# InterDigital, Inc. (IDCC) Informational only - not investment advice. CIK: 0001405495 SIC: 6794 Patent Owners & Lessors SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6794 Patent Owners & Lessors](/industry/6794/) Latest 10-K filed: 2026-02-05 SEC page: https://www.sec.gov/edgar/browse/?CIK=1405495 Filing source: https://www.sec.gov/Archives/edgar/data/1405495/000140549526000011/idcc-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0001405495-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001405495.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 834,015,000 USD | 2025 | verified | | Net income | 406,644,000 USD | 2025 | verified | | Assets | 2,064,290,000 USD | 2025 | verified | | Free cash flow | 528,562,000 USD | 2025 | computed | | Net margin | 48.76% | 2025 | computed | | Operating margin | 55.26% | 2025 | computed | | Revenue YoY | -3.97% | 2025 | computed | | ROE | 36.93% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | IDCC | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 48.8% | 17.8% | 88 | 157 | | Operating margin | 55.3% | 22.9% | 81 | 73 | | Revenue growth | -4.0% | 4.1% | 20 | 158 | | FCF margin | 63.4% | 21.3% | 93 | 76 | | ROE | 36.9% | 5.9% | 97 | 160 | | ROA | 19.7% | 1.6% | 99 | 164 | | Liabilities / equity | 0.87 | 1.45 | 26 | 160 | | Current ratio | 1.84 | 1.29 | 72 | 19 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 67 Holding And Other Investment Offices, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 834015000 | USD | 2025 | 2026-02-05 | | Net income | 406644000 | USD | 2025 | 2026-02-05 | | Assets | 2064290000 | USD | 2025 | 2026-02-05 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001405495.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 532,938,000 | 307,404,000 | 318,924,000 | 358,991,000 | 425,409,000 | 457,794,000 | 549,588,000 | 868,516,000 | 834,015,000 | | Net income | 309,001,000 | 176,220,000 | 65,031,000 | 20,928,000 | 44,801,000 | 55,295,000 | 93,693,000 | 214,069,000 | 358,614,000 | 406,644,000 | | Operating income | 437,306,000 | 301,495,000 | 62,595,000 | 37,835,000 | 55,168,000 | 71,206,000 | 150,516,000 | 221,615,000 | 439,512,000 | 460,853,000 | | Diluted EPS | 8.78 | 4.93 | 1.84 | 0.66 | 1.44 | 1.77 | 3.07 | 7.62 | 12.07 | 11.80 | | Operating cash flow | 434,159,000 | 315,800,000 | 146,792,000 | 89,433,000 | 163,467,000 | 130,392,000 | 286,039,000 | 213,733,000 | 271,528,000 | 544,450,000 | | Capital expenditures | 5,882,000 | 2,071,000 | 2,576,000 | 4,509,000 | 11,793,000 | 2,511,000 | 3,156,000 | 4,268,000 | 5,849,000 | 15,888,000 | | Dividends paid | 31,135,000 | 43,255,000 | 48,468,000 | 44,580,000 | 43,072,000 | 43,058,000 | 42,306,000 | 39,454,000 | 41,799,000 | 60,682,000 | | Share buybacks | 64,685,000 | 7,693,000 | 110,505,000 | 196,269,000 | 349,000 | 30,000,000 | 74,445,000 | 339,704,000 | 66,726,000 | 102,319,000 | | Assets | 1,727,853,000 | 1,854,420,000 | 1,626,558,000 | 1,612,082,000 | 1,616,275,000 | 1,628,156,000 | 1,900,105,000 | 1,770,814,000 | 1,835,529,000 | 2,064,290,000 | | Liabilities | 973,485,000 | 981,272,000 | 688,545,000 | 825,801,000 | 819,709,000 | 875,239,000 | 1,169,592,000 | 1,189,265,000 | 978,314,000 | 963,170,000 | | Stockholders' equity | 739,709,000 | 855,267,000 | 936,729,000 | 761,557,000 | 773,369,000 | 745,239,000 | 724,895,000 | 581,549,000 | 857,215,000 | 1,101,120,000 | | Cash and cash equivalents | 404,074,000 | 433,014,000 | 475,056,000 | 745,491,000 | 473,474,000 | 706,282,000 | 693,479,000 | 437,076,000 | 527,360,000 | 738,960,000 | | Free cash flow | 428,277,000 | 313,729,000 | 144,216,000 | 84,924,000 | 151,674,000 | 127,881,000 | 282,883,000 | 209,465,000 | 265,679,000 | 528,562,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 33.07% | 21.15% | 6.56% | 12.48% | 13.00% | 20.47% | 38.95% | 41.29% | 48.76% | | Operating margin | | 56.57% | 20.36% | 11.86% | 15.37% | 16.74% | 32.88% | 40.32% | 50.60% | 55.26% | | Return on equity | 41.77% | 20.60% | 6.94% | 2.75% | 5.79% | 7.42% | 12.93% | 36.81% | 41.83% | 36.93% | | Return on assets | 17.88% | 9.50% | 4.00% | 1.30% | 2.77% | 3.40% | 4.93% | 12.09% | 19.54% | 19.70% | | Liabilities / equity | 1.32 | 1.15 | 0.74 | 1.08 | 1.06 | 1.17 | 1.61 | 2.04 | 1.14 | 0.87 | | Current ratio | 2.87 | 3.71 | 5.71 | 3.33 | 3.39 | 2.83 | 4.96 | 1.33 | 1.70 | 1.84 | ## As-reported value updates 5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/IDCC/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001405495.