ADEIA CORP logo

ADEIA CORP(ADEA)

upturn advisory logo
EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$15.5
11/06/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ADEA

11/06/2026: ADEA (1-star) is currently NOT-A-BUY. Pass it for now.

Adeia Corp is a focused intellectual property licensing company that earns recurring revenue by managing an extensive patent portfolio for the semiconductor and media industries. Its primary strength lies in a high-margin, cash-generative business model that rewards shareholders through dividends and buybacks. The key growth story involves leveraging its deep foundational tech portfolio to secure new licenses in emerging AI and data center sectors. Investors should monitor patent validity litigation and contract renewal risks, which can trigger volatility. Adeia may best suit dividend or value-oriented investors who are comfortable with the inherent uncertainties of patent-centric legal environments.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is moderate and tied to the long-term cycle of patent licensing rather than high-speed technology adoption.
Momentum investorWeak fitThe stock often lacks the high-velocity price action favored by momentum investors unless a major litigation settlement is announced.
Value investorStrong fitThe company's strong cash flow and focus on capital returns often attract value-oriented investors.
Dividend investorStrong fitAdeia's consistent cash flow supports a reliable dividend, making it attractive for income-focused portfolios.
Low-risk investorMixed fitWhile financials are stable, patent litigation risk introduces a layer of binary uncertainty that can impact stock volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock can be sensitive to news regarding patent litigation outcomes.
Valuation riskMediumValuation is often tied to the perceived longevity of the patent portfolio.
Competition risk (IP litigation and technological relevance)HighOther firms constantly challenge patent validity and seek competing tech solutions.
Business qualityStrongThe company benefits from a high-margin business model with limited ongoing capital expenditures.
Dividend incomeMediumDividends are reliable but not necessarily the primary driver of total returns.
Execution riskMediumSuccessful licensing depends on high-stakes legal and business negotiations.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Highly Choppy
PRICE STABILITY

Highly Choppy

The stock has experienced frequent, large price swings that make its near-term movement less predictable.

Analysis of Past Performance

Type Stock
Historic Profit -62.79%
Avg. Invested days 26
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/06/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ADEA receives a 4-star rating, supported by strong unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
ADEA has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+71.9%) and strong cash generation (FCF margin 33.7%) are partially offset by modest insider ownership of 1.99%.

Financial Health Rating

★★★★★
ADEA's financial health is supported by strong profitability, including gross margin of 87.2% and operating margin of 47.2%. Cash strength is solid (4 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is ADEA's strongest growth driver at +71.9% FY2025 versus FY2024 (strong, 5 stars). By comparison, revenue growth (+17.9%, solid) is also solid, while free-cash-flow growth (-21.5%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 105.1% and approximately 97.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.99% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.77%
Ameriprise Financial Inc 12.43%
Vanguard Portfolio Management, LLC 7.93%
FMR Inc 5.43%
State Street Corp 4.39%

Unit Economics (Per $1K Revenue)

★★★★★
ADEA generates approximately $872 of gross profit, $472 of operating income, and $337 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 21.18%

Quantitative Style Profile

★★★★★
ADEA has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.71B USD
Price to earnings Ratio 15.05
1Y Target Price 38.25
Price to earnings Ratio 15.05
1Y Target Price 38.25
Volume (30-day avg) 1.5M shares
Beta 1
52 Weeks Range 11.49 - 34.21
Updated Date 11/08/2026
52 Weeks Range 11.49 - 34.21
Updated Date 11/08/2026
Dividends yield (FY) 1.35%
Basic EPS (TTM) 1.03

How Company Makes Money

Business areaWhat it includesRetail investor read
Semiconductor IPRoyalty payments and fees from semiconductor manufacturing patents.Adeia gets paid whenever specific semiconductor processes are used by chipmakers.
Media/Entertainment IPLicensing patents for content discovery, search, and user interface features.Adeia earns revenue from technologies that help users find and consume digital media.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2026-11-02
When After Market
Estimate 0.26
Actual 0.14

Profitability

Profit Margin 25.04%
Operating Margin (TTM) 20.23%

Management Effectiveness

Return on Assets (TTM) 12.22%
Return on Equity (TTM) 25.91%

Valuation

Trailing PE 15.05
Forward PE 10.45
Enterprise Value 1.97B
Price to Sales(TTM) 3.69
Enterprise Value 1.97B
Price to Sales(TTM) 3.69
Enterprise Value to Revenue 4.25
Enterprise Value to EBITDA 7.91
Shares Outstanding 110.37M
Shares Floating 107.79M
Shares Outstanding 110.37M
Shares Floating 107.79M
Percent Insiders 1.99
Percent Institutions 105.13

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.