that have reduced the forecasted stock-based compensation expense below our original expectation. Let me now turn the call back over to Jon for a few closing remarks before we go to Q&A.

Thanks, Robert. Overall, we're very pleased with the continued strong execution against our strategic growth plan. In 2026, we're making a decisive pivot from years of investment in building our foundation toward accelerated monetization of our connected TV and automotive audiences. With over 6 million TiVo One monthly active users, over 3 million global IPTV households, and over 17 million vehicles equipped with DTS AutoStage, we believe we have a unique and sustainable competitive advantage to leverage our increasingly scaling first-party data and empowering advertisers to monetize these significant audiences. The results of our efforts are bearing fruit. Q2 advertising and related revenue increased 54% year over year. We began monetization of our automotive audience in the quarter by licensing Cumulus as our inaugural launch partner for advanced analytics in our DTS AutoStage broadcaster portal. And we added BYD as our 14th automotive OEM with DTS AutoStage. These are just a few of the tangible examples of the operational and financial progress that we're achieving. and they demonstrate the continued progress we've made thus far in 2026. I'd like to take this opportunity to thank the entire Global Xperia team for their commitment to our success and to working to drive long-term shareholder value. With that, let me now turn the call over to the operator so that we can take your questions. Operator?

Thank you. And we will now begin the question and answer session. If you have dialed in If you would like a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 a second time. If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your questions. Again, it is star 1 to join the queue. And our first question comes from the line of Jason Cryer with Craig Hallam. Your line is open.

All right, thanks, guys. So, Jon, I wanted to get your thoughts on the recent acquisition of Roku. It seems like with the takeout of Roku and then Vizio getting taken out before that, there's a void in this industry. for an independent OS platform. Just wondering if you think that creates opportunity for expansion at TiVo, whether that be more OEMs that want to partner or perhaps just shifting a greater mix of their inventory into TiVo. So wondering if your outlook for the opportunity changes at all.

I think yes to all of the above is the short answer. Jason, I think You know, the FOX's acquisition of Roku really validates the strategic value of the tvOS, the home screen, having first party CTV data, and direct consumer access at the start of the entertainment journey. And I think, you know, we are uniquely positioned as an independent who has a business model that aligns well in terms of incentives across OEMs and advertisers, content providers, et cetera, where I think we're going to see as the market narrows in some places to create more strategic opportunity for us. So not dissimilar from some of the other industry changes we've seen over the past two years. I think in many ways it only bolsters you know, the case that we're not only making but continuing to advance, you know, in the marketplace.

And perhaps that goes a step further with Robert's recent comment about, you know, memory and kind of the low memory requirements of the TiVo platform, correct?

Correct. And I think, you know, historically we have been one of the most efficient, you know, tvOS implementations. We've got a lot of technical expertise as to, you know, how to do this. That being said, you know, the memory crunch and the cost element of that, you know, has people looking at everything saying, you know, we need to figure out how to, you know, have this delivered for even lower, you know, bomb costs, lower memory usage, et cetera. So, you know, given that we have both demand saying, hey, look, if you can help us figure this out, there's more business potentially going to come your direction. You know, we have jumped all over that. in order to support our partner and customer base as best we can. And I think that these efforts, these investments in the near term will really prove to be very beneficial as we get into 27 and beyond.

and then as a follow up, I wanted to pivot to automotive. We've seen a bunch of volatility in the automotive sector over the last year or two. Can you talk about in your discussions your view of the landscape and automotive and perhaps just what demand looks like today for that premium infotainment solution that you provide?

I don't think there's any question that across the board Infotainment remains an area of focus and a point of differentiation for automakers. I think our continued signing of longer-term, multi-year deals around things like HD radio and the adoption of AutoStage, as well as implementing AutoStage beyond just the audio features but into video, I think evidence is that that is a point of differentiation for our customers. While I think the ultimate unit volumes in automotive naturally are impacted by a bunch of trends, inflation, tariffs, trade, as well as some of the supply chain slash memory type issues, I think the reality that the in-cabin experience is a key differentiator in the purchase journey. remains very strong. I think we are very well positioned in that. And I think uniquely, if I link maybe your two questions together a little bit, we are truly unique in that we are building a media platform that has very unique first party data coverage coming out of not only the living room in terms of CTV, but inside the cabin. and that data set is increasingly of interest to advertisers, certainly has gotten I think a ton of interest within the radio world as people look for better targeting as well as measurement and better understanding what's happening actually inside the car in a world that has largely been somewhat limited in terms of its data access. So I think all of what's happening in car plus kind of the continued advancement of what's happening in the living room, you know, bodes well for the business strategy that we laid out and how we're going to differentiate ourselves in what is a highly competitive, highly valuable market.

