Adeia Shares Rise in Premarket on Upgraded 2025 Targets After New Disney Agreement

By Adriano Marchese

Shares of Adeia surged in premarket trading Monday after it raised its guidance for 2025, thanks to a new contract with Walt Disney and strong deal execution.

The stock traded 21% higher ahead of the morning bell at $15.46.

The technology and intellectual‑property licensing company on Monday that it has signed a long-term agreement with Disney that gives Disney access to Adeia's media IP portfolio and settles all ongoing litigation between the two companies. The license covers the Disney products and services involved in the dispute.

Adeia now expects revenue to be between $425 million and $435 million in 2025, up from its prior guidance of between $360 million and $380 million.

Net income expectations were also upgraded for the year. The company now expects net income of between $96.4 million and $113.9 million, up from previous forecasts of between $52.4 million and $71.6 million.

Adjusted earnings before interest, taxes, depreciation and amortization is now set to a range of between $257.1 million and $265.1 million, up from $202.3 million to $218.3 million.

Adeia Chief Executive Paul Davis credited the company's strong deal activity, especially the recently completed Disney agreement. The momentum is lifting revenue expectations, while higher operating expenses are tied to performance-based compensation as certain targets are on track to be exceeded.

Operating expenses are also expected higher in the year, mainly due to increased variable compensation for beating performance targets. The company is forecasting operating expenses of $279 million to $274 million, up from $260 million to $266 million previously.

"Driven primarily by the execution of the Disney agreement our revised 2025 financial outlook reflects the strong momentum for our business," Davies said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 22, 2025 09:25 ET (14:25 GMT)