Investing.com -- Adeia Inc (NASDAQ:ADEA) shares plummeted 24% in after-hours trading Monday after the intellectual property licensing company reported third-quarter results that fell short of Wall Street expectations and lowered its full-year revenue guidance.
The company posted adjusted earnings per share of $0.21 for the third quarter, missing the analyst consensus of $0.35 by $0.14. Revenue came in at $80.2 million, significantly below the $104.38 million estimate and down 17% from $96.1 million in the prior quarter. The company did not disclose YoY revenue comparisons for the quarter.
Adeia lowered its full-year 2026 revenue guidance to a range of $375.0 million to $415.0 million, down from its prior outlook of $395.0 million to $435.0 million. The midpoint of the new guidance of $395.0 million represents a $20.0 million reduction from the previous midpoint of $415.0 million. The company cited potential timing delays in closing select deals as the reason for the adjustment.
"As we approach the end of the year, our revenue could be impacted by the ultimate timing of executing a select few deals," said Keith Jones, chief financial officer. "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."
The company announced that Dipti Vachani has been appointed as chief executive officer. Adeia signed eight license agreements during the quarter, including multi-year renewals with Charter and TCL, and added four new customers including Fanatics.
"Our third quarter results reflected strong deal activity with eight license agreements signed across Pay-TV, consumer electronics, e-commerce and social media," said Vachani.
The company paid down $6.1 million on its term loan and ended the quarter with $127.7 million in cash and marketable securities.
Original Article
Adeia shares tumble 24% on earnings miss and weak guidance
