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]

Record year as licensing momentum drives a 24% increase in annualized recurring revenue1Near-record annual revenue drives all-time record levels of net income, adjusted EBITDA2, non-GAAP EPS3 and free-cash flow4 WILMINGTON, Del., Feb. 05, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2025. "We finished the year with another strong quarter to cap ...

On Feb. 2, Capital Management Corp disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it sold 11,620 shares of InterDigital (NASDAQ:IDCC), an estimated $4.11 million transaction based on the average price during the quarter. What happened According to an SEC filing dated Feb. 2, Capital Management Corp reduced its stake in InterDigital (NASDAQ:IDCC) by 11,620 shares during the fourth quarter. The estimated value of the shares sold is approximately $4.11 million, calculated using the ...

InterDigital, Inc. (NASDAQ:IDCC) is one of the High-Flying Stocks to Buy Right Now. On January 20, the company announced its outlook for FY 2026, with revenue of between $675 million – $775 million, and adjusted EBITDA of $381 million – $477 million. InterDigital, Inc. (NASDAQ:IDCC) highlighted the addition of a new license agreement with LG Electronics. It also announced a smartphone renewal with a well-established Chinese vendor. For FY 2026, InterDigital, Inc. (NASDAQ:IDCC) expects diluted EPS of betwee ...

Core Viewpoint - InterDigital (IDCC) has experienced significant growth over the past few years but has recently seen a decline of approximately 15% in the last three months due to concerns regarding its earnings growth potential [1]. Company Performance - The recent decline in InterDigital's stock price is attributed to worries about its future earnings growth [1]. Analyst Focus - The analysis emphasizes a focus on small-cap to mid-cap companies and foreign equities, particularly in the Nordic market, while also covering U.S. growth companies with strong long-term expansion potential [1].

Core Insights - InterDigital, Inc. has signed a significant patent license agreement with LG Electronics, covering LG's digital TVs and computer display monitors, utilizing technologies such as ATSC 3.0, Wi-Fi, and video codecs [1][5] - Roth Capital has reaffirmed a "Buy" rating for InterDigital following the agreement, leading to a positive outlook for 2026 [2] - InterDigital's stock price has increased to $329.51, reflecting a 6.72% rise, indicating strong investor interest [3][5] Company Overview - InterDigital focuses on research and development in mobile, video, and AI technologies, with a market capitalization of approximately $8.48 billion [4] - The company's innovations in advanced video compression, broadcast, and Wi-Fi are crucial for a wide range of devices and services [4] - The negotiation process with LG was amicable, highlighting the strategic importance of the agreement [4]

Core Viewpoint - InterDigital, Inc. anticipates a strong performance in 2026, bolstered by new licensing agreements and existing contracts, with a detailed financial outlook to be provided during the earnings report on February 5, 2026 [2]. Full Year 2026 Outlook - Projected revenue for 2026 is between $675 million and $775 million [3]. - Adjusted EBITDA is expected to range from $381 million to $477 million [3]. - Diluted EPS is forecasted to be between $5.77 and $8.51 [3]. - Non-GAAP EPS is anticipated to be in the range of $8.74 to $11.84 [3]. Company Overview - InterDigital is a global R&D company focused on wireless, video, AI, and related technologies, providing foundational technologies for various communication and entertainment products [4]. - The company licenses its innovations to manufacturers of wireless devices, consumer electronics, IoT devices, and cloud-based service providers [4]. - Founded in 1972, InterDigital is recognized as a leader in wireless technology, having developed innovations from early digital cellular systems to advanced Wi-Fi technologies [4].

Core Insights - InterDigital, Inc. has signed a new patent license agreement with LG Electronics, covering LG's digital TVs and computer display monitors under a joint licensing program with Sony [1] - The agreement includes licenses for technologies such as ATSC 3.0, Wi-Fi, and video codecs, which are essential for a variety of devices and services in a video-first world [2] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence, and related technologies, enabling connected and immersive experiences across communications and entertainment products [2] - The company licenses its innovations to various sectors, including wireless communications, consumer electronics, IoT devices, and cloud-based services like video streaming [2] - Founded in 1972, InterDigital is listed on Nasdaq and is recognized as a leader in wireless technology and video processing [2]

Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules/factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than serving the numbers themselves [1] - The approach combines factor analysis with classic fundamental analysis to uncover the true story of a company and its stock, highlighting the importance of future potential over past data [1] Investment Experience - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles included managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, which are foundational to modern Robo Advising [1] - The individual has edited and written stock newsletters, notably the Forbes Low Priced Stock Report, and served as an assistant research director at Value Line [1] Educational Contributions - There is a strong passion for investor education, demonstrated through numerous seminars on stock selection and analysis [1] - The individual is the author of two books: "Screening The Market" and "The Value Connection," aimed at enhancing investor knowledge [1]