Adeia : ADEA-Q12026-ER-FINAL

Published: 2026-05-04 17:10:29 ET ADEA

Published on 05/04/2026 at 05:10 pm EDT

Signed new license agreements with AMD and Microsoft

Generated $58 million in cash from operations and achieved 60% adjusted EBITDA margin Paid down debt by $28 million bringing our outstanding balance to less than $400 million

"We had a strong start to 2026, delivering first quarter revenue of $105 million, generating $58 million in operating cash flow, and maintaining strong profitability with a 60% adjusted EBITDA margin," said Paul E. Davis, chief executive officer of Adeia. "We closed eight license agreements during the quarter, three of which were with new customers, including multi-year agreements with AMD and Microsoft. We believe our deal execution year-to-date highlights both the strength of our IP portfolio in our core markets, like Pay-TV, consumer electronics and social media, and our ability to expand our business with new customers in growth markets like semiconductors and e-commerce. Our non-Pay-TV recurring revenue continued to grow, with an impressive 28% year-over-year increase in the quarter, reflecting progress in diversifying our business. We are excited to see our foundational innovations gaining broad market adoption. Most importantly, hybrid bonding is rapidly being designed into products for the logic and memory markets that are supporting the AI ecosystem. We also remained disciplined in our capital allocation, reducing debt to less than

$400 million while continuing to return capital to shareholders and invest in our patent portfolios, including tuck-in acquisitions."

Revenue was $104.8 million as compared to $182.6 million in the fourth quarter of 2025

GAAP diluted earnings per share (EPS) was $0.21 and non-GAAP diluted EPS was $0.38

GAAP net income was $22.8 million and adjusted EBITDA was $62.3 million

Cash flow from operations was $58.5 million

Paid down $28.1 million on our term loan

Repurchased $10.0 million of our common stock

Signed a new multi-year license agreement with AMD, a leading semiconductor company, for access to our semiconductor portfolio, including our hybrid bonding technology

Signed a new multi-year license agreement with Microsoft, a leading technology company with a broad array of businesses, including consumer electronics and social media, for access to our media portfolio

Signed 8 deals, 5 in media and 3 in semiconductors, including 3 with new customers

In early Q2, signed a new multi-year license agreement with leading cosmetics and beauty retailer L'Oréal, for access to our media portfolio, expanding our presence in e-commerce

During the quarter, the Company made $28.1 million in principal payments towards its term loan, bringing the outstanding balance to $398.6 million as of March 31, 2026.

During the quarter, the Company repurchased $10.0 million of its common stock, representing 0.4 million shares and bringing the remaining amount available under its stock repurchase plan to $150.0 million as of March 31, 2026.

On March 30, 2026, the Company distributed $5.5 million to stockholders of record on March 16, 2026, for a quarterly cash dividend of $0.05 per share of common stock.

The Board of Directors declared a dividend of $0.05 per share, payable on June 15, 2026, to stockholders of record on May 26, 2026.

The Company is reiterating its full year 2026 outlook as follows:

Category

(in millions, except for tax rate)

2026

GAAP Outlook

2026

Non-GAAP Outlook

Revenue

$395.0 − 435.0

Operating expenses (1)

$295.0 − 305.0

$184.0 − 192.0

Interest expense

$34.0 − 36.0

Other income

$5.5 − 6.5

Tax rate

20%

21%

Net income (2)

$57.2 − 80.4

$144.2 − 168.7

Adjusted EBITDA (2)

N/A

$213.4 − 245.4

Diluted shares outstanding

(1) See tables for reconciliation of GAAP to non-GAAP operating expenses.

114.0 − 115.0

(2) See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA).

The Company will hold its first quarter 2026 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Monday, May 4, 2026. To access the call in the U.S., please dial +1 (888) 660-6411, and for international callers, dial +1 (929) 203-0849. All participants should dial in 15 minutes prior to the start of the conference call. The Company also suggests utilizing the webcast link to access the live call and the replay at Q1 2026 Earnings Call Webcast. A live and replay webcast will be available on the Adeia Investor Relations website at https://investors.adeia.com.

This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company's current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "target," similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company's control, and are not guarantees of future results.

Forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company's ability to implement its business strategy; the Company's ability to enter into new and renewal license agreements with customers on favorable terms; the Company's ability to retain and hire key personnel; uncertainty as to the long-term value of the Company's common stock; legislative, regulatory and economic developments affecting the Company's business; general economic and market developments and conditions; the Company's ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company's indebtedness; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters and global health pandemics, each of which may have an adverse impact on the Company's business, results of operations, and financial condition. These risks, as well as other risks associated with the Company's business, are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company's filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Causes of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, failure to complete licensing arrangements on anticipated terms and timeline, failure to prevail in litigation we may bring against third parties, financial loss, legal liability to third parties and similar risks, and failure to attract or retain employees, any of which could have a material adverse effect on the Company's consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia's fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia's IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit https://www.adeia.com.

In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company's earnings release contains non-GAAP financial measures adjusted, where applicable, for either one-time or ongoing non-cash acquired intangibles amortization charges, costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses, separation costs, all forms of stock-based compensation, loss on debt extinguishment, expensed debt refinancing costs, impairment of intangible assets, impact of certain foreign currency adjustments, discontinued operations and related tax effects. In addition, adjusted EBITDA adjusts for recurring charges of interest expense, income taxes, depreciation and amortization. Management believes that the non-GAAP measures used in this release provide investors with important perspectives on the Company's ongoing business and financial performance and are helpful to provide investors with an understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as EBITDA margin, which is defined as EBITDA as a percentage of revenue, adjusted EBITDA, non-GAAP operating expenses, non-GAAP net income and non-GAAP diluted earnings per share (EPS) do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.

Set forth below are reconciliations of the Company's reported and forecasted GAAP to non-GAAP financial metrics.

Chris Chaney

Vice President, Investor Relations [email protected]

- Tables Follow -SOURCE: ADEIA INC. ADEA

March 31,

2026

March 31,

2025

Revenue

$ 104,772

$ 87,670

Operating expenses:

Research and development

18,202

16,467

Selling, general and administrative

29,834

28,432

Amortization expense

15,931

14,082

Litigation expense

5,973

5,854

Total operating expenses

69,940

64,835

Operating income

34,832

22,835

Interest expense

(8,546)

(10,649 )

Other income and expense, net

1,693

1,712

Income before income taxes

27,979

13,898

Provision for income taxes

5,206

2,084

Net income

$ 22,773

$ 11,814

Net income per share:

Basic

$ 0.21

$ 0.11

Diluted

$ 0.20

$ 0.10

Weighted average number of shares used in per share calculations:

Basic

109,503

107,948

Diluted

114,203

113,021

LIABILITIES AND EQUITY

March 31,

2026

December 31,

2025

ASSETS

Current assets:

Cash and cash equivalents

$ 53,325

$ 73,136

Marketable securities

62,437

63,597

Total cash, cash equivalents, and marketable securities

115,762

136,733

Accounts receivable, net

32,588

28,631

Unbilled contracts receivable

124,419

129,829

Other current assets

8,554

8,765

Total current assets

281,323

303,958

Long-term unbilled contracts receivable

43,472

49,499

Property and equipment, net

6,094

6,113

Operating lease right-of-use assets

7,887

8,177

Intangible assets, net

293,500

303,456

Goodwill

313,660

Other long-term assets

56,454

54,440

Total assets

$ 1,002,390

$ 1,039,303

Current liabilities:

Accounts payable

$ 5,809

$ 4,827

Accrued liabilities

21,097

34,250

Current portion of long-term debt, net

20,988

20,975

Deferred revenue

33,781

19,726

Total current liabilities

81,675

79,778

Deferred revenue, less current portion

52,201

49,975

Long-term debt, net

370,276

397,479

Noncurrent operating lease liabilities

8,530

8,734

Long-term income tax payable

7,620

7,273

Other long-term liabilities

15,521

15,523

Total liabilities

535,823

558,762

Commitments and contingencies

Stockholders' equity:

Preferred stock

Common stock

131

128

Additional paid-in capital

694,748

685,992

Treasury stock at cost

(337,565 )

(297,778)

Accumulated other comprehensive income (loss)

(124 )

Retained earnings

109,377

92,139

Total stockholders' equity

466,567

480,541

Total liabilities and stockholders' equity

$ 1,002,390

$ 1,039,303

Three Months Ended

Cash flows from operating activities:

March 31,

2026

March 31,

2025

Net income

$ 22,773

$ 11,814

Adjustments to reconcile net income to net cash from operating activities:

Depreciation of property and equipment

492

509

Amortization of intangible assets

15,931

14,082

Stock-based compensation expense

8,756

8,244

Deferred income tax and other

(2,154 )

(4,043 )

Amortization of debt issuance costs

899

821

Other

(42 )

