Core Insights - InterDigital reported record results for 2025, with revenue of $834 million, adjusted EBITDA of $589 million, and non-GAAP EPS of $15.31, reflecting significant growth compared to 2021 figures [1][2][7] Financial Performance - For the full year 2025, InterDigital achieved revenue of $834 million, marking the second-highest in company history, with annual recurring revenue (ARR) rising to $582 million, a 24% increase year-over-year [2][7] - The fourth quarter revenue reached $158 million, exceeding management's guidance, driven by a new consumer electronics device license agreement [4][8] - Adjusted EBITDA for Q4 was $88 million, resulting in an adjusted EBITDA margin of 56%, with non-GAAP EPS of $2.12, surpassing guidance [8] Strategic Goals and Achievements - The company set "aggressive goals" for 2025, focusing on revenue growth, higher ARR, margin expansion, and advancements in AI research, which were reportedly exceeded [3] - InterDigital licensed eight of the top 10 smartphone manufacturers, covering approximately 85% of the market, with smartphone revenue nearing $680 million, a 14% increase year-over-year [6][12] Licensing and Agreements - Since 2021, InterDigital has signed over 50 licensing agreements with a total contract value exceeding $4.6 billion, including new deals with HP and LG [13][14] - The company emphasized its licensing momentum in consumer electronics and IoT, with significant agreements contributing to its revenue growth [6][13] Litigation and Enforcement - InterDigital is pursuing litigation against major companies like Disney and Amazon, with preliminary injunctions obtained in Brazil and Germany [5][15] - The company anticipates higher litigation costs in 2026 but remains confident in the quality of its patent portfolio [5][19] Future Outlook - For 2026, InterDigital guided total revenue between $675 million and $775 million, with adjusted EBITDA projected at $381 million to $477 million [20] - The company expects Q1 2026 revenue of $194 million to $200 million, including catch-up revenue, and aims to renew a significant portion of its ARR that expired at the end of 2025 [21][22]