Nov 2, 2026 earnings call — Guidance cut due to deal timing
Adeia cut 2026 revenue guidance to $375 million to $415 million, citing timing risk from a small handful of large deals that could be executed beyond 2026.
Revenue $0.1B (est $0.1B) · EPS $0.21 (est $0.30) · Next-quarter revenue outlook $0.4B–$0.4B
Key quotes
"However, our business is relatively sensitive to the ultimate timing of a small handful of deals."
"As noted in recent news, hybrid bonding will be essential to the manufacturing process at 20-plus layers in HBM in the next few years."
"We ended the quarter with over 14.5 thousand patent assets, for both semiconductors and media, This commitment to innovation has resulted in our combined portfolios growing 6% year-to-date."
Analyst Q&A 4
timing of semiconductor license deals
Q (Kevin Cassidy · Rosenblatt): He asked how investors should estimate the timing for signing new semiconductor license agreements and whether semiconductors are more complicated than media. He also asked if the delayed deals are coming from the semiconductor market.
A: Management said the semiconductor market is different from media and that the handful of deals referred to this quarter were media deals. They said semiconductor logic deals should kick in in 2027 and 2028, with memory renewals in 2028 and 2029, and that the pipeline is strong but timing drives when revenue is recognized.
"We expect semiconductor, especially in the logic side, to kick in sometime next year in 2027, 2028 time frame." — Keith A. Jones (CFO)
what drove revenue this quarter
Q (Scott Searle · ROTH Capital): He asked for color on the quarter revenue split between media and semiconductor, recurring versus nonrecurring, whether recent deals were included in Q3, and what drives the wide Q4 range.
A: Management gave specific Q3 numbers: media was $65 million and semiconductor was $15 million. They said recurring revenue was $76 million and nonrecurring about $4 million, that the pipeline remains extremely strong, and that quarter-to-quarter outcomes are driven by deal timing which can swing the guidance range.
"And then for recurring versus nonrecurring, just using kind of some simple round numbers, the recurring revenue was $76 million." — Keith A. Jones (CFO)
confidence after missed Q3 revenue
Q (Hamed Khorsand · BWS Company): He asked why the company is confident the delayed revenue will come later, given earlier expectations and named customers like AMD and Microsoft. He wanted to know why investors should believe the updated timing.
A: Management said their pipeline remains in place and that the business is "small volume, large dollar," so large complex deals affect timing. They repeatedly stressed that the revenue is a matter of timing, not if, and that the year-end target remains their focus despite some deals slipping.
"I will repeat what I said before, it is a matter of when, not if." — Keith A. Jones (CFO)
court delays and legal spending timing
Q (Matthew Galinko · Maxim Group): He asked how long the court delays might last and whether litigation spending that slips from Q4 could land in 2027. He wanted expectations for timing of that legal expense.
A: Management explained that legal matters caused unexpected pauses, giving the Dish/EchoStar bankruptcy as an example where activity was stayed until the bankruptcy cleared. They said that legal expense has been pushed to the right, that operating expense guidance fell by $10 million with about half due to legal timing and half due to expense management, and that they expect R&D and SG&A to increase modestly next year if adoption accelerates.
"And then all of that activity was stayed until that cleared." — Keith A. Jones (CFO)