InterDigital(IDCC) - 2025 Q4 - Annual Results

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]