third quarter 2026
Filed Nov 2, 2026Adeia announced third quarter 2026 financial results, signed eight license agreements including renewals with Charter and TCL, and updated its full year 2026 outlook.
The company reported lower quarterly revenue, GAAP net income, non-GAAP EPS and adjusted EBITDA than the prior-year quarter, while signing eight license agreements and maintaining confidence in the high-end of its updated 2026 revenue range. The full-year revenue and profitability outlook ranges were reduced from prior outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $80.19M | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | 18,674 | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | 29,002 | – | – |
| Amortization expense, three months ended September 30, 2026GAAP | 16,291 | – | – |
| Litigation expense, three months ended September 30, 2026GAAP | 7,182 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 71,149 | – | – |
| Operating income, three months ended September 30, 2026GAAP | 9,044 | – | – |
| Interest expense, three months ended September 30, 2026GAAP | (8,051) | – | – |
| Other income and expense, net, three months ended September 30, 2026GAAP | 1,785 | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | 2,778 | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | 511 | – | – |
| Net income, three months ended September 30, 2026GAAP | $2.27M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 0.02 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.02 | – | – |
| Weighted average diluted shares, three months ended September 30, 2026GAAP | 114,254 | – | – |
| Non-GAAP net income, three months ended September 30, 2026non-GAAP | $23.80M | – | – |
| Non-GAAP diluted earnings per share, three months ended September 30, 2026non-GAAP | $ 0.21 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $36.90M | – | – |
| Cash flow from operations, three months ended September 30, 2026GAAP | $5.1M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $ 281,082 | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | 211,833 | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 69,249 | – | – |
| Net income, nine months ended September 30, 2026GAAP | $42.41M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 0.37 | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $106.4M | – | – |
| Non-GAAP diluted earnings per share, nine months ended September 30, 2026non-GAAP | $ 0.93 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $155.6M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | 118,245 | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | (17,304) | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026GAAP | (109,769) | – | – |
Year Ended December 31, 2026 outlook
- Revenue$375.0 − 415.0 (in millions), GAAP and non-GAAP
- Operating expenses$283.0 − 289.0 (in millions), GAAP
- Tax rate20%, GAAP; 21%, non-GAAP
- NoteNon-GAAP operating expenses: $176.0 − 180.0 (in millions)
- NoteInterest expense: $32.0 − 34.0 (in millions), GAAP and non-GAAP
- NoteOther income: $6.0 − 7.0 (in millions), GAAP and non-GAAP
- NoteGAAP net income: $52.8 − 79.2 (in millions)
- NoteNon-GAAP net income: $136.7 − 164.3 (in millions)
- NoteAdjusted EBITDA: $201.1 − 237.1 (in millions)
- NoteDiluted shares outstanding: 113.5 − 114.5, GAAP and non-GAAP
Capital returns
- The Company made $6.1 million in principal payments towards its term loan during the quarter.
- The outstanding term loan balance was $386.5 million as of September 30, 2026.
- On September 14, 2026, the Company distributed $5.5 million to stockholders of record on August 24, 2026, for a quarterly cash dividend of $0.05 per share of common stock.
- The Board of Directors declared a dividend of $0.05 per share, payable on December 14, 2026, to stockholders of record on November 23, 2026.
- Repurchases of common stock were (34,419) for the nine months ended September 30, 2026, compared with (20,931) for the nine months ended September 30, 2025.
- Repurchases of common stock for tax withholdings on equity awards were (20,011) for the nine months ended September 30, 2026, compared with (11,326) for the nine months ended September 30, 2025.
What drove it
- The Company signed eight license agreements across Pay-TV, consumer electronics, e-commerce and social media.
- The agreements included multi-year renewals with Charter and TCL.
- The Company signed four new customers during the quarter, including a new long-term license agreement with Fanatics.
- Management said its pipeline remains strong and is growing.
- Dipti Vachani was appointed Chief Executive Officer.
Concerns
- Third-quarter revenue was $80.2 million compared with $96.1 million in the second quarter of 2026.
- GAAP net income, non-GAAP net income, non-GAAP diluted EPS and adjusted EBITDA were lower than the prior-year quarter.
- The company updated its 2026 revenue outlook to $375.0 − 415.0 from $395.0 − 435.0.
- Management said revenue could be impacted by the ultimate timing of executing a select few deals.
- The company updated lower both GAAP and non-GAAP operating-expense, net-income and adjusted EBITDA outlook ranges.
What to watch
- Execution timing for the select few deals that management said could affect revenue by year-end.
- Progress toward the high-end of the updated $375.0 − 415.0 2026 revenue guidance range.
- Conversion of the growing pipeline into new and renewal license agreements.
- The effect of Charter, TCL, Fanatics and the other third-quarter license agreements on future revenue.
- Further term-loan repayment and the scheduled December 14, 2026 dividend payment.
Balance sheet and cash flow
- Cash and cash equivalents were $ 64,308 as of September 30, 2026, compared with $ 73,136 as of December 31, 2025.
- Marketable securities were 63,439 as of September 30, 2026, compared with 63,597 as of December 31, 2025.
