Allowance

The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

157,595

 

 

$

111,779

 

 

$

101,529

 

Charged (credited) to expenses

 

 

(5,051

)

 

 

46,397

 

 

 

19,321

 

Charged (credited) to other accounts

 

 

(309

)

 

 

(581

)

 

 

(9,071

)

Balance at end of period

 

$

152,235

 

 

$

157,595

 

 

$

111,779

 
Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax

Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to income (loss) before income taxes as a result of the following (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

U.S. federal statutory rate

 

$

2,432

 

 

$

(27,226

)

 

$

(157,032

)

State, net of federal benefit

 

 

501

 

 

 

532

 

 

 

1,974

 

Stock-based compensation

 

 

5,390

 

 

 

6,758

 

 

 

2,036

 

Executive compensation limitation

 

 

560

 

 

 

1,911

 

 

 

2,286

 

Research tax credit

 

 

(3,998

)

 

 

(6,983

)

 

 

(5,225

)

Foreign withholding tax

 

 

11,051

 

 

 

12,811

 

 

 

8,079

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

107,831

 

Restructuring and transaction costs

 

 

1,394

 

 

 

649

 

 

 

293

 

Divestiture-related activity

 

 

5,339

 

 

 

(26,915

)

 

 

—

 

Foreign rate differential

 

 

(10,651

)

 

 

(7,354

)

 

 

19,337

 

Foreign tax credit

 

 

(10,338

)

 

 

(10,124

)

 

 

(977

)

Change in valuation allowance

 

 

5,412

 

 

 

50,314

 

 

 

20,491

 

Effect of cross-border tax laws

 

 

2,580

 

 

 

10,151

 

 

 

7,656

 

Unrecognized tax benefits

 

 

(238

)

 

 

746

 

 

 

6,798

 

Change in estimates

 

 

3,387

 

 

 

3,844

 

 

 

(1,802

)

Change in other comprehensive income

 

 

(826

)

 

 

—

 

 

 

—

 

Non-deductible expense

 

 

184

 

 

 

—

 

 

 

—

 

Others

 

 

269

 

 

 

928

 

 

 

1,844

 

Total

 

$

12,448

 

 

$

10,042

 

 

$

13,589

 
Summary of Unrecognized Tax Benefits and Amounts Affect Effective Tax Rate Upon Recognition

The following table summarizes the total unrecognized tax benefits and the amounts of which that would affect the effective tax rate upon recognition of such as of December 31, 2024, 2023, and 2022 (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Total unrecognized tax benefits

 

$

15,376

 

 

$

23,587

 

 

$

19,354

 

Amount affecting the effective tax rate upon recognition of unrecognized tax benefits

 

$

1,198

 

 

$

9,592

 

 

$

8,791

 
Reconciliation of Unrecognized Tax Benefits

The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Total unrecognized tax benefits at January 1

 

$

23,587

 

 

$

19,354

 

 

$

8,438

 

Changes due to Separation, mergers, and dispositions

 

 

(6,858

)

 

 

—

 

 

 

1,682

 

Increases for tax positions related to the current year

 

 

2,009

 

 

 

4,070

 

 

 

8,793

 

Increases for tax positions related to prior years

 

 

33

 

 

 

961

 

 

 

444

 

Decreases for tax positions related to prior years

 

 

(3,395

)

 

 

(798

)

 

 

(3

)

Total unrecognized tax benefits at December 31

 

$

15,376

 

 

$

23,587

 

 

$

19,354

 
v3.25.0.1
Geographic and Segment Related Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Summary of Long-lived Assets by Geographic Region The following table summarizes long-lived assets by geographic region (in thousands):

 

 

December 31,

 

 

 

2024

 

 

2023

 

U.S.

 

$

60,847

 

 

$

69,725

 

Europe

 

 

7,656

 

 

 

3,416

 

Asia and other

 

 

6,052

 

 

 

8,328

 

Total

 

$

74,555

 

 

$

81,469

 
Summary of Reported Segment Revenue, Significant Segment Expenses, and Segment Net Loss

The following table presents information about reported segment revenue, significant segment expenses, and segment net loss for the years ended December 31, 2024, 2023, and 2022 (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

493,688

 

 

$

521,334

 

 

$

502,260

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue, excluding depreciation and amortization of intangible assets (1)

 

 

113,756

 

 

 

118,628

 

 

 

122,946

 

Research and development (1)

 

 

191,352

 

 

 

222,833

 

 

 

216,355

 

Selling, general and administrative (1)

 

 

218,106

 

 

 

233,403

 

 

 

217,402

 

Depreciation expense

 

 

12,638

 

 

 

16,645

 

 

 

20,501

 

Amortization expense

 

 

43,376

 

 

 

57,752

 

 

 

62,209

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

604,555

 

Impairment of long-lived assets

 

 

1,535

 

 

 

1,710

 

 

 

7,724

 

Interest and other income, net

 

 

(829

)

 

 

(2,991

)

 

 

(3,327

)

Interest expense - debt

 

 

3,008

 

 

 

3,000

 

 

 

1,512

 

Gain on divestitures

 

 

(100,833

)

 

 

—

 

 

 

—

 

Provision for income taxes

 

 

12,448

 

 

 

10,042

 

 

 

13,589

 

Consolidated net loss

 

$

(869

)

 

$

(139,688

)

 

$

(761,206

)
(1)
Includes total salaries, bonuses, and employee benefits of $278.0 million, $323.4 million, and $318.5 million for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.0.1
Related Party Transactions and Net Investment By Former Parent (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Reconciliation of Net Transfers from Former Parent

A reconciliation of net transfers from the Former Parent on the consolidated statements of equity to the corresponding amount on the consolidated statements of cash flows was as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2022

 

Total net transfers from Former Parent per consolidated statements of equity

 

$

100,915

 

Stock-based compensation

 

 

(45,303

)

Net proceeds from capital contributions by Former Parent

 

 

83,235

 

Issuance of equity to noncontrolling interest

 

 

(1,423

)

Other

 

 

(1,387

)

Total net transfers from Former Parent per consolidated statements of cash flows

 

