Adeia Lifts Long-Term Revenue Target to $600 Million

The Tip Desk · August 4, 2026 · 3 min read

The IP licensor raised its long-term annual revenue outlook to $600 million from $500 million after a 54% year-over-year jump in non-Pay-TV recurring revenue.

Adeia Inc. (ADEA) raised its long-term annual revenue outlook to $600 million from $500 million, citing confidence that its semiconductor business can reach $200 million in annual revenue and that media will still grow toward $400 million.

The intellectual-property licensor said the higher semiconductor target rests on the trajectory of hybrid bonding adoption across memory and logic tied to the AI infrastructure build-out and high-performance computing demand. Chief Executive Paul E. Davis said the company remains focused on execution to hit its goals for the year.

Second-quarter revenue was $96.1 million, in line with the company’s expectations, versus $85.7 million a year earlier. Sequential revenue had been $104.8 million in the first quarter. GAAP operating income was $25.4 million. GAAP net income was $17.4 million, or $0.15 a share; non-GAAP diluted earnings were $0.34 a share. Adjusted EBITDA was $56.4 million, a 59% margin.

The quarter’s defining operating turn was in non-Pay-TV recurring revenue, which grew 54% year over year after a 28% year-over-year increase in the first quarter. Davis said the non-Pay-TV pipeline remains robust and continues to grow. That acceleration, not the top-line print, is what the company pointed to when it lifted the long-term outlook.

Adeia closed six license agreements in the quarter and added a record 12 new customers. Among them was a multi-year renewal with Google, which includes YouTube TV, one of the largest Pay-TV providers, for access to the media portfolio. The company also signed a multi-year license with RPX covering 10 new e-commerce customers, and a new multi-year license with L’Oréal. With those deals, Adeia said it now has 15 customers across six agreements in e-commerce, a business it built over the past two years. Other signings included a domestic OTT documentary provider, a European Pay-TV renewal, and a Japanese consumer-electronics manufacturer.

Cash flow from operations was $54.6 million. The company paid down $6.1 million on its term loan, leaving a $392.6 million balance as of June 30, 2026, after a $28.1 million paydown in the first quarter. It repurchased $10.0 million of common stock, leaving $140.0 million remaining under the repurchase plan. On June 15 it paid a $0.05-a-share quarterly dividend and declared another $0.05-a-share dividend payable on September 14, 2026.

Current deferred revenue was $43.9 million at June 30, 2026. Cash, cash equivalents, and marketable securities totaled $137.1 million.

Adeia reiterated its full-year 2026 outlook of $395.0 million to $435.0 million in revenue, with GAAP net income of $57.2 million to $80.4 million and non-GAAP net income of $144.2 million to $168.7 million. GAAP operating expenses are expected at $295.0 million to $305.0 million and non-GAAP operating expenses at $184.0 million to $192.0 million. Adjusted EBITDA is guided at $213.4 million to $245.4 million.

Davis said strategic initiatives remain on track, including growing the IP portfolio primarily through organic innovation, maintaining a balanced capital-allocation approach, and growing the opportunity pipeline. The company’s media growth target remains $400 million, supported by momentum in OTT, e-commerce, consumer electronics, and social media.