Key Highlights

  • Revenue was USD 80.2 million versus USD 96.1 million in the second quarter, with non-GAAP diluted EPS of USD 0.21.
  • GAAP Net Income was USD 2.3 million, or USD 0.02 per diluted share, and adjusted EBITDA was USD 36.9 million.
  • The company signed eight license agreements, including renewals with Charter and TCL and four new customers.
  • Full-year Revenue guidance moved to USD 375 million to USD 415 million from USD 395 million to USD 435 million.

Third-Quarter Results

Adeia Inc. (NASDAQ:ADEA) reported third-quarter 2026 revenue of USD 80.2 million compared with USD 96.1 million in the second quarter. GAAP diluted EPS was USD 0.02 on net income of USD 2.3 million, and non-GAAP diluted EPS was USD 0.21. Adjusted EBITDA was USD 36.9 million and Cash Flow from operations was USD 5.1 million.

The company appointed Dipti Vachani as chief executive officer, and she said the quarter reflected strong deal activity with eight license agreements signed across Pay-TV, consumer electronics, E-commerce and social media.

Licensing Activity

The agreements included multi-year renewals with Charter, the largest Pay-TV and broadband provider in the United States, and TCL, one of the world's largest connected TV manufacturers, plus a new long-term license with Fanatics. New agreements were also signed with a Social Media company, a consumer electronics company and three other Pay-TV providers, bringing four new customers in the quarter.

The chief executive, who brings nearly 30 years of experience in the semiconductor space, reiterated confidence in the long-term annual revenue outlook of USD 600 million and described the pipeline as strong and growing. She thanked the board and the departing chief executive for support during the transition.

Guidance and Capital

The chief financial officer said revenue could be affected by the timing of a select few deals near year end, that the company remains confident of reaching the high end of its guidance range, and that the range was adjusted to reflect deals that might close after the year ends. Updated 2026 guidance shows revenue of USD 375 million to USD 415 million (prior USD 395 million to USD 435 million), non-GAAP operating expenses of USD 176 million to USD 180 million (prior USD 184 million to USD 192 million), adjusted EBITDA of USD 201.1 million to USD 237.1 million (prior USD 213.4 million to USD 245.4 million) and non-GAAP net income of USD 136.7 million to USD 164.3 million (prior USD 144.2 million to USD 168.7 million).

GAAP operating expenses are guided to USD 283 million to USD 289 million, interest expense to USD 32 million to USD 34 million, other income to USD 6 million to USD 7 million and diluted shares to 113.5 million to 114.5 million.

The company paid down USD 6.1 million of its term loan, leaving USD 386.5 million outstanding, distributed USD 5.5 million to stockholders on September 14, 2026, and ended the quarter with USD 127.7 million of cash, cash equivalents and marketable securities.

Deal Timing Indicators

Items to track include the timing of the remaining large license executions, the pace of new customer additions, term Loan repayment and the transition under the new chief executive.