# Adeia (ADEA.US)

Canonical: https://gigainvestors.com/s/ADEA

Analysis as of: 2026-10-16T07:26:12.325Z. Financial observations: FY2003–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $21.74 per share; close as of 2026-10-15.

Estimated value: low $15.44 per share, central $17.41 per share, high $20.04 per share. Buy at or below the central value $17.41 per share. Valuation as of 2026-10-16T07:26:12.325Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 5

- Operating margin variation: 0.96×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.52×

- FY2017: 0.01×

- FY2018: 0.12×

- FY2019: -0.23×

- FY2020: 0.52×

- FY2021: 0.03×

- FY2022: 0.37×

- FY2023: 0.35×

- FY2024: 0.34×

- FY2025: 0.47×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.7%

- ROIC, second-lowest year: 0.9%

- Typical minus recent gross margin: -5.9 pp

- Typical gross margin (annual median): 74.7%

- Recent gross margin (lower of latest and 3-year median): 80.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 9.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.7%

- FY2017: 0.9%

- FY2018: 5.8%

- FY2019: -12.7%

- FY2020: 14.8%

- FY2021: 1.2%

- FY2022: 26.5%

- FY2023: 20.7%

- FY2024: 22.4%

- FY2025: 36.0%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $442M

- Net income, five-year total: -$108M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 3.4 pp

- Working capital / revenue, final three-year average: 32.8%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $158M

- FY2022: -$148M

- FY2023: $156M

- FY2024: $115M

- FY2025: $161M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.8% vs 22.4%

- Per-share earnings: 1.15 to 0.60 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.2%

- Ordinary dilution, 5-year annual growth: 6.1%

- Market cap gain: -$1.6B

- Cumulative retained earnings: -$72M

- Diluted shares, 10-year annual growth: 8.2%

- Diluted shares, 5-year annual growth: 6.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -7.9%

- Per-share value change: -$0.56

- Per-share value, starting three-year median: $1.15

- Per-share value, ending three-year median: $0.60

- Buybacks concentrated in cheaper years (correlation): -0.09

- Average buyback yield: 2.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $1.5B

- Cumulative net income, 10 years: -$25M

- ROIC, first three-year median: 5.8%

- ROIC, last three-year median: 22.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.15

- FY2017: -$1.14

- FY2018: -$0.01

- FY2019: -$1.25

- FY2020: $1.75

- FY2021: -$0.52

- FY2022: -$2.75

- FY2023: $0.60

- FY2024: $0.57

- FY2025: $0.99

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 21.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.42×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.5%

- FY2017: -18.4%

- FY2018: -11.0%

- FY2019: -22.1%

- FY2020: -10.4%

- FY2021: -11.8%

- FY2022: -39.6%

- FY2023: -7.7%

- FY2024: -13.5%

- FY2025: -4.5%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Jun 2026 · sales +17.9%

Story as of 2026-10-16T09:58:14.069Z; price observation 2026-10-15.

Price needs cash profits to grow 3.9% a year for ten years

- 2025-12-22: Adeia Lifts Annual Guidance, Revenue Above Estimates; Stock Up Over 20% In Pre-Market ([nasdaq.com](https://www.nasdaq.com/articles/adeia-lifts-annual-guidance-revenue-above-estimates-stock-over-20-pre-market))

- 2026-03-09: Adeia signs multi-year semiconductor IP licensing deal with AMD; shares rise ([seekingalpha.com](https://seekingalpha.com/news/4562422-adeia-signs-multi-year-semiconductor-ip-licensing-deal-with-amd-shares-rise?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +17.9%; source https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm; observed 2026-02-26.

- FY2016: $260M 

- FY2017: $374M 

- FY2018: $406M 

- FY2019: $280M 

- FY2020: $516M 

- FY2021: $878M 

- FY2022: $439M 

- FY2023: $389M 

- FY2024: $376M 

- FY2025: $443M 

### Gross margin · FY2025

gross margin 87.2%; source https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm; observed 2026-02-26.

- FY2016: 86.6% 

- FY2017: 66.4% 

- FY2018: 70.0% 

- FY2019: 58.9% 

- FY2020: 84.8% 

- FY2021: 59.7% 

- FY2022: 74.0% 

- FY2023: 75.5% 

- FY2024: 80.6% 

- FY2025: 87.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 443.4 million.

