InterDigital (IDCC)
Market Price (11/12/2026): $304.69 | Market Cap: $7.8 BilSector: Information Technology | Industry: Communications Equipment
InterDigital (IDCC)
Market Price (11/12/2026): $304.69Market Cap: $7.8 BilSector: Information TechnologyIndustry: Communications Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -10% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 45% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 38%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% Low stock price volatilityVol 12M is 47% Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, and Digital Content & Streaming. Themes include Telecom Infrastructure, Wireless Services, Show more. | Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 14.06, Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 10% | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -12% Key risksIDCC key risks include [1] a heavy dependence on lumpy patent licensing renewals and associated litigation, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -10% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 45% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 38%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% |
| Low stock price volatilityVol 12M is 47% |
| Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, and Digital Content & Streaming. Themes include Telecom Infrastructure, Wireless Services, Show more. |
| Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 14.06, Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 10% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -12% |
| Key risksIDCC key risks include [1] a heavy dependence on lumpy patent licensing renewals and associated litigation, Show more. |
Qualitative Assessment
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Nov 5: down 7.1% in one day (S&P 500 down 4.4%)
InterDigital fell without company-specific news. The broader market experienced a significant decline, with headlines citing widespread falls and growing Wall Street concerns about AI stocks.
Up 40.5% from its May 28 low to Aug 12, down 14.2% since (S&P 500 up 2.6%)
The stock saw a substantial gain, driven by positive company developments including new licensing agreements and strong financial performance. Key events included a new video services and devices license agreement with Amazon on June 11, and second quarter earnings exceeding outlook on July 30.
Oct 29: up 4.3% on its earnings report (S&P 500 down 0.4%)
InterDigital's stock rose following its third quarter 2026 earnings report, which surpassed guidance and analyst estimates. New license agreements and an increased full-year outlook contributed to the gain.
Nov 5: down 7.1% in one day (S&P 500 down 4.4%)
InterDigital fell without company-specific news. The broader market experienced a significant decline, with headlines citing widespread falls and growing Wall Street concerns about AI stocks.
Up 40.5% from its May 28 low to Aug 12, down 14.2% since (S&P 500 up 2.6%)
The stock saw a substantial gain, driven by positive company developments including new licensing agreements and strong financial performance. Key events included a new video services and devices license agreement with Amazon on June 11, and second quarter earnings exceeding outlook on July 30.
Oct 29: up 4.3% on its earnings report (S&P 500 down 0.4%)
InterDigital's stock rose following its third quarter 2026 earnings report, which surpassed guidance and analyst estimates. New license agreements and an increased full-year outlook contributed to the gain.
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Stock Movement Drivers
Fundamental Drivers
The -1.1% change in IDCC stock from 7/31/2026 to 11/11/2026 was primarily driven by a -5.3% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 304.14 | 300.72 | -1.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 788 | 817 | 3.6% |
| Net Income Margin (%) | 38.3% | 38.5% | 0.5% |
| P/E Multiple | 26.0 | 24.6 | -5.3% |
| Shares Outstanding (Mil) | 26 | 26 | 0.1% |
| Cumulative Contribution | -1.1% |
Market Drivers
7/31/2026 to 11/11/2026| Return | Correlation | |
|---|---|---|
| IDCC | -1.1% | |
| Market (SPY) | 1.7% | 55.9% |
| Sector (XLK) | -0.6% | 55.1% |
Fundamental Drivers
The 1.9% change in IDCC stock from 4/30/2026 to 11/11/2026 was primarily driven by a 18.9% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 295.14 | 300.72 | 1.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 829 | 817 | -1.4% |
| Net Income Margin (%) | 44.2% | 38.5% | -12.8% |
| P/E Multiple | 20.7 | 24.6 | 18.9% |
| Shares Outstanding (Mil) | 26 | 26 | -0.3% |
| Cumulative Contribution | 1.9% |
Market Drivers
4/30/2026 to 11/11/2026| Return | Correlation | |