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.74 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 3.58 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.79 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 21,783,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 140,106,000 | | 1.72 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 105,518,000 | 39,086,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 263,542,000 | 81,652,000 | 2.88 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 81,652,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 223,493,000 | | 3.93 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 109,664,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 128,679,000 | | 1.14 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 252,802,000 | 133,108,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 210,507,000 | 115,602,000 | 3.45 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 115,602,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 300,596,000 | | 5.35 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 180,568,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 164,682,000 | | 1.93 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 158,230,000 | 42,971,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 205,416,000 | 75,329,000 | 2.14 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | 75,329,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 260,170,000 | | 3.40 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from IDCC's latest 10-K: [/company/IDCC/business/](/company/IDCC/business/). ## Risk Factors Verbatim Item 1A Risk Factors from IDCC's latest 10-K: [/company/IDCC/risk-factors/](/company/IDCC/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1405495/000140549526000066/idcc-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-30 Report date: 2026-06-30 Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. OVERVIEW The following discussion should be read in conjunction with the unaudited, condensed consolidated financial statements and notes thereto contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, in addition to our 2025 Form 10-K, other reports filed with the SEC and the Statement Pursuant to the Private Securities Litigation Reform Act of 1995 — Forward-Looking Statements below. Throughout the following discussion and elsewhere in this Quarterly Report on Form 10-Q, we refer to “catch-up revenue.” For variable and dynamic fixed-fee license agreements, “catch-up revenue” primarily represents revenue associated with reporting periods prior to the execution of the license agreement. New Agreements During second quarter 2026, we entered into an agreement with Amazon, covering Amazon’s services and devices, including Amazon Prime Video. The parties have agreed to resolve all pending litigation and will enter into binding arbitration to determine the final terms of the new patent license agreement. We believe this agreement advances our longer-term strategy to expand our video streaming services licensing program. During second quarter 2026, we began recognizing revenue based on a conservative estimate, consistent with Generally Accepted Accounting Principles in the United States ("GAAP"), in respect of this agreement. Additionally, we signed a new IoT patent license agreement with a fintech company in the payments space. The agreement covers the licensee’s point-of-sale devices under InterDigital’s global patent portfolio related to the cellular 3G and 4G standards, and the Wi-Fi 5 and Wi-Fi 6 standards. Disney UPC Injunctions In rulings in June and July 2026, respectively, the Mannheim and Dusseldorf Local Divisions of the Unified Patent Court (the "UPC") ruled that we are entitled to injunctions over Disney’s infringement of InterDigital patents covering certain video encoding techniques related to HEVC and confirmed the validity of the patents. The UPC is a pan-European patent court which issues decisions that apply across multiple countries in the European Union (EU). The injunctions against Disney each span 11 EU countries, including France, Germany, and Italy. In their rulings, both UPC tribunals concluded that Disney is an "unwilling licensee" based on its conduct. Disney can appeal the decisions. Other injunctions have been issued by courts in Germany and Brazil for Disney’s infringement of InterDigital’s intellectual property related to high dynamic range technology, the dynamic overlaying of multiple video streams, and additional compression technologies related to HEVC and AVC. For more information on these proceedings, see Note 6, “Litigation and Legal Proceedings,” to the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Notes, Hedge, and Warrant Transactions During second quarter 2026, the 2027 Notes had a dilutive impact of 3.7 million shares, which is offset from an economic standpoint by the 2027 Note Hedge Transactions and would result in no incremental outstanding shares after conversion. However, under GAAP, we are required to exclude the impact of the shares received from the 2027 Note Hedge Transactions counterparties from the calculation of weighted-average diluted shares outstanding. From the period January 1, 2024 through September 30, 2026, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes. As of June 30, 2026, $380.0 million in principal of the 2027 Notes remains outstanding, of which holders had elected to convert $80.3 million principal amount, which will settle in third quarter 2026. No incremental outstanding shares will result from such conversions. As of June 30, 2026, 6.0 million warrants remain outstanding related to the 2027 Warrant Transactions at a strike price of $105.43 per share, subject to adjustment, which mature on a net-share basis beginning September 2027 through April 2028. Refer to "Financial Position, Liquidity, and Capital Resources — Convertible Notes" for further information regarding how changes in our stock price would affect the number of shares issuable related to the 2027 Warrant Transactions. For example, if the share price averaged $275 between September 2027 and April 2028, we would issue 3.7 million shares of common stock related to the 2027 Warrant Transactions. 