- Total cash, cash equivalents, and marketable securities were 127,747 as of September 30, 2026, compared with 136,733 as of December 31, 2025.
- Current portion of long-term debt, net, was 20,985 as of September 30, 2026, compared with 20,975 as of December 31, 2025.
- Long-term debt, net, was 359,789 as of September 30, 2026, compared with 397,479 as of December 31, 2025.
- Total assets were $ 1,007,164 as of September 30, 2026, compared with $ 1,039,303 as of December 31, 2025.
- Total liabilities were 524,398 as of September 30, 2026, compared with 558,762 as of December 31, 2025.
- Total stockholders’ equity was 482,766 as of September 30, 2026, compared with 480,541 as of December 31, 2025.
- Principal payments on debt agreements were (40,267) for the nine months ended September 30, 2026, compared with (39,267) for the nine months ended September 30, 2025.
- Payments of dividends were (16,555) for the nine months ended September 30, 2026, compared with (16,328) for the nine months ended September 30, 2025.
- Net decrease in cash and cash equivalents was (8,828) for the nine months ended September 30, 2026, compared with (22,735) for the nine months ended September 30, 2025.
Analysis
Adeia reported third-quarter revenue of $80.2 million, compared with $96.1 million in the second quarter of 2026 and $ 87,339 in the prior-year quarter. The company attributed its operating activity to eight license agreements across Pay-TV, consumer electronics, e-commerce and social media. These included multi-year renewals with Charter and TCL, a new long-term agreement with Fanatics, and agreements with four new customers in the quarter. No segment revenue disclosure was provided.
Quarterly GAAP operating income was 9,044, down from 27,009 in the prior-year quarter, while GAAP net income was $ 2,267 versus $ 8,828. Total operating expenses were 71,149 compared with 60,330, including higher research and development, selling, general and administrative, amortization and litigation expense. Non-GAAP net income was $ 23,803 compared with $ 32,067, non-GAAP diluted EPS was $ 0.21 compared with $ 0.28, and adjusted EBITDA was $ 36,897 compared with $ 50,703.
For the nine months ended September 30, 2026, revenue was $ 281,082 compared with $ 260,744 in the prior-year period. GAAP net income was $ 42,406 compared with $ 37,364, while adjusted EBITDA was $ 155,616 compared with $ 143,668. Net cash provided by operating activities was 118,245 compared with 98,088. The company reported $5.1 million of third-quarter cash flow from operations, but did not provide a prior-year or prior-quarter comparison for that quarterly cash-flow measure.
Capital allocation included $6.1 million of quarterly principal payments on the term loan, leaving an outstanding balance of $386.5 million as of September 30, 2026. The company ended the quarter with $127.7 million in cash, cash equivalents and marketable securities. It distributed $5.5 million on September 14, 2026 for a quarterly cash dividend of $0.05 per share and declared another $0.05-per-share dividend payable December 14, 2026. Nine-month repurchases of common stock were (34,419), in addition to (20,011) of repurchases for tax withholdings on equity awards.
The company updated its full-year 2026 revenue outlook to $375.0 − 415.0 from $395.0 − 435.0, while saying it remains confident in achieving the high-end of the updated range. GAAP operating-expense guidance moved to $283.0 − 289.0 from $295.0 − 305.0, and non-GAAP operating-expense guidance moved to $176.0 − 180.0 from $184.0 − 192.0. GAAP net-income guidance was updated to $52.8 − 79.2 from $57.2 − 80.4, non-GAAP net-income guidance to $136.7 − 164.3 from $144.2 − 168.7, and adjusted EBITDA guidance to $201.1 − 237.1 from $213.4 − 245.4. Management identified timing of a select few deal executions as the reason for adjusting the outlook range.
Management, verbatim
Our third quarter results reflected strong deal activity with eight license agreements signed across Pay-TV, consumer electronics, e-commerce and social media. Those deals included significant renewals with long-time customers Charter and TCL and four new customers during the quarter. We are on target to achieve our long-term annual revenue outlook of $600 million and we remain excited about our future.
Dipti Vachani, chief executive officer
We are pleased with the progress that we have made to date as our pipeline remains strong and is growing.
Keith Jones, chief financial officer
As we approach the end of the year, our revenue could be impacted by the ultimate timing of executing a select few deals. We remain confident in our ability to achieve the high-end of our revenue guidance range for 2026. However, we felt it prudent to adjust the range to reflect the potential impact to the extent certain of these deals are executed beyond the end of the year.
Keith Jones, chief financial officer
Not in the filing
stated, not guessed- Gross profit and gross margin for the third quarter and nine months ended September 30, 2026
- Segment revenue, segment profitability and segment-level comparisons
- Free cash flow
- Prior-quarter comparisons for operating expenses, operating income, net income, EPS, adjusted EBITDA and most other quarterly income-statement metrics
- Percentage year-over-year and quarter-over-quarter changes for reported metrics
- Quarterly balance sheet or cash flow statement comparison for third-quarter operating cash flow
- Previous-release outlook section for formal actual-versus-prior-guidance comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.