Adeia (ADEA) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 1.17%
• Average Volume (3M): 910.01K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.29
• Revenue Growth: 10.53%
• EPS Growth: 76.90%
• Country: US
• Employees: 150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.28
• Shares Outstanding: 109,510,190
• 10 Day Avg. Volume: 737,357
• 30 Day Avg. Volume: 910,007
• PEG Ratio: -3.70
• Price to Book (P/B): 3.83
• Price to Sales (P/S): 4.04
• P/FCF Ratio: 7.21
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 5.87
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 11.85
• 1Y Price Target: $22.75
• Price Target Upside: 19.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): $402.78M

• Rating: 69 Neutral
• Price Target: $18.50 ▼(-2.43% Downside)

The score is driven primarily by strong profitability and cash-flow strength, supported by a clear technical uptrend. Offsetting these positives are moderate leverage, an elevated/less-cheap valuation (P/E 26.3), and litigation-related uncertainty from the earnings call—partly balanced by the subsequent outlook raise tied to Disney-driven deal execution.

Positive Factors

Strong Cash Generation

Adeia's robust cash generation enhances its ability to reinvest in R&D, reduce debt, and pursue strategic opportunities, supporting long-term growth.

Patent Portfolio Expansion

Expanding its patent portfolio strengthens Adeia's competitive position, enabling it to secure more licensing deals and drive future revenue.

Disney Agreement

The Disney agreement not only boosts revenue but also removes legal uncertainties, allowing Adeia to focus on growth and innovation.

Negative Factors

Litigation with AMD

Ongoing litigation with AMD poses a risk to revenue and operational focus, potentially diverting resources and impacting financial performance.

Moderate Leverage

Moderate leverage indicates reliance on debt, which could limit financial flexibility and increase risk during economic downturns.

Revenue Guidance Adjustment

The reduction in revenue guidance reflects challenges in closing key deals, which may impact investor confidence and future growth projections.

Adeia Business Overview & Revenue Model

Company Description

Adeia Inc., together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It licenses its innovations to companies in the entertainment industry under the Adeia brand. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers, social media, and other new media companies, such as subscription video-on-demand service providers and social media companies; consumer electronics manufacturers, which includes smart televisions, streaming media devices, video game consoles, mobile devices, DVRs, and other connected media devices; and semiconductors, including sensors, radio frequency components, memory, and logic devices. The company was incorporated in 2019 and is headquartered in San Jose, California.

How the Company Makes Money

Adeia generates revenue primarily through the licensing of its extensive portfolio of patents and technologies to industry leaders in telecommunications, media, and consumer electronics. The company charges licensing fees for the use of its patented technologies in products and services, which can include everything from streaming services to advanced telecommunications systems. Additionally, Adeia may engage in partnerships with other technology firms to co-develop products or technologies, creating shared revenue opportunities. By continuously innovating and filing new patents, Adeia enhances its revenue potential while capitalizing on trends in digital transformation and content consumption.

Adeia Financial Statement Overview

Summary

Adeia demonstrates strong financial performance with robust profitability and cash flow generation. The company shows impressive revenue and free cash flow growth, although the balance sheet indicates a moderate level of leverage.

Income Statement

Adeia's income statement shows strong profitability with a high EBIT margin of 34.52% and a net profit margin of 22.15% in the TTM period. The company has demonstrated a significant revenue growth rate of 32.7% in the TTM, indicating a positive growth trajectory. However, the gross profit margin is unusually high at 100%, suggesting potential data discrepancies or unique revenue recognition practices.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.14, indicating a manageable level of leverage. Return on equity is strong at 21.41%, showcasing effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Adeia's cash flow statement is robust, with a free cash flow growth rate of 147.4% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.33 indicates efficient cash conversion. The free cash flow to net income ratio is high at 93.55%, demonstrating strong cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.91M	376.02M	388.79M	438.93M	877.70M	892.02M
Gross Profit	321.55M	303.25M	293.51M	324.71M	523.74M	638.92M
EBITDA	188.02M	206.50M	237.82M	269.33M	235.64M	348.53M
Net Income	73.39M	64.62M	67.37M	-295.88M	-55.46M	146.76M
Balance Sheet
Total Assets	1.07B	1.10B	1.11B	1.21B	2.47B	2.70B
Cash, Cash Equivalents and Short-Term Investments	115.07M	110.39M	83.57M	114.56M	140.96M	257.13M
Total Debt	447.60M	485.42M	595.93M	736.29M	772.87M	923.49M
Total Liabilities	654.95M	701.39M	748.93M	909.11M	1.13B	1.25B
Stockholders Equity	413.72M	396.57M	356.62M	301.41M	1.35B	1.46B
Cash Flow
Free Cash Flow	191.78M	210.64M	146.41M	170.16M	220.65M	369.29M
Operating Cash Flow	205.55M	212.46M	152.75M	183.02M	234.79M	427.60M
Investing Cash Flow	-50.00M	-24.02M	-34.49M	-2.91M	-6.21M	17.84M
Financing Cash Flow	-160.15M	-164.17M	-178.26M	-263.26M	-196.25M	-351.14M

Adeia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADEA, the sentiment is Positive. The current price of 18.96 is above the 20-day moving average (MA) of 17.18, above the 50-day MA of 14.58, and above the 200-day MA of 14.34, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 74.18 is Negative, neither overbought nor oversold. The STOCH value of 80.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADEA.

Adeia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.76B	16.45	21.35%	―	6.48%	168.94%
PRGS	71 Outperform	$1.78B	37.24	10.75%	―	31.41%	-40.89%
ADEA	69 Neutral	$2.08B	29.21	18.53%	1.17%	10.53%	76.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	57 Neutral	$948.34M	37.25	―	―	-2.13%	―
PAR	56 Neutral	$1.61B	-17.06	-11.64%	―	13.49%	-772.30%

Adeia Corporate Events

Adeia Ups 2025 Outlook on Strong Disney-Driven Deals

On December 22, 2025, Adeia Inc. raised its financial outlook for the year ending December 31, 2025, projecting revenue of $425 million to $435 million, up from a prior range of $360 million to $380 million, with GAAP net income now expected between $96.4 million and $113.9 million and non-GAAP net income between $169.8 million and $175.9 million. Management attributed the stronger guidance primarily to robust deal execution, led by a key agreement with Disney, and indicated that higher operating expenses largely reflect greater variable compensation tied to outperformance, underscoring management’s confidence in the company’s business momentum and earnings potential heading into year-end 2025.

The most recent analyst rating on (ADEA) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Adeia stock, see the ADEA Stock Forecast page.