InterDigital (IDCC) investor relations material

Executive summary

• Achieved record 2025 results with revenue of $834 million, adjusted EBITDA of $589 million, and non-GAAP EPS of $15.31, driven by strong licensing momentum, major renewals, and the Deep Render AI acquisition.

• Annualized recurring revenue (ARR) rose 24% year-over-year to $582 million, the second highest in company history.

• Expanded patent portfolio to over 38,000 granted patents and applications, with significant third-party recognition.

• Major new and renewed licenses signed with Xiaomi, LG, Samsung, HP, and a leading social media company; awarded injunctions against Disney in Brazil and Germany.

• Recognized by Forbes and other business publications as the top mid-cap company in America for 2026.

Financial highlights

• Q4 2025 revenue was $158.2 million, exceeding guidance, with $12.6–13 million in catch-up revenue; adjusted EBITDA was $88.2 million (56% margin), and non-GAAP EPS was $2.12.

• Full-year 2025 revenue was $834 million, down 4% year-over-year due to lower catch-up revenue, but smartphone revenue hit a record $678.9 million, up 14%.

• Adjusted EBITDA for 2025 was $589 million (71% margin), up 7% year-over-year; free cash flow reached $474 million.

• Net income for 2025 was $406.6 million, up 13% year-over-year.

• Operating expenses decreased 13% year-over-year to $373.2 million, mainly due to lower revenue-share costs.

Outlook and guidance

• 2026 revenue guidance is $675–775 million, with adjusted EBITDA of $381–477 million and non-GAAP EPS of $8.74–11.84.

• Q1 2026 revenue expected at $194–200 million, including $55–60 million in catch-up sales; adjusted EBITDA margin of 52–55%.

• Q1 2026 will recognize $57 million in catch-up revenue from the new LG agreement.

• ARR saw a step down due to expirations, but two-thirds of $92 million in expirations already renewed; on track for $1 billion ARR by 2030.