ADEIA CORP (ADEA)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	81,187	44,131	53,281	45,760	79,976	89,189	-315,283	-314,156	-324,501	-369,014	-26,877	-33,309	-50,629	146,484	153,623	123,216
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
Pretax margin		21.59%	12.84%	14.84%	12.89%	20.57%	22.01%	-80.20%	-75.21%	-73.93%	-85.04%	-4.77%	-4.91%	-6.65%	20.31%	21.81%	19.88%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $81,187K ÷ $376,024K
= 21.59%

ADEIA CORP's pretax margin has exhibited significant fluctuations over the reporting period, from negative margins to positive margins. The company experienced a decline in pretax margin from December 31, 2021, to September 30, 2022, reaching the lowest point of -85.04%. This sharp decline may indicate operational challenges or significant one-time events affecting profitability.

However, there was a notable recovery in pretax margin starting from the following quarter, with an upward trend observed through March 31, 2024. The pretax margin improved steadily, reaching a high of 21.59% as of December 31, 2024. This positive trend suggests that the company may have implemented strategies to enhance profitability and operational efficiency.

Overall, ADEIA CORP's pretax margin performance reflects a mix of challenges and improvements, indicating the company's ability to navigate through periods of volatility and potentially implement effective measures to drive profitability in the long term.