Key Takeaways IDCC posted Q4 revenue and earnings beats despite year-over-year declines due to lower catch-up revenues.IDCC saw smartphone revenues fall, while CE and IoT/Auto sales rose, and recurring revenues jumped 24.4%.IDCC ended 2025 with $1.24B in cash and guided for Q1 2026 revenues of $194-$200M with higher EBITDA.InterDigital, Inc. (IDCC) reported relatively healthy fourth-quarter 2025 results, with both top and bottom lines beating the Zacks Consensus Estimate.The company is experiencing a steady ...

CFO Rich Brezski also compared 2025 results to 2021, citing revenue of $834 million versus $425 million in 2021, adjusted EBITDA of $589 million versus $208 million, and record non-GAAP EPS of $15.31 versus $3.73. Brezski attributed the expansion to execution and operating leverage, saying the gains were driven by the company’s recurring investment in research.For the full year, InterDigital reported revenue of $834 million , which Chen described as the second-highest in company history. ARR rose to $582 mi ...

Core Insights - The company has established a significant licensing agreement with Samsung, marking the most valuable license in its history, and has renewed agreements with major smartphone vendors, including Apple, Samsung, and Xiaomi, ensuring a strong foundation for future growth [1][2] - The company reported record revenue of $834 million for the full year 2025, with a 24% year-over-year increase in annualized recurring revenue (ARR) to $582 million, and achieved all-time highs in adjusted EBITDA and non-GAAP EPS [3][16] - The company is focusing on expanding its licensing programs, particularly in the consumer electronics (CE) and Internet of Things (IoT) sectors, and has made significant progress in its video service licensing program [5][6] Financial Performance - In Q4 2025, the company achieved total revenue of $158 million, exceeding its outlook, and reported an adjusted EBITDA of $88 million, resulting in a margin of 56% [14][15] - For the full year 2025, adjusted EBITDA reached a record high of $589 million, nearly three times the 2021 level, and non-GAAP EPS was reported at $15.31, more than four times the 2021 figure [16] - The company has guided for a strong 2026, expecting total revenue between $675 million and $775 million, with adjusted EBITDA projected at $381 million to $477 million [17][18] Licensing Agreements - The company has signed over 50 licensing agreements since 2021, with a total contract value exceeding $4.6 billion, and has licensed about half of the global PC market following a new agreement with HP [5][6] - New agreements with Vivo and Honor have expanded the company's licensing to cover approximately 85% of the global smartphone market [2] - The company is actively pursuing licensing agreements with major streaming platforms, having initiated enforcement actions against Disney+, Hulu, and ESPN+ [6][7] Research and Development - The company emphasizes the importance of its research pipeline, which supports its licensing programs and drives growth through 2030 and beyond [8][9] - A recent acquisition of AI startup DeepRender aims to enhance the company's capabilities in AI and video compression, aligning with its focus on developing next-generation technologies [9][10] - The company has increased its patent portfolio by 14% year-over-year, surpassing 38,000 granted patents and applications, and is recognized for the quality of its patents [10][11] Industry Recognition - The company has received multiple accolades, including being named one of America's fastest-growing companies by Fortune and recognized as the number one most successful mid-cap company in America for 2026 by Forbes [11][12] - The company's strong performance and strategic positioning in the market are expected to continue driving shareholder value [12]

InterDigital (NasdaqGS:IDCC) Q4 2025 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsLiren Chen - President and CEORaiford Garrabrant - Head of Investor RelationsRichard Brezski - EVP, Treasurer and, CFOConference Call ParticipantsKevin Garrigan - SVP and Equity Research AnalystOlinda Lee - Research AnalystScott Searle - Managing Director and Senior Research AnalystOperatorGood morning, everyone, and thank you for standing by. My name is Gail, and I will be your operator for today. At this t ...

InterDigital (NasdaqGS:IDCC) Q4 2025 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsLiren Chen - President and CEORaiford Garrabrant - Head of Investor RelationsRichard Brezski - EVP, Treasurer, and CFOConference Call ParticipantsKevin Garrigan - SVP and Equity Research AnalystOlinda Lee - Research AnalystScott Searle - Managing Director and Senior Research AnalystOperatorGood morning, everyone, and thank you for standing by. My name is Gail, and I will be your operator for today. At this t ...

InterDigital (NasdaqGS:IDCC) Q4 2025 Earnings call February 05, 2026 10:00 AM ET Speaker3Good morning, everyone, and thank you for standing by. My name is Gail, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the InterDigital's fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this t ...

InterDigital (IDCC) came out with quarterly earnings of $2.12 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $5.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +28.74%. A quarter ago, it was expected that this wireless research and development company would post earnings of $1.79 per share when it actually produced earnings of $2.55, delivering a surprise of +42.46%.Over the ...

Fourth Quarter 2025 Results February 5, 2026 ©2026 InterDigital, Inc. All Rights Reserved. 1 Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act, including but not limited to statements related to our outlook for Q1 and full year 2026, and other financial and business goals. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertaint ...