$

136,037

 
v3.25.0.1
The Company and Description of Business - Additional Information (Details)
 12 Months Ended
Oct. 01, 2022
$ / shares
shares
Dec. 31, 2024
Segment
Business
$ / shares
Dec. 31, 2023
$ / shares
Sep. 21, 2022
$ / shares
Organization Consolidation And Presentation [Line Items]        
Number of reportable business segments | Segment   1    
Number of operating segments | Segment   1    
Common stock, par value (in dollars per share) | $ / shares   $ 0.001 $ 0.001  
Xperi Holding        
Organization Consolidation And Presentation [Line Items]        
Number of independent publicly traded companies   2    
Number of intellectual property licensing business   1    
Number of product business   1    
Spin-Off | Xperi Holding        
Organization Consolidation And Presentation [Line Items]        
Record date of outstanding common stock distribution for spinoff Sep. 21, 2022      
Number of shares received for every ten common stock shares held on record date | shares 4      
Number of common stock shares considered as one unit for issue of shares in spinoff | shares 10      
Common stock, par value (in dollars per share) | $ / shares $ 0.001     $ 0.001
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
Segment
Customer
Dec. 31, 2023
USD ($)
Customer
Dec. 31, 2022
USD ($)
Customer
Summary of Significant Accounting Policies [Line Items]      
Loss on dissolution of subsidiary $ 4,839,000    
Number of operating segments | Segment 1    
Goodwill impairment charge     $ 604,555,000
Advertising expense $ 9,900,000 $ 8,100,000 $ 5,500,000
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true    
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true    
Accounting Standards Update [Extensible Enumeration] us-gaap:AccountingStandardsUpdate202307Member    
Minimum      
Summary of Significant Accounting Policies [Line Items]      
Intangible assets estimated useful life 1 year    
Maximum      
Summary of Significant Accounting Policies [Line Items]      
Intangible assets estimated useful life 10 years    
Tobii AB      
Summary of Significant Accounting Policies [Line Items]      
Allowance for credit losses $ 0    
Aggregate trade receivables | Credit Concentration Risk      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure | Customer 0 0  
Revenue | Credit Concentration Risk      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure | Customer 0 0 0
v3.25.0.1
Summary of Significant Accounting Policies - Long-Lived Assets (Details)
Dec. 31, 2024
Computer equipment and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 1 year
Computer equipment and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Capitalized internal-use software  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Office equipment and furniture | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 1 year
Office equipment and furniture | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Building and improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 30 years
v3.25.0.1
Recent Accounting Pronouncements - Additional Information (Details)
Dec. 31, 2024
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Change in accounting principle, accounting standards update, adopted [true false] true
Change in accounting principle, accounting standards update, immaterial effect [true false] true
v3.25.0.1
Revenue - Additional Information (Details) - Total Revenue - Product Concentration Risk [Member]
 12 Months Ended
Dec. 31, 2024
Advertising  
Revenue Recognition [Line Items]  
Concentration Risk Percentage 10.00%
NRE services  
Revenue Recognition [Line Items]  
Concentration Risk Percentage 10.00%
Hardware Products  
Revenue Recognition [Line Items]  
Concentration Risk Percentage 10.00%
v3.25.0.1
Revenue - Schedule of Revenue by Timing of Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 493,688 $ 521,334 $ 502,260
Recognized over time      
Disaggregation of Revenue [Line Items]      
Revenue 362,713 410,865 401,668
Recognized at a point in time      
Disaggregation of Revenue [Line Items]      
Revenue $ 130,975 $ 110,469 $ 100,592
v3.25.0.1
Revenue - Schedule of Revenue by Product Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 493,688 $ 521,334 $ 502,260
Pay TV      
Disaggregation of Revenue [Line Items]      
Total revenue 259,712 244,708 249,457
Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Total revenue 81,993 132,355 128,395
Connected Car      
Disaggregation of Revenue [Line Items]      
Total revenue 111,144 94,864 84,201
Media Platform      
Disaggregation of Revenue [Line Items]      
Total revenue $ 40,839 $ 49,407 $ 40,207
v3.25.0.1
Revenue - Schedule of Geographic Revenue Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 493,688 $ 521,334 $ 502,260
Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 100.00% 100.00% 100.00%
U.S.      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 237,829 $ 267,998 $ 278,920
U.S. | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 48.00% 51.00% 56.00%
Japan      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 80,773 $ 83,138 $ 65,551
Japan | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 16.00% 16.00% 13.00%
Europe and Middle East      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 46,442 $ 41,113 $ 42,846
Europe and Middle East | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 9.00% 8.00% 9.00%
Latin America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 38,772 $ 31,863 $ 27,212
Latin America | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 8.00% 6.00% 5.00%
South Korea      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 36,926 $ 27,099 $ 27,870
South Korea | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 8.00% 5.00% 5.00%
China      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 24,824 $ 35,809 $ 30,932
China | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 5.00% 7.00% 6.00%
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 28,122 $ 34,314 $ 28,929
Other | Total Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 6.00% 7.00% 6.00%
v3.25.0.1
Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]      
Amounts included in deferred revenue at the beginning of the period $ 25,202 $ 20,620 $ 24,307
Performance obligations satisfied in previous periods (true ups, recoveries and settlements) [1],[2] $ 9,999 $ 11,863 $ 30,561
[1] For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.
[2] True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees that are generally received in the following period, and may include other changes in estimates. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of disputes or litigation during the period for past royalties owed.
v3.25.0.1
Revenue - Schedule of Remaining Performance Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 113,776
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 57,544
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 30,564
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 16,308
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 7,139
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 2,077
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2030-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 144
