Core Insights - InterDigital, Inc. (IDCC) reported strong first-quarter 2025 results, with both revenue and net income exceeding Zacks Consensus Estimates despite a year-over-year revenue decline due to weakness in consumer electronics and IoT markets [1][3] Financial Performance - Net income for the quarter increased to $115.6 million or $3.45 per share, up from $81.7 million or $2.88 per share in the same quarter last year, primarily due to lower operating expenses [2] - Non-GAAP net income rose to $125.7 million or $4.21 per share, compared to $94.5 million or $3.58 per share in the prior year, beating the consensus estimate of $3.72 [2] - Net sales decreased to $210.5 million from $263.5 million year-over-year, attributed to lower revenues in consumer electronics and IoT markets, but still surpassed the consensus estimate of $204 million [3] Revenue Breakdown - Smartphone revenues surged 129% year-over-year to $184 million, bolstered by a new licensing agreement with Vivo [4] - Revenues from the consumer electronics and IoT/Auto group fell significantly to $26.3 million from $182.5 million in the previous year [4] - Annualized recurring revenue increased to $502.9 million, a 30% year-over-year growth, while catch-up revenues declined to $84.8 million from $166.7 million [4] Operational Efficiency - Adjusted EBITDA rose to $159.1 million from $130.4 million in the year-ago quarter, indicating improved operational efficiency [5] - Total operating expenses decreased to $78.7 million from $159.8 million, contributing to the increase in operating income to $131.8 million from $103.8 million [5] Cash Flow and Liquidity - In the first quarter, InterDigital used $19.98 million in cash for operations, contrasting with a cash generation of $50.8 million in the same quarter last year [6] - As of March 31, 2025, the company had $883.3 million in cash, cash equivalents, and short-term investments, with $71.4 million in long-term debt and other liabilities [6] Future Guidance - For 2025, InterDigital expects revenues between $660 million and $760 million, with adjusted EBITDA forecasted at $400 million to $495 million [7] - For the second quarter of 2025, the company estimates revenues between $165 million and $170 million, with adjusted EBITDA projected in the range of $107 million to $114 million [7]

Core Viewpoint - InterDigital (IDCC) reported quarterly earnings of $4.21 per share, exceeding the Zacks Consensus Estimate of $3.72 per share, and showing an increase from $3.58 per share a year ago, indicating a strong performance in the wireless research and development sector [1][2] Financial Performance - The company achieved revenues of $210.51 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.32%, although this represents a decline from year-ago revenues of $263.54 million [2] - Over the last four quarters, InterDigital has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - InterDigital shares have increased approximately 3.8% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $139.51 million, and for the current fiscal year, it is $10.66 on revenues of $692.62 million [7] - The outlook for the wireless equipment industry is favorable, with the industry currently ranking in the top 25% of over 250 Zacks industries, suggesting potential for strong performance [8]

InterDigital (IDCC) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Company Participants Raiford Garrabrant - Head of Investor RelationsLiren Chen - President & CEORichard Brezski - EVP & CFOBlayne Curtis - Managing DirectorArjun Bhatia - Co-Group Head - Technology, Media & Communications Conference Call Participants Scott Searle - Managing Director, Senior Research AnalystAnja Soderstrom - Senior Equity Research Analyst Operator Thank you. I would now like to turn the call over to Raiford Garrabrant Rayford ...

InterDigital (IDCC) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Thank you. I would now like to turn the call over to Speaker1 Rayford Head of Investor Relations. Please go ahead. Thank you, France, and good morning, everyone. Welcome to InterDigital's first quarter twenty twenty five earnings conference call. I'm Raeford Garabrandt, Head of Investor Relations for InterDigital. With me on today's call are Liran Chen, our President and CEO and Rich Breske, our CFO. Consistent with prior calls, we ...

