Key Highlights

  • Shares fell USD 3.59, or 17.37%, to USD 17.08 in regular trading on November 3, 2026.
  • Third quarter 2026 Revenue was USD 80.2 million, against USD 87.3 million a year earlier and USD 96.1 million in the second quarter.
  • The 2026 revenue range was lowered to USD 375.0 million to USD 415.0 million from USD 395.0 million to USD 435.0 million.
  • Adjusted EBITDA for the quarter was USD 36.9 million, compared with USD 50.7 million a year earlier.
  • Term Loan principal outstanding was USD 386.5 million at September 30, 2026.

What Moved the Shares Today (down USD 3.59, 17.37%)

Adeia (NASDAQ:ADEA) fell 17.37% to USD 17.08 in regular trading on November 3, 2026, compared with the November 2, 2026 close of about USD 20.67 (calculated). The first full session after the third quarter report carried Volume of 1.11M shares per the screen.

The stock had already been weak before the report, closing at USD 22.48 on October 29, 2026, so the two sessions together represent a fall of roughly 24% from that close (calculated). The trigger was the combination of lower quarterly revenue and a reduced full-year range.

The Third Quarter Report

According to a company press release dated November 2, 2026, revenue for the quarter ended September 30, 2026 was USD 80.2 million, down about 8.2% from a year earlier (calculated). Operating Income was USD 9.0 million, against USD 27.0 million, and GAAP Net Income was USD 2.3 million, or USD 0.02 per diluted share, against USD 8.8 million, or USD 0.08.

Non-GAAP diluted EPS was USD 0.21, compared with USD 0.28. Nine-month revenue was USD 281.1 million, up from USD 260.7 million, and nine-month adjusted EBITDA was USD 155.6 million, up from USD 143.7 million, so the quarter looks weaker than the year to date. On the earnings call, management attributed the lower outlook to deal delays, and one summary of the call put growth in non-pay-TV revenue at 48%.

Business Background and Updates

Adeia licenses patented technology across semiconductors, consumer electronics, pay-TV and streaming, social media, automotive and e-commerce. Its semiconductor work includes hybrid bonding for stacked chips.

The company said it signed eight license agreements in the quarter, four of them with new customers. They included multi-year renewals with Charter and TCL and a new long-term license with Fanatics. Dipti Vachani was announced as chief executive officer on September 28, 2026, succeeding Paul Davis. The company also reiterated its long-term goal of USD 600 million of annual revenue.

Guidance, Balance Sheet and Risks

The revised 2026 outlook also lowered other measures. Adjusted EBITDA is now expected at USD 201.1 million to USD 237.1 million, from USD 213.4 million to USD 245.4 million. Non-GAAP net income is expected at USD 136.7 million to USD 164.3 million, from USD 144.2 million to USD 168.7 million.

Cash, equivalents and marketable securities were USD 127.7 million at September 30, 2026, against USD 136.7 million at December 31, 2025. Quarterly Operating Cash Flow was USD 5.1 million, and the company repaid USD 6.1 million of term loan principal. Nine-month share repurchases were USD 34.4 million, compared with USD 20.9 million. Because revenue depends on the timing of license signings, a delay of a few deals can shift results between quarters.

What to Watch Next

The first item is how many of the delayed agreements close in the fourth quarter, since the new range implies a lower outcome than previously expected. A second is the early agenda of the incoming chief executive officer and any change in Capital allocation.

Other markers include the Dividend of USD 0.05 per share payable December 14, 2026 to holders of record on November 23, 2026, ongoing litigation expense, and Debt repayment against the cash balance.