Adeia Inc. (ADEA) Stock

Adeia Inc. (ADEA) is a Communication Services stock trading at $26.95 (as of 2026-08-20), with a market capitalization of $2.97B and a trailing P/E of 24.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Adeia Inc. licenses consumer and entertainment product and solutions worldwide, including patent portfolios to companies in the entertainment industry. Its licensing targets multichannel video programming distributors, broadband-based television providers, over-the-top and new media services, and manufacturers and suppliers such as consumer electronics makers and semiconductor companies.

Understand Adeia Inc.: how it makes money

Adeia licenses consumer and entertainment product and solutions, and it earns revenue by licensing its innovation and patent portfolios to companies in the entertainment industry.

The profit engine is recurring licensing economics, where a large portion of revenue comes from recurring revenue tied to patent portfolio licensing, supported by a high renewal rate.

Business quality (Strong): Good visibility into licensing-style operating metrics (recurring revenue, renewal rate), but there is no clean official segment revenue breakdown provided here.

Valuation: At 29× earnings, ADEA trades 66% above the Communication average (18×). Note: one-time items can distort reported P/E.

Bull case

  • Recurring revenue concentration: Recurring Revenue is 0.07 USD_B and Recurring Revenue Percentage is 85 percent, indicating a meaningful share of the revenue base is expected to repeat.
  • License durability signals: Renewal Rate is 90 percent, which supports the idea that existing licensing relationships have staying power.

Bear case

  • Dependence on licensing demand in entertainment distribution: The company licenses patent portfolios across markets tied to multichannel video programming distributors and television providers that aggregate and stream linear content, so shifts in that ecosystem can pressure licensing opportunities.
  • Renewal and customer-by-customer timing risk: Even with a 90 percent Renewal Rate, changes in renewals or slower new agreement conversion (Agreements With New Customers Signed) can reduce recurring revenue growth.
Valuation — source: SEC EDGAR (first-party)
Price$26.95
Market Cap$2.97B
P/E Ratio24.4
EV / EBITDA17.5
Price / Book6.37
Price / Sales6.45
FCF Yield5.3%
DCF Value (model)$7.60
DCF Upside vs Price-71.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$443.39M
Net Margin25.1%
Revenue Growth (YoY)19.5%
EPS Growth (YoY)90.9%
FCF Growth (YoY)2.0%
Financial Health — source: SEC EDGAR
Altman Z-Score4.52 (safe)
Valuation vs Sector & Industry
Stock P/E24.4
Sector P/E (Communication Services)24.4
Industry P/E (Communication)17.9
vs Sector-0.1%
vs Industry35.8%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($404.00M)
Institutional Holders Tracked10
Company
SectorCommunication Services
IndustryCommunication
CEOPaul E. Davis
Employees150
CountryUS
IPO Date2003-11-20

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ADEA earnings history · ADEA institutional & insider holders · ADEA KPIs & operating metrics · ADEA financials · ADEA investor presentations & press releases · ADEA SEC filings · ADEA peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.