Financial Data and Key Metrics Changes - The company generated $88 million in revenue and $57 million in cash from operations for Q1 2025, aligning with expectations [6][19] - Adjusted EBITDA for Q1 was $47.3 million, reflecting an adjusted EBITDA margin of 54% [21] - The company ended the quarter with $116.5 million in cash, cash equivalents, and marketable securities [22] Business Line Data and Key Metrics Changes - Recurring revenue for Q1 2025 increased modestly year-over-year, with non-pay TV segments seeing a 25% increase [8][9] - The company signed 10 license agreements in Q1, including four with new customers in key growth areas such as social media, OTT, and semiconductors [9][10] - Renewals accounted for a significant portion of revenue stability, with over 90% of customers renewing their agreements [13] Market Data and Key Metrics Changes - The company noted strong momentum in the OTT market, with significant opportunities both domestically and internationally [41] - The semiconductor market is seeing growth driven by the adoption of hybrid bonding technologies [14][40] Company Strategy and Development Direction - The company maintains a balanced capital allocation strategy and focuses on growth in OTT, semiconductors, and adjacent media markets [7][14] - The strategic acquisition of patent portfolios is aimed at enhancing the company's media and semiconductor capabilities [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite macroeconomic volatility, with over 80% of revenue supported by contracted agreements [7][8] - The company reiterated its full-year 2025 revenue guidance of $390 million to $430 million, with expectations for operating expenses between $166 million and $174 million [24][25] Other Important Information - The company acquired two IP portfolios for $5 million, focusing on micro LEDs and imaging technologies [16][23] - A new board member, Sandeep Vizh, was nominated to replace retiring board member Raghu Rao [18] Q&A Session Summary Question: Potential for new sports league deals - Management expressed optimism about the new U.S. Professional Sports League deal, indicating it could lead to more opportunities in the sports sector [30][31] Question: Opportunities in sports betting - Management acknowledged the exploration of sports gambling as a potential adjacent market, though it is seen as a longer-term opportunity [33] Question: Licensing status of acquired portfolios - The acquired micro LED and imaging portfolios do not currently have existing licenses attached, but management sees significant potential for future revenue [35] Question: Semiconductor deal expectations - Management clarified that the recent semiconductor deal was not the large opportunity anticipated from the previous year, but it reflects ongoing progress in hybrid bonding adoption [40] Question: OTT market opportunities - Management indicated that the majority of OTT opportunities are domestic, with ongoing litigation affecting some potential deals [41] Question: Social media market potential - Management noted that the company has licensed approximately 90% of the social media market, with opportunities primarily in renewals rather than new deals [43]

Financial Data and Key Metrics Changes - The company generated $88 million in revenue and $57 million in cash from operations for Q1 2025, aligning with expectations [5] - The full year 2025 revenue outlook remains unchanged, with over 80% supported by contracted revenue [6] - Adjusted EBITDA for Q1 was $47.3 million, reflecting an adjusted EBITDA margin of 54% [20] - The company ended Q1 with $116.5 million in cash, cash equivalents, and marketable securities [21] Business Line Data and Key Metrics Changes - Recurring revenue for Q1 2025 increased modestly year over year, with non-pay TV parts of the business seeing a 25% increase [7][8] - The company signed 10 license agreements in Q1, including four with new customers in key growth areas such as social media, OTT, and semiconductors [8][9] - Renewals accounted for six agreements in Q1, maintaining a strong track record of over 90% renewal rates [12] Market Data and Key Metrics Changes - The company is focusing on growth in OTT, semiconductors, and adjacent media markets, with significant opportunities in the OTT sector due to its growing subscriber base [10] - The semiconductor market is seeing increased adoption of hybrid bonding, which is driving new deal flow [11] Company Strategy and Development Direction - The company emphasizes a balanced capital allocation strategy, focusing on growth through strategic acquisitions while maintaining a strong cash position [5][16] - The strategy includes expanding and diversifying patent portfolios to meet evolving market needs, with a focus on organic growth through R&D [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite macroeconomic volatility, with visibility into revenue supported by long-term contracts [6] - The company is monitoring the broader macroeconomic environment and remains prudent in spending, anticipating potential impacts on future performance [25] Other Important Information - The company acquired two IP portfolios for $5 million, enhancing its media and semiconductor capabilities [15][22] - A new board member, Sandeep Vizh, was nominated to replace retiring board member Raghu Rao, bringing extensive expertise in technology and semiconductors [17] Q&A Session Summary Question: Potential for new sports league deals - Management is optimistic about the new deal with a U.S. Professional Sports League, viewing it as a potential breakthrough for future agreements [30][31] Question: Opportunities in sports betting - Management is exploring the sports gambling market as an adjacent opportunity, though it is considered a longer-term prospect [33] Question: Licensing status of acquired portfolios - The acquired micro LED and imaging portfolios do not currently have existing licenses attached, but management sees significant potential for future revenue [35] Question: Semiconductor announcement context - The recent semiconductor deal is not the large opportunity anticipated from the previous year, but it reflects ongoing progress in hybrid bonding adoption [40] Question: OTT market opportunities - The majority of OTT opportunities are domestic, with ongoing litigation affecting some potential deals, but international opportunities are also being pursued [41] Question: Social media market potential - The company has licensed approximately 90% of the social media market, with opportunities primarily in renewals rather than new deals [43]

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 ...

