Company Overview - Adeia Inc. is recognized for its innovative semiconductor 3D integration and advanced packaging technologies, recently winning the "Most Innovative Technology" award at FMS: the Future of Memory and Storage [1][2] - The company focuses on hybrid bonding technology that enhances interconnect density, speed, power efficiency, and reliability in NAND, DRAM, and logic products [2][3] Technology Highlights - Adeia's hybrid bonding technology enables 3D integration of electronic systems, significantly improving performance metrics in semiconductor applications [2][3] - The technology supports submicron interconnect pitch, facilitating chiplet architectures and heterogeneous integration, which reduces latency and increases bandwidth [3] Industry Context - FMS is a premier global event that showcases advancements in high-speed memory and storage technologies, attracting professionals and companies from around the world [4][6] - The event highlights key trends and innovations in sectors such as AI, enterprise data centers, and high-performance computing, emphasizing the importance of memory and storage in these applications [6][7]

Core Insights - Adeia reported Q2 2025 GAAP revenue of $85.7 million, slightly below analyst estimates of $88.5 million, with Non-GAAP EPS at $0.25, also under expectations [1][2] - The company achieved a significant year-over-year increase in GAAP net income, reaching $16.7 million, nearly doubling from $8.4 million in Q2 2024 [2][5] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.25, down 10.7% from $0.28 in Q2 2024 [2] - Adjusted EBITDA for Q2 2025 was $45.7 million, a decrease of 13.5% from $52.8 million in Q2 2024 [2] - GAAP net income surged to $16.7 million in Q2 2025, a 98.8% increase year-over-year [2][5] Business Overview - Adeia specializes in IP licensing, focusing on patents in semiconductor and media technologies, generating revenue through licensing agreements with large companies [3][4] - The company’s patent portfolio includes thousands of assets related to advanced chip packaging, media content delivery, and digital imaging [4] Strategic Focus - Adeia aims to secure more licensing revenue from growth markets like OTT streaming services and the semiconductor sector [4] - Key performance variables include renewing and signing new multi-year deals, expanding IP protection, and investing in research [4] Operational Highlights - In Q2 2025, Adeia closed five deals, including a multi-year license with ST Microelectronics and a renewal with a major OTT streaming service [6] - The company launched RapidCool™, a liquid cooling technology for high-performance semiconductors, addressing the cooling needs of AI hardware [7] Capital Allocation - Adeia maintained a disciplined capital allocation strategy, paying a $0.05 per share dividend and reducing its outstanding term loan to $458.9 million [9] Future Guidance - Management reiterated full-year 2025 revenue guidance of $390.0 to $430.0 million, with slightly lower operating expense forecasts [10] - Interest expense expectations for FY2025 were reduced by $1.0 million, reflecting tighter cost control [10] Market Outlook - Adeia did not indicate any major upcoming licensing wins but highlighted continued efforts in semiconductors and OTT streaming as growth drivers [11] - The company’s recurring revenue from multi-year licenses and diversified customer base provides stability, but significant upside will depend on new partnerships and legal risk management [11]

Core Viewpoint - Adeia (ADEA) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, but down from $0.28 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2]. Financial Performance - The company posted revenues of $85.74 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.53% and down from $87.35 million year-over-year [2]. - Over the last four quarters, Adeia has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2]. Stock Performance - Adeia shares have declined approximately 11.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $101.27 million, and for the current fiscal year, it is $1.36 on revenues of $406.91 million [7]. - The trend of estimate revisions for Adeia was mixed ahead of the earnings release, which could change following the recent report [6]. Industry Context - The Technology Services industry, to which Adeia belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8].

