Q2 2026 Adeia Inc Earnings Call Transcript
Key Points
- Adeia Inc (ADEA) delivered strong Q2 2026 results with revenue of $96 million and a 59% adjusted EBITDA margin, in line with expectations.
- Non-Pay-TV recurring revenue grew 54% year-over-year, now nearly double the size of Pay-TV recurring revenue, showcasing successful diversification.
- Closed six license agreements in Q2, including a multi-year renewal with Google and a seminal deal with RPX covering 10 member companies, adding a record 12 new customers.
- Raised long-term revenue target to $600 million annually, driven by increased semiconductor opportunity to $200 million due to hybrid bonding adoption.
- Generated $54.6 million in cash from operations, ending the quarter with $137.1 million in cash, while executing on all four capital-allocation pillars.
- Semiconductor business is gaining momentum with $48 million in year-to-date revenue, up from $26 million in all of 2025, and strong pipeline across logic and memory.
- Pay-TV business faces known headwinds, including recent litigation matters, which could impact short-term results.
- Litigation with Fubo was filed after failing to reach a license agreement, adding uncertainty and potential costs.
- Revenue guidance for 2026 remains unchanged at $395-$435 million, with timing of deals uncertain and potentially back-end loaded.
- Operating expenses, while down sequentially, remain significant at $40.2 million in Q2, with litigation costs expected to continue.
- Cash flow from operations is expected to be modest in Q3, with a resurgence only in Q4, impacting near-term liquidity.
- The CEO search process is ongoing, with a successor not expected until Q4 2026, creating potential leadership uncertainty.
Good day, everyone. Thank you for standing by. Welcome to Adeia's second-quarter 2026 earnings conference call.
(Operator Instructions)
I would now like to turn the call over to Chris Chaney, Vice President of Investor Relations for Adeia. Chris, please go ahead.
Good afternoon, everyone. Thank you for joining us, as we share with you details of our quarterly financial results.
With me on the call today are Paul Davis, our President and CEO; and Keith Jones, our CFO.
Paul will share with you some general observations regarding the quarter and then, Keith will give further details on our financial results and guidance. We will, then, conclude with a question-and-answer period.
In addition to today's earnings release, there is an earnings presentation, which you can access, along with the webcast, in the IR portion of our website.
Before turning the call over to Paul, I would like to provide a few reminders:
First, today's discussion
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