PART I — FINANCIAL INFORMATION [Item 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) This section presents the company's unaudited condensed consolidated financial statements for Q1 2025 and 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%94%20March%2031%2C%202025%20and%20December%2031%2C%202024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $1,242,196 | $1,230,822 | | Total assets | $1,861,844 | $1,835,529 | | **Liabilities & Equity** | | | | Total current liabilities | $704,457 | $725,810 | | Total liabilities | $924,960 | $978,314 | | Total shareholders' equity | $936,884 | $857,215 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenues | $210,507 | $263,542 | (20)% | | Total operating expenses | $78,675 | $159,804 | (51)% | | Income from operations | $131,832 | $103,738 | 27% | | Net income | $115,602 | $81,652 | 42% | | Net income per common share — Basic | $4.49 | $3.20 | 40% | | Net income per common share — Diluted | $3.45 | $2.88 | 20% | | Cash dividends declared per common share | $0.60 | $0.40 | 50% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net income | $115,602 | $81,652 | | Unrealized gain (loss) on investments, net of tax | $256 | $(495) | | Comprehensive income | $115,858 | $81,157 | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Shareholders' Equity | $936,884 | $857,215 | | Retained Earnings | $1,875,398 | $1,775,823 | | Treasury Stock | $(1,732,644) | $(1,727,395) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(19,989) | $50,773 | | Net cash provided by investing activities | $59,508 | $16,775 | | Net cash used in financing activities | $(42,951) | $(49,319) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(3,432) | $18,229 | | Cash, cash equivalents and restricted cash, end of period | $548,115 | $461,190 | Notes to Condensed Consolidated Financial Statements [1. BASIS OF PRESENTATION](index=8&type=section&id=1.%20BASIS%20OF%20PRESENTATION) - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q instructions and GAAP, with management's estimates and assumptions[23](index=23&type=chunk)[24](index=24&type=chunk) - The company adopted ASU 2023-09 (Income Tax Disclosures) as of January 1, 2025, with no impact on this Form 10-Q as disclosures are annual[28](index=28&type=chunk) - The company is evaluating the impact of ASU 2024-04 (Convertible Debt Instruments) and ASU 2024-03 (Expense Disaggregation Disclosures)[29](index=29&type=chunk)[30](index=30&type=chunk) [2. REVENUE](index=9&type=section&id=2.%20REVENUE) | Revenue Category | March 31, 2025 (in thousands) | March 31, 2024 (in thousands) | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Smartphone | $183,991 | $80,280 | $103,711 | 129% | | CE, IoT/Auto | $26,267 | $182,543 | $(156,276) | (86)% | | Other | $249 | $719 | $(470) | (65)% | | Total Revenues | $210,507 | $263,542 | $(53,035) | (20)% | | Catch-up revenues | $84,785 | $166,678 | $(81,893) | (49)% | **Expected Contracted Revenue (in thousands):** | Period | Revenue | | :--- | :--- | | Remainder of 2025 | $341,744 | | 2026 | $362,495 | | 2027 | $350,978 | | 2028 | $259,821 | | 2029 | $206,185 | | Thereafter | $179,697 | | Total Revenue | $1,700,920 | - Contract assets increased from **$162.8 million** as of December 31, 2024, to **$190.9 million** as of March 31, 2025, included in 'Accounts receivable'[32](index=32&type=chunk) [3. CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS](index=10&type=section&id=3.%20CASH%2C%20CONCENTRATION%20OF%20CREDIT%20RISK%20AND%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) **Cash, Cash Equivalents, and Restricted Cash (in thousands):** | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $536,639 | $527,360 | $440,242 | | Restricted cash | $11,476 | $24,187 | $20,948 | | Total cash, cash equivalents, and restricted cash | $548,115 | $551,547 | $461,190 | - **Three licensees** accounted for **87%** and **84%** of accounts receivable balances as of March 31, 2025, and December 31, 2024, respectively[37](index=37&type=chunk) **Fair Value of Financial Assets (in thousands):** | Asset Category | March 31, 2025 Total | December 31, 2024 Total | | :--- | :--- | :--- | | Money market and demand accounts | $509,097 | $535,745 | | Commercial paper | $100,297 | $78,870 | | U.S. government securities | $171,296 | $230,561 | | Corporate bonds, asset backed and other securities | $113,667 | $137,219 | | **Total** | **$894,357** | **$982,395** | **Fair Value of Long-Term Debt (in thousands):** | Debt Type | March 31, 2025 Fair Value | December 31, 2024 Fair Value | | :--- | :--- | :--- | | 2027 Senior Convertible Long-Term Debt | $1,236,963 | $1,166,155 | | Technicolor Patent Acquisition Long-Term Debt | $16,067 | $17,102 | [4. OTHER ASSETS AND LIABILITIES](index=12&type=section&id=4.