Yahoo Finance

• Revenue: $87.7 million for Q1 2025.

• Cash from Operations: $57.1 million generated in Q1 2025.

• Operating Expenses: $40.9 million, a 4% increase from the prior quarter.

• Research and Development Expenses: Increased by $362,000 or 2% from the prior quarter.

• Selling, General, and Administrative Expenses: Decreased by $964,000 or 5% from the prior quarter.

• Litigation Expense: $5.9 million, a 54% increase compared to the prior quarter.

• Interest Expense: $10.6 million, a decrease of $1.7 million from the prior quarter.

• Adjusted EBITDA: $47.3 million with a margin of 54%.

• Cash, Cash Equivalents, and Marketable Securities: $116.5 million at the end of Q1 2025.

• Debt Repayment: $17.1 million in principal payments made in Q1 2025.

• Stock Buyback: Approximately 760,000 shares repurchased for $10 million.

• Dividend: $0.05 per share paid in Q1 2025, with another $0.05 per share approved for June 17.

• Full-Year 2025 Revenue Guidance: $390 million to $430 million.

• Full-Year 2025 Operating Expenses Guidance: $166 million to $174 million.

• Full-Year 2025 Interest Expense Guidance: $41 million to $43 million.

• Full-Year 2025 Other Income Guidance: $4 million to $4.5 million.

• Full-Year 2025 Adjusted EBITDA Margin Guidance: Approximately 59%.

• Full-Year 2025 Capital Expenditures Guidance: Approximately $1 million.

• Warning! GuruFocus has detected 2 Warning Sign with ADEA.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Adeia Inc (NASDAQ:ADEA) generated $88 million in revenue and $57 million in cash from operations, aligning with expectations.

• The company signed 10 license agreements, including four with new customers in key growth areas such as social media, OTT, and semiconductors.

• Recurring revenue from non-pay-TV segments increased by 25% year over year.

• Adeia Inc (NASDAQ:ADEA) maintained a strong cash position, enabling strategic acquisitions and share repurchases.

• The company expanded its patent portfolio by 4% to over 12,750 assets, enhancing its competitive edge.

Negative Points

• Operating expenses increased by 4% from the prior quarter, driven by higher R&D and litigation costs.

• Litigation expenses rose by 54% due to ongoing legal disputes with Canadian pay-TV operators and Disney.

• Interest expense, although reduced, remains significant at $10.6 million for the quarter.

• The company faces potential revenue impact in Q2 if certain deals are delayed to the second half of the year.

• The macroeconomic environment poses risks, requiring careful monitoring and prudent spending.