InterDigital (IDCC) 28th Annual Needham Growth Conference Virtual summary

Company overview and business model

• Focuses on foundational R&D in wireless, video, and AI, enabling global communications and entertainment technologies.

• Operates an IP-as-a-service licensing model with recurring revenue from long-term contracts.

• Maintains an evergreen patent portfolio, adding six new patents daily, and licenses to major device makers and service providers.

• Recognized as a top innovator globally, with a business model that drives profitability faster than revenue growth.

• Team comprises leading experts in research, licensing, and IP, with decades of industry experience.

Technology leadership and industry impact

• Major contributor to every generation of cellular technology, Wi-Fi, and video standards, now advancing 6G and AI integration.

• Holds leadership roles in global standards organizations, enhancing influence and adoption of its technologies.

• Video technologies drive 80% of internet traffic, with advanced codecs enabling massive data compression and efficient delivery.

• Standardization ensures interoperability, global device compatibility, and broad market reach.

• Neutral position in standards development, not competing in product markets, fosters trust and leadership selection.

Financial performance and growth

• Achieved 25% CAGR in recent years, with adjusted EBITDA margin at or above 60%.

• Increased dividend by 50% in the last year and executed over $1 billion in share buybacks over the past decade.

• Signed over 50 license agreements in five years, with more than $4 billion in contracts and $1 billion in catch-up payments.

• Recurring revenue from smartphones reached $490+ million by Q3 2025, nearly meeting the 2030 target two years early.

• Consumer electronics, IoT, and auto segments are growing rapidly, with a goal of $200 million recurring revenue by 2030.