Adeia Inc. (NASDAQ: ADEA) has just announced a significant update to its financial outlook for the year ending December 31, 2025. The company's CEO, Paul E. Davis, expressed his pleasure in announcing that the 2025 results are projected to exceed the high end of the prior guidance. This update is attributed to the pursuit of multiple opportunities, particularly the execution of the Disney agreement, which is expected to result in greater revenue than previously forecast.
The revised financial outlook reflects a substantial increase in revenue guidance, driven by strong deal execution. The company now expects revenue to be in the range of $425.0 million to $435.0 million, significantly exceeding the prior guidance of $360.0 million to $380.0 million. This represents a notable increase in the revenue forecast.
In terms of operating expenses, the updated guidance shows an increase as well. The company now expects operating expenses to be in the range of $270.0 million to $274.0 million, up from the prior range of $260.0 million to $266.0 million. This reflects an adjustment to account for increased variable compensation due to the expected overachievement of certain performance targets.
Furthermore, the updated non-GAAP net income is projected to be in the range of $169.8 million to $175.9 million, a significant increase from the prior guidance of $127.4 million to $139.8 million. The adjusted EBITDA is also expected to see a substantial rise, with the updated range at $257.1 million to $265.1 million, compared to the prior range of $202.3 million to $218.3 million.
The company's tax rate remains unchanged at 23.0%, and the diluted shares outstanding are expected to be in the range of 112.0 million to 113.0 million, consistent with the prior guidance.
As a result of these announcements, the company's shares have moved -1.85% on the market, and are now trading at a price of $12.76. Check out the company's full 8-K submission here.