%20OTHER%20ASSETS%20AND%20LIABILITIES) **Prepaid and Other Current Assets (in thousands):** | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid assets | $23,134 | $38,952 | | Tax receivables | $16,947 | $16,691 | | Restricted cash | $11,476 | $24,187 | | Other current assets | $3,079 | $4,482 | | **Total** | **$54,636** | **$84,312** | **Other Non-Current Assets, Net (in thousands):** | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tax receivables | $95,056 | $88,619 | | Goodwill | $22,421 | $22,421 | | Long-term investments | $19,375 | $19,851 | | Right-of-use assets | $14,545 | $15,218 | | Other non-current assets | $6,560 | $3,291 | | **Total** | **$157,957** | **$149,400** | **Other Accrued Expenses (in thousands):** | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued legal fees | $10,240 | $9,571 | | Other accrued expenses | $13,958 | $15,563 | | **Total** | **$24,198** | **$25,134** | **Other Long-Term Liabilities (in thousands):** | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deferred compensation liabilities | $21,161 | $19,969 | | Operating lease liabilities | $15,055 | $15,772 | | Other long-term liabilities | $19,155 | $19,201 | | **Total** | **$55,371** | **$54,942** | [5. OBLIGATIONS](index=13&type=section&id=5.%20OBLIGATIONS) - The 2027 Notes, with an aggregate principal of **$460.0 million**, are convertible and classified as current portion of long-term debt due to holder conversion rights[50](index=50&type=chunk)[51](index=51&type=chunk) - The 2024 Notes matured on June 1, 2024, with the remaining **$126.2 million** principal repaid in cash and **0.3 million** common shares issued[57](index=57&type=chunk) **Convertible Notes Interest Expense (in thousands):** | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Contractual coupon interest (2027 Notes) | $4,025 | $4,025 | | Contractual coupon interest (2024 Notes) | — | $631 | | Amortization of deferred financing costs | $502 | $616 | | **Total Interest Expense** | **$4,527** | **$5,272** | - The Technicolor Patent Acquisition long-term debt had an effective interest rate of approximately **14.5%** at acquisition[60](index=60&type=chunk)[61](index=61&type=chunk) [6. LITIGATION AND LEGAL PROCEEDINGS](index=15&type=section&id=6.%20LITIGATION%20AND%20LEGAL%20PROCEEDINGS) - The company entered binding arbitration with Lenovo in Q4 2024 to determine terms for a new patent license agreement, effective January 1, 2024[63](index=63&type=chunk) - A decision is expected soon in the arbitration with Samsung for a renewed patent license agreement effective January 1, 2023[64](index=64&type=chunk)[65](index=65&type=chunk) - In the Tesla litigation, the UK Court of Appeal upheld the lower court's decision on March 6, 2025, and Tesla has applied to appeal to the Supreme Court[66](index=66&type=chunk)[67](index=67&type=chunk) - On February 3, 2025, the company filed patent infringement claims against The Walt Disney Co and its subsidiaries in multiple jurisdictions[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [7. INCOME TAXES](index=16&type=section&id=7.%20INCOME%20TAXES) **Effective Tax Rate:** | Period | Effective Tax Rate | | :--- | :--- | | Three Months Ended March 31, 2025 | 12.6% | | Three Months Ended March 31, 2024 | 19.2% | - The decrease in the effective tax rate is attributed to an increase in Foreign Derived Intangible Income deduction benefits and other tax benefits[73](index=73&type=chunk) **Foreign Withholding Taxes Paid (in thousands):** | Period | Amount Paid | | :--- | :--- | | Three Months Ended March 31, 2025 | $3,200 | | Three Months Ended March 31, 2024 | $9,300 | [8. NET INCOME PER SHARE](index=17&type=section&id=8.%20NET%20INCOME%20PER%20SHARE) **Net Income Per Share (in thousands, except per share data):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $115,602 | $81,652 | | Weighted-average shares outstanding — Basic | 25,741 | 25,510 | | Weighted-average shares outstanding — Diluted | 33,505 | 28,341 | | Earnings per share — Basic | $4.49 | $3.20 | | Earnings per share — Diluted | $3.45 | $2.88 | **Securities Excluded from EPS Calculation (in thousands):** | Security Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Warrants | 3,136 | 7,488 | | Total | 3,136 | 7,488 | [9. SEGMENT PERFORMANCE MEASURES AND EXPENSES](index=18&type=section&id=9.