Performance obligations expected to be satisfied, expected timing 1 year
v3.25.0.1
Revenue - Schedule of Remaining Performance Obligations (Details 1)
$ in Thousands
Dec. 31, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 113,776
v3.25.0.1
Revenue - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable      
Accounts Notes And Loans Receivable [Line Items]      
Beginning balance $ 1,906 $ 1,950 $ 2,255
Provision for credit losses (172) 497 799
Recoveries/charge-off (788) (541) (1,104)
Balance at end of period 946 1,906 1,950
Unbilled Contracts Receivable      
Accounts Notes And Loans Receivable [Line Items]      
Beginning balance 190 369 468
Provision for credit losses 308 52 (99)
Recoveries/charge-off 1 (231)  
Balance at end of period $ 499 $ 190 $ 369
v3.25.0.1
Composition of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid expenses $ 21,027 $ 19,913
Prepaid income tax 8,295 4,813
Finished goods inventory 1,061 7,279
Other 2,105 6,869
Total $ 32,488 $ 38,874
v3.25.0.1
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 124,827 $ 113,291
Less: accumulated depreciation and amortization (80,354) (71,722)
Property and equipment, net 44,473 41,569
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 54,737 52,740
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 23,384 11,224
Office equipment and furniture    
Property, Plant and Equipment [Line Items]    
Total property and equipment 10,773 11,074
Building    
Property, Plant and Equipment [Line Items]    
Total property and equipment 17,876 17,876
Land    
Property, Plant and Equipment [Line Items]    
Total property and equipment 5,300 5,300
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 10,778 11,758
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 1,979 $ 3,319
v3.25.0.1
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Parenthetical) (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accumulated amortization associated with capitalized internal-use software $ 4.1 $ 1.6
v3.25.0.1
Composition of Certain Financial Statement Captions - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Impairment charges $ 1.5 $ 1.7 $ 7.7
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Impairment charges $ 0.6 $ 0.4 $ 2.9
v3.25.0.1
Composition of Certain Financial Statement Captions - Schedule of Capitalization and Amortization of Internal-use Software (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Costs capitalized associated with internal-use software $ 12,160 $ 5,933 $ 1,104
Amortization of capitalized internal-use software $ 2,547 $ 1,503 $ 61
v3.25.0.1
Composition of Certain Financial Statement Captions - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Employee compensation and benefits $ 33,360 $ 44,095
Accrued expenses 16,108 24,307
Current portion of operating lease liabilities $ 15,353 [1] $ 14,760
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total Total
Accrued other taxes $ 8,370 $ 6,464
Accrued income taxes 6,259 1,991
Third-party royalties 5,171 8,478
Other 9,799 9,866
Total $ 94,420 $ 109,961
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.25.0.1
Financial Instruments - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Investments [Line Items]      
Gain or loss on fair value hedges $ 764,000 $ 1,033,000 $ 0
Non-marketable Equity Securities | TiVo Merger      
Schedule Of Investments [Line Items]      
Equity securities accounted for under equity method 4,700,000 4,900,000  
Impairment charges related to non-marketable equity securities $ 0 $ 0 $ 0
v3.25.0.1
Financial Instruments - Schedule of Notional and Fair Values of All Derivative Instruments (Details) - Foreign Exchange Contracts - Designated Derivative Instruments - Cash Flow Hedging [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Fair value-foreign exchange contract assets, net amount   $ 1,184
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current
Accrued liabilities $ 1,858  
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Total notional value $ 5,074 $ 738
Total notional value $ 57,329 $ 45,468
v3.25.0.1
Financial Instruments - Schedule of Gross Amounts of Foreign Currency Forward Contracts (Details) - Foreign Exchange Contracts - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Gross amount of recognized assets $ 173 $ 1,300
Gross amount of recognized liabilities (2,031) (116)
Net (liabilities) assets $ (1,858) $ 1,184
v3.25.0.1
Financial Instruments - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance $ 387,135 $ 448,986 $ 1,015,957
Ending balance 429,077 387,135 448,986
Accumulated Other Comprehensive Loss      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (2,865) (4,119) (676)
Ending balance (6,084) (2,865) (4,119)
Accumulated Other Comprehensive Loss | Cash Flow Hedges      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance 1,034 (94)  
Other comprehensive (loss) gain before reclassification (2,107) 1,190 (94)
Amounts reclassified from accumulated other comprehensive loss into net loss (785) (62)  
Net current period other comprehensive (loss) gain (2,892) 1,128 (94)
Ending balance $ (1,858) $ 1,034 $ (94)
v3.25.0.1
Financial Instruments - Summary of the Gains Recognized upon Settlement of the Hedged Transactions (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]      
Gain on fair value hedges $ 764,000 $ 1,033,000 $ 0
Research and development      
Derivatives, Fair Value [Line Items]      
Gain on fair value hedges 690,000 841,000  
Selling, general and administrative      
Derivatives, Fair Value [Line Items]      
Gain on fair value hedges $ 74,000 $ 192,000  
v3.25.0.1
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Total assets, net - Carrying Amount $ 667,760 $ 673,635
Liabilities:    
Total long-term debt, net - Carrying Amount 27,676  
Recurring    
Assets:    
Total assets, net - Carrying Amount 47,919  
Total assets, net - Estimated Fair Value 46,565  
Recurring | Note Receivable, Noncurrent    
Assets:    
Total assets, net - Carrying Amount 29,702  
Total assets, net - Estimated Fair Value 28,223  
Recurring | Deferred Consideration From Divestiture    
Assets:    
Total assets, net - Carrying Amount 18,217  
Total assets, net - Estimated Fair Value 18,342  
Recurring | Senior Unsecured Promissory Note    
Liabilities:    
Total long-term debt, net - Carrying Amount 50,000 50,000
Total long-term debt, net - Estimated Fair Value $ 50,000 $ 49,659
v3.25.0.1
Acquisitions and Divestitures - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2024
Aug. 14, 2024
Jan. 31, 2024
Jul. 01, 2022
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Business Acquisition [Line Items]                
Equity sale percetage             100.00%  
Deferred cash consideration           $ 15,000    
Business divestiture, indemnification liability     $ 7,100          
Pre-tax gain on divestiture $ 59,500       $ 22,900      
Recognized interest income           2,000    
Discount on deferred consideration           9,200    
Discount on Interest income           1,000    
Holdback consideration           12,000    
Perceive Corporation                
Business Acquisition [Line Items]                
Fair value divestiture           11,300    
Pre-tax gain on divestiture $ 77,900              
Ownership interest, percentage   76.40%            
Cash   $ 80,000            
