Core Viewpoint - InterDigital, Inc. has initiated litigation against Hisense and TCL for infringing its intellectual property related to video compression and HDR technologies, particularly in connection with its licensing program with Sony [1][3]. Group 1: Legal Actions - Lawsuits have been filed against Hisense and TCL in multiple jurisdictions, including the Munich Local Division of the Unified Patent Court, Munich Regional Court in Germany, Rio de Janeiro State Court in Brazil, and Delhi High Court in India [2]. - The patents involved pertain to HEVC, VP9, AV1 video compression, and high dynamic range (HDR) technologies [1]. Group 2: Company Background - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies, providing foundational technologies for various communication and entertainment products [4]. - The company has a history of significant investment in research, which has influenced how consumers engage with media, and emphasizes the importance of protecting its intellectual property [3].

New collaboration contributes expertise and innovation to support education and exploration of haptics and immersive experiencesWILMINGTON, Del., Feb. 10, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, and Razer ™, the leading global lifestyle brand for gamers, announced the establishment of the Haptic Excellence Center. The collaborative venture establishes a center of excellence dedicated to foster the innovation, educatio ...

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 ...

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 ...

Financial Data and Key Metrics Changes - For the full year 2025, total revenue was $834 million, the second highest in the company's history, with a year-over-year increase of approximately 2 times compared to 2021 levels of $425 million [18] - Adjusted EBITDA reached a record high of $589 million, nearly 3 times the 2021 level of $208 million [19] - Non-GAAP EPS for the full year was $15.31 per share, more than 4 times the $3.73 per share reported in 2021 [19] - In Q4 2025, total revenue was $158 million, exceeding the high end of the outlook of $144-$148 million [17] - Adjusted EBITDA for Q4 was $88 million, exceeding the high end of the outlook of $68-$76 million, resulting in an adjusted EBITDA margin of 56% [17] Business Line Data and Key Metrics Changes - Smartphone revenue for 2025 was just below $680 million, up 14% year-over-year, marking an all-time high [7] - Annualized recurring revenue (ARR) increased to $582 million, up 24% year-over-year [5] - The company signed new licensing agreements with major smartphone vendors, including Vivo and Honor, and renewed agreements with Samsung, Sharp, and Seiko [6][8] - In the CE and IoT program, the company licensed about half of the global PC market after signing a new agreement with HP [8] Market Data and Key Metrics Changes - The company has now licensed 8 of the top 10 largest smartphone manufacturers, covering about 85% of the overall market [6] - The licensing agreements signed since 2021 have a total contract value of more than $4.6 billion [9] Company Strategy and Development Direction - The company aims to grow its licensing pipeline, particularly in the Video Service Licensing Program and AI research capabilities [4] - The focus is on deepening AI expertise and leading the development of AI-based solutions for next-generation technologies [12] - The company is actively contributing to 6G standards development, which is expected to be the first native AI wireless standard [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to drive shareholder value in 2026, with expectations for total revenue in the range of $675 million-$775 million [20] - The company anticipates a strong year in 2026, despite a step down in ARR from year-end expirations, with plans to renew contracts and drive further increases in ARR [21] Other Important Information - The company completed a key acquisition of AI startup Deep Render to strengthen its research capabilities in AI and video compression [12] - The company received recognition from multiple third parties, including being named one of America's greatest companies by Newsweek and the number one most successful mid-cap company in America for 2026 by Forbes [14] Q&A Session Summary Question: Guidance on Q1 revenue and recurring fees - Management confirmed that the guidance for Q1 includes $55 million-$60 million of catch-up sales, indicating a decrease in recurring fees due to expirations [25][26] Question: Timeline for litigation with Disney and Amazon - Management provided updates on the positive outcomes in Brazil and Germany for the Disney case, with further developments expected in the U.S. later in the year [27][28] Question: Details on the consumer electronic device agreement - The agreement with the social media company is a device agreement that licenses radio assets and Wi-Fi, but is not expected to be a high-volume agreement [33] Question: M&A strategy for expanding the patent portfolio - The company is open to M&A opportunities to fill gaps in research and accelerate areas of strength, leveraging its industry reputation [40] Question: Differences in litigation for streaming services compared to smartphones - Management noted that the streaming industry is relatively new for the company, requiring more time to demonstrate the strength of its patent portfolio [41]

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]