Financial Performance - Revenue for Q1 2025 was $87.7 million, compared to $119.2 million in Q4 2024, reflecting a decrease of approximately 26.4%[6] - Net income for Q1 2025 was $11.8 million, with GAAP diluted EPS at $0.10 and non-GAAP diluted EPS at $0.26[6] - GAAP net income for Q1 2025 was $11,814,000, a significant increase from $899,000 in Q1 2024, representing a growth of 1,215%[25] - Non-GAAP net income for Q1 2025 was $29,157,000, slightly up from $28,271,000 in Q1 2024, an increase of 3.1%[25] - Adjusted EBITDA for Q1 2025 was $47,312,000, down from $50,010,000 in Q1 2024, a decline of 5.4%[29] - GAAP diluted earnings per share for Q1 2025 was $0.10, compared to $0.01 in Q1 2024, a substantial increase of 900%[26] Cash Flow and Assets - The company generated $57.1 million in cash from operations during the quarter[2] - Net cash provided by operating activities for Q1 2025 was $57,139,000, compared to $67,229,000 in Q1 2024, indicating a decrease of 15%[23] - Cash and cash equivalents at the end of Q1 2025 were $84,184,000, up from $78,825,000 at the beginning of the period, an increase of 6.3%[23] - Total current assets increased to $263,253,000 in Q1 2025 from $258,376,000 in Q4 2024, reflecting a growth of 1.7%[21] Debt and Liabilities - The company paid down $17.1 million of its term loan, reducing the outstanding balance to $470 million as of March 31, 2025[5] - Total liabilities decreased to $697,587,000 in Q1 2025 from $701,390,000 in Q4 2024, a reduction of 0.5%[21] Stock and Dividends - A total of $10 million of common stock was repurchased during the quarter, representing 759,724 shares[7] - The company declared a quarterly cash dividend of $0.05 per share, payable on June 17, 2025[8] Guidance and Projections - The company reiterated its 2025 revenue guidance of $390.0 million to $430.0 million[9] - Operating expenses for 2025 are projected to be between $263.0 million and $275.0 million[9] - The company expects GAAP operating expenses for the year ending December 31, 2025, to be between $263 million and $275 million[31] - Non-GAAP net income guidance for the year ending December 31, 2025, is projected to be between $144 million and $167.5 million[33] Business Development - The company signed 10 deals in Q1 2025, including 4 with new customers in growth areas such as social media, OTT, and semiconductors[2] - The worldwide patent portfolio increased by 32% to over 12,750 total patent assets since the company's separation over two years ago[2]

Core Insights - Adeia Inc. reported a strong start to 2025 with revenue of $87.7 million, aligning with expectations, and generated $57.1 million in cash from operations [2][6] - The company signed 10 deals in Q1 2025, including 4 with new customers in growth sectors such as social media, OTT, and semiconductors [2][6] - Adeia's patent portfolio has grown to over 12,750 assets, a 32% increase since its separation two years ago, driven by R&D efforts in emerging technologies [2][6] Financial Highlights - Revenue for Q1 2025 was $87.7 million, compared to $119.2 million in Q4 2024 [6] - GAAP diluted EPS was $0.10, while non-GAAP diluted EPS was $0.26 [6] - Net income was reported at $11.8 million, with adjusted EBITDA at $47.3 million [6][31] Capital Allocation - The company paid down $17.1 million of its term loan, reducing the outstanding balance to $470 million as of March 31, 2025 [5] - Adeia repurchased $10 million of common stock, totaling 759,724 shares, with $170 million remaining under its stock repurchase plan [5] - A quarterly cash dividend of $0.05 per share was declared, amounting to $5.4 million distributed to stockholders [7] Business Highlights - New multi-year license agreements were signed with a leading social media company and a major U.S. professional sports league [6] - Renewals were completed with Pay-TV providers SK Broadband and Frontier Communications [6] - The company acquired two strategic patent portfolios in microLED and imaging technologies [6] Financial Outlook - Adeia reiterated its full-year 2025 guidance, projecting revenue between $390 million and $430 million [8] - Operating expenses are expected to range from $263 million to $275 million, with non-GAAP operating expenses projected between $166 million and $174 million [8] - The company anticipates net income between $76.5 million and $81.6 million, with adjusted EBITDA expected to be between $226.3 million and $258.3 million [8]

SAN JOSE, Calif., April 07, 2025 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) will announce its financial results for the first quarter ended March 31, 2025, on Monday, May 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 pri ...