Indemnification holdback amount   $ 12,000            
Indemnification held period after closing date   18 months            
Holdback consideration           12,000    
Discount on holdback consideration           $ 700    
Vewd                
Business Acquisition [Line Items]                
Purchase price       $ 102,913        
Cash included in the total consideration       52,900        
Debt included in the total consideration       $ 50,000        
Transaction related costs including transaction bonuses, legal and consultant fees               $ 7,400
Severance and retention costs               $ 4,000
Purchaser                
Business Acquisition [Line Items]                
Total consideration     44,300          
Business divestiture, cash received     10,800          
Interest rate           8.00%    
Additional interest rate per annum           2.00%    
Purchaser | Senior Secured Promissory Note                
Business Acquisition [Line Items]                
Deferred cash consideration     15,000          
Fair value divestiture     5,800          
Debt instrument, principal amount     $ 27,700          
v3.25.0.1
Acquisitions and Divestitures - Schedule of Purchase Price Allocation (Details) - Vewd
$ in Thousands
Jul. 01, 2022
USD ($)
Business Acquisition [Line Items]  
Cash and cash equivalents $ 2,684
Accounts receivable 3,341
Unbilled contracts receivable 2,335
Other current assets 1,208
Property and equipment 443
Operating lease right-of-use assets 2,020
Identifiable intangible assets:  
Total identifiable intangible assets 38,150
Goodwill 68,115
Other long-term assets 977
Accounts payable (869)
Accrued liabilities (4,777)
Deferred revenue (920)
Long-term deferred tax liabilities (8,393)
Noncurrent operating lease liabilities (1,094)
Other long-term liabilities (307)
Total purchase price $ 102,913
Technology  
Business Acquisition [Line Items]  
Useful Life (years) 7 years
Identifiable intangible assets:  
Total identifiable intangible assets $ 28,050
Customer relationships - large  
Business Acquisition [Line Items]  
Useful Life (years) 7 years
Identifiable intangible assets:  
Total identifiable intangible assets $ 4,900
Customer relationships - small  
Business Acquisition [Line Items]  
Useful Life (years) 4 years
Identifiable intangible assets:  
Total identifiable intangible assets $ 3,500
Non-compete agreements  
Business Acquisition [Line Items]  
Useful Life (years) 2 years
Identifiable intangible assets:  
Total identifiable intangible assets $ 870
Trade name  
Business Acquisition [Line Items]  
Useful Life (years) 5 years
Identifiable intangible assets:  
Total identifiable intangible assets $ 830
v3.25.0.1
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Financial Information (Details) - Vewd
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]  
Revenue $ 508,636
Net loss attributable to the Company $ (769,483)
v3.25.0.1
Acquisitions and Divestitures - Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale (Details) - USD ($)
$ in Thousands
Oct. 02, 2024
Jan. 31, 2024
Dec. 31, 2023
Assets Current:      
Cash and cash equivalents     $ 12,349
Total assets held for sale     15,860
Assets Noncurrent:      
Total assets held for sale     12,249
Liabilities Current:      
Total liabilities held for sale     6,191
Liabilities Noncurrent:      
Total liabilities to be disposed of     9,805
Purchaser | Divestiture      
Assets Current:      
Cash and cash equivalents   $ 11,025 12,349
Accounts receivable, net   3,392 1,323
Unbilled contracts receivable, net   1,398 1,209
Prepaid expenses and other current assets   812 979
Total assets held for sale   16,627 [1] 15,860 [2]
Assets Noncurrent:      
Unbilled contracts receivable, net   5,320 5,320
Property and equipment, net   2,291 2,391
Operating lease right-of-use assets   3,272 3,346
Other noncurrent assets   2,887 1,192
Total assets held for sale   13,770 [1] 12,249 [2]
Assets Total:      
Unbilled contracts receivable, net   6,718 6,529
Total assets held for sale   30,397 [1] 28,109 [2]
Liabilities Current:      
Accounts payable   248 244
Accrued liabilities   4,933 4,821
Deferred revenue   1,114 1,126
Total liabilities held for sale   6,295 6,191
Liabilities Noncurrent:      
Operating lease liabilities, noncurrent   2,708 2,741
Other noncurrent liabilities   7,064 7,064
Total liabilities to be disposed of   9,772 9,805
Liabilities Total:      
Total liabilities to be disposed of   16,067 15,996
Net assets held for sale, Current   10,332 9,669
Net assets held for sale, Noncurrent   3,998 2,444
Net assets held for sale   $ 14,330 $ 12,113
Perceive Corporation | Divestiture      
Assets Current:      
Prepaid expenses and other current assets $ 1,306    
Total assets held for sale 1,306    
Assets Noncurrent:      
Property and equipment, net 95    
Operating lease right-of-use assets 72    
Other noncurrent assets 4    
Total assets held for sale 171    
Assets Total:      
Total assets held for sale 1,477    
Liabilities Current:      
Accrued liabilities 67    
Total liabilities held for sale 67    
Liabilities Noncurrent:      
Operating lease liabilities, noncurrent 6    
Total liabilities to be disposed of 6    
Liabilities Total:      
Total liabilities to be disposed of 73    
Net assets held for sale, Current 1,239    
Net assets held for sale, Noncurrent 165    
Net assets held for sale $ 1,404    
[1] Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.
[2] Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $35.2 million.
v3.25.0.1
Acquisitions and Divestitures - Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale (Parenthetical) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 31, 2024
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Finite-lived intangible assets, Gross Amount $ 773,292   $ 773,097
Assets held for sale      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Finite-lived intangible assets, Gross Amount   $ 35,200 $ 35,200
v3.25.0.1
Acquisitions and Divestitures - Schedule of Principal Payments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Maturities of Long-Term Debt [Abstract]  
April 1, 2027 $ 10,000
April 1, 2028 10,000
April 1, 2029 7,676
Total principal payments $ 27,676
v3.25.0.1
Acquisitions and Divestitures - Schedule of Carrying Amount of Note (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Long-Term Investments [Abstract]  
Outstanding principal amount $ 27,676
Add: interest accrued to date 2,026
Carrying amount-note receivable, noncurrent $ 29,702
v3.25.0.1
Acquisitions and Divestitures - Schedule of Deferred Cash Consideration (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Discontinued Operations and Disposal Groups [Abstract]  
February 15, 2028 $ 3,000
February 15, 2029 2,250
February 15, 2030 4,500
February 15, 2031 5,250
Total future payments $ 15,000
v3.25.0.1
Acquisitions and Divestitures - Schedule of Net Carrying Amount of Deferred Consideration (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Discontinued Operations and Disposal Groups [Abstract]  
Total deferred consideration $ 15,000
Less: unamortized discount on deferred consideration (8,197)
Net carrying amount $ 6,803
v3.25.0.1