|---|---|---|
| IDCC | 1.9% | |
| Market (SPY) | 6.0% | 51.5% |
| Sector (XLK) | 9.4% | 50.3% |
Fundamental Drivers
The -16.1% change in IDCC stock from 10/31/2025 to 11/11/2026 was primarily driven by a -28.0% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 358.63 | 300.72 | -16.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 929 | 817 | -12.0% |
| Net Income Margin (%) | 53.5% | 38.5% | -28.0% |
| P/E Multiple | 18.6 | 24.6 | 32.3% |
| Shares Outstanding (Mil) | 26 | 26 | 0.0% |
| Cumulative Contribution | -16.1% |
Market Drivers
10/31/2025 to 11/11/2026| Return | Correlation | |
|---|---|---|
| IDCC | -16.1% | |
| Market (SPY) | 12.3% | 40.4% |
| Sector (XLK) | 16.4% | 43.8% |
Fundamental Drivers
The 313.4% change in IDCC stock from 10/31/2023 to 11/11/2026 was primarily driven by a 129.8% change in the company's P/E Multiple.| (LTM values as of) | 10312023 | 11112026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.74 | 300.72 | 313.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 536 | 817 | 52.5% |
| Net Income Margin (%) | 33.9% | 38.5% | 13.6% |
| P/E Multiple | 10.7 | 24.6 | 129.8% |
| Shares Outstanding (Mil) | 27 | 26 | 3.8% |
| Cumulative Contribution | 313.4% |
Market Drivers
10/31/2023 to 11/11/2026| Return | Correlation | |
|---|---|---|
| IDCC | 313.4% | |
| Market (SPY) | 87.9% | 39.7% |
| Sector (XLK) | 116.4% | 39.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| IDCC Return | 20% | -29% | 124% | 81% | 66% | -5% | 446% |
| Peers Return | 42% | -27% | 23% | 30% | 8% | 3% | 86% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| IDCC Win Rate | 58% | 33% | 50% | 67% | 58% | 45% | |
| Peers Win Rate | 69% | 35% | 54% | 65% | 54% | 44% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| IDCC Max Drawdown | -24% | -44% | -23% | -18% | -20% | -34% | |
| Peers Max Drawdown | -15% | -38% | -17% | -18% | -27% | -31% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: CSCO, QCOM, MSI, FFIV, NUR. See IDCC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/11/2026 (YTD)
How Low Can It Go
| Event | IDCC | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.3% | -18.8% |
| % Gain to Breakeven | 18.1% | 23.1% |
| Time to Breakeven | 21 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -18.4% | -9.5% |
| % Gain to Breakeven | 22.6% | 10.5% |
| Time to Breakeven | 15 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -43.8% | -24.5% |
| % Gain to Breakeven | 77.8% | 32.4% |
| Time to Breakeven | 124 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -42.8% | -33.7% |
| % Gain to Breakeven | 74.9% | 50.9% |
| Time to Breakeven | 42 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -18.7% | -19.2% |
| % Gain to Breakeven | 23.0% | 23.8% |
| Time to Breakeven | 844 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -11.9% | -3.7% |
| % Gain to Breakeven | 13.5% | 3.9% |
| Time to Breakeven | 19 days | 6 days |
In The Past
InterDigital's stock fell -15.3% during the 2025 US Tariff Shock. Such a loss loss requires a 18.1% gain to breakeven.
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| Event | IDCC | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -43.8% | -24.5% |
| % Gain to Breakeven | 77.8% | 32.4% |
| Time to Breakeven | 124 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -42.8% | -33.7% |
| % Gain to Breakeven | 74.9% | 50.9% |
| Time to Breakeven | 42 days | 140 days |
| 2013 Taper Tantrum | ||
| % Loss | -38.6% | -0.2% |
| % Gain to Breakeven | 62.7% | 0.2% |
| Time to Breakeven | 118 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -39.3% | -17.9% |
| % Gain to Breakeven | 64.7% | 21.8% |
| Time to Breakeven | 1747 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -30.2% | -53.4% |
| % Gain to Breakeven | 43.3% | 114.4% |
| Time to Breakeven | 77 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -36.1% | -8.6% |
| % Gain to Breakeven | 56.5% | 9.5% |
| Time to Breakeven | 538 days | 47 days |
In The Past
InterDigital's stock fell -15.3% during the 2025 US Tariff Shock. Such a loss loss requires a 18.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About InterDigital (IDCC)
InterDigital (IDCC) is a technology innovation company specializing in the design and development of advanced wireless communication technologies. The company primarily invents and patents foundational technologies that enhance various digital cellular and wireless networks, including 2G, 3G, 4G, and 5G standards, as well as IEEE 802-related systems. Its extensive research and development efforts cover key areas like cellular communication protocols (CDMA, OFDM, MIMO), future wireless advancements (5G NR, Beyond 5G, extended reality over wireless), and the Internet of Things (IoT).