Financial Data and Key Metrics Changes - The company reported revenue of $85.7 million for Q2 2025, with cash from operations amounting to $23.1 million [6][18] - Total debt was reduced by $11.1 million during the quarter, with total debt paydowns exceeding $300 million since separation [6][22] - Adjusted EBITDA for the quarter was $45.7 million, reflecting an adjusted EBITDA margin of 53% [20] Business Line Data and Key Metrics Changes - The company signed five license agreements in Q2, including four in media and one in semiconductors, with three agreements made with new customers [12][18] - Recurring revenue increased modestly year-over-year, with non-pay TV recurring revenue up 28% [13][36] - The patent portfolio grew by 2% to over 13,000 assets, contributing to the company's growth strategy [16] Market Data and Key Metrics Changes - The semiconductor business is experiencing significant demand due to the rise of AI and data centers, leading to the introduction of the RapidCool technology [10][11] - The company is targeting new customers in growth markets, particularly in semiconductors and e-commerce, which are expected to drive future revenue [12][15] Company Strategy and Development Direction - The company is focused on multiple paths to achieve its revenue goals, emphasizing the importance of the semiconductor opportunity while also exploring other high-potential opportunities [7][8] - The introduction of RapidCool technology is seen as a mid to long-term growth driver, addressing the thermal management needs of high-performance semiconductors [11][44] - The company aims to maintain a balanced capital allocation strategy, investing in strategic acquisitions, reducing debt, and returning capital to shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance, reiterating a revenue range of $390 million to $430 million [23][25] - The company is prepared for potential challenges in closing large semiconductor agreements, having developed alternative strategies to meet revenue targets [39] - Management remains optimistic about the stability of the macroeconomic environment and the strength of the sales pipeline [25][58] Other Important Information - The company was recognized as a best company to work for by US News and World Report for the second consecutive year, reflecting its strong culture [17] - The company plans to pay a cash dividend of $0.05 per share, with another dividend approved for September [22] Q&A Session Summary Question: Is the OTT renewal contract structurally different from the previous one? - The renewal is in line with prior agreements, typically remaining standard unless there are significant changes in circumstances [27] Question: Can you elaborate on the new opportunities mentioned earlier? - These opportunities were initially expected in 2026 but are now anticipated to close in 2025, providing multiple avenues to meet revenue goals [28][29] Question: What is the mix between recurring and nonrecurring revenue, particularly in media and semiconductors? - A substantial portion of revenue this quarter was recurring, with new customer agreements expected to enhance future revenue [33] Question: What growth rates are expected in the non-pay TV media segment? - Non-pay TV recurring revenue saw a 28% increase, driven by growth in the semiconductor business and other media segments [36] Question: What is the status of the large semiconductor deal? - The goal remains to close the deal this year, but the company is prepared with alternative strategies if necessary [39] Question: Can you provide more details on the RapidCool technology? - RapidCool is targeted primarily at data centers, with potential applications in other areas being explored [48]

Q2 2025 Earnings August 5, 2025 1 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 involve risks and uncertainti ...

Core Insights - Adeia Inc. reported revenue of $85.7 million for Q2 2025, consistent with expectations, and closed five deals across key growth verticals including semiconductors, e-commerce, and OTT [2][7] - The company introduced RapidCool, a new direct-to-chip liquid cooling technology aimed at high-performance semiconductors, particularly for AI applications [2][7] - Adeia has paid down over $300 million on its term loan since its separation, with an outstanding balance of $458.9 million as of June 30, 2025 [5][7] Financial Highlights - Revenue for Q2 2025 was $85.7 million, a decrease from $87.7 million in Q1 2025 [7] - GAAP diluted earnings per share (EPS) was $0.15, while non-GAAP diluted EPS was $0.25 [7] - GAAP net income was $16.7 million, and adjusted EBITDA was $45.7 million [7] Business Highlights - The company signed three new license agreements with new customers, including a multi-year agreement with ST Microelectronics and two new e-commerce customers [7] - A quarterly cash dividend of $0.05 per share was distributed to stockholders, with another dividend declared for September 16, 2025 [5][7] Capital Allocation - During the quarter, Adeia made $11.1 million in principal payments towards its term loan [5] - The company reiterated its full-year 2025 revenue outlook, maintaining a range of $390.0 million to $430.0 million [8] Financial Outlook - Operating expenses are expected to be lower than previously anticipated, with updated guidance for 2025 operating expenses now projected between $261.0 million and $271.0 million [8] - The company anticipates net income for 2025 to be between $85.1 million and $86.5 million [8]

Core Viewpoint - Adeia Inc. is set to announce its financial results for Q2 2025 on August 5, 2025, after market close, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the second quarter ended June 30, 2025, will be announced on August 5, 2025 [1]. - An earnings conference call will take place at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day [1]. - U.S. callers can access the call by dialing +1 (888) 660-6411, while international callers should dial +1 (929) 203-0849 [1]. Group 2: Webcast and Replay Information - A replay of the webcast will be available until August 4, 2026 [2]. - A telephonic replay will be accessible until August 12, 2025, by calling +1 (609) 800-9909 and referencing playback ID 6089024 [2]. Group 3: Company Overview - Adeia Inc. is a leading R&D and intellectual property licensing company focused on innovative technologies in the media and semiconductor industries [3]. - The company's innovations support technology solutions that enhance digital entertainment and electronics [3]. - Adeia's IP portfolios are integral to connected devices that impact millions of lives globally [3].

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]

Company Overview - Adeia has generated approximately $10 billion in cumulative licensing revenue[8] - The company's 2024 revenue was $376 million[8] - Adeia possesses over 12,750 patent assets[8] - The company has over 110 current customers[8] Financial Performance and Outlook - Since 2021, Adeia has signed ~$1.3 billion in total contract value supported by 135+ license agreements[19, 20] - Q1 2025 revenue reached $87.7 million, with cash from operations at $57.1 million[89] - The company anticipates revenue growth of approximately 5-7%[82] - Non-GAAP operating expenses are projected to increase by about 5-8%[82] - The FY25 revenue outlook is between $390 million and $430 million[97] Semiconductor Business - Adeia aims to achieve sustainable annual semiconductor revenue exceeding $100 million[67]