Acquisitions and Divestitures - Schedule of Net Carrying Amount of Holdback Consideration (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Discontinued Operations and Disposal Groups [Abstract]  
Holdback consideration $ 12,000
Less: unamortized discount on holdback consideration (586)
Net carrying amount $ 11,414
v3.25.0.1
Goodwill Impairment and Intangible Assets, Net - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
ReportingUnit
Dec. 31, 2022
USD ($)
Jan. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Finite-Lived Intangible Assets [Line Items]        
Number of reporting units | ReportingUnit 1      
Goodwill impairment charge   $ 604,555    
Finite-lived intangible assets, Gross Amount $ 773,292     $ 773,097
Assets held for sale        
Finite-Lived Intangible Assets [Line Items]        
Finite-lived intangible assets, Gross Amount     $ 35,200 $ 35,200
v3.25.0.1
Goodwill Impairment and Intangible Assets, Net - Identified Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 773,292 $ 773,097
Finite-lived intangible assets, Accumulated Amortization (630,978) (587,602)
Finite-lived intangible assets, Net 142,314 185,495
Intangible assets, gross 794,692 794,497
Intangible assets, net $ 163,714 206,895
Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 1 year  
Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 10 years  
Acquired patents    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 17,281 17,281
Finite-lived intangible assets, Accumulated Amortization (5,687) (3,478)
Finite-lived intangible assets, Net $ 11,594 $ 13,803
Acquired patents | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 3 years 3 years
Acquired patents | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 10 years 10 years
Existing technology / content database    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 219,912 $ 219,717
Finite-lived intangible assets, Accumulated Amortization (194,041) (181,713)
Finite-lived intangible assets, Net $ 25,871 $ 38,004
Existing technology / content database | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 5 years 5 years
Existing technology / content database | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 10 years 10 years
Customer contracts and related relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 493,685 $ 493,685
Finite-lived intangible assets, Accumulated Amortization (389,251) (365,074)
Finite-lived intangible assets, Net $ 104,434 $ 128,611
Customer contracts and related relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 3 years 3 years
Customer contracts and related relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 9 years 9 years
Trademarks/trade name    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 39,313 $ 39,313
Finite-lived intangible assets, Accumulated Amortization (38,898) (34,453)
Finite-lived intangible assets, Net $ 415 $ 4,860
Trademarks/trade name | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 4 years 4 years
Trademarks/trade name | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 10 years 10 years
Non-compete agreements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Amount $ 3,101 $ 3,101
Finite-lived intangible assets, Accumulated Amortization $ (3,101) (2,884)
Finite-lived intangible assets, Net   $ 217
Non-compete agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 1 year 1 year
Non-compete agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (years) 2 years 2 years
TiVo tradename/trademarks    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets, Gross Assets $ 21,400 $ 21,400
Indefinite-lived intangible assets, Net $ 21,400 $ 21,400
v3.25.0.1
Goodwill Impairment and Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 34,838  
2026 31,508  
2027 30,665  
2028 30,327  
2029 14,341  
Thereafter 635  
Finite-lived intangible assets, Net $ 142,314 $ 185,495
v3.25.0.1
Debt - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jul. 01, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Line Of Credit Facility [Line Items]        
Borrowings   $ 27,676    
Promissory Note        
Line Of Credit Facility [Line Items]        
Long-term debt classified as current   50,000    
Interest expense   $ 3,000 $ 3,000 $ 1,500
Vewd | Promissory Note        
Line Of Credit Facility [Line Items]        
Debt instrument, principal amount $ 50,000      
Interest rate 6.00%      
Debt instrument, basis spread on variable rate 2.00%      
Debt instrument, maturity date Jul. 01, 2025      
v3.25.0.1
Leases - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Lessee Lease Description [Line Items]      
Operating lease existence of option to renew true    
Operating lease description The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date.    
Impairment charges $ 1.5 $ 1.7 $ 7.7
Maximum      
Lessee Lease Description [Line Items]      
Lessee term of period to renew 10 years    
v3.25.0.1
Leases - Schedule of Operating Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Fixed lease cost [1] $ 16,966 $ 20,306 $ 20,581
Variable lease cost 4,164 5,130 5,365
Less: sublease income (8,192) (9,896) (9,498)
Total operating lease cost $ 12,938 $ 15,540 $ 16,448
[1] Includes short-term leases expensed on a straight-line basis.
v3.25.0.1
Leases - Schedule Of Cash Flow Supplemental Disclosures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Cash payments included in the measurement of operating lease liabilities $ 17,669 $ 19,968 $ 20,307
Operating ROU assets obtained in exchange for lease obligations $ 5,975 $ 11,563 $ 14,360
v3.25.0.1
Leases - Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term (in years) 2 years 10 months 24 days 3 years 4 months 24 days
Weighted-average discount rate 5.50% 5.30%
v3.25.0.1
Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Operating Lease Payments    
2025 [1] $ 16,941  
2026 [1] 11,184  
2027 [1] 5,249  
2028 [1] 3,019  
2029 [1] 1,841  
Thereafter [1] 277  
Total lease payments [1] 38,511  
Less: imputed interest [1] (3,226)  
Present value of operating lease liabilities: [1] 35,285  
Less: operating lease liabilities, current portion (15,353) [1] $ (14,760)
Noncurrent operating lease liabilities 19,932 [1] $ 30,598
Sublease Income    
2025 (6,333)  
2026 (1,563)  
2027 (368)  
2028 (379)  
2029 (291)  
Thereafter 0  
Total lease payments (8,934)  
Net Operating Lease Payments    
2025 10,608  
2026 9,621  
2027 4,881  
2028 2,640  
2029 1,550  
Thereafter 277  
Total lease payments $ 29,577  
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.25.0.1
Commitments and Contingencies - Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 47,867
2026 37,497
2027 16,210
2028 10,150
2029 10,066
Thereafter 16,104
Total $ 137,894
v3.25.0.1
Net Loss Per Share Attributable To The Company - Additional Information (Details) - $ / shares
Oct. 01, 2022
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Common stock, shares issued (in shares)   44,328,000 44,211,000
Common stock, par value   $ 0.001 $ 0.001
Spin-Off | Xperi Inc.      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Common stock, shares issued (in shares) 42,023,632    
Common stock, par value $ 0.001    
Record date of outstanding common stock distribution for spinoff Sep. 21, 2022    
v3.25.0.1
Net Loss Per Share Attributable To The Company - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:      
