Adeia Inc. Q1 2026 results

Paul will share with you some general observations regarding the quarter, and then Keith will give further details on our financial results and guidance. In addition to today's earnings release, there is an earnings presentation which you can access along with the webcast in the IR portion of our website. We have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release, the earnings presentation, and on the Investor Relations section of our website. We delivered revenue of $105 million, with an adjusted EBITDA margin of 60% and $58 million in operating cash flow.

The AI-driven growth in semiconductors is remarkable, with the total semiconductor market anticipated to exceed $1 trillion annually by the end of 2026. While e-commerce remains a relatively small portion of our revenue to date, our growing momentum and robust pipeline in this market gives us confidence that it could be much more significant in the future. We continue to make steady progress towards reaching our long-term goal of $500 million in annual licensing revenue. A key driver of this progress is our ability to add new, high-value customers such as AMD and Microsoft, agreements that provide sustainable recurring revenue streams.

In the first quarter, non-pay TV recurring revenue grew 28% year-over-year, reflecting further expansion into growth markets. In addition, demand for high-performance memory continues to grow rapidly, particularly in NAND and high-bandwidth memory. While we have delivered strong double-digit growth in recent years, we expect portfolio growth to moderate over time. We continue to invest strategically in both organic R&D and targeted tuck-in acquisitions to ensure we maintain and enhance the value of our portfolio over time.