Rather than selling physical products, InterDigital's core business revolves around its intellectual property. The company develops and licenses its patented technologies for use across a wide range of devices and infrastructure. This includes technologies for mobile terminal devices, wireless infrastructure equipment such as base stations, and components for various wireless gadgets. Beyond cellular, InterDigital also contributes technologies to areas like video coding and transmission, artificial intelligence, and specialized applications for automobiles, wearables, smart homes, and drones. Its portfolio boasts approximately 27,500 patents and patent applications.
InterDigital's licensed technologies are integrated into products used globally, serving key markets in the United States, China, South Korea, Japan, Taiwan, and Europe. Its primary customers are effectively the manufacturers and developers of wireless-enabled devices and network infrastructure who license InterDigital's patents. These technologies enable a vast array of consumer and enterprise products, from cellular phones, tablets, and notebook computers to sophisticated IoT devices and critical wireless network components, making it a foundational technology provider in the global connectivity ecosystem.
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Here are 1-3 brief analogies for InterDigital (IDCC):
- Like Qualcomm's patent licensing division as a standalone company.
- The Dolby Laboratories for wireless communication and video technologies.
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- Wireless Communication Technologies: InterDigital designs and develops core technologies that enable and enhance 2G, 3G, 4G, and 5G wireless communications and networks.
- Advanced Connectivity & IoT Technologies: The company develops technologies for 5G NR, beyond 5G, extended reality over wireless, and cellular Internet of Things across various devices.
- Video Coding and Transmission Technologies: InterDigital provides technologies for efficient video coding and transmission.
- Artificial Intelligence (AI) Technologies: The company engages in research and development to create artificial intelligence technologies.
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Liren Chen, President and Chief Executive Officer
Liren Chen joined InterDigital as President and CEO on April 5, 2021. Before InterDigital, he spent nearly 25 years at Qualcomm Incorporated, where his most recent role was Senior Vice President and Global Head of IP, Legal Counsel. At Qualcomm, he was responsible for overseeing Qualcomm's worldwide intellectual property portfolio and leading technology, business strategy, product management, and global ecosystem development for Qualcomm Technology Licensing. He was also deeply involved in developing and driving Qualcomm's technology-driven IP strategy, as well as multiple IP acquisitions and integrations. Chen is a co-inventor on over 120 patents worldwide. He is also a board member of Arrow Electronics.
Richard J. Brezski, EVP, Chief Financial Officer & Treasurer
Richard J. Brezski serves as the Executive Vice President, Chief Financial Officer, and Treasurer of InterDigital.
Rajesh Pankaj, EVP, Chief Technology Officer
Rajesh Pankaj was appointed as InterDigital's Chief Technology Officer effective July 5, 2022. Prior to joining InterDigital, he spent 25 years at Qualcomm, where he most recently held the position of Senior Vice President, Engineering and Head of Corporate R&D. In this role at Qualcomm, he managed a global team of engineers focused on Artificial Intelligence, Edge Computing, and new technologies, and oversaw research in areas such as 5G, 4G LTE, and augmented reality. Dr. Pankaj is an inventor or co-inventor on 230 patents worldwide.
Julia C. Mattis, EVP, Chief Licensing Officer
Julia C. Mattis was appointed as InterDigital's Chief Licensing Officer in September 2025. She joined InterDigital in February 2010 and has held various senior positions within the legal and licensing teams, including Chief Licensing Counsel and Head of Smartphone Licensing. With over two decades of experience in the IP industry, she has been instrumental in finalizing licensing agreements with some of the world's leading smartphone and consumer electronics manufacturers. Before her tenure at InterDigital, Ms. Mattis worked in private practice at law firms.
Joshua D. Schmidt, EVP, Chief Legal Officer and Corporate Secretary
Joshua D. Schmidt was appointed Chief Legal Officer and Corporate Secretary for InterDigital in October 2021. He joined the company in March 2015 and previously served as Vice President, Deputy General Counsel. Before joining InterDigital, Mr. Schmidt worked in private practice at Dechert LLP, where he provided counsel to clients on a range of corporate legal matters, including public and private company M&A, securities offerings, and joint ventures.
