Operating margins have demonstrated high sensitivity to revenue fluctuations, expanding from 26.7% in 2024Q1 to a peak of 63.9% in 2025Q4 as the company leveraged its fixed cost base.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Sales/Revenue | 460.49M | 443.39M | 376.02M | 388.79M | 438.93M | 877.7M | 892.02M | 280.07M | 406.13M | 373.73M | 259.56M | 273.3M | 278.81M | 168.81M | 209.84M | 254.58M | 301.39M | 299.44M | 248.29M | 195.69M | 208.73M | 94.7M | 72.74M | 37.32M | 28.27M |
| Revenue Growth % | 21.09% | 17.91% | -3.28% | -11.42% | -49.99% | -1.61% | 218.5% | -31.04% | 8.67% | 43.98% | -5.03% | -1.98% | 65.16% | -19.55% | -17.57% | -15.53% | 0.65% | 20.6% | 26.88% | -6.25% | 120.41% | 30.2% | 94.89% | 32.02% | - |
| Cost of Goods Sold | 43.51M | 56.62M | 72.78M | 95.27M | 114.22M | 353.96M | 253.1M | 115.13M | 121.74M | 125.44M | 34.68M | 22.78M | 21.75M | 41.74M | 48.12M | 37.19M | 34.89M | 27.75M | 26.14M | 22.99M | 19.36M | 13.31M | 9.61M | 6.73M | 4.26M |
| COGS % of Revenue | - | 12.77% | 19.35% | 24.51% | 26.02% | 40.33% | 28.37% | 41.11% | 29.98% | 33.56% | 13.36% | 8.34% | 7.8% | 24.73% | 22.93% | 14.61% | 11.58% | 9.27% | 10.53% | 11.75% | 9.27% | 14.06% | 13.22% | 18.04% | 15.08% |
| Gross Profit | 312.21M | 386.76M | 303.25M | 293.51M | 324.71M | 523.74M | 638.92M | 164.94M | 284.39M | 248.29M | 224.88M | 250.52M | 257.06M | 127.07M | 161.72M | 217.38M | 266.5M | 271.69M | 222.15M | 172.7M | 189.37M | 81.39M | 63.12M | 30.59M | 24.01M |
| Gross Margin % | 67.8% | 87.23% | 80.65% | 75.49% | 73.98% | 59.67% | 71.63% | 58.89% | 70.02% | 66.44% | 86.64% | 91.66% | 92.2% | 75.27% | 77.07% | 85.39% | 88.42% | 90.73% | 89.47% | 88.25% | 90.73% | 85.94% | 86.78% | 81.96% | 84.92% |
| Gross Profit Growth % | - | 27.54% | 3.32% | -9.61% | -38% | -18.03% | 287.36% | -42% | 14.54% | 10.41% | -10.23% | -2.54% | 102.3% | -21.43% | -25.61% | -18.43% | -1.91% | 22.3% | 28.63% | -8.8% | 132.67% | 28.93% | 106.37% | 27.41% | - |
| Operating Expenses | 187.76M | 177.7M | 160.98M | 147.95M | 163.06M | 498.28M | 440.51M | 228.52M | 234.31M | 243.3M | 90.64M | 74.18M | 76.58M | 68.35M | 141.02M | 145.66M | 140.28M | 127.92M | 121.74M | 77.96M | 90.37M | 27.81M | 20.28M | 19.8M | 16.19M |
| OpEx % of Revenue | - | 40.08% | 42.81% | 38.05% | 37.15% | 56.77% | 49.38% | 81.6% | 57.69% | 65.1% | 34.92% | 27.14% | 27.47% | 40.49% | 67.2% | 57.22% | 46.54% | 42.72% | 49.03% | 39.84% | 43.3% | 29.37% | 27.88% | 53.06% | 57.28% |
| Selling, General & Admin | 118.5M | 110.18M | 101.39M | 93.69M | 118.49M | 266.08M | 245.36M | 116.18M | 127.91M | 137.45M | 45.91M | 42M | 39.1M | 35.91M | 52.26M | 69.68M | 66.19M | 62.03M | 60.14M | 44.91M | 70.31M | 20.36M | 13.12M | 12.14M | 9.49M |
| SG&A % of Revenue | - | 24.85% | 26.96% | 24.1% | 26.99% | 30.32% | 27.51% | 41.48% | 31.49% | 36.78% | 17.69% | 15.37% | 14.03% | 21.27% | 24.9% | 27.37% | 21.96% | 20.71% | 24.22% | 22.95% | 33.68% | 21.5% | 18.04% | 32.53% | 33.58% |
| Research & Development | 69.25M | 67.52M | 59.6M | 54.26M | 44.58M | 232.2M | 195.15M | 112.34M | 106.41M | 105.85M | 44.74M | 32.18M | 37.48M | 32.44M | 88.76M | 75.98M | 74.1M | 65.89M | 61.6M | 37.53M | 20.06M | 7.45M | 7.16M | 7.66M | 6.7M |
