Adeia's stock surged 6.97% in after-hours trading following the release of its fourth-quarter and full-year 2025 financial results, which significantly exceeded analyst expectations.

The media and semiconductor IP licensor reported Q4 revenue of $182.6 million, beating the consensus estimate of $152.7 million by 19.61% and representing a 53.26% increase year-over-year. Adjusted earnings per share came in at $0.86, surpassing the $0.65 estimate by 32.1%. The company also provided positive guidance for fiscal year 2026, projecting revenue between $395 million and $435 million and adjusted EBITDA of $213.4 million to $245.4 million.

The strong performance was driven by several key factors, including the signing of nine new license agreements during the quarter. A significant long-term agreement with Disney resolved all outstanding litigation. Other deals included agreements with two OTT customers, a consumer electronics customer in Japan, a multi-year license with Major League Baseball, a renewal with Vodafone, and a new multi-year license with Microsoft signed in January 2026. The company also reported a 22% year-over-year growth in non-Pay-TV recurring revenue, highlighting successful diversification efforts.