Adeia Announces Second Quarter 2025 Financial Results

Signed 5 deals in the second quarter, highlighted by 3 with new customersPaid down over $300 million on our term loan since separationIntroduced RapidCoolTM, a revolutionary direct-to-chip liquid cooling technology for high performance semiconductors SAN JOSE, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the second quarter ended June 30, 2025. “We delivered revenue of $85.7 million, consistent with our expectations, and closed five deals during the second quarter across key growth verticals including semiconductors, e-commerce and OTT,” said Paul E. Davis, chief executive officer of Adeia. “Our new deal momentum continued, with two new license agreements in e-commerce and one new license agreement in semiconductors. Our innovation engine remains strong, and we were excited to announce our new RapidCool direct-to-chip liquid cooling technology targeting AI and other compute-intensive applications. With strong cash generation and disciplined expense management, we remain committed to delivering sustainable long-term value for our shareholders.” Second Quarter Financial Highlights Revenue was $85.7 million as compared to $87.7 million in the first quarter of 2025GAAP diluted earnings per share (EPS) was $0.15 and non-GAAP diluted EPS was $0.25GAAP net income was $16.7 million and adjusted EBITDA was $45.7 millionCash from operations was $23.1 millionPaid down $11.1 million on our term loan Business Highlights Signed a new multi-year license agreement with ST Microelectronics, a global leader in analog and digital semiconductors, for access to our semiconductor portfolioSigned a multi-year renewal with a popular domestic OTT streaming service, for access to our media portfolioSigned multi-year license agreements with two new e-commerce customers, including Warby Parker, a rapidly growing eyeglass retailer, for access to our media portfolioSigned a multi-year renewal with a domestic pay-TV provider, for access to our media portfolioIntroduced RapidCool, a revolutionary direct-to-chip liquid cooling technology for high performance semiconductors Capital Allocation During the quarter, the Company made $11.1 million in principal payments towards its term loan, bringing the outstanding balance to $458.9 million as of June 30, 2025. On June 17, 2025, the Company distributed $5.4 million to stockholders of record on May 27, 2025, 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 September 16, 2025, to stockholders of record on August 26, 2025. Financial Outlook The Company is reiterating its prior full-year 2025 revenue outlook, and updating certain other items of its financial outlook, including lower operating expenses: 2025GAAP Outlook 2025Non-GAAP OutlookCategory (in millions, except for tax rate) Updated Prior Updated PriorRevenue $390.0 − 430.0 $390.0 − 430.0 $390.0 − 430.0 $390.0 − 430.0Operating expenses(1) $261.0 − 271.0 $263.0 − 275.0 $160.0 − 166.0 $166.0 − 174.0Interest expense $40.0 − 42.0 $41.0 − 43.0 $40.0 − 42.0 $41.0 − 43.0Other income $5.5 − 6.5 $4.0 − 4.5 $5.5 − 6.5 $4.0 − 4.5Tax rate 10.0% − 30.0% 15.0% − 30.0% 23.0% 23.0%Net income(2) $85.1 − 86.5 $76.5 − 81.6 $150.5 − 175.9 $144.0 − 167.5Adjusted EBITDA(2) N/A N/A $232.1 − 266.1 $226.3 − 258.3Diluted shares outstanding 112.0 − 113.0 113.0 − 114.0 112.0 − 113.0 113.0 − 114.0 (1) See tables for reconciliation of GAAP to non-GAAP operating expenses. (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). Conference Call Information The Company will hold its second quarter 2025 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Tuesday, August 5, 2025. 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 Q2 2025 Earnings Call Webcast. Safe Harbor Statement 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, 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. About Adeia Inc. 