Core Insights - InterDigital has experienced a 16% increase in stock price, reaching record highs near $258 per share, driven by a $1.05 billion arbitration victory against Samsung [2] - The sustainability of this stock surge is questioned, given its high valuation metrics compared to the S&P 500 averages [3] Financial Performance - InterDigital's Q2 2025 revenue rose 34% year-over-year to $300.6 million, with non-GAAP EPS at $6.52, nearly double estimates, and GAAP net income increasing by 65% to $180.6 million [5] - The company upgraded its full-year revenue forecast to $790–850 million and returned $41.7 million to shareholders in Q2 [6] Licensing Model and Growth - The arbitration ruling added $131 million in annual recurring revenue, a 67% increase over the previous agreement, and a $119 million catch-up payment for Q2 [4] - InterDigital's smartphone licensing revenue grew 18% to $235 million, while licensing from Consumer Electronics/IoT/Automotive surged 175% to $65 million [6] - The company has shown remarkable growth, with a 22.9% average revenue increase over the past three years, significantly outpacing the S&P 500's 5.3% [7] Profitability and Financial Health - InterDigital boasts a net margin of 48.1% and an operating cash flow margin of 24.6%, indicating strong profitability [3][7] - The company maintains a 7.7% debt-to-equity ratio and 47.4% cash-to-assets, both better than S&P 500 averages, with $948 million in cash and $472 million in debt [7] Market Resilience - Historically, InterDigital has shown faster recovery from market downturns, recovering fully from significant declines during the 2022 inflation crisis and the 2020 COVID market crash [8] Strategic Positioning - InterDigital's asset-light, high-margin licensing model is supported by strong R&D in 4G/5G/6G, video compression, and AI, with a robust patent portfolio licensed to major companies [3][4]

Core Insights - InterDigital reported strong Q2 2025 results, significantly exceeding revenue and earnings estimates, primarily due to a successful arbitration with Samsung and a new licensing agreement with HP [1][5][12] Financial Performance - Q2 2025 GAAP revenue reached $300.6 million, surpassing the consensus estimate of $192.93 million, representing a 34% year-over-year increase from $223.5 million in Q2 2024 [2][7] - Non-GAAP earnings per share (EPS) hit an all-time high of $6.52, compared to the forecast of $2.71 and $4.57 in Q2 2024 [2][12] - Adjusted EBITDA rose 50% to $236.7 million, with an adjusted EBITDA margin increasing to 79% from 71% the previous year [2][7] - Net income climbed 65% year-over-year to $180.6 million, with a net income margin of 60% [2][7] Business Model and Strategy - InterDigital operates by licensing over 33,000 patents related to mobile wireless standards and advanced video technologies, generating revenue through multi-year contracts rather than direct product sales [3][4] - The company is expanding its licensing focus beyond smartphones into consumer electronics, connected cars, and the Internet of Things (IoT) [4][6] Key Developments - A binding arbitration with Samsung resulted in a multi-year renewal of the licensing agreement, securing over $1 billion in total contract value, contributing $162.3 million in catch-up revenue [5][6] - The new licensing agreement with HP expanded the company's reach into the personal computer market, achieving coverage for over half of the global PC market [6][9] Investment and Returns - The company invested $53.7 million in research and development to support innovation in next-generation standards [8] - Shareholder returns totaled $41.7 million, including $26.2 million in stock buybacks and a 50% increase in quarterly dividends to $0.60 per share [9][12] Future Guidance - Management updated the full-year 2025 revenue forecast to $790 million to $850 million, with non-GAAP EPS guidance set at $14.17 to $14.77 [12] - Q3 2025 GAAP revenue is expected to be between $136 million and $140 million, reflecting a lack of major licensing milestones in the near term [12][13]

Key Takeaways IDCC's Q2 revenues rose to $300.6M, boosted by new license deals, including Samsung and HP.Non-GAAP EPS jumped to $6.52, surpassing the $3.36 estimate, on strong licensing performance.IDCC raised 2025 guidance, now expecting up to $850M in revenue and $14.77 EPS on solid demand.InterDigital, Inc. (IDCC) reported strong second-quarter 2025 results, with both the top and bottom lines beating the Zacks Consensus Estimate. However, the company generated higher revenues year over year, owing to hea ...

InterDigital (IDCC) reported $300.6 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 34.5%. EPS of $6.52 for the same period compares to $4.57 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $192.62 million, representing a surprise of +56.06%. The company delivered an EPS surprise of +94.05%, with the consensus EPS estimate being $3.36.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

InterDigital (IDCC) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Company ParticipantsRaiford Garrabrant - Head - Investor RelationsLiren Chen - President, CEO & DirectorRichard J. Brezski - EVP, CFO & TreasurerArjun Bhatia - Co-Group Head - Technology, Media & CommunicationsConference Call ParticipantsAnja Soderstrom - Financial Analyst, Equity Research - Small-Mid Cap Technology SectorScott Searle - MD & Senior Research AnalystTal Liani - Technology AnalystOperatorThank you for standing by. At this time ...

InterDigital (IDCC) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Speaker0Thank you for standing by. At this time, I would like to welcome everyone to InterDigital Second Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you.I would now like to turn the conference over to Wayne Ford Garabrand, Head of Investor Relations.Speaker1Thank you, Demi, and good morning, every ...

InterDigital (IDCC) came out with quarterly earnings of $6.52 per share, beating the Zacks Consensus Estimate of $3.36 per share. This compares to earnings of $4.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +94.05%. A quarter ago, it was expected that this wireless research and development company would post earnings of $3.72 per share when it actually produced earnings of $4.21, delivering a surprise of +13.17%.Over the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-33579 INTERDIGITAL, INC. (Exact Name of Registrant as Specified in Its Charter) Pennsylvania 82-4936666 (State or Other Jurisdiction of Incorporat ...

INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2025 Samsung arbitration decision and new HP license agreement drive Q2 results, exceeding outlook Annualized recurring revenue , at all-time high of $553 million, up 44% YoY Company raises full year 2025 revenue guidance by $110 million 1 WILMINGTON, Del. July 31, 2025 - InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the quarter ended June 30, 2025. "Our agreement ...

Core Points - InterDigital, Inc. has concluded its arbitration with Samsung Electronics and entered into a new patent license agreement [1][2] - The previous license agreement between InterDigital and Samsung expired on December 31, 2022, leading to the arbitration process initiated in January 2023 [2] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence (AI), and related technologies [3] - The company designs and develops foundational technologies that enable connected and immersive experiences across various communications and entertainment products and services [3] - InterDigital licenses its innovations to a wide range of companies, including those in wireless communications, consumer electronics, IoT devices, and cloud-based services [3] - Founded in 1972, InterDigital is listed on Nasdaq and is recognized as a leader in wireless technology and video processing [3]