Adeia
Adeia's revenue rose 17.9% to $443 million in fiscal 2025. Its operating margin was 39.5%, up from 34.2% a year earlier. Free cash flow was $156 million, down 25.8%. It paid out $43 million in dividends and buybacks, 28% of free cash flow. The diluted share count fell 0.3%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Adeia does
Adeia is a technology company that earns money by licensing patented inventions. It develops technology for the media, consumer electronics, entertainment and semiconductor industries, and then licenses it to other companies. Its customers include large media, entertainment, consumer electronics, social media and semiconductor companies. The name Adeia comes from a Greek word meaning "to license."
Its media patents cover how people search for, discover, record, stream and get recommendations for video, on traditional TV, streaming services and social media. Its semiconductor patents cover chip technologies such as hybrid bonding, which joins chips directly, and thermal (cooling) technologies. Adeia says it developed about 80% of its patent portfolio itself.
Its licensing business came from Xperi Holding, which in October 2022 spun off its product business into a separate company, Xperi Inc., and renamed itself Adeia. It also buys patents and companies to build its portfolios. It collects royalties on its licenses, and the timing of license deals can change results from one period to the next.
Its biggest risks, as it describes them
- Its income depends on how strong its patents are and on enforcing them.
- Much of its revenue is royalties, which can be hard to verify and forecast.
- The timing and structure of license deals can swing its quarterly and annual results.
- Competition in licensing to the entertainment and electronics industries.
- Significant debt that could hurt its financial position.
Income statement
From fiscal 2020 to 2025, earnings per share fell 10.8% a year and net income 5.4% a year, as new shares raised the share count by 34% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 141 | — | 84 | 110 | 137 |
| Debt incl. finance leases | 766 | 729 | 586 | 476 | 418 |
| Net debt (negative means net cash) | 624 | — | 502 | 365 | 282 |
| Net debt to EBITDA | 1.8x | — | 2.2x | 1.8x | 1.2x |
| Debt to equity | 0.6x | 2.4x | 1.6x | 1.2x | 0.9x |
| Interest coverage | 3.0x | 3.4x | 2.2x | 2.5x | 4.3x |
| Current ratio | 2.7x | 1.6x | 2.0x | 3.5x | 3.8x |
| Quick ratio | 2.7x | 1.6x | 2.0x | 3.5x | 3.8x |
Cash flow
Projections
Project Adeia's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Adeia shares on the open market, and 1 insider sold $3.2 million.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| May 13, 2026 | Kevin TanjiChief Legal Officer | Sold | 99,342 | $31.75 | $3.2 million | Form 4 |
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | 6 of 8 | 7 of 8 | 8 of 8 |
| Rule of 40 | 26.9% | 52.7% | 53.2% |
| Altman Z'' | 1.78 | 2.50 | 3.74 |
| Accruals ratio | −7.4% | −13.4% | −4.4% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Pass | Pass |
| Current ratio rose | Pass | Pass | Pass |
| Share count didn't rise | Fail | Fail | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 6 of 8 | 7 of 8 | 8 of 8 |
Compare
Put Adeia side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Adeia | FY25 | 17.9% | 39.5% | 35.2% | 18.1% | 1.2x | 8 | |
| Rimini Street | FY25 | −1.7% | 14.2% | 13.2% | — | −0.8x | 7 | Compare |
| Grid Dynamics Holdings | FY25 | 17.5% | −0.5% | 6.1% | — | — | — | Compare |
| Hackett Group | FY25 | −2.6% | 7.7% | 10.6% | 11.8% | 2.0x | 5 | Compare |
| Innodata | FY25 | 47.6% | 15.8% | 14.2% | — | — | — | Compare |
8 years of figures
| Fiscal year | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| Revenue | 406 | 280 | 516 | 391 | 439 | 389 | 376 | 443 |
| Revenue growth | — | −31.0% | 84.2% | −24.2% | 12.2% | −11.4% | −3.3% | 17.9% |
| Gross profit | — | — | — | — | — | — | — | — |
| Research and development | 105 | 111 | 35 | 40 | 45 | 54 | 60 | 68 |
| Operating income | 24 | −69 | 268 | 119 | 153 | 136 | 129 | 175 |
| Net income | −0 | −62 | 147 | −56 | −296 | 67 | 65 | 111 |
| Diluted EPS (US$) | −0.01 | −1.27 | 1.75 | −0.52 | −2.75 | 0.60 | 0.57 | 0.99 |
| Diluted shares (millions) | 49 | 49 | 84 | 107 | 108 | 113 | 113 | 113 |
| Cash flow | ||||||||
| Cash from operations | 135 | 169 | 428 | 235 | 183 | 153 | 212 | 158 |
| Capital expenditure | 3 | 9 | 7 | 14 | 13 | 4 | 2 | 2 |
| Free cash flow | 132 | 160 | 420 | 221 | 170 | 149 | 211 | 156 |
| Dividends paid | 39 | 40 | 31 | 21 | 21 | 21 | 22 | 22 |
| Share buybacks | 45 | 4 | 81 | 85 | 17 | 0 | 19 | 21 |
| Acquisitions | 0 | 0 | 0 | 17 | 50 | 0 | 0 | 0 |
| Stock-based compensation | 31 | 32 | 39 | 58 | 53 | 18 | 27 | 35 |
| Balance sheet at fiscal year end | ||||||||
| Cash and short-term investments | 114 | 120 | 257 | 141 | — | 84 | 110 | 137 |
| Debt incl. finance leases | — | 335 | 839 | 766 | 729 | 586 | 476 | 418 |
| Total assets | — | 1,048 | 2,701 | 2,470 | 1,210 | 1,106 | 1,098 | 1,039 |
| Total liabilities | — | 503 | 1,250 | 1,130 | 909 | 749 | 701 | 559 |
| Shareholders' equity | 618 | 548 | 1,457 | 1,350 | 301 | 357 | 397 | 480 |
| Margins and ratios | ||||||||
| Gross margin | — | — | — | — | — | — | — | — |
| Operating margin | 5.9% | −24.5% | 51.8% | 30.4% | 34.9% | 35.0% | 34.2% | 39.5% |
| Net margin | −0.1% | −22.3% | 28.4% | −14.2% | −67.4% | 17.3% | 17.2% | 25.1% |
| Free cash flow margin | 32.5% | 57.3% | 81.5% | 56.5% | 38.8% | 38.3% | 56.0% | 35.2% |
| Rule of 40 (growth + FCF margin) | — | 26.2% | 165.7% | 32.3% | 51.0% | 26.9% | 52.7% | 53.2% |
| Return on capital | — | — | 19.1% | 5.6% | — | — | 12.6% | 18.1% |
| Return on equity | — | — | 14.6% | −4.0% | −35.8% | 20.5% | 17.2% | 25.3% |
| Return on assets | — | — | 7.8% | −2.1% | −16.1% | 5.8% | 5.9% | 10.4% |
| Net debt to EBITDA | — | 5.7x | 1.3x | 1.8x | — | 2.2x | 1.8x | 1.2x |