IP licensing firm Adeia misses Q3 revenue estimates, cuts guidance, files lawsuit against AMD

Adeia

03/11/2025 13:14

Overview

Adeia Q3 revenue of $87.3 mln missed analyst expectations

Adjusted EPS for Q3 was $0.28, missing consensus estimates

Company files patent infringement litigation against AMD, affecting revenue guidance

Outlook

Adeia revises 2025 revenue guidance to $360 mln - $380 mln from $390 mln - $430 mln

Company adjusts 2025 net income forecast to $52.4 mln - $71.6 mln

Adeia expects 2025 adjusted EBITDA between $202.3 mln and $218.3 mln

Result Drivers

NON-PAY-TV REVENUE GROWTH - Non-Pay-TV recurring revenue grew 31% YoY, driven by new agreements in semiconductors and media markets

LONG-TERM DEALS - Closed long-term media deals, including a renewal with a Pay-TV customer and a new e-commerce customer

AI INVESTMENT - Continued investment in AI and innovation, recognized with an industry award for hybrid bonding technology

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$87.30 mln
$100.70 mln (4 Analysts)
Q3 Adjusted EPS
Miss
$0.28
$0.36 (3 Analysts)
Q3 EPS
$0.08
Q3 Net Income from Continuing Operations
$8.80 mln
Q3 Adjusted EBITDA
Miss
$50.70 mln
$56.60 mln (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Adeia Inc is $17.50, about 2.6% above its October 31 closing price of $17.04

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX6XDZhJ

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)