Rubric Capital Management Nominates Two Highly Qualified, Independent Directors to Xperi Inc. Board of Directors

Rubric Capital Management LP (“Rubric”), an investment advisor whose managed funds and accounts collectively own approximately 9.1% of the outstanding shares of common stock of Xperi Inc. (NYSE: XPER) (“Xperi” or the “Company”), today announced that it has nominated two highly qualified, independent director candidates – Thomas A. Lacey and Deborah S. Conrad – for election to the Company’s Board of Directors (the “Board”) at the 2024 Annual Meeting of Stockholders (the “Annual Meeting”).

David Rosen, Managing Partner of Rubric, said, “Xperi has built an attractive portfolio of innovative enablement technologies with significant monetization potential. Unfortunately, this potential has been all but squandered under the oversight of the current Board, and stockholders have paid the price.

“The facts speak for themselves. Since the completion of its spin-off, Xperi shares have materially underperformed any comparable benchmark, declining by approximately 28%, during which period the S&P Software Index had a total return of approximately 74% and the Russell 3000 returned approximately 42%.¹ Xperi’s margin performance has been similarly underwhelming when compared to peers. This underperformance has been idiomatic to Xperi – dating back to its former parent company, which shared nearly all the same directors – and we believe it is the direct result of the Board’s poor decision making and capital allocation practices. The failure to capitalize on the promise of Perceive, despite its potential to accelerate the AI software stack, while shouldering stockholders with years of losses is emblematic of the Company’s capital mismanagement, as is the recent sale of the Company’s AutoSense division for zero upfront consideration, exposing Xperi stockholders to significant counterparty risk. Moreover, the fact that this Board has deemed it appropriate to issue insiders over 10% of the Company’s equity in the last year alone despite Xperi’s staggeringly poor returns is, in our view, indefensible and indicative of a Board that desperately needs direct stockholder representatives in the boardroom.

“We have always sought to engage constructively with the Company’s Board and management team across the duration of our investment, which spans Xperi’s life as a standalone company, and our history with its predecessor entities goes back to Rubric’s inception. However, the direction of the Company is untenable, and we have lost confidence in the ability of the Board to provide the oversight required to stem the tide of losses and drive meaningful stockholder value. Our director candidates have the leadership experience, marketing knowledge, and financial and corporate strategy expertise that is urgently needed to help set Xperi on a trajectory of sustained growth and profitability for the benefit of all stakeholders.”