Adeia (ADEA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $104.8 million, with $58.5 million in operating cash flow and a 60% adjusted EBITDA margin, driven by eight license deals including new agreements with AMD and Microsoft.

• Net income more than doubled year-over-year to $22.8 million, reflecting higher non-recurring revenue and improved operating leverage.

• Added three new customers and closed five renewals, expanding presence in semiconductors, media, and e-commerce, including a new deal with L'Oréal.

• CEO announced intent to step down later in 2026 for personal reasons; board has initiated a search for a successor.

• Executed all four pillars of capital allocation: debt paydown, share repurchases, dividends, and tuck-in M&A.

Financial highlights

• Q1 2026 GAAP net income was $22.8 million; non-GAAP net income was $43.5 million; adjusted EBITDA was $62.3 million with a 60% margin.

• Q1 revenue was $104.8 million; recurring revenue was $66.3 million, down from $94.5 million in the prior quarter due to pay TV declines and timing of renewals.

• Operating expenses (non-GAAP) were $42.9 million, down 13% sequentially; GAAP operating expenses were $69.9 million.

• Ended Q1 with $115.8 million in cash and equivalents; made $28.1 million in debt principal payments, reducing term loan balance to $398.6 million.

• S&P upgraded credit rating to BB from BB-.

Outlook and guidance

• Reiterated full-year 2026 revenue guidance of $395–$435 million.

• Adjusted EBITDA guidance for FY 2026 is $213.4–$245.4 million; non-GAAP net income expected at $144.2–$168.7 million.

• Operating expenses expected at $184–$192 million; interest expense at $34–$36 million; non-GAAP tax rate at 21%.

• Capital expenditures expected to be $2 million for the year.

• Recurring revenue expected to grow through the year, reaching ~$90 million by year-end.