ADEA Stock Rallied 30% Today – What’s The Disney Connection?

A long-term licensing agreement between the firms will give Disney access to Adeia’s media IP portfolio and resolve all outstanding litigation between the two companies.

• Adeia’s intellectual property spans key technologies in media streaming, content delivery, and digital entertainment infrastructure.
• The company raised its full-year 2025 GAAP outlook to $425 million to $435 million.
• Adeia also increased its net income forecast to $96.4 million to $113.9 million, up from a range of $52.4 million to $71.6 million.

Adeia Inc. (ADEA) stock surged 30% on Monday after the company signed a licensing deal with The Walt Disney Company Inc. (DIS), and subsequently raised its full-year 2025 revenue forecast.

ADEA stock was trading at its highest levels since October 31.

The Disney Deal

The long-term agreement will give Disney access to Adeia’s media intellectual property portfolio. It also resolves all outstanding litigation between the two companies and provides a comprehensive license covering Disney products and services that were previously in dispute.

Adeia’s intellectual property spans key technologies in media streaming, content delivery, and digital entertainment infrastructure.

This comes after Adeia signed a long-term intellectual property license agreement with Altice USA’s Optimum brand, a broadband and video service provider, earlier this year. The deal supports Optimum’s internet, cable TV, and OTT streaming services, improving content discovery and navigation for subscribers. Adeia’s IP portfolio enables Optimum to offer advanced features like personalized recommendations and voice search.

Revenue Guidance

The company revised its full-year 2025 GAAP revenue outlook, projecting $425 million to $435 million, up from its previous guidance of $360 million to $380 million. Adeia also increased its net income forecast to $96.4 million to $113.9 million, up from a range of $52.4 million to $71.6 million.

“As we previously mentioned, we have been pursuing multiple opportunities that if achieved, could result in 2025 revenue being greater than our prior guidance.  Driven primarily by the execution of the Disney agreement, our revised 2025 financial outlook reflects the strong momentum for our business,” said Paul E. Davis, chief executive officer of Adeia.   

In November, Adeia lowered its FY2025 forecast following third-quarter results, which saw net income fall over 50% to $8.8 million, while revenue rose slightly to $87.3 million.

How Did Stocktwits Users React?

Retail sentiment flipped to ‘extremely bullish’ from ‘bearish’ a day earlier, amid ‘extremely high’ message volumes. One Stocktwits user expects the stock to climb to as high as $20.

Year-to-date, the stock has gained around 18%.

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