Net loss attributable to the Company - basic $ (14,008) $ (136,613) $ (757,484)
Net loss attributable to the Company - diluted $ (14,008) $ (136,613) $ (757,484)
Denominator:      
Weighted-average number of shares used in computing net loss per share attributable to the Company - basic 45,057 43,012 42,029
Weighted-average number of shares used in computing net loss per share attributable to the Company - diluted 45,057 43,012 42,029
Net loss per share attributable to the Company - basic $ (0.31) $ (3.18) $ (18.02)
Net loss per share attributable to the Company - diluted $ (0.31) $ (3.18) $ (18.02)
v3.25.0.1
Net Loss Per Share Attributable To The Company - Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common stock equivalents 7,517 7,254 4,750
Stock Options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common stock equivalents 52 106 146
Restricted Stock Units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common stock equivalents 7,405 7,067 4,604
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive common stock equivalents 60 81  
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation - Additional Information (Details)
$ / shares in Units, shares in Millions
 1 Months Ended 12 Months Ended
May 31, 2024
USD ($)
Dec. 01, 2023
USD ($)
Oct. 01, 2022
USD ($)
Apr. 30, 2023
USD ($)
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
Apr. 30, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense recognized         $ 60,541,000 $ 69,531,000 $ 45,303,000  
Stock repurchased during period, value         20,000,000      
Stock repurchase program, remaining amount available for repurchase         $ 80,000,000      
Common Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Authorized repurchase amount               $ 100,000,000
Stock repurchased during period, shares | shares         2.2      
Shares, average price | $ / shares         $ 9.23      
Black Scholes Option Pricing Model                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expected life (in years)   1 year     2 years      
Employee Stock Purchase Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expiration period         24 months      
Shares reserved for grant (in shares) | shares         2.6      
Number of shares issued | shares         1.1 1.3    
Weighted-average purchase price         7.3 8.92    
Aggregate net proceeds from ESPP         $ 7,900,000 $ 11,900,000    
Maximum employee subscription rate   100.00%            
Purchase price of common stock, percent         85.00%      
Rolling expiration period 12 months 24 months     12 months      
Accelerated term           12 months    
Stock-based compensation expense recognized         $ 4,742,000 $ 5,352,000 2,727,000  
Minimum | Employee Stock Purchase Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expected life (in years)         6 months 6 months    
Maximum | Employee Stock Purchase Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expected life (in years)         1 year 2 years    
PSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense recognized         $ 14,283,000 $ 18,519,000 3,975,000  
PSUs | Minimum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Performance awards, percentage of grant available to vest         0.00%      
PSUs | Maximum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Performance awards, percentage of grant available to vest         200.00%      
Former Parent Equity Awards                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Incremental stock-based compensation expense     $ 8,400,000          
Former Parents PSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Incremental compensation expense modification, description         In April 2023, in accordance with the EMA executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $2.9 million, which is expected to be recognized over the remaining requisite service period through April 2025.      
Incremental compensation expense recognized over requisite service period through 2025       $ 2,900,000        
Corporate and Shared Functional Employees                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense recognized             6,900,000  
Restricted Stock and Restricted Stock Units                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense recognized         $ 41,516,000 45,660,000 38,233,000  
Employee Stock Option                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense recognized             $ 368,000  
2022 EIP                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expiration period         10 years      
Vesting period         4 years      
Shares reserved for grant (in shares) | shares         4.9      
2022 EIP | PSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period         3 years      
2022 EIP | Time-based Awards | Minimum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period         3 years      
2022 EIP | Time-based Awards | Maximum                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period         4 years      
Amendment 2022 ESP                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Incremental stock-based compensation expense   $ 0            
Stock-based compensation expense recognized           $ 5,900,000    
Amendment 2022 ESP | Employee Stock Purchase Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Incremental stock-based compensation expense $ 2,000,000              
Maximum employee subscription rate   15.00%            
Rolling expiration period   12 months            
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation - Schedule of Assumptions Used to Value Awards Granted (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Stock Purchase Plan      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Risk-free interest rate, Minimum 4.30% 4.30%  
Risk-free interest rate, Maximum 5.40% 5.40%  
Dividend yield 0.00% 0.00%  
Expected volatility, Minimum 44.40% 44.10%  
Expected volatility, Maximum 45.60% 51.20%  
Employee Stock Purchase Plan | Xperi      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years)     2 years
Risk-free interest rate     1.30%
Dividend yield     1.10%
Expected volatility     48.50%
Employee Stock Purchase Plan | Minimum      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years) 6 months 6 months  
Employee Stock Purchase Plan | Maximum      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years) 1 year 2 years  
Market-Based Performance Stock Units      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years) 3 years   3 years
Risk-free interest rate, Minimum   4.50%  
Risk-free interest rate, Maximum   5.00%  
Risk-free interest rate 4.20%   2.80%
Dividend yield 0.00% 0.00% 1.20%
Expected volatility, Minimum   44.10%  
Expected volatility, Maximum   51.20%  
Expected volatility 43.90%   40.90%
Market-Based Performance Stock Units | Minimum      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years)   1 year 6 months  
Market-Based Performance Stock Units | Maximum      
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Expected life (in years)   2 years 9 months 18 days  
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of Shares Subject to Options    
Number of Shares, Beginning balance (shares) 106  