24 Table of Contents Return of Capital In June 2026, we announced a regular quarterly cash dividend of $0.70 per share, which is a 17% increase compared to the dividend declared in second quarter 2025. During second quarter 2026, we returned $41.0 million to shareholders, including $23.0 million through the repurchase of shares of common stock and $18.1 million, or $0.70 per share, of cash dividends declared. As of June 30, 2026, there was $96.1 million remaining under the share repurchase authorization, which we plan to utilize to periodically repurchase additional common shares. See Part II, Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds—Issuer Purchases of Equity Securities of this Quarterly Report on Form 10-Q. Cash and Short-term Investments As of June 30, 2026, we had $1.1 billion of cash, restricted cash, and short-term investments and approximately $1.9 billion of cash payments due under contracted fixed price agreements, which includes our conservative estimates of the minimum cash receipts that we expect to receive under the Lenovo and Amazon arbitrations. 93% of our second quarter 2026 revenue came from fixed-fee agreements. Such agreements often have prescribed payment schedules that are uneven and sometimes front-loaded, resulting in timing differences between when we collect the cash payments and recognize the related revenue. The following table reconciles the timing differences between cash receipts and recognized revenue during the three and six months ended June 30, 2026 and 2025, including the resulting operating cash flow (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["Cash vs. Non-cash revenue:","2026","","2025","","2026","","2025"],["Fixed-fee cash receipts (a)","$","164,390","","","$","162,140","","","$","299,220","","","$","184,719"],["Other cash receipts (b)","12,049","","","9,193","","","19,093","","","33,444"],["Change in deferred revenue","(21,747)","","","32,456","","","(107,608)","","","71,206"],["Change in receivables","(15,326)","","","84,439","","","123,185","","","200,405"],["Other","120,804","","","12,368","","","131,696","","","21,329"],["Total Revenue","$","260,170","","","$","300,596","","","$","465,586","","","$","511,103"],["Net cash provided by operating activities","$","82,536","","","$","105,118","","","$","98,617","","","$","85,129"]] [[/GREPCENT_TABLE]] (a) Fixed-fee cash receipts are comprised of cash receipts from Dynamic Fixed-Fee Agreement royalties, including the associated catch-up revenue. (b) Other cash receipts are primarily comprised of cash receipts related to our variable patent royalty revenue and catch-up revenue. When we collect payments on a front-loaded basis, we recognize a deferred revenue liability equal to the cash received and accounts receivable recorded which relate to revenue expected to be recognized in future periods. That liability is then reduced as we recognize revenue over the balance of the agreement. The following table shows the projected amortization of our current and long-term deferred revenue as of June 30, 2026 (in thousands): [[GREPCENT_TABLE]] [["","Deferred Revenue"],["Remainder of 2026","$","210,820"],["2027","214,632"],["2028","14,284"],["2029","1,206"],["2030","1,270"],["Thereafter","\u2014"],["Total","$","442,212"]] [[/GREPCENT_TABLE]] Revenue Second quarter 2026 revenue of $260.2 million includes $103.7 million of catch-up revenue, while second quarter 2025 revenue of $300.6 million includes $162.3 million of catch-up revenue. The $40.4 million decrease in total revenue was driven by lower catch-up revenue, partially offset by recurring revenue recognized from thirteen patent license agreements signed since second quarter 2025. In second quarter 2026, revenue (in descending order) from Amazon, Apple, and Samsung each comprised 10% or more of our consolidated revenue. Refer to "Results of Operations — Second Quarter 2026 Compared to Second Quarter 2025" for further discussion of our 2026 revenue. 