Adeia (ADEA) Q2 FY26 earnings call: guidance and Q&A

Asked for the Q2 revenue mix between media and semis, and color on the broadening semi opportunity beyond AMD, including hyperscalers and AI inference.

Keith stated semi revenue was $14.8 million in Q2 and $48 million year-to-date. Paul elaborated on hybrid bonding adoption across logic (Apple, Intel, Broadcom, NVIDIA by 2028) and memory (HBM, 3D NAND), noting hyperscalers are becoming semiconductor companies. He cited $125 billion in advanced packaging CapEx and Samsung ordering 50 bonding tools as evidence.

“I mean it's really across the board that we're seeing hybrid bonding adoption. I noted some of it on my call with logic players really beyond AMD. AMD was ahead of the curve. As we mentioned before, they started shipping hybrid bonded logic devices in 2022. But now we're seeing it with Broadcom and Intel is ramping, even Apple has chips in production as well.”

asked by Scott Searle · answered by Paul Davis

Inquired if media recurring revenue is now on a growth trajectory after absorbing DIRECTV and DISH impacts, given strong non-Pay-TV growth.

Paul confirmed a continued growth phase for non-Pay-TV recurring revenue, driven by OTT, e-commerce, consumer electronics, and social media. He noted consistent "up and to the right" growth since separation from Xperi, with occasional dips due to deal timing.

“I do think we're in a continued growth phase. We've had continued consistent growth since our separation from Xperi where we have built on our non-Pay-TV recurring revenue really quarter-over-quarter.”

asked by Scott Searle · answered by Paul Davis

Asked if the increased $200 million semiconductor target is achievable within the same 5-year timeframe as the previous $100 million target.

Paul confirmed the 5-year timeframe for the $200 million target, citing catalysts in both logic and memory (NAND and HBM) and the CapEx build-out.

“Yes. That's right, Kevin. I think we talk about -- we call it long term. I think broadly speaking, we think about that in about 5 years, right, is what we think about when we do our long-range planning, and we think that, that is achievable, right, in that time frame now for that $200 million semiconductor target.”

asked by Kevin Cassidy · answered by Paul Davis

Inquired about RapidCool's licensing readiness and whether recent tuck-in IP acquisitions included employees or were patent-focused, and in which areas.

Paul stated RapidCool is part of the relicensing efforts, showcasing innovation in thermal management. He confirmed the Q2 IP acquisitions were media-focused (e-commerce, OTT, imaging) and patent-focused, but the company remains open to acquihires.

“When you think about RapidCool, yes, we think it is part of this catalyst as well. Again, we license on a portfolio-wide basis, right? But 1 of the things that differentiates us from other licensing companies is really the innovation story.”

asked by Kevin Cassidy · answered by Paul Davis

Asked about the robustness of the sales pipeline and any discomfort regarding timing to reach the high end of the full-year revenue guidance, given the current run rate.

Paul expressed confidence in the robust pipeline, noting more paths to achieve goals than in previous years, including e-commerce, OTT, semiconductor momentum, and potential Pay-TV litigation resolutions. Keith added that internal forecasts align with consensus models.

“I think our pipeline is quite robust. I was mentioning to someone just recently. I feel really good about where we are. And if I think about even comparing it to years past, I think we've got an incredibly robust set of opportunities to deliver on our commitments for this year.”

asked by Hamed Khorsand · answered by Paul Davis

Inquired about the high Q2 operating cash flow and cash balance, and expectations for the balance of the year.

Keith explained the $137.1 million cash balance is consistent with year-end 2025. He expects Q3 cash from operations to be modest, with a resurgence in Q4, targeting $150 million for the full year and ending 2026 with $100 million cash, balancing capital allocation pillars.

“For the full year, our outlook still is the same in terms of about $150 million or give or take, for the full year, which, once again, kind of going back to Q3 being relatively light. So we'd anticipate cash from operations in Q3 to be fairly modest and then have a resurgence back in Q4.”

asked by Matthew Galinko · answered by Keith Jones

Asked about the negotiation process for the RPX deal and whether it presents opportunities for replication with other clients.

Paul expressed satisfaction with the RPX deal, noting its consistency with their term-based licensing program and its potential to reduce friction with e-commerce customers. He believes the "style of the deal" (licensing 10 companies at once) can be replicated.

“Yes, we're really pleased with the RPX deal. We do think it is one that we can potentially replicate going forward. It is important to note, though, that it's consistent with our licensing program, right? And so it's term based, right?”

asked by Matthew Galinko · answered by Paul Davis