| R&D % of Revenue | - | 15.23% | 15.85% | 13.96% | 10.16% | 26.46% | 21.88% | 40.11% | 26.2% | 28.32% | 17.24% | 11.77% | 13.44% | 19.22% | 42.3% | 29.84% | 24.59% | 22% | 24.81% | 19.18% | 9.61% | 7.87% | 9.85% | 20.53% | 23.7% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.47M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 213.29M | 209.07M | 142.26M | 145.56M | 161.65M | 25.45M | 198.41M | -63.58M | 50.08M | 5M | 134.24M | 176.34M | 180.47M | 58.72M | 20.7M | 71.73M | 126.22M | 143.77M | 100.41M | 94.74M | 99M | 53.57M | 42.84M | 10.79M | 7.81M |
| Operating Margin % | 46.32% | 47.15% | 37.83% | 37.44% | 36.83% | 2.9% | 22.24% | -22.7% | 12.33% | 1.34% | 51.72% | 64.52% | 64.73% | 34.79% | 9.86% | 28.18% | 41.88% | 48.01% | 40.44% | 48.41% | 47.43% | 56.57% | 58.9% | 28.9% | 27.63% |
| Operating Income Growth % | - | 46.96% | -2.27% | -9.95% | 535.06% | -87.17% | 412.06% | -226.96% | 902.38% | -96.28% | -23.87% | -2.29% | 207.34% | 183.7% | -71.14% | -43.17% | -12.21% | 43.19% | 5.98% | -4.3% | 84.79% | 25.05% | 297.19% | 38.07% | - |
| EBITDA | 273.7M | 267.65M | 215.04M | 240.84M | 275.87M | 252.66M | 373.15M | 43.09M | 165.21M | 124.13M | 168.37M | 198.55M | 200.78M | 96.99M | 60.97M | 99.13M | 152.45M | 165.33M | 119.2M | 108.35M | 106.24M | 55.23M | 43.8M | 11.68M | 8.74M |
| EBITDA Margin % | 59.44% | 60.36% | 57.19% | 61.95% | 62.85% | 28.79% | 41.83% | 15.38% | 40.68% | 33.21% | 64.87% | 72.65% | 72.01% | 57.45% | 29.06% | 38.94% | 50.58% | 55.21% | 48.01% | 55.37% | 50.9% | 58.32% | 60.22% | 31.3% | 30.91% |
| EBITDA Growth % | 28.38% | 24.46% | -10.71% | -12.7% | 9.19% | -32.29% | 766.07% | -73.92% | 33.09% | -26.28% | -15.2% | -1.11% | 107.02% | 59.07% | -38.49% | -34.98% | -7.79% | 38.71% | 10.01% | 1.98% | 92.38% | 26.08% | 274.99% | 33.67% | - |
| D&A (Non-Cash Add-back) | 60.41M | 58.58M | 72.78M | 95.27M | 114.22M | 227.2M | 174.74M | 106.67M | 115.13M | 119.13M | 34.13M | 22.21M | 20.31M | 38.27M | 40.27M | 27.4M | 26.23M | 21.56M | 18.79M | 13.61M | 7.25M | 1.65M | 962K | 895K | 927K |
| EBIT | 197.54M | 181.28M | 133.73M | 142.55M | 155.11M | 8.44M | 173.78M | -59.68M | 32.58M | -30.05M | 93.12M | 165.63M | 167.25M | -5.05M | -9.97M | -9.31M | 103.42M | 123.16M | 19.19M | 78.08M | 105.49M | 49.13M | 36.47M | 10.79M | 7.81M |
| Net Interest Income | -38.26M | -40.36M | -52.54M | -62.57M | -45.34M | -38.97M | -33.83M | -15.26M | -16.92M | -27.22M | -2.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 4.04M | 8.12M | 8.75M | 1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 38.26M | 40.36M | 52.54M | 62.57M | 45.34M | 38.97M | 37.87M | 23.38M | 25.66M | 28.29M | 2.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -58.29M | -68.14M | -61.08M | -65.59M | -51.88M | -55.99M | -62.5M | -19.48M | -43.17M | -63.34M | -43.53M | -10.7M | -13.23M | -63.77M | -30.67M | -81.04M | -22.79M | -20.61M | -81.22M | -16.66M | 6.5M | -4.45M | -6.37M | 195K | 45K |
| Pretax Income | 155M | 140.92M | 81.19M | 79.98M | 109.77M | -30.54M | 135.91M | -83.06M | 6.91M | -58.34M | 90.72M | 165.63M | 167.25M | -5.05M | -9.97M | -9.31M | 103.42M | 123.16M | 19.19M | 78.08M | 105.49M | 49.13M | 36.47M | 10.98M | 7.86M |
| Pretax Margin % | 33.66% | 31.78% | 21.59% | 20.57% | 25.01% | -3.48% | 15.24% | -29.66% | 1.7% | -15.61% | 34.95% | 60.61% | 59.99% | -2.99% | -4.75% | -3.66% | 34.32% | 41.13% | 7.73% | 39.9% | 50.54% | 51.88% | 50.14% | 29.42% | 27.79% |
| Income Tax | 32.97M | 29.85M | 16.56M | 12.6M | -28.62M | 28.38M | -7.89M | -19.02M | 8.67M | -1.78M | 34.63M | 48.52M | -7.7M | 35.86M | 1.14M | 9.98M | 46.08M | 53.37M | 14.54M | 32.94M | 44.14M | 17.68M | -22.59M | 1.63M | 1.32M |
