Key Highlights

  • ADEA reported third quarter 2026 Revenue of $80.2 million, down from $96.1 million in the second quarter.
  • GAAP Net Income was $2.3 million, or $0.02 per diluted share, while non-GAAP diluted EPS was $0.21.
  • Adjusted EBITDA came in at $36.9 million, compared with $50.7 million a year earlier.
  • Full-year 2026 revenue guidance was lowered to a range of $375 million to $415 million from $395 million to $435 million.
  • The company ended September with $127.7 million in cash and marketable securities and a term Loan balance of $386.5 million.

Adeia Books Eight License Deals, but Third Quarter Revenue Softens

Adeia (NASDAQ:ADEA) reported third quarter results on Nov 2, 2026, for the quarter ended Sep 30, 2026. Revenue was $80.2 million, compared with $87.3 million in the third quarter of 2025 and $96.1 million in the second quarter of 2026. By calculation, that is a decline of about 8.2% from a year earlier.

Adeia licenses foundational patents across semiconductor and media technologies, including hybrid bonding and thermal management for AI datacenters as well as content discovery and streaming. During the quarter it signed eight license agreements, four of them with new customers, spanning pay-TV, consumer electronics, E-commerce and social media. Renewals included the largest U.S. pay-TV and broadband provider and one of the world's biggest connected TV makers.

Management said Recurring Revenue outside pay-TV grew 48% from a year earlier, and that its Patent Assets now exceed 14,500.

Litigation Costs and a Higher Tax Charge Shape the Profit Line

GAAP net income was $2.3 million, or $0.02 per diluted share, against $8.8 million, or $0.08, a year earlier. Non-GAAP net income was $23.8 million, or $0.21 per diluted share, compared with $32.1 million, or $0.28. Adjusted EBITDA was $36.9 million, a Margin of about 46%.

Operating expenses on a GAAP basis rose to $71.1 million from $60.3 million, with litigation expense at $7.2 million versus $5.2 million. Operating Income was $9.0 million, down from $27.0 million.

For the nine months, revenue rose to $281.1 million from $260.7 million and GAAP net income reached $42.4 million, or $0.37 per diluted share. Operating Cash Flow for the nine months was $118.2 million, up from $98.1 million.

Revenue Range Cut to $375 Million to $415 Million on Deal Timing Risk

Adeia lowered its 2026 revenue outlook to $375 million to $415 million from $395 million to $435 million. Management said a handful of large and legally complex deals could slip beyond year-end, and the company still aims for the high end of the new range. Non-GAAP operating expenses are now guided to $176 million to $180 million, down from $184 million to $192 million.

Updated non-GAAP net income guidance is $136.7 million to $164.3 million, and adjusted EBITDA is expected at $201.1 million to $237.1 million. Management reiterated confidence in a long-term annual revenue target of $600 million.

The Balance Sheet showed $127.7 million of cash, cash equivalents and marketable securities. The company paid down $6.1 million of its term loan in the quarter, leaving $386.5 million outstanding, and generated $5.1 million of operating cash flow.

Dividend Set for Dec 14 as the New CEO Begins the Transition

The board declared a quarterly Dividend of $0.05 per share, payable on Dec 14, 2026, to holders of record on Nov 23, 2026. The quarter also marked a Leadership change, with a new chief executive with a semiconductor background taking the helm. Next up are the fourth quarter close and the full-year 2026 results measured against the revised range.