Interdigital Stock Earnings Reports

InterDigital reported a strong Q3 2025: revenue of $165M (+28% YoY), adjusted EBITDA of $105M (+62% YoY) and non-GAAP EPS of $2.55 (+56% YoY), all above guidance. Annualized recurring revenue (ARR) rose 49% YoY to a record $588M, with smartphone ARR at $491M (approaching the midterm $500M target). Key commercial wins include completing the Samsung smartphone arbitration (>$1B over 8 years) and new licenses with Honor, OPPO, Vivo and Lenovo, bringing ~85% of the smartphone market under license. Management closed the acquisition of AI start-up Deep Render to accelerate AI-native video research and strengthen video IP, and one of their wireless engineers was reelected to lead a 3GPP group (supporting 6G positioning). Legal/enforcement activity is active: a preliminary injunction was granted in Brazil against Disney (part of multi-jurisdictional enforcement) and litigation has been initiated versus Transcend and others to secure licensing. Capital returns remain a priority: dividend increased 17% to $0.70/share, >$130M returned YTD via buybacks/dividends, and cash flow remains strong (Q3 FCF was large, driving YTD FCF of $425M). Guidance: Q4 recurring revenue from existing contracts expected to be $144–$148M; full-year revenue from existing contracts $820–$824M; full-year adjusted EBITDA margin ~70% and non-GAAP EPS $14.57–$14.83 (based on existing contracts). Long-term target: grow ARR toward $1B+ by 2030 with double-digit CAGR; management is open to targeted M&A but maintains a high bar.