ADEIA CORP (ADEA)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Gross profit (ttm)	US$ in thousands	188,207	152,312	163,251	155,649	190,494	256,148	-100,199	-38,537	11,534	-2,051	402,448	410,007	391,240	580,614	553,368	454,229
Revenue (ttm)	US$ in thousands	376,024	343,723	359,019	354,886	388,788	405,210	393,110	417,708	438,933	433,922	564,004	678,461	761,525	721,073	704,491	619,850
Gross profit margin		50.05%	44.31%	45.47%	43.86%	49.00%	63.21%	-25.49%	-9.23%	2.63%	-0.47%	71.36%	60.43%	51.38%	80.52%	78.55%	73.28%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $188,207K ÷ $376,024K
= 50.05%

The gross profit margin of ADEIA CORP has shown fluctuations over the period from March 31, 2021, to December 31, 2024. The margin started at a favorable level of 73.28% in March 2021, indicating that the company was able to efficiently generate profits from its revenue after accounting for the cost of goods sold.

The margin steadily increased until reaching a peak of 80.52% in September 2021, suggesting improved efficiency and effective cost control measures. However, there was a significant drop in the margin to 51.38% by December 2021, which might indicate challenges in managing production costs or pricing strategies.

Subsequently, the margin fluctuated, with some periods showing negative margins (-0.47% to -25.49%), which could be a concerning sign as it implies that the cost of goods sold exceeded the revenue generated. However, the margin recovered and showed improvement in the later periods, with values ranging from 43.86% to 50.05% by December 31, 2024.

Overall, while the gross profit margin of ADEIA CORP has experienced volatility, the company managed to maintain profitability by the end of the period under review. It is essential for the company to further analyze the factors influencing these fluctuations to sustain and enhance its profitability in the future.