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

Adeia reported Q3 revenue of $87.3 million, falling short of analyst expectations, with adjusted EPS at $0.28. The company has filed a patent infringement lawsuit against AMD, leading to a revision of its 2025 revenue guidance to $360-$380 million from $390-$430 million. Non-pay-TV revenue grew 31% YoY, driven by new agreements. The average analyst rating remains "buy" with a 12-month price target of $17.50, slightly above its recent closing price of $17.04.

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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/Mis Actual Consensu

s s

Estimate

Q3 Miss $87.30 $100.70

Revenue mln mln (4

Analysts

)

Q3 Miss $0.28 $0.36 (3

Adjusted Analysts

EPS )

Q3 EPS $0.08

Q3 Net $8.80

Income mln

from

Continui

Operatio

Q3 Miss $50.70 $56.60

Adjusted mln mln (2

EBITDA 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: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)