Rubric Capital Management Issues Open Letter to Xperi Inc. Stockholders in Response to Company’s Highly Misleading Investor Presentation

Rubric Capital Management LP (“Rubric”), an investment advisor whose managed funds and accounts collectively own approximately 9.0% of the outstanding shares of common stock of Xperi Inc. (NYSE: XPER) (“Xperi” or the “Company”), today issued an open letter to Xperi’s stockholders in response to an investor presentation released by the Company in connection with its 2024 Annual Meeting of Stockholders.

The full text of the letter follows:

Dear Fellow Xperi Stockholders,

Upon reading the investor presentation issued by Xperi on April 30, 2024, we were struck by one, overriding thought: “What contempt this Board must have for its own stockholders.”

While we are not interested in being dragged into a tit-for-tat rebuttal of the myriad issues with Xperi’s presentation, we felt it was important to address some of the Company’s most egregious statements so stockholders can evaluate for themselves if this is the Board they wish to continue to represent them.

Xperi’s Post-Spin Underperformance

When discussing its underwhelming performance in its presentation, Xperi admits that its shares have “underperformed for the 19-month period since the Spin-Off.” However, in an attempt to paint a rosier picture for stockholders, the Company proceeds to tout a total shareholder return (TSR) that excludes a full quarter of trading, thereby moving the goalposts and inflating its TSR by 58%.¹ Xperi’s rationale for the exclusion is that it took time for the stock to “season” post-spin off – a concept that Xperi has apparently contrived for just this occasion.

Xperi’s Share Repurchase Program is Nothing More than Window Dressing

On April 29, 2024, Xperi disclosed the authorization of an up to $100 million share repurchase program. Regrettably, the share repurchase program now looks like nothing more than window dressing, as the Company includes the 8% share price rise triggered by the disclosure when calculating the returns it proudly showcases throughout its presentation. Convenient timing, to say the least.

Moreover, we have no faith that the Company will execute the share repurchase program in any substantive way, seeing as it “does not obligate the Company to repurchase any specific number of shares of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board.”²

This lack of commitment and absence of any timeframe against which the share repurchase program will be executed belies an utter lack of seriousness.

Xperi’s Presentation of Dilution is a Mockery of the Truth