%20SEGMENT%20PERFORMANCE%20MEASURES%20AND%20EXPENSES) - The company operates as **one reportable segment**, with the CEO assessing performance based on consolidated financial information[77](index=77&type=chunk) **Significant Operating Expenses (in thousands):** | Expense Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Departmental expenses | $41,337 | $44,466 | | Depreciation and amortization | $18,213 | $17,240 | | Intellectual property enforcement | $6,978 | $19,744 | | Share-based compensation | $9,498 | $9,386 | | Revenue share costs | $2,649 | $68,968 | | Other non-operating (income) expense, net | $(387) | $2,675 | | Income tax provision | $16,617 | $19,411 | | **Net income** | **$115,602** | **$81,652** | [10. OTHER INCOME, NET](index=18&type=section&id=10.%20OTHER%20INCOME%2C%20NET) **Other Income, Net (in thousands):** | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Interest and investment income | $9,264 | $11,778 | | Other | $994 | $(2,531) | | **Other income, net** | **$10,258** | **$9,247** | [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=19&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 financial condition and operational results compared to the prior year [OVERVIEW](index=19&type=section&id=OVERVIEW) - In March 2025, InterDigital signed a new license agreement with vivo Mobile, bringing the total to **seven of the ten largest smartphone vendors** under license[82](index=82&type=chunk) - In April 2025, a new multi-year license agreement was signed with HP Inc for Wi-Fi and video decoding technologies[83](index=83&type=chunk) - The quarterly cash dividend was increased by $0.15 per share to **$0.60 per share**, and **$20.8 million** was returned to shareholders in Q1 2025[84](index=84&type=chunk) - As of March 31, 2025, the company held **$894.8 million** in cash, restricted cash, and short-term investments[86](index=86&type=chunk) - **92% of Q1 2025 revenues** were from fixed-fee agreements, which can lead to timing differences between cash collection and revenue recognition[87](index=87&type=chunk) **Projected Amortization of Deferred Revenue (in thousands):** | Period | Deferred Revenue | | :--- | :--- | | Remainder of 2025 | $140,156 | | 2026 | $141,119 | | 2027 | $39,486 | | 2028 | $1,141 | | 2029 | $1,206 | | Thereafter | $1,270 | | **Total Revenue** | **$324,378** | [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=20&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - There have been **no material changes** to the company's critical accounting policies from those disclosed in the 2024 Form 10-K[93](index=93&type=chunk) [FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES](index=20&type=section&id=FINANCIAL%20POSITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) - The company's primary liquidity sources are believed to be sufficient for short-term and long-term financing needs[94](index=94&type=chunk) **Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments (in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Increase / (Decrease) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $536,639 | $527,360 | $9,279 | | Restricted cash | $11,476 | $24,187 | $(12,711) | | Short-term investments | $346,653 | $430,848 | $(84,195) | | **Total** | **$894,768** | **$982,395** | **$(87,627)** | - The net decrease in total cash and investments was due to cash used in financing, investing, and operating activities[95](index=95&type=chunk) **Net Cash (Used in) Provided by Operating Activities (in thousands):** | Period | Net Cash (Used in) Provided by Operating Activities | | :--- | :--- | | Three Months Ended March 31, 2025 | $(19,989) | | Three Months Ended March 31, 2024 | $50,773 | | **Change** | **$(70,762)** | - The **$70.8 million decrease** in operating cash flow was driven by lower cash receipts in Q1 2025, primarily due to large catch-up revenues in Q1 2024[96](index=96&type=chunk) **Cash Flows from Investing and Financing Activities (in thousands):** | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by investing activities | $59,508 | $16,775 | $42,733 | | Net cash used in financing activities | $(42,951) | $(49,319) | $6,368 | | Taxes withheld on restricted stock unit vestings | $(32,177) | $(8,635) | $(23,542) | | Share repurchases | $(5,249) | $(28,868) | $23,619 | | Proceeds from exercise of stock options | $7,316 | $0 | $7,316 | - The combined deferred revenue balance decreased by **$35.8 million** to **$324.4 million** as of March 31, 2025, due to amortization[100](index=100&type=chunk) [RESULTS OF OPERATIONS](index=24&type=section&id=RESULTS%20OF%20OPERATIONS) **Revenues by Category (in thousands):** | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Smartphone | $183,991 | $80,280 | $103,711 | 129% | | CE, IoT/Auto | $26,267 | $182,543 | $(156,276) | (86)% | | Other | $249 | $719 | $(470) | (65)% | | **Total Revenues** | **$210,507** | **$263,542** | **$(53,035)** | **(20)%** | | Catch-up revenues | $84,785 | $166,678 | $(81,893) | (49)% | - Total revenues decreased by **$53.0 million (20%)** primarily due to catch-up revenues from the Samsung TV agreement in Q1 2024[110](index=110&type=chunk) **Licensees Accounting for 10% or More of Total Revenue:** | Customer | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Customer A | 43% | —% | | Customer B | 16% | 13% | | Customer C | 12% | 71% | **Operating Expenses by Category (in thousands):** | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Research and portfolio development | $47,430 | $49,375 | $(1,945) | (4)% | | Licensing | $17,677 | $96,589 | $(78,912) | (82)% | | General and administrative | $13,568 | $13,840 | $(272) | (2)% | | **Total Operating expenses** | **$78,675** | **$159,804** | **$(81,129)** | **(51)%** | - The **$81.1 million decrease** in total operating expenses was primarily driven by a **$66.3 million decrease** in revenue share costs and a **$12.8 million decrease** in IP enforcement costs[112](index=112&type=chunk)[113](index=113&type=chunk) **Non-Operating Income (Expense), Net (in thousands):** | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Interest expense | $(9,871) | $(11,922) | $2,051 | 17% | | Interest and investment income | $9,264 | $11,778 | $(2,514) | (21)% | | Other income (expense), net | $994 | $(2,531) | $3,525 | 139% | | **Total non-operating income (expense), net** | **$387** | **$(2,675)** | **$3,062** | **114%** | - The change in non-operating income was primarily due to a **$2.2 million** foreign currency translation net gain in Q1 2025[115](index=115&type=chunk) [STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 — FORWARD-LOOKING STATEMENTS](index=25&type=section&id=STATEMENT%20PURSUANT%20TO%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995%20%E2%80%94%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[117](index=117&type=chunk) - Key risks include delays in license agreements, resolution of legal proceedings, and macroeconomic conditions[117](index=117&type=chunk)[121](index=121&type=chunk) [Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=26&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes have occurred in the company's market risk disclosures since the 2024 Form 10-K - No material changes in quantitative and qualitative market risk from the disclosures included in the 2024 Form 10-K[119](index=119&type=chunk) [Item 4. CONTROLS AND PROCEDURES](index=26&type=section&id=Item%204%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were **effective** as of March 31, 2025[120](index=120&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that materially affected, or are likely to materially affect, internal controls[120](index=120&type=chunk) PART II — OTHER INFORMATION [Item 1. LEGAL PROCEEDINGS](index=27&type=section&id=Item%201%20Legal%20Proceedings) This section incorporates legal proceedings information by reference from Note 6 of the financial statements - Legal proceedings information is incorporated by reference from Note 6, 'Litigation and Legal Proceedings,' to the Notes to Condensed Consolidated Financial Statements[123](index=123&type=chunk) [Item 1A. RISK FACTORS](index=27&type=section&id=Item%201A%20Risk%20Factors) This section highlights updated risks, particularly concerning United States-China relations, referencing the 2024 Form 10-K - Reference is made to Part I, Item 1A, 'Risk Factors' in the 2024 Form 10-K, with no material changes except for the specific risk related to **United States-China