SAN JOSE, Calif., July 08, 2025 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) will announce its financial results for the second quarter ended June 30, 2025, on Tuesday, August 5, 2025, following the close of market. The company will host an earnings conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) that same day. To access the earnings conference call: U.S. callers, please dial +1 (888) 660-6411International callers, please dial +1 (929) 203-0849 All participants should dial in 15 minutes ...

Company Overview - Adeia (ADEA) is a notable stock within the Business Services sector, which consists of 271 companies and currently ranks 3 in the Zacks Sector Rank [2][4] - The Zacks Rank system, which focuses on earnings estimates and revisions, has assigned Adeia a Zacks Rank of 2 (Buy), indicating a positive outlook [3] Performance Analysis - Year-to-date, Adeia has returned 1.9%, outperforming the average return of 1.3% for the Business Services sector [4] - In comparison, Arbe Robotics Ltd. (ARBE) has shown a stronger performance with a year-to-date return of 3.8% [4][5] Industry Context - Adeia is categorized under the Technology Services industry, which includes 130 stocks and currently ranks 39 in the Zacks Industry Rank [6] - The Technology Services industry has experienced an average gain of 5.8% year-to-date, indicating that Adeia is slightly underperforming relative to its industry peers [6] Future Outlook - Investors are encouraged to monitor both Adeia and Arbe Robotics Ltd. for potential continued strong performance in the Business Services sector [7]

Company Overview - Adeia (ADEA) shares increased by 5.2% to $13.74 in the last trading session, supported by higher-than-average trading volume [1] - The stock has shown a 0.5% gain over the past four weeks, indicating a positive trend [1] - Adeia is focusing on innovation in high-growth media and semiconductor markets, which is expected to enhance future technology adoption [1] Earnings Expectations - Adeia is projected to report quarterly earnings of $0.22 per share, reflecting a year-over-year decline of 21.4% [2] - Revenue expectations stand at $88.02 million, which is a slight increase of 0.8% compared to the same quarter last year [2] - The consensus EPS estimate for Adeia has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] Market Position - Adeia holds a Zacks Rank of 2 (Buy), indicating a favorable outlook in the market [4] - The company is part of the Zacks Technology Services industry, which includes other stocks like QXO, Inc. that have also shown significant gains [4] - QXO, Inc. has experienced a 33.8% return over the past month, highlighting strong performance within the same industry [4] Competitor Analysis - QXO, Inc. has seen a dramatic change in its consensus EPS estimate, increasing by 280% over the past month to $0.09, despite a significant year-over-year decline of 97.2% [5] - QXO, Inc. also holds a Zacks Rank of 2 (Buy), indicating a positive sentiment similar to Adeia [5]

Investor Deck I May 2025 1 © 2025 Adeia | All rights reserved. Safe Harbor This presentation 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 ...

Group 1 - Adeia Inc. will participate in the "2025 Virtual Tech Conference: Discover the Innovations Reshaping Tomorrow" hosted by Maxim Group LLC from June 3rd to June 5th, with a fireside chat scheduled for June 4th at 4:00 p.m. EDT [1][2] - The conference will focus on the rapid evolution of technology and its disruptive impact across various industries, including healthcare, drones, consumer IoT, business solutions, and gaming & entertainment [2] - Discussions will highlight how emerging growth companies are leveraging Quantum Computing and Artificial Intelligence (AI) to position themselves for future growth [2] Group 2 - Maxim Group LLC is a full-service investment banking and wealth management firm that provides a comprehensive range of financial services, including investment banking and equity research [4] - Adeia Inc. is a leading R&D and intellectual property licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries [5] - Adeia's innovations are foundational to technology solutions that enhance digital entertainment and electronics, impacting millions of lives globally [5]

Core Viewpoint - Adeia (ADEA) shows potential for significant upside, with a mean price target of $17.33 indicating a 37% increase from its current price of $12.65 [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $0.58, suggesting a consensus among analysts [2] - The lowest estimate of $17 indicates a 34.4% increase, while the highest estimate suggests a 42.3% increase to $18 [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about ADEA's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the last 30 days, one estimate has increased, leading to a 1% rise in the Zacks Consensus Estimate [12] - ADEA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual price movements [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [10]

Industry Overview - The technology services industry is mature with strong demand for services, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, supporting stable dividends for most players [1] - The industry thrived in 2024 and continued its momentum into the first quarter of 2025 [1] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with companies rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [4] Investment Outlook - The Zacks-defined Technology Services industry ranks within the top 26% of Zacks Ranked Industries, indicating an expectation to outperform the market over the next three to six months [2] - Five mid and small-sized technology services stocks with strong short-term upside potential are recommended: Byrna Technologies Inc. (BYRN), Climb Global Solutions Inc. (CLMB), Adeia Inc. (ADEA), Priority Technology Holdings Inc. (PRTH), and Ivanhoe Electric Inc. (IE) [2][3] Company Highlights Byrna Technologies Inc. (BYRN) - Engaged in developing and selling less-lethal personal security solutions across multiple regions [6] - Average short-term price target indicates a potential increase of 48.6% from the last closing price of $25.53, with a target range of $33-$38 [8] - Expected revenue and earnings growth rates for the current year are 30.2% and 12.9%, respectively [9] Climb Global Solutions Inc. (CLMB) - Operates as a value-added IT distribution and solutions company [10] - Average short-term price target suggests a potential increase of 26.2% from the last closing price of $110.28, with a target range of $136 [13] - Expected revenue and earnings growth rates for the current year are 5% and 2.7%, respectively [14] Adeia Inc. (ADEA) - Operates as a media and semiconductor intellectual property licensing company [16] - Average short-term price target indicates a potential increase of 25.2% from the last closing price of $13.75, with a target range of $17-$18 [18] - Expected revenue and earnings growth rates for the current year are 9.2% and 7.1%, respectively [18] Priority Technology Holdings Inc. (PRTH) - Functions as a payment technology company with multiple segments [20] - Average short-term price target suggests a potential increase of 71.6% from the last closing price of $7.46, with a target range of $10-$16 [24] - Expected revenue and earnings growth rates for the current year are 11.4% and over 100%, respectively [25] Ivanhoe Electric Inc. (IE) - Focuses on minerals exploration and development, particularly for electrification [27] - Average short-term price target indicates a potential increase of 105.9% from the last closing price of $6.85, with a target range of $10-$20 [28] - Expected revenue and earnings growth rates for the current year are 2.6% and 51.4%, respectively [28]

Group 1 - Adeia (ADEA) shares have increased by 4.4% over the past four weeks, closing at $13.10, with a mean price target of $17.33 indicating a potential upside of 32.3% [1] - The average price targets range from a low of $17 to a high of $18, with a standard deviation of $0.58, suggesting a relatively high agreement among analysts [2] - Analysts are optimistic about ADEA's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][11] Group 2 - The Zacks Consensus Estimate for ADEA's current year earnings has increased by 1% over the past month, with no negative revisions [12] - ADEA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [13]

Revenue Performance - Revenue increased by $4.3 million, or 5.1%, from $83.4 million in 2024 to $87.7 million in 2025[139] - Recurring revenues increased by $1.6 million, or 2.0%, from $82.8 million in 2024 to $84.4 million in 2025[139] - Non-recurring revenues increased by $2.7 million, or 418.4%, from $0.6 million in 2024 to $3.3 million in 2025[139] Cash Flow and Operating Activities - Cash provided by operating activities decreased by $10.1 million, or 15.0%, from $67.2 million in 2024 to $57.1 million in 2025[139] - Net cash provided by operating activities was $57.1 million for the three months ended March 31, 2025, down from $67.2 million in the same period of 2024[167][168] - Cash and cash equivalents increased to $84.2 million as of March 31, 2025, compared to $78.8 million as of December 31, 2024[158] Expenses - Research and development expenses increased by $2.5 million, or 18%, from $13.9 million in 2024 to $16.5 million in 2025[144] - Selling, general and administrative expenses increased by $4.4 million, or 18%, from $24.0 million in 2024 to $28.4 million in 2025[147] - Amortization expense decreased by $9.1 million, or 39%, from $23.2 million in 2024 to $14.1 million in 2025[148] - Litigation expenses increased by $2.9 million, or 100%, from $2.9 million in 2024 to $5.9 million in 2025[149] - Interest expense decreased by $3.5 million, or 25%, from $14.2 million in 2024 to $10.6 million in 2025[151] Income and Taxes - Provision for income taxes decreased to $2.1 million for the three months ended March 31, 2025, a 63% reduction from $5.7 million in the same period of 2024, resulting in an effective tax rate of 15.0%[154][155] Financing and Capital Expenditures - The outstanding balance of the term loan was $470.0 million as of March 31, 2025, after $17.1 million in principal payments[139] - Capital expenditures for intangible assets were $5.4 million for the three months ended March 31, 2025, with expectations of approximately $1.0 million for the remainder of 2025[171] - As of March 31, 2025, $470.0 million was outstanding under the term loan B facility, with future minimum principal payments of $18.3 million in 2025 and $24.4 million each year from 2026 to 2027[178] Stock Repurchase - The company repurchased approximately 0.8 million shares of common stock at an average price of $13.19 per share for a total cost of $10.0 million during the three months ended March 31, 2025[165] - The total remaining amount available for stock repurchase under the plan was $170.0 million as of March 31, 2025[165] Accounting and Risk Disclosures - No significant changes in critical accounting policies and estimates during the three months ended March 31, 2025[179] - For a full description of recent accounting pronouncements, refer to the Notes to Condensed Consolidated Financial Statements[180] - Market risk disclosures are detailed in Part II, Item 7A of the Annual Report on Form 10-K[182] Other Income - Other income and expense, net increased to $1.7 million for the three months ended March 31, 2025, up 22% from $1.4 million in the same period of 2024[153]

Company Performance - Adeia reported quarterly earnings of $0.26 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.25 per share a year ago [1] - The company posted revenues of $87.67 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.59%, compared to $83.41 million in the same quarter last year [2] - Over the last four quarters, Adeia has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Movement and Outlook - Adeia shares have declined approximately 9.8% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] - The future performance of Adeia's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $100.53 million, and for the current fiscal year, it is $1.34 on revenues of $410.71 million [7] Industry Context - The Technology Services industry, to which Adeia belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Adeia's stock performance [5]