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 www.adeia.com. Non-GAAP Financial Measures 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. Investor Contact: Chris ChaneyVice President, Investor Relations IR@adeia.com – Tables Follow – SOURCE: ADEIA INC.ADEA ADEIA INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share amounts)(unaudited) Three Months Ended Six Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024 Revenue$85,735 $87,350 $173,405 $170,755 Operating expenses: Research and development 15,857 14,799 32,324 28,724 Selling, general and administrative 32,129 24,617 60,561 48,646 Amortization expense 14,170 20,030 28,252 43,187 Litigation expense 7,174 4,262 13,028 7,192 Total operating expenses 69,330 63,708 134,165 127,749 Operating income 16,405 23,642 39,240 43,006 Interest expense (10,216) (13,296) (20,865) (27,471)Other income and expense, net 1,434 1,428 3,146 2,828 Loss on debt extinguishment — (453) — (453)Income before income taxes 7,623 11,321 21,521 17,910 Provision for (benefit from) income taxes (9,099) 2,939 (7,015) 8,629 Net income$16,722 $8,382 $28,536 $9,281 Net income per share: Basic$0.15 $0.08 $0.26 $0.09 Diluted$0.15 $0.07 $0.25 $0.08 Weighted average number of shares used in per share calculations: Basic 108,832 108,667 108,387 108,216 Diluted 112,179 112,536 112,597 112,757 ADEIA INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(unaudited) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents$84,247 $78,825 Marketable securities 32,232 31,567 Total cash, cash equivalents, and marketable securities 116,479 110,392 Accounts receivable, net 28,626 34,145 Unbilled contracts receivable 107,015 104,047 Other current assets 15,166 9,792 Total current assets 267,286 258,376 Long-term unbilled contracts receivable 47,933 62,767 Property and equipment, net 5,686 6,278 Operating lease right-of-use assets 8,738 9,322 Intangible assets, net 277,525 301,177 Goodwill 313,660 313,660 Long-term income tax receivable 124,218 112,441 Other long-term assets 37,847 33,940 Total assets$1,082,893 $1,097,961 LIABILITIES AND EQUITY Current liabilities: Accounts payable$3,082 $8,045 Accrued liabilities 24,482 24,517 Current portion of long-term debt, net 21,007 21,021 Deferred revenue 37,961 19,523 Total current liabilities 86,532 73,106 Deferred revenue, less current portion 55,942 64,555 Long-term debt, net 427,924 454,435 Noncurrent operating lease liabilities 8,923 9,480 Long-term income tax payable 85,342 84,585 Other long-term liabilities 15,314 15,229 Total liabilities 679,977 701,390 Commitments and contingencies Stockholders’ equity: Preferred stock — — Common stock 127 125 Additional paid-in capital 667,250 648,914 Treasury stock at cost (285,018) (255,301)Accumulated other comprehensive income (loss) 44 (1)Retained earnings 20,513 2,834 Total stockholders’ equity 402,916 396,571 Total liabilities and stockholders’ equity$1,082,893 $1,097,961 ADEIA INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Six Months Ended June 30,2025 June 30,2024 Cash flows from operating activities: Net income$28,536 $9,281 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 997 1,010 Amortization of intangible assets 28,252 43,187 Stock-based compensation expense 16,944 11,737 Deferred income tax (4,917) (3,596)Loss on debt extinguishment — 453 Amortization of debt issuance costs 1,652 1,601 Other (230) (1,272)Changes in operating assets and liabilities: Accounts receivable 5,521 14,666 Unbilled contracts receivable 11,866 (4,368)Other assets (15,557) 5,331 Accounts payable (4,198) (2,864)Accrued and other liabilities 1,565 (1,716)Deferred revenue 9,825 17,240 Net cash provided by operating activities 80,256 90,690 Cash flows from investing activities: Purchases of property and equipment (420) (1,214)Purchases of intangible assets (5,350) (8,476)Purchases of short-term investments (12,989) (18,701)Proceeds from maturities of investments 12,600 20,150 Net cash used in investing activities (6,159) (8,241)Cash flows from financing activities: Principal payments on debt agreements (28,178) (10,853)Payments of dividends (10,857) (52,139)Proceeds from employee stock purchase program and exercise of stock options 1,392 1,539 Repurchases of common stock (11,326) — Repurchases of common stock for tax withholdings on equity awards (19,706) (9,102)Net cash used in financing activities (68,675) (70,555)Net increase in cash and cash equivalents 5,422 11,894 Cash and cash equivalents at beginning of period 78,825 54,560 Cash