Adeia Inc (ADEA) Stock Forecast & Price Target

Adeia Inc has demonstrated notable financial momentum, with a 31% year-over-year growth in non-Pay-TV recurring revenue, driven primarily by advancements in semiconductors and over-the-top (OTT) media solutions. The company's expected net income for the current period has been revised upward to $173 million, indicating a robust 30% increase, while FY25 non-GAAP revenue guidance has risen to $430 million, reflecting a 16% increase from previous estimates. Additionally, Adeia's expanding patent portfolio, now comprising approximately 13,000 assets—a 35% growth since the company’s separation—alongside a successful debt reduction of $11.1 million, bolsters the outlook for strong valuation metrics compared to industry peers.

Adeia Inc has significantly lowered its financial outlook for FY25, now estimating revenue of $371 million, down from $409.4 million, driven primarily by the diminished prospects of finalizing the AMD license. The company also revised its guidance downward, with revenue expectations now ranging from $360 million to $380 million, reflecting a potential midpoint decrease of approximately 9.8%. Additionally, Adeia indicated a notable decline in non-GAAP net income, revising estimates to between $127.4 million and $139.8 million, marking an approximate 18% reduction from previous forecasts.