- Source: https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm (filed 2026-02-26); FY2025: revenue 443386000; grossProfit 386765000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ADEA.US: Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing platform company in the United States, Asia, Canada, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers, such as subscription video-on-demand and free advertising-supported streaming service providers, providers that offer online services and devices that enable internet streaming and downloading of movies, television shows, music and other types of media content, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of memory, logic, sensors, and radio frequency devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its intellectual properties under the Adeia brand. The company was formerly known as Xperi Holding Corporation and changed its name to Adeia Inc. The company was incorporated in 2019 and is headquartered in San Jose, California.

### Why customers stay

Margins ranged from 75.5% to 87.2% during 2023–25; it earns 14.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 75.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 80.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 87.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.14663603089457128],[2017,0.009200693751573528],[2018,0.05797347044544219],[2019,-0.1272947732825124],[2020,0.14787532372175521],[2021,0.01206303671642776],[2022,0.26521595033240797],[2023,0.20665730744689895],[2024,0.22354615105918949],[2025,0.35987758394471364]]; median 0.14725567730816325. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 43.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 13376000; owner earnings 76843000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 3499000; owner earnings 59074000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 7438000; owner earnings 107399000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 13313000; owner earnings 30824000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 58314000; owner earnings 263192000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 14136000; owner earnings 157609000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 6343000; owner earnings 156303000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 22297000; owner earnings 115105000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 8756000; owner earnings 160900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,39158000],[2017,39509000],[2018,39187000],[2019,39502000],[2020,30829000],[2021,20979000],[2022,203816000],[2023,21339000],[2024,21767000],[2025,21770000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 43792000 USD.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ADEA.US SharesStats.PercentInsiders = 1.8499999999999999 percentage points; cache date 2026-10-15.

### What could break it

For the year ended December 31, 2025, five customers represented 55.7% of aggregate revenue.

- Source: https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm (filed 2026-02-26); 11 Furthermore, a small number of our customers represent a significant percentage of our revenue. For the year ended December 31, 2025, five customers represented 55.7% of aggregate revenue. Agreements with some of these customers do not require any minimum license fees.

### What the price says

The price assumes cash profits grow 3.9% yearly over ten years; actual decline was 5.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.04216644098152933. Price 21.74; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.539904734130456 → FY2025 1.4270889691078255. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $60.90 per share