and cash equivalents at end of period$84,247 $66,454 ADEIA INC.GAAP TO NON-GAAP RECONCILIATIONS(in thousands, except per share amounts)(unaudited) Net income Three Months Ended Six Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024 GAAP net income$16,722 $8,382 $28,536 $9,281 Adjustments to GAAP net income: Stock-based compensation expense: Research and development 1,422 1,093 2,656 1,902 Selling, general and administrative 7,278 5,499 14,288 9,835 Amortization expense 14,170 20,030 28,252 43,187 Transaction costs recorded in selling, general and administrative 43 1,255 1,154 1,255 Separation and other related costs recorded in selling, general and administrative (1) 5,848 767 6,379 2,591 Total operating expenses adjustments 28,761 28,644 52,729 58,770 Loss on debt extinguishment — 453 — 453 Non-GAAP tax adjustment (2) (17,468) (6,357) (24,093) (9,111)Non-GAAP net income$28,015 $31,122 $57,172 $59,393 Diluted earnings per share Three Months Ended Six Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024 GAAP diluted earnings per share$0.15 $0.07 $0.25 $0.08 Adjustments to GAAP diluted earnings per share: Stock-based compensation expense: Research and development 0.01 0.01 0.02 0.02 Selling, general and administrative 0.06 0.05 0.13 0.09 Amortization expense 0.13 0.18 0.25 0.38 Transaction costs recorded in selling, general and administrative — 0.01 0.01 0.01 Separation and other related costs recorded in selling, general and administrative (1) 0.05 0.01 0.06 0.02 Total operating expenses adjustments 0.25 0.26 0.47 0.52 Loss on debt extinguishment — — — — Non-GAAP tax adjustment (2) (0.15) (0.05) (0.21) (0.07)Non-GAAP diluted earnings per share$0.25 $0.28 $0.51 $0.53 (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. ADEIA INC.GAAP NET INCOME TOADJUSTED EBITDA RECONCILIATION(in thousands)(unaudited) Three Months Ended Six Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024 GAAP net income$16,722 $8,382 $28,536 $9,281 Adjustments to GAAP net income: Stock-based compensation expense: Research and development 1,422 1,093 2,656 1,902 Selling, general and administrative 7,278 5,499 14,288 9,835 Transaction costs recorded in selling, general and administrative 43 1,255 1,154 1,255 Separation and other related costs recorded in selling, general and administrative (1) 5,847 767 6,378 2,591 Amortization expense 14,170 20,030 28,252 43,187 Depreciation expense 488 490 997 1,010 Interest expense 10,216 13,296 20,865 27,471 Other income and expense, net (1,434) (1,428) (3,146) (2,828)Loss on debt extinguishment — 453 — 453 Provision for (benefit from) income taxes (9,099) 2,939 (7,015) 8,629 Adjusted EBITDA$45,653 $52,776 $92,965 $102,786 (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. ADEIA INC.RECONCILIATION FOR GUIDANCEON OPERATING EXPENSES(in millions)(unaudited) Year Ended December 31, 2025 Low High GAAP operating expenses$261.0 $271.0 Amortization expense 57.0 57.0 Stock-based compensation expense 36.0 38.0 Separation and related costs (1) 8.0 10.0 Total of non-GAAP adjustments 101.0 105.0 Non-GAAP operating expenses$160.0 $166.0 (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. ADEIA INC.RECONCILIATION FOR GUIDANCEON NET INCOME(in millions)(unaudited) Year Ended December 31, 2025 Low High GAAP net income$85.1 $86.5 Amortization expense 57.0 57.0 Stock-based compensation expense 36.0 38.0 Separation and related costs (1) 8.0 10.0 Total of non-GAAP operating expenses 101.0 105.0 Non-GAAP tax adjustment (2) (35.6) (15.6)Non-GAAP net income$150.5 $175.9 (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. ADEIA INC.RECONCILIATION FOR GUIDANCE ONADJUSTED EBITDA(in millions)(unaudited) Year Ended December 31, 2025 Low High GAAP net income$85.1 $86.5 Stock-based compensation expense 36.0 38.0 Separation and related costs (1) 8.0 10.0 Amortization expense 57.0 57.0 Depreciation expense 2.1 2.1 Interest expense 40.0 42.0 Other income (5.5) (6.5)Income tax expense 9.4 37.0 Total of non-GAAP adjustments 147.0 179.6 Adjusted EBITDA$232.1 $266.1 (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.

Adeia Announces Second Quarter 2025 Financial Results

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