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The public company InterDigital (IDCC), which specializes in designing and developing technologies for wireless communications and licensing its extensive patent portfolio, faces several key business risks:
- Dependence on Patent Licensing Revenue and Associated Litigation Risk: InterDigital's core business model heavily relies on generating revenue through licensing its vast patent portfolio, encompassing technologies from 2G to 5G, Wi-Fi, and video codecs. This reliance means the company is inherently exposed to significant litigation risks. InterDigital frequently engages in patent infringement lawsuits to enforce its intellectual property rights and secure licensing agreements from manufacturers of communication devices, consumer electronics, and IoT devices. Unfavorable legal rulings, changes in intellectual property laws, or difficulties in negotiating and renewing licensing agreements could substantially impact the company's financial performance and revenue stability. For example, the company has recently initiated patent infringement litigation against major television manufacturers like Hisense and TCL, as well as Amazon, to enforce its intellectual property rights. Additionally, the company faces antitrust challenges from competitors and licensees who may claim InterDigital abuses its market position by demanding excessively high royalty rates for its essential patents.
- Technological Disruption and Intense Competition: InterDigital operates in a highly dynamic and competitive technology sector characterized by rapid innovation. There is an ongoing risk that new market entrants or the development of alternative technologies could render InterDigital's existing patents less valuable or even obsolete. To maintain its market position and revenue generation capabilities, the company must continuously innovate and stay ahead of technological advancements. While InterDigital actively contributes to next-generation wireless standards like 5G Advanced and 6G, the threat of disruption from evolving technologies and a competitive landscape that includes larger, more diversified technology firms remains a significant challenge.
- Regulatory and Legal Challenges in the Intellectual Property Landscape: Beyond specific patent litigation, InterDigital is exposed to broader regulatory and legal risks stemming from changes in patent laws, market dynamics, and increased scrutiny of intellectual property rights. The global regulatory environment for patent licensing, particularly concerning Standard Essential Patents (SEPs), presents a significant near-term risk. There is ongoing antitrust scrutiny on the aggregation of SEPs into patent pools, with concerns about potential anti-competitive behavior or inflated royalty stacking. Adverse changes in intellectual property laws or increased regulatory pressures could significantly impact InterDigital's business operations and financial results.
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InterDigital (IDCC) operates in several significant addressable markets related to wireless communications, video technologies, and connected devices. Below are market size estimations for their key product and service areas:
- 5G Services and Technology: The global 5G services market was valued at USD 208.86 billion in 2025 and is projected to reach USD 17,319.9 billion by 2034, with a compound annual growth rate (CAGR) of 63.38% from 2026 to 2034. Another estimate places the global 5G service market size at USD 132.06 billion in 2024, expected to reach USD 1,104.05 billion by 2032. The global 5G technology market size was estimated at USD 274 billion in 2025 and is expected to hit around USD 24,231 billion by 2034.
- Cellular IoT: The global cellular IoT market size was valued at USD 8.02 billion in 2025 and is estimated to increase to USD 53.24 billion by 2034, demonstrating a CAGR of 23.40% between 2026 and 2034. Another source states the global cellular IoT market size was USD 6.4 billion in 2024, projected to reach USD 28.7 billion by 2033. Global cellular IoT connectivity revenues are expected to surpass USD 26 billion by 2030.
- Connected Cars/Vehicles: The global connected car market size was estimated at USD 12,843.0 million in 2024 and is projected to reach USD 26,470.7 million by 2030. Other estimates for the global connected car market include a valuation of USD 115.8 billion in 2023, projected to reach USD 501.8 billion by 2033. The global connected vehicle services market was valued at USD 21 billion in 2024 and is estimated to reach USD 57 billion by 2034.
- Wearable Technology: The global wearable technology market size was estimated at USD 92.90 billion in 2025 and is projected to reach USD 229.97 billion by 2033. Another report valued the global wearable technology market at USD 86.78 billion in 2025, projected to grow to USD 231.43 billion by 2034. North America held the largest wearable technology market share in 2025, accounting for 38.80% of the global market.