| Effective Tax Rate % | 21.27% | 21.18% | 20.4% | 15.76% | -26.07% | -92.94% | -5.8% | 22.9% | 125.51% | 3.06% | 38.17% | 29.29% | -4.6% | -710.24% | -11.47% | -107.19% | 44.55% | 43.33% | 75.81% | 42.19% | 41.84% | 35.99% | -61.95% | 14.81% | 16.77% |
| Net Income | 122.03M | 111.08M | 64.62M | 67.37M | -295.88M | -55.46M | 146.76M | -62.53M | -289K | -56.56M | 56.09M | 117.02M | 170.45M | -185.56M | -30.23M | -19.3M | 57.35M | 69.8M | 4.64M | 45.14M | 61.35M | 31.45M | 59.06M | 9.36M | 6.54M |
| Net Margin % | 26.5% | 25.05% | 17.19% | 17.33% | -67.41% | -6.32% | 16.45% | -22.33% | -0.07% | -15.13% | 21.61% | 42.82% | 61.14% | -109.92% | -14.4% | -7.58% | 19.03% | 23.31% | 1.87% | 23.07% | 29.39% | 33.21% | 81.2% | 25.07% | 23.13% |
| Net Income Growth % | 61.55% | 71.88% | -4.08% | 122.77% | -433.53% | -137.79% | 334.71% | -21536.68% | 99.49% | -200.84% | -52.07% | -31.35% | 191.86% | -513.91% | -56.61% | -133.66% | -17.84% | 1403.58% | -89.72% | -26.43% | 95.08% | -46.75% | 531.35% | 43.06% | - |
| Net Income (Continuing) | 122.03M | 111.08M | 64.62M | 67.37M | 138.39M | -58.91M | 143.8M | -64.03M | -1.76M | -56.56M | 56.09M | 117.12M | 174.94M | -40.91M | -11.12M | -19.3M | 57.35M | 69.8M | 4.64M | 45.14M | 61.35M | 31.45M | 59.06M | 9.36M | 6.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -434.27M | 0 | 0 | 0 | 0 | 0 | 0 | -101K | -4.49M | -144.65M | -19.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | -9.21M | -5.76M | -2.81M | -1.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.07 | 0.99 | 0.57 | 0.60 | -2.84 | -0.53 | 1.75 | -1.27 | -0.01 | -1.15 | 1.12 | 2.23 | 3.18 | -3.36 | -0.56 | -0.38 | 1.14 | 1.42 | 0.10 | 0.93 | 1.27 | 0.66 | 1.27 | 0.22 | -0.94 |
| EPS Growth % | 63.64% | 73.68% | -5% | 121.13% | -435.85% | -130.29% | 237.8% | - | 99.49% | -202.68% | -49.78% | -29.87% | 194.64% | -500% | -47.37% | -133.33% | -19.72% | 1320% | -89.25% | -26.77% | 92.42% | -48.03% | 477.27% | 123.4% | - |
| EPS (Basic) | - | 1.02 | 0.59 | 0.63 | -2.84 | -0.53 | 1.77 | -1.27 | -0.01 | -1.15 | 1.14 | 2.26 | 3.23 | -3.37 | -0.56 | -0.38 | 1.15 | 1.43 | 0.10 | 0.95 | 1.33 | 0.71 | 1.47 | 0.28 | -0.94 |
| Diluted Shares Outstanding | 114.2M | 112.95M | 113.06M | 112.85M | 107.58M | 104.73M | 83.86M | 49.12M | 48.82M | 49.25M | 50.19M | 52.59M | 53.56M | 53.35M | 51.98M | 51.08M | 50.45M | 49.27M | 48.36M | 48.64M | 48.38M | 47.73M | 46.62M | 41.65M | 6.78M |
| Basic Shares Outstanding | 109.5M | 109.17M | 108.65M | 106.55M | 104.34M | 104.73M | 82.84M | 49.12M | 48.82M | 49.18M | 49.19M | 51.8M | 52.82M | 53.13M | 51.98M | 51.08M | 50.07M | 48.83M | 47.96M | 47.57M | 46.1M | 44M | 40.08M | 11.14M | 6.78M |
| Dividend Payout Ratio | - | 19.6% | 33.68% | 31.67% | - | - | 21.01% | - | - | - | 69.81% | 35.62% | 28.36% | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy litigation revenue cycles
As reported in financial statements, Adeia's revenue growth has exhibited significant quarterly variance, ranging from a 15.1% contraction in 2024Q3 to a 53.3% surge in 2025Q4, suggesting that the company's top-line performance is heavily influenced by the timing of non-recurring licensing settlements and catch-up payments.
The erratic revenue trajectory appears to be a function of the company's reliance on multi-year licensing renewals rather than consistent organic volume growth. Investors should monitor whether the 2025Q4 revenue spike represents a sustainable shift in licensing velocity or merely a temporary windfall from litigation resolution.