Number of Shares, Options canceled / forfeited / expired (shares) (54)  
Number of Shares, Ending balance (shares) 52 [1] 106
Weighted Average Exercise Price Per Share    
Weighted Average Exercise Price Per Share, Beginning balance (USD per share) $ 26.87  
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) 22.47  
Weighted Average Exercise Price Per Share, Ending balance (USD per share) $ 31.48 [1] $ 26.87
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value    
Weighted Average Remaining Contractual Life (in years) 1 month 2 days [1] 1 year 8 months 8 days
[1] The ending balance at December 31, 2024 represents stock options that were fully vested and exercisable.
v3.25.0.1
Stockholders' Equity And Stock-Based Compensation - Summary of Restricted Stock Awards and Units (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2024
$ / shares
shares
Time Based Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock units, beginning balance (shares) 5,396
Restricted stock awards and units, granted (shares) 2,602
Restricted stock awards and units, vested / earned (shares) (1,864)
Restricted stock awards and units, canceled / forfeited (shares) (876)
Restricted stock units, ending balance (shares) 5,258
Performance Based Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock units, beginning balance (shares) 1,671
Restricted stock awards and units, granted (shares) 682
Restricted stock awards and units, vested / earned (shares) (14)
Restricted stock awards and units, canceled / forfeited (shares) (192)
Restricted stock units, ending balance (shares) 2,147
Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock units, beginning balance (shares) 7,067
Restricted stock awards and units, granted (shares) 3,284
Restricted stock awards and units, vested / earned (shares) (1,878)
Restricted stock awards and units, canceled / forfeited (shares) (1,068)
Restricted stock units, ending balance (shares) 7,405
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]  
Weighted average grant date fair value per share of restricted stock units, beginning balance (USD per share) | $ / shares | $ / shares $ 15.51
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) | $ / shares 11.15
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) | $ / shares 14.57
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) | $ / shares 16.57
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) | $ / shares $ 13.66
v3.25.0.1
Stockholder's Equity And Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 60,541 $ 69,531 $ 45,303
Cost of revenue, excluding depreciation and amortization of intangible assets      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 3,216 3,466 2,906
Research and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 20,634 25,276 21,561
Selling, general and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 36,691 $ 40,789 $ 20,836
v3.25.0.1
Stockholder's Equity And Stock-Based Compensation - Stock-Based Compensation Expense Categorized by Award Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 60,541 $ 69,531 $ 45,303
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 4,742 5,352 2,727
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 41,516 45,660 38,233
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 14,283 $ 18,519 3,975
Employee Stock Option [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense     $ 368
v3.25.0.1
Stockholder's Equity And Stock-Based Compensation - Summary of Unrecognized Stock-based Compensation Expense (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 56,692
RSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 44,183
Weighted-Average Period to Recognize Expense 1 year 8 months 12 days
PSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 11,232
Weighted-Average Period to Recognize Expense 1 year 7 months 6 days
ESPP  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 1,277
Weighted-Average Period to Recognize Expense 4 months 24 days
v3.25.0.1
Income Taxes - Components of Income (loss) Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. $ (31,758) $ (142,447) $ (667,612)
Foreign 43,337 12,801 (80,005)
Income (loss) before taxes $ 11,579 $ (129,646) $ (747,617)
v3.25.0.1
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
U.S. federal $ 3,696 $ 1,398  
Foreign 12,161 16,546 $ 21,252
State and local (476) 694 1,723
Total current 15,381 18,638 22,975
Deferred:      
U.S. federal (10) 19 (5,431)
Foreign (2,748) (8,113) (3,871)
State and local (175) (502) (84)
Total deferred (2,933) (8,596) (9,386)
Provision for income taxes $ 12,448 $ 10,042 $ 13,589
v3.25.0.1
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets        
Loss carryforward $ 33,497 $ 22,442    
Research credits 14,998 10,513    
Foreign tax credits 10,026 5,796    
Accrued expenses 16,377 25,729    
Fixed and intangible assets 6,216 38,899    
Deferred revenue 9,768 10,652    
Capitalized R&D 95,281 87,465    
Lease liability 8,981 11,075    
Other tax credits 2,378 2,318    
Other 1,668      
Gross deferred tax assets 199,190 214,889    
Valuation allowance (152,235) (157,595) $ (111,779) $ (101,529)
Net deferred tax assets 46,955 57,294    
Deferred tax liabilities        
Acquired intangible assets (27,391) (36,416)    
Revenue recognition   (4,574)    
Operating ROU assets (7,603) (9,758)    
Other (6,224) (8,436)    
Gross deferred tax liabilities (41,218) (59,184)    
Net deferred tax assets (liabilities) $ 5,737      
Net deferred tax liabilities   $ (1,890)    
v3.25.0.1
Income Taxes - Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss and Gross Capital Loss Carryforwards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Tax Credit Carryforward [Line Items]    
Capital loss carry forward Amount $ 33,497 $ 22,442
Federal    
Tax Credit Carryforward [Line Items]    
Tax loss carry forward Amount 22,075  
Capital loss carry forward Amount $ 78,975  
Capital Loss Years of Expiration 2029  
Federal | Earliest Tax Year    
Tax Credit Carryforward [Line Items]    
Tax Loss Years of Expiration 2027  
Federal | Latest Tax Year    
Tax Credit Carryforward [Line Items]    
Tax Loss Years of Expiration 2030  
State (post-apportionment)    
Tax Credit Carryforward [Line Items]    
Tax loss carry forward Amount $ 93,782  
Capital loss carry forward Amount $ 14,563  
Tax Loss Years of Expiration 2025  
State (post-apportionment) | Earliest Tax Year    
Tax Credit Carryforward [Line Items]    
Capital Loss Years of Expiration 2029  
State (post-apportionment) | Latest Tax Year    
Tax Credit Carryforward [Line Items]    
Capital Loss Years of Expiration 2039  
v3.25.0.1
Income Taxes - Schedule of Credits Available to Reduce Future Income Tax Expense (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Federal | Research Tax Credit Carryforward  
Tax Credit Carryforward [Line Items]  
Carryforward Amount $ 12,671
Federal | Research Tax Credit Carryforward | Earliest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2031
Federal | Research Tax Credit Carryforward | Latest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2044
State | Research Tax Credit Carryforward  
Tax Credit Carryforward [Line Items]  
Carryforward Amount $ 20,326
Foreign  
Tax Credit Carryforward [Line Items]  
Carryforward Amount $ 12,404
