The company’s stock tumbled 23% to $16.02 following the announcement, erasing the 20% gain the shares had accumulated throughout the year. Adeia now expects full-year revenue between $375 million and $415 million, a reduction of $20 million from its previous forecast, while also signaling lower-than-anticipated annual profits.

Chief Financial Officer Keith Jones attributed the downward revision to the unpredictable timing of licensing deals, noting that some agreements may spill into next year. Despite the current turbulence, Jones expressed confidence in reaching the high end of the firm's 2026 revenue guidance. The third-quarter results underscored the immediate pressure, with revenue falling to $80.2 million from $87.3 million a year ago, falling well short of the $98.9 million analysts anticipated. Adjusted earnings reached 21 cents a share, failing to meet the 30-cent target set by FactSet projections.