Adeia Inc. reported record fourth‑quarter revenue of $182.6 million, a 53% year‑over‑year increase that surpassed analyst consensus estimates of $166.9 million. Non‑GAAP diluted earnings per share of $0.86 beat the $0.73 consensus by $0.13, or 18%. The company also posted record operating income and adjusted EBITDA, with adjusted EBITDA reaching $133.9 million, the highest quarterly figure in its history.
Revenue growth was driven by a robust mix of new and renewal agreements. Adeia signed nine deals during the quarter, including four with new customers. A key highlight was a long‑term license agreement with Disney that "resolves all disputes" after a year of litigation, reinforcing the strength of Adeia’s IP portfolio. The company also secured two other OTT customers, a consumer‑electronics customer in Japan, and a hybrid‑bonding prototype development agreement with an existing semiconductor customer. Media revenue accounted for roughly 94% of total revenue, while semiconductor revenue reached $26 million for the full year, reflecting a 40% increase from the prior year.
Adeia’s non‑Pay‑TV recurring revenue grew 22% year‑over‑year and 30% in the quarter, further validating its strategy to diversify beyond legacy pay‑TV. The company’s RapidCool™ thermal solution is now being evaluated by multiple AI semiconductor leaders, positioning Adeia for growth in high‑performance computing markets. "We finished the year with strong momentum, delivering record fourth‑quarter revenue of $182.6 million, along with quarterly records in operating income and adjusted EBITDA," CEO Paul E. Davis said. "During the quarter, we signed nine deals, including four with new customers."
Looking ahead, Adeia guided 2026 revenue to $395 million–$435 million, a range below the $443.4 million actual revenue for 2025, signaling management’s concern about upcoming litigation expenses and a potential slowdown in demand. The company reduced debt by $21.1 million in Q4 and $60.4 million for the full year, repurchased $10 million of stock in the quarter and $20 million for the year, and declared a quarterly dividend of $0.05 per share. "Pay‑TV now projected to represent approximately 35% to 40% of our forecasted revenue this year," Davis added.
Investors reacted positively to the earnings beat and the Disney licensing deal, with the company’s guidance reflecting a cautious outlook for 2026. Analyst consensus estimates for Q4 EPS were $0.73 and for revenue were $166.9 million, both of which Adeia surpassed. The market’s focus on the strong earnings performance and the resolution of litigation with Disney underscores confidence in Adeia’s execution and strategic positioning.
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