relations**[124](index=124&type=chunk) - The company's business may be adversely affected by a deterioration in United States-China relations or broader geopolitical conditions[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=28&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 24,000 shares in Q1 2025, with $224.3 million remaining under its authorization **Issuer Purchases of Equity Securities (Q1 2025):** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | | :--- | :--- | :--- | :--- | | January 1, 2025 - January 31, 2025 | — | $— | $229,532,849 | | February 1, 2025 - February 28, 2025 | — | $— | $229,532,849 | | March 1, 2025 - March 31, 2025 | 24,000 | $218.67 | $224,284,034 | | **Total** | **24,000** | **$218.67** | | - The Share Repurchase Program has no expiration date and was authorized for **$300 million** in June 2014, with additional authorizations totaling **$735 million** through December 2023[130](index=130&type=chunk) [Item 3. DEFAULTS UPON SENIOR SECURITIES](index=28&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) This item is marked as not applicable, indicating no defaults upon senior securities - This item is not applicable[132](index=132&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=28&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is marked as not applicable, indicating no mine safety disclosures - This item is not applicable[133](index=133&type=chunk) [Item 5. OTHER INFORMATION](index=28&type=section&id=Item%205%20Other%20Information) This section details Rule 10b5-1 trading arrangements adopted or modified by officers during Q1 2025 **Rule 10b5-1 Trading Arrangements (Q1 2025):** | Officer | Action | Date | Rule 10b5-1 | Non-Rule 10b5-1 | Maximum Shares to be Sold | Expiration Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | John Markley, Jr. | Terminate | March 17, 2025 | X | | 856 | June 30, 2025 | | John Markley, Jr. | Adopt | March 18, 2025 | X | | 1,370 | June 30, 2025 | | Rajesh Pankaj | Adopt | March 20, 2025 | X | | 9,000 | March 31, 2026 | | Joshua Schmidt | Adopt | March 21, 2025 | X | | 8,331 | March 31, 2026 | [Item 6. EXHIBITS](index=29&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q - The exhibits include certifications of the Principal Executive Officer and Principal Financial Officer, and various interactive data files[135](index=135&type=chunk) SIGNATURES [Signatures](index=30&type=section&id=Signatures) The report is duly signed by the CEO and CFO on May 1, 2025 - The report was signed by Liren Chen, President and Chief Executive Officer, and Richard J. Brezski, Chief Financial Officer, on May 1, 2025[140](index=140&type=chunk)

Revenue Performance - Revenue for Q1 2025 was $210.5 million, a decrease of 20% compared to $263.5 million in Q1 2024[4] - The outlook for Q2 2025 projects revenue between $165 million and $170 million, with full-year 2025 revenue expected to be between $660 million and $760 million[10] Net Income and Earnings Per Share - Net income increased by 42% to $115.6 million, with a net income margin of 55%, up from 31% in the previous year[4] - Diluted EPS for Q1 2025 was $3.45, up 20% from $2.88 in Q1 2024[4] - Non-GAAP net income for Q1 2025 was $125,658, compared to $94,544 in Q1 2024, marking a year-over-year increase of about 33%[30] - The company expects Q2 2025 net income to be between $64 million and $71 million, with a full year 2025 guidance of $224 million to $319 million[32] Adjusted EBITDA - Adjusted EBITDA for Q1 2025 was $159.1 million, a 22% increase from $130.4 million in Q1 2024, with an adjusted EBITDA margin of 76%[4] - Adjusted EBITDA for Q1 2025 reached $159,060, up from $130,364 in Q1 2024, reflecting a growth of approximately 22%[29] Operating Expenses and Cash Flow - Operating expenses decreased by 51% to $78.7 million compared to $159.8 million in Q1 2024[4] - Cash flows from operating activities showed a net cash outflow of $19,989 in Q1 2025, compared to a net inflow of $50,773 in Q1 2024[25] - The company reported a net cash inflow from investing activities of $59,508 in Q1 2025, compared to $16,775 in Q1 2024, indicating a significant increase in investment activity[25] Shareholder Equity and Dividends - Total shareholders' equity rose to $936,884, up from $857,215 at the end of 2024, indicating an increase of approximately 9.2%[27] - Cash dividends declared per common share increased to $0.60 from $0.40 in the previous year[23] Licensing Agreement - The company signed a major licensing agreement with vivo Mobile, increasing its total contract value to over $3.6 billion since 2021[3] Guidance and Future Outlook - The company reaffirmed its full-year 2025 guidance, indicating confidence in future performance[9]