Core Viewpoint - Adeia Inc. has nominated Sandeep Vij for election to its board of directors at the 2025 Annual Meeting of Shareholders, highlighting his extensive experience in technology and leadership roles [1][5]. Group 1: Nomination and Background - Sandeep Vij is a seasoned technology executive with over 25 years of experience in semiconductor design, intellectual property licensing, and technology investing [2]. - He co-founded Argean Capital in 2018 and previously served as CEO of MIPS Technologies, where he drove strategic growth [2]. - Vij has held leadership positions at Cavium Networks, Xilinx, and Altera Corporation, and currently serves on the board of Coherent Corp. [3]. Group 2: Contributions and Leadership - Paul E. Davis, CEO of Adeia, expressed excitement about Vij's potential contributions, emphasizing his expertise in semiconductors and intellectual property as valuable for Adeia's strategic growth initiatives [5]. - Raghavendra Rau, a board member since 2020, will retire and not seek reelection, having played a crucial role in the company's success, particularly during its separation from the product business in 2022 [5][6]. - Rau's leadership has been instrumental in positioning Adeia for long-term success as an independent technology company [6]. Group 3: Company Overview - Adeia is a leading technology research company focused on accelerating the adoption of innovative technologies that shape the future [7]. - The company's technology solutions power connected devices that impact millions of lives globally [7].

Core Insights - Adeia Inc. has announced a multi-year renewal of its intellectual property license agreement with SK Broadband, enhancing access to Adeia's media portfolio [1][2] - The renewed partnership emphasizes Adeia's commitment to empowering customers in delivering innovative entertainment solutions in a competitive market [2][3] - Adeia's chief licensing officer highlighted the importance of strategic partnerships in navigating the rapidly evolving entertainment landscape [3] Company Overview - Adeia is a leading technology R&D and intellectual property licensing company focused on the media and semiconductor industries [4] - The company's innovations are foundational to technology solutions that shape the future of digital entertainment and electronics [4] - Adeia's IP portfolios support connected devices that impact millions of lives globally [4]

Debt and Financial Obligations - The company has $487.1 million of total debt outstanding under its 2024 Term Loan B as of December 31, 2024[78]. - A 1% increase in the effective interest rate on the company's outstanding debt would result in an annual increase in interest expense of approximately $4.8 million[79]. - The company’s ability to borrow additional funds may be limited due to existing debt service obligations and cash flow constraints[16]. - Legal and contractual restrictions may limit the company's ability to obtain cash from subsidiaries, impacting debt repayment[82]. - As of December 31, 2024, the company had $487.1 million of outstanding indebtedness subject to floating interest rates, with a potential annual increase in interest expense of approximately $4.8 million for a 1% rise in effective interest rates[221]. Revenue and Cash Flow Risks - The company's revenue and cash flow are dependent on customer sales, which are influenced by various external factors, making them difficult to forecast[64]. - The company faces risks related to customers' financial difficulties, which may lead to delayed or missed payments under license agreements[65]. - The long-term success of the company is partially dependent on a royalty-based business model, which is inherently risky due to reliance on customer compliance and market conditions[63]. - The company may experience fluctuations in revenue due to the structure and timing of IP license agreements[61]. - The conversion of some IP license agreements to fully paid-up licenses may adversely affect future revenue if no replacement fees are found[62]. - The company is exposed to international sales risks, which could significantly affect its results of operations and financial condition[71]. Operational and Integration Challenges - The company may face challenges in integrating acquired assets or companies, which could impact its business operations[68]. - The company may face significant challenges in implementing processes and procedures in acquired operations, which could adversely affect market perceptions[84]. - The company anticipates fluctuations in operating results, which could lead to volatility in stock price and affect investor expectations[112]. Tax and Regulatory Considerations - The company has U.S. federal net operating losses of approximately $2.3 million and state net operating losses of approximately $861.2 million as of December 31, 2024[88]. - The Tax Cuts and Jobs Act of 2017 requires the company to capitalize and amortize research and development expenses over five years for U.S. activities and 15 years for international activities, impacting cash tax liability for 2024[87]. - The company may experience increased tax obligations due to changes in tax laws and regulations, affecting its effective tax rate[85]. - Future ownership changes could materially limit the company's ability to utilize net operating loss carryforwards, increasing future tax obligations[89]. - The company may incur significant tax liabilities if the distribution is determined to be taxable, impacting stockholders who received shares of Xperi Inc.[103]. - The company entered into a Tax Matters Agreement with Xperi Inc. on October 1, 2022, obligating Xperi Inc. to indemnify the company against certain tax liabilities[106]. Cash and Investment Position - The company held approximately $78.8 million in cash and cash equivalents and $31.6 million in short-term investments as of December 31, 2024[94]. - The fair value of the company's investments classified as marketable securities was $31.6 million as of December 31, 2024, with unrealized losses being immaterial[222]. - The company held approximately $74.0 million in cash in operating accounts as of December 31, 2024, primarily with high-quality domestic financial institutions[223]. - The company’s investment activities aim to preserve principal and maintain liquidity while capturing a market rate of return[221]. - The company does not hold any derivatives or similar financial instruments as of December 31, 2024[222]. - The company has incurred substantial research and development expenses for new IP, with uncertainty regarding future revenue generation from these technologies[114]. Stockholder and Market Considerations - The company has a stock repurchase program authorized for up to $200 million, with $172.2 million utilized so far, leaving $77.8 million available for future repurchases[115]. - Since July 2020, the company has declared quarterly cash dividends of $0.05 per share, with future dividends subject to Board approval based on various financial factors[114]. - The company’s stock price may decline if dividends are decreased or suspended, affecting investor sentiment[114]. - Transfer restrictions in the company's certificate of incorporation may hinder third-party acquisitions and affect stock marketability[121]. - The company’s certificate of incorporation limits the ability of stockholders to bring claims in preferred jurisdictions, potentially discouraging lawsuits[122]. - The company’s transfer restrictions will expire under specific conditions, including the repeal of Section 382 or the third anniversary of the Mergers[120]. Cybersecurity and Market Risks - The company is subject to cybersecurity risks that could harm its business and affect its ability to license IP and collect revenue[74]. - The company is exposed to exchange rate fluctuations, which could materially impact future results, although the impact from translation of foreign subsidiaries' financial statements was immaterial in 2024[224][225]. - The company may face operational and financial flexibility limitations if unable to use common stock for future acquisitions due to ownership change rules[118].

