InterDigital Announces Financial Results for Second Quarter 2025

Core Insights - InterDigital, Inc. reported strong Q2 2025 results, driven by a significant licensing agreement with Samsung and a new license agreement with HP, leading to revenue exceeding expectations [1][5] - The company raised its full-year 2025 revenue guidance by $110 million, reflecting confidence in its licensing programs and overall business model [2][9] Financial Performance - Revenue for Q2 2025 reached $300.6 million, a 34% increase from $223.5 million in Q2 2024 [3][5] - Net income rose to $180.6 million, up 65% year-over-year, with diluted EPS increasing by 36% to $5.35 [3][5] - Annualized recurring revenue hit an all-time high of $553 million, marking a 44% increase year-over-year [1][3] Licensing Agreements - The agreement with Samsung is valued at over $1 billion over eight years, representing the largest license InterDigital has ever signed [2] - Since 2021, the total contract value of licenses signed has exceeded $4 billion, indicating strong momentum in the company's IP-as-a-service business model [2] Outlook - The company provided an updated outlook for Q3 2025, projecting revenue between $136 million and $140 million, and adjusted EBITDA between $69 million and $75 million [9][10] - Full-year 2025 revenue guidance was raised to a range of $790 million to $850 million, up from the previous range of $660 million to $760 million [9][10] Shareholder Returns - In Q2 2025, the company returned $41.7 million to shareholders through share repurchases and dividends, with a declared dividend of $0.60 per share [4]