Core Insights - InterDigital, Inc. reported strong financial results for Q1 2025, with revenues and adjusted EBITDA exceeding the top end of guidance, and an all-time record annualized recurring revenue, up 30% year-over-year [1][4][9] Financial Performance - Revenues for Q1 2025 were $210.5 million, a decrease of 20% compared to $263.5 million in Q1 2024 [4] - Operating expenses significantly reduced to $78.7 million, down 51% from $159.8 million in the previous year [4] - Net income increased by 42% to $115.6 million, resulting in a net income margin of 55%, up from 31% [4] - Diluted EPS rose by 20% to $3.45, compared to $2.88 in Q1 2024 [4] - Adjusted EBITDA was $159.1 million, reflecting a 22% increase from $130.4 million in the prior year, with an adjusted EBITDA margin of 76%, up from 49% [4] Revenue Breakdown - Annualized recurring revenue reached $502.9 million, a 30% increase from $387.5 million in Q1 2024 [4] - Revenue from smartphone licensing surged by 129% to $184.0 million, while revenues from consumer electronics and IoT/Auto dropped by 86% to $26.3 million [4] - Catch-up revenues fell by 49% to $84.8 million, primarily impacting overall revenue [4] Licensing Agreements - The company licensed vivo Mobile, enhancing revenue and achieving a record level of annualized recurring revenue [3] - InterDigital now holds licensing agreements with seven of the ten largest smartphone vendors, covering nearly 80% of the global smartphone market [3] - A new major licensing agreement with HP was signed in Q2 2025, contributing to a cumulative total contract value exceeding $3.6 billion since 2021 [3] Capital Return to Shareholders - In Q1 2025, the company repurchased shares valued at $5.2 million and declared dividends totaling $15.6 million, resulting in a total return of capital of $20.8 million [5] Outlook - The company reaffirmed its full-year 2025 guidance, projecting revenues between $660 million and $760 million, with adjusted EBITDA between $400 million and $495 million [9][10] - For Q2 2025, revenue is expected to be between $165 million and $170 million, with diluted EPS projected between $1.90 and $2.11 [10]

InterDigital, Inc. (IDCC) is set to release  first-quarter 2025 results on May 01, before the opening bell. In the last reported quarter, adjusted earnings were $5.15 per share.The Wilmington-based advanced mobile technologies provider is expected to witness revenue contraction year over year owing to fierce competition and macroeconomic challenges. However, solid licensing momentum in the consumer electronics market and product innovation are tailwinds.Factors at PlayInterDigital’s commitment toward licens ...

Group 1: InterDigital, Inc. (IDCC) - InterDigital is a global research and development company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 14.7% over the last 60 days [1] - InterDigital's shares gained 10.6% over the last three months, while the S&P 500 declined by 12.7% [1] - The company has a Momentum Score of B [1] Group 2: Bank First Corporation (BFC) - Bank First Corporation is a holding company for Bank with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.5% over the last 60 days [2] - Bank First Corporation's shares gained 6.7% over the last three months, compared to the S&P 500's decline of 12.7% [2] - The company possesses a Momentum Score of B [2] Group 3: Celsius Holdings, Inc. (CELH) - Celsius Holdings is a functional beverage company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 20.7% over the last 60 days [3] - Celsius Holdings' shares gained 38.9% over the last three months, while the S&P 500 declined by 12.7% [3] - The company has a Momentum Score of A [3]

Group 1 - Tokio Marine Holdings, Inc. (TKOMY) has seen a 17.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Tokio Marine has a dividend yield of 2.9%, significantly higher than the industry average of 0.7% [1] - InterDigital, Inc. (IDCC) has experienced a 14.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - InterDigital offers a dividend yield of 1.3%, compared to the industry average of 0.0% [2]