Adeia (ADEA) shares tumbled 6.88% in pre-market trading on Tuesday following the release of its first-quarter earnings report. The San Jose, California-based provider of chip technology for small electronic devices reported mixed results that seem to have disappointed investors.

The company announced earnings of $0.26 per share for Q1, which was in line with the Zacks Consensus Estimate. While this matched expectations, Adeia's revenue performance fell short. The firm posted revenues of $87.67 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.59%. This revenue miss appears to be a key factor in the stock's pre-market decline.

Adding to investor concerns, Adeia reported that its shares have declined 12% since the beginning of the year, underperforming compared to the S&P 500's 3.3% decline over the same period. This continued underperformance, coupled with the revenue miss, may have heightened investor worries about the company's growth prospects. While Adeia's net income for the quarter stood at $11.8 million, the market reaction suggests that investors were expecting more robust results or possibly more optimistic forward guidance.