Adeia (NasdaqGS:ADEA) Q3 2025 Earnings Call November 03, 2025 05:00 PM ET Speaker0Good day, everyone. Thank you for standing by. Welcome to Adeia's third quarter 2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the call will be open for questions. I would now like to turn the call over to Chris Chaney, Vice President of Investor Relations for Adeia. Chris, please go ahead.Speaker1Good afternoon, everyone. Thank you for joining ...

Core Insights - Adeia Inc. reported third quarter revenue of $87.3 million, aligning with expectations, and achieved an adjusted EBITDA margin of 58% [2][6] - The company signed 20 license agreements with new customers in key growth areas since its separation, and non-Pay-TV recurring revenue grew 31% year-over-year [2][6] - Adeia filed patent infringement litigation against AMD for unauthorized use of its semiconductor portfolio, particularly related to hybrid bonding technology [2][6] Financial Highlights - Revenue for the third quarter was $87.3 million, compared to $85.7 million in the previous quarter [6] - GAAP diluted earnings per share (EPS) was $0.08, while non-GAAP diluted EPS was $0.28 [6] - GAAP net income was $8.8 million, and adjusted EBITDA was $50.7 million [6] Business Developments - The company paid down $11 million of debt in the third quarter, totaling $312 million since separation [1][5] - Two long-term media deals were closed during the quarter, including a renewal with a significant Pay-TV customer and a license with a new e-commerce customer [2][6] - Adeia's hybrid bonding technology received a 'Best of Show' award for 'Most Innovative Technology' at the FMS conference [2][6] Capital Allocation - The company made $11.1 million in principal payments towards its term loan, reducing the outstanding balance to $447.8 million as of September 30, 2025 [5][6] - A quarterly cash dividend of $0.05 per share was declared, payable on December 15, 2025 [7] Financial Outlook - The company updated its 2025 revenue guidance to a range of $360.0 million to $380.0 million, down from the previous range of $390.0 million to $430.0 million [8] - Operating expenses are projected to be between $260.0 million and $266.0 million, with interest expenses expected to be between $40.0 million and $41.0 million [8]