Adeia (NASDAQ:ADEA) Posts Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Adeia (NASDAQ:ADEA) issued its quarterly earnings data on Monday. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.09), FiscalAI reports. Adeia had a return on equity of 39.26% and a net margin of 26.05%. The company had revenue of $80.19 million for the quarter, compared to the consensus estimate of $98.88 million.

Here are the key takeaways from Adeia’s conference call:

• 2026 revenue guidance was reduced to $375 million-$415 million from the prior range, reflecting the possibility that several large, complex media deals will close after year-end.
• Adeia signed eight license agreements in the quarter, including four new customers and significant multi-year renewals with Charter and TCL, plus a new long-term agreement with Fanatics.
• Non-Pay-TV recurring revenue grew 48% year over year, while management maintained its long-term annual revenue target of $600 million and said the delayed deals remain active opportunities rather than lost business.
• Management sees substantial semiconductor growth ahead as hybrid bonding adoption expands across logic, HBM, 3D DRAM, NAND, and chiplet applications, with logic growth expected in 2027-2028 and memory renewals in 2028-2029.
• Third-quarter adjusted EBITDA was $36.9 million, or a 46% margin, and full-year operating-expense guidance was lowered to $176 million-$180 million due to cost discipline and delayed litigation spending.

Adeia Stock Down 3.6%

ADEA stock traded down $0.77 during midday trading on Monday, hitting $20.67. The company’s stock had a trading volume of 2,216,508 shares, compared to its average volume of 1,370,769. The company’s fifty day moving average price is $24.40 and its 200 day moving average price is $25.46. The company has a debt-to-equity ratio of 0.76, a current ratio of 3.25 and a quick ratio of 3.25. Adeia has a twelve month low of $11.61 and a twelve month high of $34.34. The stock has a market capitalization of $2.28 billion, a P/E ratio of 19.14 and a beta of 1.46.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Weiss Ratings cut Adeia from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, September 29th. Rosenblatt Securities restated a “buy” rating and issued a $40.00 price target on shares of Adeia in a report on Tuesday, September 29th. BWS Financial restated a “buy” rating and issued a $50.00 price target on shares of Adeia in a report on Wednesday, October 7th. Finally, Zacks Research raised Adeia from a “strong sell” rating to a “hold” rating in a research report on Monday, August 3rd. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.60.

About Adeia

Adeia Inc is a semiconductor intellectual property company that develops and licenses technologies used in the design, manufacture and packaging of advanced electronic devices. Rather than producing semiconductors itself, the company works with chipmakers, foundries and other industry participants to commercialize its intellectual property.

Adeia’s portfolio includes technologies for three-dimensional semiconductor integration, hybrid bonding, advanced packaging, memory and chip-to-chip connectivity.