That's a great point you make. Thanks, Jon.

And our next question comes from the line of Matthew Galenko with Maxim Group. Your line is open.

Hey, thanks for taking my questions. Maybe my first is around the cumulus deal. Can you maybe go into a little bit more detail on maybe how long you were working on that, what the structure might look like, and if it increases the likelihood of signing additional partners in that area?

Maybe going in reverse, Matt, I think absolutely do I expect there to be more. I think we have a very robust pipeline of interest. It's something we've been working on for some time, partially as we have developed the Broadcaster Portal product in conjunction with working with our customers and our broadcast partners, identifying what their real needs were and where the gaps were in terms of the information coming off radio in general and out of the car. So it's been a product that was designed you know very you know let's call it interactively with a number of our key customers Cumulus has been part of that we're very proud to have them as our first customer the business model is licensing subscriptions access to information based on the number of stations and the amount of coverage across the U.S. that are relevant it's priced on that basis so I think you know the deals will you know range in size in part based on some of those attributes with fellow broadcasters but I do fully expect that we will have a number of others and I think there is growing intensity in and around the amazing near real-time data people are getting off our vehicles as we now approach 17 million worldwide and well more than half that active in the U.S. It's just people are seeing data they've never seen before and I think that is that is a tremendous position for us to be in.

Thank you and I guess maybe just as a follow-up specifically on the pay TV business I think this was a relatively steeper drop on the core side of it than you know maybe in prior quarters but maybe an acceleration on the IPTV side can you maybe go a little bit deeper into the The trends that we're seeing on the two sides of the pay TV business and that kind of a run rate we should be thinking about for the coming quarters, or was there anything anomalous in Q2?

This is Robert. I'm not sure if there was anything specific in Q2 from a comparability standpoint. I think if we look at it overall, that core part does continue to decline. and that also has been impacted to some extent by us exiting the hardware business and the attendant subscriptions that would ultimately go with it.

So that's continued to decrease year over year.

And I think we've seen, as you noted, pretty good positive growth still in the double digits for IPTV. I think maybe the broader question is when do those start to balance each other? And I think as we've looked out over the next year or two, we do see a balancing equation whereby we expect the legacy pay TV business would be balanced by the growth in IPTV probably in the mid-27 to mid-28 timeframe, somewhere along those lines. but I don't think anything specific to your original question around this quarter, it can vary a little bit.

Yeah, I would just add to that that, you know, you've got, you know, you've got active cord cutting in certain parts of the market. You also have us exiting largely the consumer basing, that's the hardware and subscription piece. And as those tails kind of roll off, you know, depending on the exact timing of how these things are hitting, you know, on a year over year basis, that's what you're seeing. But the big, the big, We've been working towards achieving is when does that bottom out become stable and then ultimately you see the benefit of all the work you've done over the past few years in growing your IPTV business which is strong and that continues to grow in support of our partners. So as that happens here in the not too distant future, I think the discussion of declines begins to to fade into just what does neutral to growth look like.

And our next question comes from the line of Dave Storms with StoneGate. Your line is open.

Hello, everyone, and thank you for taking my questions. Maybe you wanted to start with Kiva Monthly Active Users had a nice growth sequentially there. It looks like you're well on track to hit the 7 million stated goal. Just thinking about maybe the cadence of that, should we expect that to maybe be smooth and linear or is this going to be more dependent on any partnerships that might in the pipeline that might make that a little more lumpy? Just any commentary there would be great.

Yeah, I think as you've seen it, it's not, it doesn't tend to be linear. It kind of depends in part, you know, based on you know, what territories activations are happening in, you know, partner launches, retail timing, you know, what sell-through looks like, you know, et cetera. So there's a bunch of factors. We obviously, we knew kind of coming into this year that we might see a lighter early in the year and then we'd see, you know, a meaningful pickup and I think at this point we'd look ahead to year end and feel like the seven million, the goal that we set a couple of years ago, will be achieved. you know but I think this is this is an area where we continue to invest a lot of time because you know we believe that we can continue to grow that footprint you know over time and then as we do so and continue to optimize what advertising and or what content engagement looks like on the platforms and ultimately attach the advertising to that you know with a useful life of you know five plus years for for a lot of these TVs there's a lot of revenue downstream that can come from that so It's a good question, but it is not linear. It will bounce around.