(116 )

Changes in operating assets and liabilities:

Accounts receivable

(3,957 )

5,689

Unbilled contracts receivable

11,437

7,969

Other assets

641

(2,375 )

Accounts payable

443

(2,216 )

Accrued and other liabilities

(13,012 )

(8,106 )

Deferred revenue

16,281

24,867

Net cash provided by operating activities

58,488

57,139

Cash flows from investing activities:

Purchases of property and equipment

(434 )

(228 )

Purchases of intangible assets

(5,475 )

(5,350 )

Purchases of short-term investments

(9,029 )

(7,194 )

Proceeds from maturities of investments

10,050

6,600

Net cash used in investing activities

(4,888 )

(6,172 )

Cash flows from financing activities:

Principal payments on debt agreements

(28,089 )

(17,089 )

Payments of dividends

(5,535 )

(5,422 )

Proceeds from employee stock purchase program and exercise of stock options

186

Repurchases of common stock

(10,006 )

(11,326 )

Repurchases of common stock for tax withholdings on equity awards

(29,781 )

(11,957 )

Net cash used in financing activities

(73,411 )

(45,608 )

Net increase in cash and cash equivalents

(19,811 )

5,359

Cash and cash equivalents at beginning of period

73,136

78,825

Cash and cash equivalents at end of period

$ 53,325

$ 84,184

2026

2025

GAAP net income $ 22,773 $ 11,814

Adjustments to GAAP net income:

Stock-based compensation expense:

Research and development

1,742

1,234

Selling, general and administrative

7,014

7,010

Amortization expense

15,931

14,082

Transaction costs recorded in selling, general and administrative

1,111

Separation and other related costs recorded in selling, general and administrative (1)

2,330

531

Total operating expenses adjustments

27,017

23,968

Non-GAAP tax adjustment (2)

(6,343)

(6,625 )

Non-GAAP net income

$ 43,447

$ 29,157

Diluted earnings per share

2026

2025

GAAP diluted earnings per share $ 0.20 $ 0.10

Adjustments to GAAP diluted earnings per share:

Stock-based compensation expense:

Research and development

0.02

0.01

Selling, general and administrative

0.06

Amortization expense

0.14

0.12

Transaction costs recorded in selling, general and administrative

0.01

Separation and other related costs recorded in selling, general and administrative (1)

0.02

0.01

Total operating expenses adjustments

0.24

0.21

Non-GAAP tax adjustment (2)

(0.06 )

(0.05 )

Non-GAAP diluted earnings per share

$ 0.38

$ 0.26

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.

March 31,

2026

March 31,

2025

GAAP net income

$ 22,773

$ 11,814

Adjustments to GAAP net income:

Stock-based compensation expense:

Research and development

1,742

1,234

Selling, general and administrative

7,014

7,010

Transaction costs recorded in selling, general and administrative

1,111

Separation and other related costs recorded in selling, general and administrative (1)

2,330

531

Amortization expense

15,931

14,082

Depreciation expense

492

509

Interest expense

8,546

10,649

Other income and expense, net

(1,693)

(1,712 )

Provision for income taxes

5,206

2,084

Adjusted EBITDA

$ 62,341

$ 47,312

December 31, 2026

Low

High

GAAP operating expenses

$ 295.0

$ 305.0

Amortization expense

64.0

65.0

Stock-based compensation expense

39.0

40.0

Separation and related costs (1)

8.0

Total of non-GAAP adjustments

111.0

113.0

Non-GAAP operating expenses

$ 184.0

$ 192.0

December 31, 2026

Low

High

GAAP net income

57.2

80.4

Amortization expense

64.0

65.0

Stock-based compensation expense

39.0

40.0

Separation and related costs (1)

8.0

Total of non-GAAP operating expenses

111.0

113.0

Non-GAAP tax adjustment (2)

(24.0 )

(24.7 )

Non-GAAP net income

$ 144.2

$ 168.7

(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.

December 31, 2026

Low

High

GAAP net income

$ 57.2

$ 80.4

Stock-based compensation expense

39.0

40.0

Separation and related costs (1)

8.0

Amortization expense

64.0

65.0

Depreciation expense

2.4

Interest expense

34.0

36.0

Other income

(5.5 )

(6.5 )

Income tax expense

14.3

20.1

Total of non-GAAP adjustments

156.2

165.0

Adjusted EBITDA

$ 213.4

$ 245.4

Disclaimer

Adeia Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:02 UTC.