Financial Performance - In 2025, the arbitration panel set the total royalties for Samsung's patent license agreement at $1.05 billion for an eight-year term, resulting in approximately $131 million of recurring revenue per year, a 67% increase from the previous agreement[46]. - Revenue from Samsung, Apple, and vivo each comprised 10% or more of the company's consolidated revenue in fiscal 2025[47]. - As of December 31, 2025, InterDigital's investment portfolio includes cash, cash equivalents, and short-term investments valued at $1,258.5 million, with a diversified approach to maintain liquidity and capture market returns[245]. - The average interest rate on short-term investments is 3.7%, with a total principal amount of $513.4 million due by 2030[248]. - InterDigital has approximately $745.0 million in money market and operating accounts, primarily held with domestic financial institutions, ensuring liquidity[249]. - The company has paid approximately $205.2 million in foreign taxes from 2014 to 2025, with potential for a partial refund based on tax treaty negotiations[251]. - InterDigital's marketable securities, classified as available-for-sale, have a fair value of $513.4 million as of December 31, 2025, reflecting a diversified investment strategy[252]. - The company is exposed to equity risk due to fluctuations in the market price of its common stock, which affects earnings per share calculations[253]. Market Trends - The smartphone market is projected to ship 1.2 billion units worldwide in 2025, with the company holding licenses for approximately 85% of the global smartphone market[35]. - The automotive segment of the IoT market is expected to see significant growth, with approximately 65 million connected passenger vehicles shipped in 2025[37]. - The Video Services market is anticipated to grow from approximately $475 billion in annual revenue in 2025 to approximately $675 billion by 2029[38]. - Total global cellular IoT device shipments are expected to grow from approximately 550 million in 2025 to approximately 800 million by 2029[37]. Licensing Agreements - The company has entered into eight patent license agreements in 2025, including new agreements with major Chinese smartphone vendors vivo and Honor, and HP Inc.[42][43]. - The company is actively working to renew the Samsung TV agreement, which includes licenses for key technologies such as ATSC 3.0, HEVC, and VVC[49]. - The company has a joint licensing program with Sony, known as the Madison Arrangement, for digital televisions and standalone computer display monitors[33]. Research and Development - InterDigital's research and development activities are focused on enhancing energy efficiency and reducing power consumption across billions of devices, contributing to sustainability goals[60]. - The company has developed the Pixel Value Reduction (PVR) solution, which can achieve up to a 15% reduction in display power consumption, significantly impacting energy savings when applied globally[61]. Corporate Governance and Culture - InterDigital's commitment to sustainability is overseen by its Nominating and Corporate Governance Committee, which focuses on long-term strategic decisions[59]. - The company employs approximately 460 employees globally, with a strong emphasis on creating an inclusive and engaging workplace culture[64].

Financial Performance - Annualized recurring revenue (ARR) increased by 24% year-over-year from $468.0 million to $582.4 million[5] - Total revenue for full year 2025 was $834.0 million, a decrease of 4% compared to $868.5 million in 2024[6] - Net income reached a record level of $406.6 million, up 13% from $358.6 million in 2024[6] - GAAP EPS for full year 2025 was $11.80, a slight decrease of 2% from $12.07 in 2024[6] - Adjusted EBITDA for full year 2025 was $588.9 million, an increase of 7% from $551.0 million in 2024[6] - Revenue for Q4 2025 was $158,230,000, a decrease of 37.4% compared to Q4 2024's $252,802,000[25] - Net income for Q4 2025 was $42,971,000, down 67.7% from $133,108,000 in Q4 2024[25] - Non-GAAP net income for the twelve months ended December 31, 2025, was $465,082,000, compared to $408,938,000 in 2024, representing a 13.7% increase[31] - The outlook for Q1 2026 projects net income between $57 million and $66 million, with a full year 2026 net income forecasted between $202 million and $298 million[33] Cash Flow and Assets - Free cash flow for the twelve months ended December 31, 2025, was $544,450,000, significantly higher than $271,528,000 for the previous year[27] - Cash, cash equivalents, and short-term investments increased to $1,243,160,000 as of December 31, 2025, compared to $958,208,000 a year earlier[29] - Total assets rose to $2,064,290,000 in 2025, up from $1,835,529,000 in 2024, reflecting a growth of 12.5%[29] - Free cash flow for the twelve months ended December 31, 2025, was $473,935,000, up from $212,791,000 in the previous year, representing an increase of about 123%[33] Shareholder Returns - The company returned $169.4 million to shareholders through share repurchases and dividends in fiscal year 2025[7] - The company declared cash dividends of $0.70 per common share in Q4 2025, compared to $0.45 in Q4 2024[25] Operational Highlights - The company completed a significant licensing agreement with Samsung and secured new agreements with top smartphone vendors vivo and Honor[5] - The patent portfolio grew by 14% to approximately 38,000 granted patents and patent applications[5] - The company acquired video AI start-up Deep Render to enhance its technology capabilities[5] Future Guidance - Guidance for Q1 2026 projects revenue between $675 million and $775 million, with adjusted EBITDA expected between $381 million and $477 million[12] - Adjusted EBITDA for Q1 2026 is expected to be between $101 million and $110 million, with a full year 2026 estimate of $381 million to $477 million[33] - Non-GAAP net income for Q1 2026 is projected to be between $74 million and $83 million, with a full year 2026 forecast of $271 million to $367 million[33] - Diluted EPS for Q1 2026 is estimated to be between $1.61 and $1.86, while the full year 2026 diluted EPS is projected to be between $5.77 and $8.51[33] Expenses and Share-Based Compensation - Total operating expenses increased to $110,444,000 in Q4 2025, up 22.3% from $90,276,000 in Q4 2024[25] - The company incurred $12 million in share-based compensation for Q1 2026, with a total of $52 million expected for the full year 2026[33] - Capitalized patent costs for Q4 2025 were $15,036,000, compared to $19,382,000 in Q4 2024, showing a decrease of approximately 22%[33]