That's great commentary. I appreciate that. Similar question on the auto stage vehicles. Great to see they added BYD. It looks like you've been growing roughly a million or so vehicles per quarter for the last couple quarters. How quickly could the integration from BYD accelerate that growth, or could that maybe take some time from a logistics standpoint?

I think it will contribute meaningfully given the size of their current installed base and where they're going. There are some vehicles that are likely to be included in some over-the-air updates as well as new models. So while I don't have the, and I'm not really at liberty to speak to the specific plans there, BYD is the world's largest electric vehicle manufacturer. and they've got quite the presence, you know, of course, outside the United States. So I think two things are important about that. A is that volume obviously positively accrues to continued growth in AutoStage. Secondly, the fact that they have a very strong presence in Europe and we believe the AutoStage listening and analytics and data play has a lot of potential upside in Europe as well is a huge positive. and I would say, thirdly, it gives others in the marketplace that maybe are not adopting at the same level, seeing somebody like BYD making a critical strategic choice, which is to go all in on experience solutions for both auto stage audio and video across the board, I think sends a pretty strong message of industry progress and support.

That's great. Thank you for taking my questions, and good luck on the next quarter. Thank you. Thank you, Dan.

And our final question comes from Ahmed Korsan with BWS Financial. Your line is open.

Hi. Could you just talk a little bit more about the minimum guarantees in auto that you were talking about for AT Radio, how that will play out for the rest of the year as far as your auto revenue is concerned?

Chair, this is Robert. We obviously had a very strong quarter from a connected car perspective, and that was indeed driven by minimum guarantees. I think as we generally think of the overall year and how we expect things to progress, certainly we have other minimum guarantees that will occur in the second half of the year. It's hard to say what the exact mix is going to be. but certainly we expect automotive to be up for the year. And generally speaking around minimum guarantees, you know, they've been historically in the low to mid single digits. I think for this year it's going to be a little bit weighted toward, yeah. So I think that's, you know, that kind of gives you a sense. It's, you know, it's probably mid 20s, mid 20, sorry, single digits, mid 20s for this year.

Okay.

All right. Percentage of revenue.

And then the other question I had was just given how you have grown TiVo 1 subscribers so quickly, does that play a role as to what could happen as far as your ARPU is concerned, as far as dilution, because you are growing so rapidly on that calendar?

Yeah, I think one of the things to understand, we talk about ARPU, you know, there's two components, of course, revenue growth and footprint growth. And, you know, in periods where the footprint is growing faster than the revenue, you know, it tends to drive down your ARPU, you know, until you're at a more normalized base state and you're just more in optimization mode with what you've got or the relative gains or let's call it smaller on a percentage. So that's kind of what you saw in this past quarter. You know, with a slight dip in ARPU as a function of the user base, MAU is growing faster than the revenue. However, you know, as we think about it, for example, for 426, we expect, you know, to end the year around about 7 million units. And based on that and our expectation that we're going to have a, you know, a very strong back half in terms of advertising, we think that will drive up ARPU. consistent with our expectations right around $10. So I think over time, though, I think you're going to continue to see us as we take regular steps to tweak and optimize kind of the platform, improving things like fill rates as well as providing various data augmentation to drive up CPMs you know among other things to ultimately drive more value out of the inventory that we have I think you'll see continued gains that you know are not dissimilar from what you've seen on other platforms that you know if you will cut their teeth and launched years ago and then you know they saw a similar ramp I think we're kind of on that journey ourselves but you know the hardest thing to do on it is get footprint you know it's a hyper competitive market in part because that real estate is incredibly valuable. And I think we continue to do so very successfully, you know, as an independent platform. And I think we continue to have a lot of interest. And I think based on that, we're going to be able to increasingly monetize that over time.

Okay.

Thank you. Thank you, Hamid.

And that concludes our question and answer session. I will now turn the conference back over to Mr. Jon Kirchner for closing remarks.

Thanks, operator. As we move back into the back half of the year and continue to expect to see momentum in our business, we're grateful for the continued support of our customers, partners, and shareholders. Our multi-year pivot is taking shape, and the collection of assets we have spanning the home and the car is quite unique in the industry. We look forward to sharing further updates on our next quarterly conference call, and thanks, everyone, for joining today. Operator?

Ladies and gentlemen, this concludes today's call, and we thank you for your participation.