- 2016-11: $65.00 per share

- 2016-12: $72.55 per share

- 2017-01: $74.19 per share

- 2017-02: $58.84 per share

- 2017-03: $55.73 per share

- 2017-04: $55.15 per share

- 2017-05: $50.31 per share

- 2017-06: $48.91 per share

- 2017-07: $48.01 per share

- 2017-08: $44.73 per share

- 2017-09: $41.53 per share

- 2017-10: $37.75 per share

- 2017-11: $31.68 per share

- 2017-12: $40.05 per share

- 2018-01: $36.85 per share

- 2018-02: $36.19 per share

- 2018-03: $34.72 per share

- 2018-04: $36.11 per share

- 2018-05: $32.42 per share

- 2018-06: $26.43 per share

- 2018-07: $27.33 per share

- 2018-08: $25.77 per share

- 2018-09: $24.37 per share

- 2018-10: $21.34 per share

- 2018-11: $23.14 per share

- 2018-12: $30.19 per share

- 2019-01: $35.17 per share

- 2019-02: $39.39 per share

- 2019-03: $38.41 per share

- 2019-04: $40.79 per share

- 2019-05: $34.49 per share

- 2019-06: $33.80 per share

- 2019-07: $35.04 per share

- 2019-08: $30.07 per share

- 2019-09: $33.94 per share

- 2019-10: $33.33 per share

- 2019-11: $32.48 per share

- 2019-12: $30.37 per share

- 2020-01: $26.41 per share

- 2020-02: $28.22 per share

- 2020-03: $22.83 per share

- 2020-04: $25.08 per share

- 2020-05: $22.57 per share

- 2020-06: $24.23 per share

- 2020-07: $30.27 per share

- 2020-08: $20.57 per share

- 2020-09: $18.86 per share

- 2020-10: $20.35 per share

- 2020-11: $31.32 per share

- 2020-12: $34.31 per share

- 2021-01: $31.61 per share

- 2021-02: $34.63 per share

- 2021-03: $35.73 per share

- 2021-04: $33.73 per share

- 2021-05: $35.16 per share

- 2021-06: $36.50 per share

- 2021-07: $34.09 per share

- 2021-08: $35.08 per share

- 2021-09: $30.92 per share

- 2021-10: $29.41 per share

- 2021-11: $29.41 per share

- 2021-12: $31.04 per share

- 2022-01: $27.69 per share

- 2022-02: $28.43 per share

- 2022-03: $28.43 per share

- 2022-04: $25.61 per share

- 2022-05: $27.02 per share

- 2022-06: $23.69 per share

- 2022-07: $27.51 per share

- 2022-08: $26.11 per share

- 2022-09: $23.21 per share

- 2022-10: $11.18 per share

- 2022-11: $11.05 per share

- 2022-12: $9.48 per share

- 2023-01: $10.95 per share

- 2023-02: $9.86 per share

- 2023-03: $8.86 per share

- 2023-04: $7.64 per share

- 2023-05: $9.81 per share

- 2023-06: $11.01 per share

- 2023-07: $12.02 per share

- 2023-08: $10.06 per share

- 2023-09: $10.68 per share

- 2023-10: $8.43 per share

- 2023-11: $9.19 per share

- 2023-12: $12.39 per share

- 2024-01: $12.14 per share

- 2024-02: $11.34 per share

- 2024-03: $10.92 per share

- 2024-04: $9.84 per share

- 2024-05: $11.83 per share

- 2024-06: $11.19 per share

- 2024-07: $11.75 per share

- 2024-08: $12.60 per share

- 2024-09: $11.91 per share

- 2024-10: $12.43 per share

- 2024-11: $12.12 per share

- 2024-12: $13.98 per share

- 2025-01: $12.85 per share

- 2025-02: $15.72 per share

- 2025-03: $13.22 per share

- 2025-04: $12.31 per share

- 2025-05: $12.84 per share

- 2025-06: $14.14 per share

- 2025-07: $12.95 per share

- 2025-08: $15.04 per share

- 2025-09: $16.80 per share

- 2025-10: $17.04 per share

- 2025-11: $12.37 per share

- 2025-12: $17.25 per share

- 2026-01: $18.09 per share

- 2026-02: $20.69 per share

- 2026-03: $24.03 per share

- 2026-04: $31.85 per share

- 2026-05: $26.71 per share

- 2026-06: $32.93 per share

- 2026-07: $26.65 per share

- 2026-08: $25.23 per share

- 2026-09: $25.60 per share

- 2026-10: $21.74 per share

## Annual estimated value (USD per share)

- FY2016: low $19.69 per share, central $22.33 per share, high $25.59 per share

- FY2017: low $28.26 per share, central $31.61 per share, high $36.09 per share

- FY2018: low $29.98 per share, central $33.69 per share, high $38.65 per share

- FY2019: low $18.43 per share, central $20.66 per share, high $23.62 per share

- FY2020: low $20.73 per share, central $23.18 per share, high $26.44 per share

- FY2021: low $17.21 per share, central $19.43 per share, high $22.37 per share

- FY2022: low $8.99 per share, central $10.10 per share, high $11.57 per share

- FY2023: low $7.43 per share, central $8.37 per share, high $9.61 per share

- FY2024: low $12.04 per share, central $13.57 per share, high $15.61 per share

- FY2025: low $14.29 per share, central $16.11 per share, high $18.52 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1803696/000119312526076549/adea-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Dan Davidowitz](https://gigainvestors.com/pcm): 52,575 ADEA shares; USD 1,731,000 reported position value; 0.01% of portfolio; new; quarter 2026 Q2.

# ADEA — Adeia Inc

Held by 1 investor · USD 1,731,000 total · 2026 Q2 · reported price USD 32.92 (split-adjusted).
Page: https://gigainvestors.com/s/ADEA

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Dan Davidowitz (https://gigainvestors.com/pcm) | USD 1,731,000 | <0.1% | new |

## Total held by quarter

- 2026 Q2: USD 1,731,000 · 1 holder · USD 32.92