25 Table of Contents Smartphone, CE, IoT/Auto, and Streaming and Cloud Services are the Company's licensing programs. The Smartphone revenue grouping consists primarily of smartphones and also includes other wireless communication devices and infrastructure equipment, such as tablets, and base stations. The CE, IoT/Auto revenue grouping consists of consumer electronics and IoT products, such as televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. The Streaming and Cloud Services revenue grouping consists of SVOD, AVOD, global pay-TV, video conferencing, cloud gaming, and other cloud-based services. Impact of Macroeconomic and Geopolitical Factors We have been actively monitoring the impact of the current macroeconomic environment in the U.S. and globally characterized by market volatility, inflation, supply chain issues, high interest rates, tariffs and other potential trade-related sanctions, and the potential for a recession. These market factors, as well as the impacts of global conflicts, have not had a material impact on our business to date. However, if these conditions continue or worsen, they could have an adverse effect on our operating results and our financial condition. Comparability of Financial Results When comparing second quarter 2026 financial results against other periods, the following items should be taken into consideration: Revenue •Our second quarter 2026 revenue includes $103.7 million of catch-up revenue primarily related to the Amazon agreement signed in second quarter 2026. Operating Expenses •During second quarter 2026, we incurred $13.7 million of nonrecurring share-based compensation costs driven by business successes. Other income, net •During second quarter 2026, we recognized a gain of $1.0 million resulting from observable price changes of our long-term strategic investments, which was included within “Other income, net” in the condensed consolidated statement of income. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our significant accounting policies are described in Note 2, "Summary of Significant Accounting Policies and New Accounting Guidance", in the notes to condensed consolidated financial statements included in our 2025 Form 10-K. A discussion of our critical accounting policies, and the estimates related to them, are included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Form 10-K. There have been no material changes to our existing critical accounting policies from the disclosures included in our 2025 Form 10-K. Refer to Note 1, “Basis of Presentation,” in the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for updates related to new accounting pronouncements and changes in accounting policies. FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES Our primary sources of liquidity are cash, cash equivalents, and short-term investments, as well as cash generated from operations. We believe we have the ability to obtain additional liquidity through debt and equity financings. From time to time, we may engage in a variety of transactions to augment our liquidity position as our business dictates and to take advantage of favorable interest rate environments or other market conditions, inc [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1405495/000140549526000011/idcc-20251231.htm Complete FY 2025 MD&A: /company/IDCC/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-05 Report date: 2025-12-31 Item 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. OVERVIEW The following discussion should be read in conjunction with the Consolidated Financial Statements and the Notes thereto contained in this Form 10-K. The following section generally discusses our financial condition and results of operations for our fiscal year ended December 31, 2025 compared to our fiscal year ended December 31, 2024. A discussion regarding our financial condition and results of operations for December 31, 2024 compared to our fiscal year ended December 31, 2023 can be found in Part II, Item 7 of our Annual Report on Form 10-K for fiscal year 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 6, 2025. Throughout the following discussion and elsewhere in this Form 10-K, we refer to “catch-up revenue.” For variable and dynamic fixed-fee license agreements, “catch-up revenue” primarily represents revenue associated with reporting periods prior to the execution of the license agreement. 28 Table of Contents Business InterDigital, Inc. ("InterDigital") is a global research and development company focused primarily on wireless, video, artificial intelligence ("AI"), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, internet of things ("IoT") devices, cars and other motor vehicles and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today's most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology used in video-enabled products and services. Our AI research effort is focused on the intersection of AI with both wireless and video technologies. InterDigital is one of the largest pure research and development and licensing companies in the world, with one of the most significant patent portfolios of fundamental wireless and video technologies. As of December 31, 2025, InterDigital's wholly owned subsidiaries held a portfolio of more than 38,000 patents and patent applications related to wireless communications, video coding, display technology, and other areas relevant to communications and entertainment products and services. Our portfolio includes numerous