Shares of Adeia (ADEA) plunged 19.31% in pre-market trading on Monday following a trifecta of negative news. The intellectual property licensing company reported disappointing third-quarter results, cut its full-year revenue guidance, and announced a patent infringement lawsuit against Advanced Micro Devices (AMD).

For the third quarter, Adeia reported adjusted earnings per share of $0.28, falling short of the analyst consensus estimate of $0.36. Revenue came in at $87.3 million, significantly below the expected $100.7 million. The company's CEO, Paul E. Davis, noted that while non-Pay-TV recurring revenue grew 31% year-over-year, overall results were impacted by challenges in other segments.

Adding to investors' concerns, Adeia revised its 2025 revenue guidance downward to $360-380 million from the previous range of $390-430 million. The company cited the unlikely closure of a potential license agreement with AMD in the fourth quarter as a primary reason for the lowered outlook. This revelation was further complicated by Adeia's announcement of a patent infringement lawsuit against AMD, alleging unauthorized use of its semiconductor portfolio across AMD's product lines.