IDCC
InterDigital, Inc.348.06
-2.83-0.81%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details ARR dip, lit color
Q&A clarified Q1's recurring revenue step-down from $92M year-end expirations, with Xiaomi and LG renewals covering two-thirds so far and more expected to lift ARR toward $1B by 2030. The social media CE deal emerged as low-volume device licensing only. Management expressed strong confidence in Disney litigation, with US/UPC trials slated for summer onward, and newly filed Amazon cases; risks mitigated by multi-patent strategy. Litigation costs will rise in Q1 and 2026, baked into guidance. They're open to M&A to bolster R&D gaps. Streaming suits take longer versus established smartphone ties. Investors will eye renewal pace and court wins.
Key Stats
Market Cap
8.98BP/E (TTM)
23.36Basic EPS (TTM)
14.90Dividend Yield
0.01%Recent Filings
8-K
Record profits, ARR jumps 24%
10-K
FY2025 results
InterDigital's FY2025 revenue fell 4% to $834M from $868.5M in 2024, yet net income surged 13% to $407M as licensing costs plunged 45% to $93.6M—mainly from $71M less revenue share and $12.5M lower enforcement after Samsung's $1.05B eight-year deal (67% royalty hike, $118M catch-up). Q4 revenue hit $158M amid $823M fixed-fee cash receipts (vs. $626M prior year), with operating cash flow at $544M up sharply; Q4 repurchased 100K shares for $36M average while hiking dividends 75% to $0.70/share. Debt stands at $478M (mostly convertible 2027 Notes); $1.3B liquidity. Samsung arbitration locked recurring $131M/year through 2030. Video services licensing faces holdout risks from undeveloped markets.
8-K
License renewed with Chinese vendor
InterDigital renewed a worldwide, non-exclusive, royalty-bearing license with a major Chinese vendor on January 7, 2026. The five-year deal covers the vendor's cellular products like smartphones under InterDigital's essential cellular, WiFi, and HEVC patents. Revenue secured. No financial terms disclosed.
8-K
Q3 crushes estimates
InterDigital crushed Q3 estimates with $164.7M revenue, up 28% YoY, fueled by new licenses and Samsung arbitration win. Annualized recurring revenue hit record $588M, up 49%, while net income soared 97% to $67.5M. New deals boost stability. Q4 outlook: $144-148M revenue. Convertible notes now eligible for conversion.
10-Q
Q3 FY2025 results
InterDigital posted Q3 revenue of $164.7M, up 28% y/y from $128.7M, driven by smartphone at $136.4M (up 56% y/y) while CE/IoT/Auto fell 31% y/y to $28.2M; operating income jumped to $75.8M from $39.3M as licensing expenses dropped 28%. Diluted EPS of $1.93 reflects anti-dilution from convertible notes and warrants (34.9M shares vs 25.8M basic). Cash from operations hit $395.9M in the quarter (derived), lifting cash/short-term investments to $1.3B against $456M current 2027 Notes (3.5%, due 2027). Strong cash supports buybacks and dividends. Ongoing litigation poses risks.
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