Based on reported figures, Adeia maintains a robust gross margin profile that frequently exceeds 80%, peaking at 92.2% in 2025Q4, which underscores the inherent scalability of its intellectual property licensing model and the minimal marginal costs associated with its core business operations.
The structural gross margin expansion observed over the last ten quarters suggests that the company possesses significant pricing power within its media and semiconductor IP segments. This high-margin foundation provides a substantial buffer against potential increases in operating expenses related to patent enforcement and legal defense.
According to recent SEC filings, Adeia's operating income has demonstrated significant sensitivity to revenue fluctuations, with operating margins expanding from 26.7% in 2024Q1 to a peak of 63.9% in 2025Q4, indicating that the company effectively leverages its fixed cost base during periods of high revenue recognition.
The ability to scale operating income faster than revenue during peak periods suggests that SG&A and R&D expenses are relatively contained. However, the sharp contraction in operating margins during lower-revenue quarters warrants further investigation into the fixed nature of these costs and their impact on profitability during cyclical troughs.
As indicated by the provided financial data, Adeia consistently records stock-based compensation expenses, which reached $9.0M in 2025Q4, potentially diluting the quality of reported net income and necessitating a closer look at the company's true economic profitability beyond standard GAAP earnings metrics.
The consistent presence of stock-based compensation suggests that management is utilizing equity-based incentives to align employee interests, though this practice creates a persistent drag on EPS. Analysts should evaluate whether these non-cash charges are appropriately balanced by the long-term value creation of the underlying IP portfolio.
Based on the income statement history, the reliance on lumpy revenue streams suggests that Adeia's profitability may be vulnerable to protracted legal cycles, as evidenced by the significant margin compression observed in periods where litigation-related revenue failed to materialize or was delayed by external regulatory factors.
Short-term margin volatility may indicate that the company's business model is more sensitive to legal outcomes than the market currently appreciates. If the frequency of successful settlements declines, the company may struggle to maintain its current operating margin levels without a fundamental shift in its licensing strategy.
Quick answers to the most common questions about buying ADEA stock.
For fiscal year 2025, Adeia Inc. (ADEA) reported total revenue of $443.4M. This represents a 1468.4% increase compared to $28.3M in 2002.
Adeia Inc. (ADEA) is profitable, generating $111.1M in net income for the fiscal year ending 2025 with a net profit margin of 25.1%.
Adeia Inc. (ADEA) reported an operating income of $209.1M, resulting in an operating profit margin of 47.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Adeia Inc. (ADEA) generated $386.8M in gross profit for the year, representing a gross profit margin of 87.2%. This demonstrates the company's core pricing power and production efficiency.