Adeia Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same periods in 2023. For the third quarter of 2024, Adeia generated revenue of $86.1 million, a decrease of $15.3 million (15.1%) from $101.4 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $256.9 million, down $45.1 million (14.9%) from $301.9 million in the prior year. The decline was attributed to a significant drop in non-recurring revenues, which fell by $14.4 million (80.9%) in Q3 and $39.8 million (85.0%) year-to-date.

Recurring revenues showed a smaller decline, with Q3 2024 recurring revenues at $82.7 million, down $0.9 million (1.1%) from the previous year, and year-to-date recurring revenues at $249.8 million, a decrease of $5.2 million (2.1%). Operating expenses for the third quarter decreased to $58.0 million from $61.3 million in Q3 2023, while year-to-date operating expenses were $185.7 million, down from $189.0 million. This led to operating income of $28.1 million for Q3 2024, compared to $40.1 million in Q3 2023, and $71.1 million for the nine months ended September 30, 2024, down from $113.0 million in the prior year.

Net income for the third quarter of 2024 was $19.3 million, a decrease from $24.2 million in Q3 2023. For the nine months ended September 30, 2024, net income was $28.6 million, down from $54.7 million in the same period in 2023. Basic net income per share for Q3 2024 was $0.18, compared to $0.23 in Q3 2023, while diluted net income per share was $0.17, down from $0.21.

Adeia's cash and cash equivalents increased to $60.7 million as of September 30, 2024, from $54.6 million at the end of 2023. The company reported net cash from operating activities of $105.0 million for the nine months ended September 30, 2024, compared to $113.3 million in the prior year. Adeia made principal payments of $64.2 million on its term loan, reducing the outstanding balance to $537.1 million.

Strategically, Adeia has focused on its intellectual property licensing business, maintaining a patent portfolio of over 11,750 patents. The company continues to engage in litigation to protect its intellectual property, with ongoing cases against major entities such as Bell Canada and The Walt Disney Company.

About Adeia Inc.

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