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $119.2 million and operating cash flow of $107.5 million, both post-separation records [9][41] - Adjusted EBITDA for the fourth quarter was $80.3 million, reflecting an operating margin of 67% [9][39] - For the full year 2024, the company delivered $376 million in revenue with a 62% operating margin and cash flows from operations of $212.5 million [19] Business Line Data and Key Metrics Changes - The company signed 10 license agreements in the fourth quarter, including four new deals across various sectors such as OTT, consumer electronics, Pay-TV, e-commerce, and semiconductors [9][11] - New media revenue increased by 65% year-over-year, driven by the OTT market [13] - The consumer electronics market continues to show mid-single digit growth, with over 90% of customers renewing their license agreements [15][16] Market Data and Key Metrics Changes - The OTT market is a primary focus, with significant new deals including a multiyear license agreement with Amazon [12] - The semiconductor business is recognized for its hybrid bonding technology, which is becoming critical for high-performance devices [21][17] Company Strategy and Development Direction - The company aims to protect its intellectual property, having initiated litigation against Disney for patent infringement [22][23] - The strategy includes a balanced capital allocation approach, focusing on debt reduction, share repurchase, and investment in growth [10][32] - The company anticipates revenue growth in the mid-to-high single digits for 2025, driven by strong customer pipeline and renewals [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and momentum from recent deals, emphasizing the importance of disciplined deal execution [55][56] - The company is optimistic about the semiconductor deal, despite potential delays due to the complexity of agreements [67] - Management highlighted the importance of R&D and strategic acquisitions to enhance growth opportunities [24][80] Other Important Information - The company paid down $114.2 million of debt in 2024, with a total reduction of $272.3 million since separation [20] - The company acquired five patent portfolios for approximately $20 million, focusing on OTT and broadband connectivity [26][75] Q&A Session Summary Question: Revenue guidance details - Management indicated that the guidance reflects a strong pipeline and disciplined execution, with potential volatility in deal timing affecting the low and high ends of the outlook [54][55] Question: Semiconductor transfer agreement details - The technology transfer agreement involves providing both a license and engineering support to a customer focused on high-performance imaging [61][62] Question: Update on semiconductor deal signing - Management remains optimistic about the semiconductor deal, acknowledging potential delays but emphasizing the value of their IP [66][67] Question: Origins of IP portfolio acquisitions - Acquisitions come from various sources, including public and private companies, with a focus on aligning with existing R&D efforts [72][75] Question: Evaluation of IP acquisitions against licensing opportunities - The company ensures alignment between business units and corporate development to target specific growth areas through acquisitions [78][80] Question: Debt management targets - Management is comfortable with maintaining a sub-$500 million debt level while focusing on reinvesting cash flow into the business and returning capital to shareholders [82][86]