Adeia Inc (ADEA) Stock Forecast & Price Target

Adeia Inc. has demonstrated strong financial growth, with a 31% year-over-year increase in non-Pay-TV recurring revenue, indicating robust momentum in sectors such as semiconductors and OTT. The company has raised its net income forecast for the fiscal year, projecting a rise to approximately $173 million, representing a nearly 30% increase from previous estimates. Additionally, the updated guidance for FY25 reflects a significant rise in Non-GAAP revenue expectations to $430 million, driven by an expanded patent portfolio and successful IP licensing efforts, positioning Adeia for future cash flow growth and improved valuation metrics.

Adeia Inc. has revised its financial outlook downward, now estimating revenue of $371 million for FY25, a decline from the previous estimate of $409.4 million, primarily due to the likely failure to close the AMD licensing deal in 4QF25. The company’s new guidance indicates a significant reduction in multiple financial metrics, including a projected Non-GAAP net income of $127.4–139.8 million, down approximately 18% from earlier estimates, and adjusted EBITDA expected to fall by about 16%. These downward revisions across key financial indicators highlight the persistent challenges Adeia faces in its Intellectual Property Licensing segment, fundamentally impacting the company’s growth prospects.