Adeia Inc
NASDAQ:ADEA

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Adeia Inc
NASDAQ:ADEA
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Price: 18.08 USD -2.32% Market Closed
Market Cap: 2B USD

Adeia Inc
Investor Relations

Adeia Inc. emerges as a significant entity at the intersection of technology and innovation, carving a niche in the intellectual property landscape. Formed through a strategic spin-off from Xperi Holding Corporation in 2022, Adeia strides forward with a rich legacy of developing and monetizing cutting-edge technologies. This fortified foundation catapults it into a role where it serves as a catalyst for progress in the semiconductor and media industries. Adeia's business model revolves around creating a robust portfolio of patents and licensing them to a diverse array of clients, including global tech giants. This approach ensures a steady revenue stream by safeguarding its developments and enabling other companies to leverage its groundbreaking innovations in their own products and services.

The company's prowess is displayed in its focus on advanced technologies such as memory and sensory techniques, which enhance the performance and capabilities of electronics worldwide. With an eye on the future, Adeia continually invests in research and development, nurturing its pipeline of patents that address the increasingly complex needs of digital transformation. This strategic positioning allows Adeia not only to capitalize on current technological trends but also to define the trajectories of future innovations. Its model serves as a blueprint for sustainability, leading a delicate balance between fostering innovation and securing profitability through its licensing endeavors. By maintaining an active presence in key areas like semiconductor optimization and immersive media experiences, Adeia underscores its commitment to being a pioneering force in technology-driven growth.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 3, 2025
AI Summary
Q3 2025

Revenue: Q3 revenue was $87.3 million, in line with expectations, but well below the Street's $100 million estimate.

Guidance Cut: Full-year 2025 revenue guidance was reduced to $360–$380 million due to the unlikelihood of closing an AMD license agreement this year.

Litigation Update: Adeia filed multiple patent infringement lawsuits against AMD, and reported continued positive progress in other litigations, including Disney and Videotron.

Non-Pay TV Growth: Non-Pay TV recurring revenue rose 31% year-over-year and is up 81% since separation, showing success in semiconductor, OTT, and e-commerce segments.

Cost Control: Operating expenses fell 9% sequentially in Q3 and full-year operating expense guidance was lowered to $160–164 million.

Strong Recurring Revenue: Recurring revenue is stable, expected to rise from the mid-$80 million range in Q3 to about $90 million in Q4.

2026 Outlook: Management expects strong revenue growth in 2026, driven by a healthy pipeline and potential deal closures that may slip from 2025.

Cash Generation: The company continues to pay down debt, generate significant cash from operations, and pay dividends.

Key Financials
Revenue
$87.3 million
Non-Pay TV Recurring Revenue Growth
up 31% YoY in Q3
Non-Pay TV Recurring Revenue Growth Since Separation
up 81% since separation
Recurring Revenue
mid-$80 million in Q3
Adjusted EBITDA
$50.7 million
Adjusted EBITDA Margin
58%
Operating Expenses
$37.1 million in Q3
Litigation Expense
$5.2 million in Q3
Interest Expense
$10.1 million in Q3
Other Income
$1.5 million in Q3
Effective Interest Rate
7.8%
Depreciation Expense
$479,000 in Q3
Income Tax Rate
23%
Cash, Cash Equivalents, and Marketable Securities
$115.1 million at end of Q3
Cash from Operations
$17.8 million in Q3
Term Loan Balance
$447.8 million at end of Q3
Debt Payments Since Separation
$311.6 million paid down
Dividend per Share
$0.05 per share in Q3
Patent Assets
More than 13,000 at end of Q3
Earnings Call Recording
Other Earnings Calls

Management

Mr. Paul E. Davis J.D.
CEO & Director
No Bio Available
Mr. Keith A. Jones
Chief Financial Officer
No Bio Available
Mr. Kevin Tanji
Chief Legal Officer & Corporate Secretary
No Bio Available
Dr. Mark Kokes
Chief Licensing Officer & GM of Media
No Bio Available
Mr. Dana Escobar
Chief Licensing Officer & GM of Semiconductor
No Bio Available
Mr. Serhad Doken
Chief Technology Officer
No Bio Available
Mr. Jarl Berntzen
Chief Corporate Development Officer
No Bio Available
Ms. Christina Sawyer
Chief People Officer
No Bio Available
Mr. Joseph Guiliano
Chief intellectual property (IP) officer
No Bio Available

Contacts

Address
CALIFORNIA
San Jose
3025 Orchard Parkway
Contacts
+14083216000
www.xperi.com