patents and patent applications that we believe are or may be essential to existing standards, or may become essential to future standards, established by many Standards Development Organizations ("SDOs"). We have contributed technology to wireless standards including the 3G, 4G, 5G, and the development of 6G cellular standards and the IEEE 802.11 suite of standards. We have contributed technology to video standards including standards established by ISO/IEC Moving Picture Expert Group (MPEG), the ITU-T Video Coding Expert Group (VCEG), the Joint Collaborative Team on Video Coding (JCT-VC) and the Joint Video Expert Team (JVET), among others. We also develop technologies and associated patents enabling high dynamic range (HDR) production, distribution and display solutions. Our wireless portfolio has largely been built through internal investment in a world-class research team, supplemented by joint development projects with other companies, and select acquisitions of patents and companies. Our video technology portfolio combines patents and applications that InterDigital obtained through the acquisitions of the research and innovation unit and patent licensing business of visual technology industry leader Technicolor SA (the "Technicolor Patent Acquisition") and patents and applications created by internal development. Our patented inventions have been implemented in a wide variety of products, including smartphones, tablets, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, connected automobiles, and other consumer electronics and IoT products. Our patented inventions have also been implemented in a wide variety of services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. We believe our patented innovations are also used in the training of video based generative AI models as well as in the distribution and storage of the content generated by such models.      Revenue In 2025 and 2024, our total revenue was $834.0 million and $868.5 million, respectively, which includes $277.4 million and $460.1 million, respectively, of catch-up revenue as more fully discussed below. In 2025, fixed-fee agreements accounted for 93% of our revenue. These fixed-fee revenue are not affected by the related licensees’ success in the market or the general economic climate. The majority of the remaining portion of our revenue was variable in nature due to the per-unit structure of the related license agreements. Smartphone, CE, IoT/Auto, and Video Services are the Company's licensing programs. The Smartphone revenue grouping consists primarily of smartphones and also includes other wireless communication devices and infrastructure equipment, such as tablets, and base stations. The CE, IoT/Auto revenue grouping consists of consumer electronics and IoT products, such as televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. We do not yet have revenue from Video Services but a Video Services grouping would consist of SVOD, AVOD, global pay-TV, video conferencing, cloud gaming, and other cloud-based services. New Agreements During 2025, we entered into eight patent license agreements as discussed below. Direct Licenses In 2025, we signed new multi-year, worldwide, non-exclusive, royalty-bearing license agreements with two major Chinese smartphone vendors, vivo and Honor. As a result, we now have eight of the ten largest smartphone vendors based on shipments and approximately 85% of the entire global smartphone market under license. In April 2025, we signed a new multi-year license agreement with HP Inc. The agreement licenses HP personal computers to InterDigital’s Wi-Fi and video decoding technologies. 29 Table of Contents Additionally, we entered into device licenses covering our technologies with a significant social media company, along with Eaton, Seiko Solutions Inc., Sharp, and Teltronic. Samsung Arbitration In 2022, we agreed to renew our patent license agreement with Samsung and enter into binding arbitration to determine the final terms of the license. In 2023, we began recognizing revenue for Samsung at a conservative level consistent with the revenue we recognized from our patent license agreement that expired on December 31, 2022. On July 28, 2025, a panel of International Chamber of Commerce arbitrators determined the royalties of the patent license agreement covering Samsung’s products, other than digital televisions and computer display monitors which have been licensed under a separate agreement. The arbitration panel set the total royalties at $1.05 billion for the eight-year patent license, which commenced on January 1, 2023 and runs through December 31, 2030. Under this agreement, we now recognize approximately $131 million of recurring revenue per year, a 67% increase from the previous license agreement. In 2025, the agreement contributed $118 million of catch-up revenue due to a true-up of the $78 million per year we had been recognizing based on the level of our prior agreement from January 1, 2023 to June 30, 2025. Subsequent Agreements In January 2026, we