Adeia (ADEA) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $80.2M, down 8.1% YoY; eight license agreements were signed, including four with new customers across four markets.

• Nine-month revenue rose 7.8% to $281.1M, driven by new agreements and significant past-infringement payments.

• Dipti Vachani became CEO and a Board member effective October 12, 2026; management reiterated the long-term $600M annual revenue target.

Financial highlights

• Q3 recurring revenue was $76.0M versus $86.3M a year earlier; non-recurring revenue was $4.2M versus $1.0M.

• Non-Pay-TV recurring revenue grew 48% YoY.

• Q3 GAAP operating expenses were $71.1M; operating income was $9.0M and net income was $2.3M, versus $27.0M and $8.8M a year earlier.

• Q3 non-GAAP operating expenses were $43.8M; adjusted EBITDA was $36.9M with a 46% margin.

• Nine-month operating cash flow was $118.2M versus $98.1M; Q3 operating cash flow was $5.1M.

Outlook and guidance

• FY26 revenue guidance was reduced from $395M–$435M to $375M–$415M due to potential deal timing shifts; select deals could move into 2027.

• FY26 GAAP operating expense guidance is $283M–$289M; non-GAAP operating expense guidance is $176M–$180M.

• FY26 adjusted EBITDA guidance is $201.1M–$237.1M; non-GAAP net income guidance is $136.7M–$164.3M.

• FY26 interest expense guidance is $32M–$34M, other income $6M–$7M, and tax rates 20% GAAP and 21% non-GAAP.

• The $600M long-term annual revenue target remains; semiconductor logic opportunities are expected from 2027–2028 and memory opportunities from 2028–2029.