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IDCC

InterDigital, Inc.

IDCC

InterDigital, Inc. • NASDAQ
$357.75 ▼ -0.59% (-2.14)
Market Cap $9.21 B
52w High $412.60
52w Low $169.58
Dividend Yield 2.80%
P/E 23.98
Volume 98.26K
Outstanding Shares 25.74M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $164.682M ▼ $59.257M ▼ $67.503M ▼ 40.99% ▼ $2.62 ▼ $105.8M ▼
Q2-2025 $300.596M ▲ $71.26M ▲ $180.568M ▲ 60.07% ▲ $6.97 ▲ $240.036M ▲
Q1-2025 $210.507M ▼ $60.998M ▼ $115.602M ▼ 54.916% ▲ $4.49 ▼ $160.303M ▼
Q4-2024 $252.802M ▲ $70.249M ▲ $133.108M ▲ 52.653% ▲ $5.23 ▲ $182.116M ▲
Q3-2024 $128.679M $61.87M $34.19M 26.57% $1.36 $69.445M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.263B ▲ $2.139B ▲ $1.04B ▲ $1.1B ▲
Q2-2025 $936.985M ▲ $1.985B ▲ $897.925M ▼ $1.087B ▲
Q1-2025 $883.292M ▼ $1.862B ▲ $924.96M ▼ $936.884M ▲
Q4-2024 $958.208M ▲ $1.836B ▲ $978.314M ▼ $857.215M ▲
Q3-2024 $813.21M $1.725B $1.003B $722.537M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $0 ▼ $395.93M ▲ $-14.717M ▲ $-61.419M ▼ $319.794M ▲ $395.93M ▲
Q2-2025 $180.568M ▲ $105.118M ▲ $-81.728M ▼ $-42.669M ▲ $-19.279M ▼ $104.544M ▲
Q1-2025 $115.602M ▼ $-19.989M ▼ $59.508M ▲ $-42.951M ▼ $-3.432M ▼ $-34.497M ▼
Q4-2024 $133.108M ▲ $192.034M ▲ $-29.899M ▼ $-21.368M ▼ $140.767M ▲ $164.481M ▲
Q3-2024 $34.19M $77.631M $41.852M $-17.698M $101.785M $76.706M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Revenue Other
Revenue Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Revenues
Revenues
 $0 ▲$210.00M ▲$300.00M ▲$160.00M ▼
Recurring Revenues
Recurring Revenues
 $120.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown meaningfully over the past five years, with an especially strong step-up in the most recent year. Profitability has scaled even faster than sales, showing that once new licensing deals are in place, a large share of each additional dollar of revenue falls to the bottom line. Margins are very high for a technology company, reflecting the asset‑light, patent‑licensing model. The sharp rise in earnings and earnings per share suggests a combination of richer contracts, possibly some one‑time items, and good cost discipline. One thing to keep in mind: for a licensing business like this, revenue can be lumpy from year to year as big agreements and legal outcomes land.

Balance Sheet

Balance Sheet The balance sheet looks solid and relatively low risk. Total assets have stayed fairly steady while shareholders’ equity has gradually climbed, indicating that profits are being retained and the company is building its capital base. Cash levels are healthy, even though they have moved up and down over time, and debt appears moderate relative to the size of the business. The company does not seem heavily reliant on borrowing, which gives it flexibility if licensing cycles become less favorable. Overall, financial leverage does not stand out as a major concern based on these trends.

Cash Flow

Cash Flow The company consistently generates cash from its operations, and that cash flow has strengthened over the period. Because the business model is not capital‑intensive, spending on property and equipment is modest, so most operating cash converts into free cash flow. This is a strong point: the firm can fund R&D, legal efforts, and shareholder returns without needing heavy external financing. Cash flows are somewhat uneven year to year, which fits a licensing model where large deals or settlements can shift timing, but the underlying pattern is positive and resilient.

Competitive Edge

Competitive Edge InterDigital occupies a powerful niche as a designer and licensor of foundational wireless and video technologies rather than a maker of physical products. Its strength comes from a very large portfolio of patents that are deeply embedded in global standards like 4G, 5G, Wi‑Fi, and key video formats, giving it leverage in negotiations with major device makers and media companies. The company has a long record of contributing to standards bodies and successfully enforcing its rights, which reinforces its reputation and bargaining power. At the same time, it operates alongside large, sophisticated peers such as Qualcomm, Ericsson, and Nokia, and must continually navigate complex, often adversarial licensing and legal environments. Customer and deal concentration, plus regulatory scrutiny around standard‑essential patents, remain structural risks for this kind of business model.

Innovation and R&D

Innovation and R&D InterDigital is essentially an R&D engine built around wireless and video innovation, with no distraction from running large hardware or services operations. It has been involved in every major wireless generation and is now investing ahead of the curve in 6G, AI‑driven network optimization, and new forms of video compression. Its work on neural‑network‑based codecs, immersive and mixed‑reality video, and advanced HDR and streaming technologies positions it for potential upside as data traffic and media complexity continue to grow. The strategy is to keep feeding standards with new, hard‑to‑replace inventions so the patent portfolio stays fresh as older patents expire. This heavy R&D focus is a clear strength but also means ongoing high spending with uncertain payoffs, because not every research area will translate into widely adopted standards or lucrative licenses.

Summary

Financially, InterDigital combines strong revenue growth, expanding profitability, and solid free cash generation, all built on a capital‑light, IP‑centric model. Its balance sheet offers a reasonable cushion, with healthy cash, manageable debt, and growing equity, which supports the long R&D and legal cycles inherent in standard‑essential patent licensing. Strategically, the company’s moat rests on a large, influential patent portfolio in wireless and video, reinforced by active roles in global standards and a proven willingness to enforce its rights. Looking ahead, success in 6G, AI‑enhanced networks, next‑generation video, and new device categories like IoT and automotive could extend its growth runway, but outcomes are uncertain and likely to be uneven over time. Overall, this is a high‑margin, innovation‑driven business whose performance will continue to depend heavily on technology standard adoption, legal outcomes, and the timing and terms of major licensing deals.

NEWS

November 24, 2025 · 8:30 AM UTC

InterDigital awarded injunction against Disney by German court

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November 12, 2025 · 8:30 AM UTC

InterDigital to Present at Three Upcoming Investor Conferences

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November 10, 2025 · 4:30 AM UTC

InterDigital enforces patents against Amazon

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November 3, 2025 · 4:30 AM UTC

InterDigital awarded injunction against Disney by German court

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October 30, 2025 · 8:30 AM UTC

InterDigital Announces Financial Results For Third Quarter 2025

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