Foreign | Research Tax Credit Carryforward | Earliest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2033
Foreign | Research Tax Credit Carryforward | Latest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2034
v3.25.0.1
Income Taxes - Schedule of Changes in Deferred Tax Asset Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Balance at beginning of period $ 157,595 $ 111,779 $ 101,529
Charged (credited) to expenses (5,051) 46,397 19,321
Charged (credited) to other accounts (309) (581) (9,071)
Balance at end of period $ 152,235 $ 157,595 $ 111,779
v3.25.0.1
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. federal statutory rate $ 2,432 $ (27,226) $ (157,032)
State, net of federal benefit 501 532 1,974
Stock-based compensation 5,390 6,758 2,036
Executive compensation limitation 560 1,911 2,286
Research tax credit (3,998) (6,983) (5,225)
Foreign withholding tax 11,051 12,811 8,079
Goodwill impairment     107,831
Restructuring and transaction costs 1,394 649 293
Divestiture-related activity 5,339 (26,915)  
Foreign rate differential (10,651) (7,354) 19,337
Foreign tax credit (10,338) (10,124) (977)
Change in valuation allowance 5,412 50,314 20,491
Effect of cross-border tax laws 2,580 10,151 7,656
Unrecognized tax benefits (238) 746 6,798
Change in estimates 3,387 3,844 (1,802)
Change in other comprehensive income (826)    
Non-deductible expense 184    
Others 269 928 1,844
Provision for income taxes $ 12,448 $ 10,042 $ 13,589
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Contingency [Line Items]        
Valuation allowance $ 152,235 $ 157,595 $ 111,779 $ 101,529
Accumulated undistributed earnings generated by foreign subsidiaries 33,100      
Unrecognized tax benefits 15,376 23,587 19,354 $ 8,438
Unrecognized tax benefits that would impact the effective income tax rate $ 1,198 9,592 8,791  
Income tax examination description With few exceptions, the Company’s 2020 through 2024 tax years are open to examination      
Unrecognized tax benefits, income tax penalties and interest expense $ 300 300 $ 300  
Accrued interest and tax penalties related to unrecognized tax benefits 100 $ 400    
Federal | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward 12,671      
State | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward 20,326      
Foreign        
Income Tax Contingency [Line Items]        
Valuation allowance 1,300      
Tax credit carryforward $ 12,404      
v3.25.0.1
Income Taxes - Summary of Unrecognized Tax Benefits and Amounts Affect Effective Tax Rate Upon Recognition (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]        
Total unrecognized tax benefits $ 15,376 $ 23,587 $ 19,354 $ 8,438
Amount affecting the effective tax rate upon recognition of unrecognized tax benefits $ 1,198 $ 9,592 $ 8,791  
v3.25.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Total unrecognized tax benefits at January 1 $ 23,587 $ 19,354 $ 8,438
Changes due to Separation, mergers, and dispositions (6,858)   1,682
Increases for tax positions related to the current year 2,009 4,070 8,793
Increases for tax positions related to prior years 33 961 444
Decreases for tax positions related to prior years (3,395) (798) (3)
Total unrecognized tax benefits at December 31 $ 15,376 $ 23,587 $ 19,354
v3.25.0.1
Geographic and Segment Related Information - Summary of Long-lived Assets by Geographic Region (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 74,555 $ 81,469
U.S.    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 60,847 69,725
Europe    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 7,656 3,416
Asia and other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 6,052 $ 8,328
v3.25.0.1
Geographic and Segment Related Information - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
Segment
Segment Reporting Information [Line Items]  
Number of operating segments 1
Number of reportable business segments 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] Chief Executive Officer [Member]
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description The Company’s Chief Executive Officer has been determined to be the chief operating decision maker (“CODM”) in accordance with the authoritative guidance on segment reporting. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance and decides how to allocate resources based on net income (loss) that also is reported on the statements of operations as consolidated net income (loss).
v3.25.0.1
Geographic and Segment Related Information - Summary of Reported Segment Revenue, Significant Segment Expenses, and Segment Net Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Revenue $ 493,688 $ 521,334 $ 502,260
Cost of revenue, excluding depreciation and amortization of intangible assets 113,756 118,628 122,946
Research and development 191,352 222,833 216,355
Selling, general and administrative 218,106 233,403 217,402
Depreciation expense 12,638 16,645 20,501
Amortization expense 43,376 57,752 62,209
Goodwill impairment     604,555
Impairment of long-lived assets 1,535 1,710 7,724
Interest and other income, net (829) (2,991) (3,327)
Interest expense - debt 3,008 3,000 1,512
Gain on divestitures (100,833)    
Provision for income taxes 12,448 10,042 13,589
Net loss $ (869) $ (139,688) $ (761,206)
v3.25.0.1
Geographic and Segment Related Information - Summary of Reported Segment Revenue, Significant Segment Expenses, and Segment Net Income (Loss) (Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Salaries, bonuses and employee benefits $ 278.0 $ 323.4 $ 318.5
v3.25.0.1
Related Party Transactions and Net Investment By Former Parent - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Research, development and other related costs $ 191,352 $ 222,833 $ 216,355
Depreciation expense 12,638 16,645 20,501
Selling, general and administrative $ 218,106 $ 233,403 217,402
Former Parent      
Related Party Transaction [Line Items]      
Amount of allocations from parent     47,600
Depreciation expense     3,000
Selling, general and administrative     $ 44,600
v3.25.0.1
Related Party Transactions and Net Investment By Former Parent - Reconciliation of Net Transfers From Former Parent (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Related Party Transaction [Line Items]  
Total net transfers from Former Parent per consolidated statements of cash flows $ 52,802
Former Parent  
Related Party Transaction [Line Items]  
Total net transfers from Former Parent per consolidated statements of equity 100,915
Stock-based compensation (45,303)
Net proceeds from capital contributions by Former Parent 83,235
Issuance of equity to noncontrolling interest (1,423)
Other (1,387)
Total net transfers from Former Parent per consolidated statements of cash flows $ 136,037
v3.25.0.1
Benefit Plan - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Company contributions to 401(k) Plan $ 3.9 $ 4.3 $ 5.4
v3.25.0.1
Subsequent Event - Additional Information (Details) - Subsequent Event
$ in Millions
Feb. 21, 2025
USD ($)
Promissory Note  
Subsequent Event [Line Items]  
Repayments of long-term debt $ 50.0
AR Facility  
Subsequent Event [Line Items]  
Borrowing capacity 55.0
Outstanding borrowings $ 40.0
Debt instrument, basis spread on variable rate 1.90%
Accrued interest on unused borrowing limit 0.50%
Repayments of long-term debt $ 40.0