A maker of nothing sold in stores, Adeia earns money by licensing thousands of patents covering how we watch TV and how computer chips are packed. Its roots trace to Tessera, founded in 1990, and it spun off in 2022 from Xperi, inheriting the iconic TiVo DVR patents along the way. The name comes from the ancient Greek word meaning "without fear."
Non-recurring licenses lifted Q2 2026 revenue 12%, but recurring revenue fell 14% as Pay-TV royalties declined.
fell 14% to $73.5M, the lowest in over two years, as Pay-TV royalties continued to erode. Total still rose 12% to $96.1M and widened 7.3 points to 26.4%, driven by $22.0M in from two new multi-year licenses. The core licensing base is shrinking even as one-time deals lift the top line.
Key takeaways
Total Q2 2026 rose 12.1% to $96.1M, driven entirely by $22.0M in from two new multi-year license agreements that included past infringement releases.
fell 14% to $73.5M, primarily from lower royalty from certain Pay-TV customers, partially offset by new licenses signed after Q2 2025.
widened 7.3 points to 26.4% as total operating expenses fell to 74% of , aided by lower SG&A and litigation costs.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 12% to $96.1M driven by new multi-year licenses, while recurring revenue fell 14% on Pay-TV declines.
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Total Q2 2026 grew 12% to $96.1M, driven by $22.0M in from two new multi-year license agreements that included past infringement releases.
declined 14% to $73.5M, primarily due to lower royalty from certain Pay-TV customers, partially offset by new licenses signed after Q2 2025.
rose 136.3% to $54.6M, and the company repaid $6.1M of its term loan, repurchased $10.0M of common stock, and paid a $0.05 per share quarterly .
fell 21% to $8.0M from a lower debt balance and a 50-basis-point margin reduction on the Term Loan B to SOFR plus 2.50%.
The Bell Canada patent trial remains undecided after June 2025 arguments, while disputes with Disney and AMD were settled and DISH-related litigation was automatically stayed due to Chapter 11 bankruptcy filings.
What changed
The prior quarter flagged Q2 2026 against $104.8M to see if the AMD and Microsoft licenses sustained the run-rate. Revenue fell 8.3% sequentially to $96.1M as dropped from $35.2M to $22.0M, while rose from $66.3M to $73.5M.
The prior quarter flagged the Bell Canada patent trial decision. The trial remains undecided with no deadline set, unchanged from Q1 2026.
The prior quarter flagged next-quarter after the 50-basis-point repricing. Interest expense fell 20% to $8.5M in Q1 and 21% to $8.0M in Q2, confirming the decline held.
The prior quarter flagged progress of DIRECTV and DISH suits. DISH litigation was automatically stayed due to Chapter 11 bankruptcy, while DIRECTV actions expanded to include a new patent-infringement suit filed in July 2026.
What to watch
Federal Court of Canada decision in the Bell Canada patent trial, with arguments concluded June 2025 and no deadline set.
Q3 2026 against $96.1M to see if the recurring base stabilizes after the 14% decline and without the Q2 non-recurring license comparison.
Next-quarter on the $365.0M to see if the 21% decline holds as rates move.
Progress of the DIRECTV suits, including the new patent-infringement suit filed in July 2026, and any development in the stayed DISH litigation.
margin improved to 26% from 19% as total operating expenses fell to 74% of , aided by lower SG&A and litigation costs.
surged 136% to $54.6M in Q2; the company repaid $6.1M of its term loan and repurchased $10.0M of common stock.
dropped 21% to $8.0M due to a lower debt balance and reduced variable rates following a 50 margin cut to + 2.50%.
The company paid a $0.05/share quarterly and had $140.0M remaining under its $200M authorization as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our market risk, see Part II, Item 7A – Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K.
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For a discussion of our market risk, see Part II, Item 7A – Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K.
Adeia is engaged in multiple patent, contract, and trade-secret lawsuits; no aggregate financial exposure is quantified.
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In Canada, Adeia Guides won a and damages against Videotron for infringing two patents, though two other patents were found invalid; both sides have appealed.
The Bell Canada patent infringement trial concluded in June 2025 and is awaiting a court decision on liability and injunction, with damages bifurcated to a later phase.
Adeia's U.S. breach-of-contract claim against Shaw survived a motion to dismiss in September 2025, and discovery is ongoing with no trial date set.
Disputes with Disney and AMD were settled and all related proceedings dismissed or terminated, leaving no pending matters with those parties.
Multiple actions with DIRECTV are pending, including a California declaratory-judgment suit, a New York breach-of-contract and trade-secrets case, and a new patent-infringement suit filed in July 2026.
Patent litigation against DISH and a related DISH-filed declaratory-judgment action have been automatically stayed due to certain DISH parties filing for .
There were no material changes to the risk factors previously disclosed in Part 1, Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated by reference herein.
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There were no material changes to the risk factors previously disclosed in Part 1, Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated by reference herein.