Adeia Raises 2025 Revenue Guidance From $360M-$380M To $425M-$435M

Adeia Inc. (NASDAQ:ADEA) (the "Company" or "Adeia") today announced updated guidance for the year ending December 31, 2025.

"I am very pleased to announce that our 2025 results are expected to exceed the high end of our prior guidance," said Paul E. Davis, chief executive officer of Adeia.  "As we previously mentioned, we have been pursuing multiple opportunities that if achieved, could result in 2025 revenue being greater than our prior guidance.  Driven primarily by the execution of the Disney agreement our revised 2025 financial outlook reflects the strong momentum for our business." 

"The significant increase in our revenue guidance is being driven by strong deal execution," said Keith A. Jones, chief financial officer of Adeia.  "The higher operating expenses reflect increased variable compensation due to the expected overachievement of certain performance targets.  The revised guidance reflects the strength of our business model and earnings potential."

Financial Outlook

The Company is updating its financial outlook as follows: 

2025 GAAP Outlook			2025 Non-GAAP Outlook
Category (in millions, except for tax rate)	Updated	Prior	Updated	Prior
Revenue	$425.0 − 435.0	$360.0 − 380.0	$425.0 − 435.0	$360.0 − 380.0
Operating expenses(1)	$270.0 − 274.0	$260.0 − 266.0	$170.0 − 172.0	$160.0 − 164.0
Interest expense	$40.0 − 41.0	$40.0 − 41.0	$40.0 − 41.0	$40.0 − 41.0
Other income	$5.5 − 6.5	$5.5 − 6.5	$5.5 − 6.5	$5.5 − 6.5
Tax rate	10.0% − 20.0%	10.0% − 20.0%	23.0%	23.0%
Net income(2)	$96.4 − 113.9	$52.4 − 71.6	$169.8 − 175.9	$127.4 − 139.8
Adjusted EBITDA(2)	N/A	N/A	$257.1 − 265.1	$202.3 − 218.3
Diluted shares outstanding	112.0 − 113.0	112.0 − 113.0	112.0 − 113.0	112.0 − 113.0

(1) See tables for reconciliation of GAAP to non-GAAP operating expenses.

(2) See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA).