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 the 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. In the case of certain fixed fee on-premise licensed software arrangements, 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, metadata for ad measurement and programming analytics, 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. Metadata for ad measurement and programming analytics is generally recognized over time as the customer obtains the scheduled data. License revenue for the core middleware solutions is generally recognized either on a per-unit royalty or a minimum guarantee or fixed fee basis, similar to “Consumer Electronics” described in the section above.

Hardware Products, Services and Settlements/Recoveries

The Company sells hardware products, primarily to end consumers, within the Pay-TV 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 settlements of 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.

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):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Recognized over time	$	80,971	$	87,173	$	160,037	$	183,855
Recognized at a point in time		24,962		32,418		59,929		54,580
Total revenue	$	105,933	$	119,591	$	219,966	$	238,435


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Pay-TV	$	49,937	$	60,752	$	99,801	$	117,558
Consumer Electronics		18,763		17,164		41,561		43,292
Connected Car		25,105		31,423		58,391		55,771
Media Platform		12,128		10,252		20,213		21,814
Total revenue	$	105,933	$	119,591	$	219,966	$	238,435

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


	Three Months Ended June 30,
	2025					2024
	Amount		Percentage of Revenue			Amount		Percentage of Revenue
U.S. and Canada (1)	$	60,389		57	%	$	60,116		50	%
Asia Pacific		31,660		30			36,663		31
Europe, Middle East and Africa		8,119		8			9,467		8
Other		5,765		5			13,345		11
Total revenue	$	105,933		100	%	$	119,591		100	%


	Six Months Ended June 30,
	2025					2024
	Amount		Percentage of Revenue			Amount		Percentage of Revenue
U.S. and Canada (1)	$	110,100		50	%	$	125,227		52	%
Asia Pacific		78,604		36			69,791		29
Europe, Middle East and Africa		18,198		8			22,942		10
Other		13,064		6			20,475		9
Total revenue	$	219,966		100	%	$	238,435		100	%

(1) For the three months ended June 30, 2025 and 2024, the Company recognized $55.8 million of revenue from the U.S., which represented 53% and 47% of total revenue for the respective periods. For the six months ended June 30, 2025 and 2024, revenue from the U.S. was $101.2 million and $115.6 million, or 46% and 48% of total revenue, for the respective periods.

A significant portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., principally in Asia Pacific and Europe, Middle East and Africa. Included within Asia Pacific, Japan, China, and South Korea each contributed a significant amount of revenue, as shown in the following table (in thousands):


	Three Months Ended June 30,
	2025					2024
	Amount		Percentage of Revenue			Amount		Percentage of Revenue
Japan	$	12,773		12	%	$	13,873		11	%
China	$	11,167		11	%	$	3,545		3	%
South Korea	$	6,454		6	%	$	16,653		14	%


	Six Months Ended June 30,
	2025					2024
	Amount		Percentage of Revenue			Amount		Percentage of Revenue
Japan	$	30,562		14	%	$	25,910		11	%
China	$	26,001		12	%	$	16,332		7	%
South Korea	$	19,211		9	%	$	23,599		10	%

No individual country in Europe, Middle East and Africa and other regions accounted for 10% or more of total revenue in all periods presented.

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$	6,575	$	6,336	$	14,614	$	13,602
Performance obligations satisfied in previous periods (true ups, recoveries, and settlements) (1)	$	2,080	$	353	$	1,295	$	3,362

(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 in reports 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.

Remaining performance obligations represent contracted revenue that has not yet been recognized. As of June 30, 2025, the Company’s remaining performance obligations and the period over which they are expected to be recognized were as follows (in thousands):

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,
	2025						2024
	Accounts Receivable			Unbilled Contracts Receivable			Accounts Receivable			Unbilled Contracts Receivable
Beginning balance	$	1,072		$	450		$	2,868		$	245
Provision for credit losses		27			22			(856	)		103
Recoveries/charge-off		(145	)		(4	)		(858	)		—
Ending balance	$	954		$	468		$	1,154		$	348

	Six Months Ended June 30,
	2025						2024
	Accounts Receivable			Unbilled Contracts Receivable			Accounts Receivable			Unbilled Contracts Receivable
Beginning balance	$	946		$	499		$	1,906		$	190
Provision for credit losses		229			(22	)		(58	)		161
Recoveries/charge-off		(221	)		(9	)		(694	)		(3	)
Ending balance	$	954		$	468		$	1,154		$	348