signed a new patent license agreement with LG Electronics. The agreement licenses LG’s digital TVs and computer display monitors under InterDigital´s joint licensing program with Sony and includes licenses to technologies including ATSC 3.0, Wi-Fi and video codecs. In January 2026, we renewed a worldwide, non-exclusive, royalty bearing license with Xiaomi. The renewed license has a term of five years and covers the vendor’s cellular products, including its smartphones and other cellular-enabled devices, under InterDigital’s standard essential cellular, Wi-Fi, and HEVC patents. Expiration of License Agreements Five revenue-generating patent license agreements expired during 2025 and have not yet been renewed, including the Samsung TV agreement. These agreements contributed $31.7 million of recurring revenue in 2025. These five licensees exclude a license with Xiaomi that also expired during 2025 but was renewed in January 2026 as noted above. Fourteen revenue-generating patent license agreements are scheduled to expire by the end of 2026. These agreements contributed $15.0 million of recurring revenue in 2025. We are actively working to renew these agreements on terms consistent with each licensee’s market position and use of our technology. Notes, Hedge, and Warrant Transactions Refer to Note 10, "Obligations" within the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K for definitions of capitalized terms used below. 2027 Notes and Related Note Hedge and Warrant Transactions During 2025, the 2027 Notes had a dilutive impact of 4.1 million shares, which are offset from an economic standpoint by the 2027 Note Hedge Transactions and would result in no incremental shares being issued upon conversion. However, under Generally Accepted Accounting Principles in the United States ("GAAP"), we are required to exclude the impact of the shares received from the 2027 Note Hedge Transactions counterparties from the calculation of weighted-average diluted shares outstanding. From the period January 1, 2024 through March 31, 2026, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes. In December 2025, certain holders elected to convert $80.0 million of principal, which will settle in first quarter 2026. The principal of the converted notes will be paid in cash and the remaining amount will be settled in shares. No incremental shares will be outstanding upon conversion due to the offsetting impact of a corresponding partial settlement of the 2027 Note Hedge Transactions. As of December 31, 2025, 6.0 million warrants remain outstanding related to the 2027 Warrant Transactions at a weighted-average strike price of $105.67 per share, subject to adjustment, which mature on a net-share basis beginning September 2027 through April 2028. Refer to "Financial Position, Liquidity, and Capital Resources — Convertible Notes" for further information regarding how changes in our stock price would affect the number of shares issuable related to the 2027 Warrant Transactions. For example, if the share price was $350, we would issue 4.2 million of common shares related to the 2027 Warrant Transactions. 30 Table of Contents Intellectual Property Rights Enforcement If we believe a party is required to license our patents in order to manufacture, use and/or sell certain products or services and such party refuses to do so, we typically offer such party to have royalties, or other terms, set by third party adjudicators (such as arbitrators). If the party refuses that offer and we believe they are unwilling to agree to a patent license on a fair, reasonable and non-discriminatory basis, we may have no other viable recourse but to institute legal action against them to enforce our patent rights. This legal action has typically taken the form of a patent infringement lawsuit or an administrative proceeding. In addition, we and our licensees, in the normal course of business, [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/IDCC/mda/fy2025/ All MD&A years: /company/IDCC/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/IDCC/mda/fy2024/): filed 2025-02-06; accession 0001405495-25-000011 (https://www.sec.gov/Archives/edgar/data/1405495/000140549525000011/idcc-20241231.htm) - [FY 2023 MD&A](/company/IDCC/mda/fy2023/): filed 2024-02-15; accession 0001405495-24-000052 (https://www.sec.gov/Archives/edgar/data/1405495/000140549524000052/idcc-20231231.htm) - [FY 2022 MD&A](/company/IDCC/mda/fy2022/): filed 2023-02-15; accession 0001405495-23-000011 (https://www.sec.gov/Archives/edgar/data/1405495/000140549523000011/idcc-20221231.htm) - [FY 2021 MD&A](/company/IDCC/mda/fy2021/): filed 2022-02-17; accession 0001405495-22-000010 (https://www.sec.gov/Archives/edgar/data/1405495/000140549522000010/idcc-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6794 Patent Owners & Lessors) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/IDCC.md · JSON record: /company/IDCC.json · verified financials: /company/IDCC/financials.json / /company/IDCC/financials.csv · machine TOC for the whole site: /llms.txt