- Smart Homes: The global smart homes market size was valued at USD 151.5 billion in 2025 and is projected to reach USD 351.7 billion by 2034. Another assessment puts the global smart home market size at USD 127.80 billion in 2024, projected to reach USD 537.27 billion by 2030. North America dominates the market, holding a market share of 35.8% in 2025.
- Drones: The global drone market size was estimated at USD 83.81 billion in 2025 and is projected to reach USD 182.45 billion by 2033. The overall global UAV (Drone) market (OEM + Aftermarket) is estimated to be USD 26.12 billion in 2025 and projected to reach USD 40.56 billion by 2030. North America accounted for the largest revenue share of over 40.0% in the drone market in 2025. The global consumer drone market size was USD 5.12 billion in 2023 and is expected to increase to USD 15.63 billion by 2032.
- Extended Reality (XR) over Wireless: The global extended reality market size was USD 252.6 billion in 2025 and is estimated to reach USD 4,441.5 billion by the end of 2035. Another report estimated the global extended reality market size at USD 142.39 billion in 2023, projected to reach USD 1,069.27 billion by 2030. North America is expected to account for 41.6% of the global revenue share through 2035.
- Video Coding and Transmission Technologies (Advanced Video Coding, Video Encoding, and Transcoding): The global video transcoding market size reached USD 2,280.3 million in 2024 and is expected to reach USD 6,806.9 million by 2033. The Advanced Video Coding market was valued at USD 3.2 billion in 2023 and is expected to surpass USD 4.5 billion by 2030. North America dominates the global video encoder and transcoder market.
- Artificial Intelligence (AI) for Wireless Communications: The global AI in telecommunication market was valued at USD 3.6 billion in 2025 and is projected to grow to USD 45.1 billion by 2034. Another report estimated the global AI for wireless technology market size at USD 4.42 billion in 2025, expected to reach USD 10.63 billion by 2032. North America held around 35% market share of AI in telecommunication in 2024.
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Here are 3-5 expected drivers of future revenue growth for InterDigital (IDCC) over the next 2-3 years:
- Expansion and Renewal of Smartphone Licensing Agreements: InterDigital expects continued revenue growth through the renewal of existing and the execution of new licensing agreements with major smartphone manufacturers. The company completed significant licensing deals with Samsung (extended to 2030), vivo, Honor, and OPPO in 2024 and 2025, covering a substantial portion of global smartphone shipments. A recent smartphone renewal with a major Chinese vendor is also cited as contributing to the positive outlook for 2026.
- Diversification of Licensing into New Verticals: The company is actively expanding its intellectual property licensing beyond traditional smartphones to encompass a broader range of connected devices. This includes consumer electronics (CE), Internet of Things (IoT), automotive, and personal computers (PC). Notable agreements include a new CE device license with a significant social media company and a license agreement with HP, the world's largest PC manufacturer, both in 2025. Recurring revenue from CE and IoT licensing increased significantly in 2024, indicating a growing contribution from these segments.
- Sustained Growth in Annualized Recurring Revenue (ARR): InterDigital consistently highlights the expansion of its Annualized Recurring Revenue, which represents a stable and predictable base of licensing income. ARR increased by 24% year-over-year in Q4 2025, reaching $582 million. The company aims to achieve double-digit growth in its ARR, demonstrating a focus on increasing this recurring revenue stream.
- Continued Innovation and Patent Development in Advanced Technologies: InterDigital's ongoing investment in research and development, particularly in areas like artificial intelligence (AI), 5G, and next-generation wireless technologies such as 6G, is a fundamental driver for long-term revenue growth. The company's patent portfolio grew by 14% in 2025, surpassing 38,000 grantee patents and applications, and is considered one of the highest quality globally. This continuous innovation fuels the pipeline for future licensing opportunities across various industries.
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Share Repurchases
- On December 6, 2023, InterDigital's Board of Directors authorized an increase of approximately $235 million to the outstanding amount of its existing share repurchase program, bringing the total authorization to $300 million, effective December 1, 2023.
Share Issuance
- InterDigital's shares outstanding were 0.034 billion in 2025, marking a 16.03% increase from 2024.
- Shares outstanding for the quarter ending December 31, 2025, increased by 20.31% year-over-year to 0.036 billion.
- The company's 3.50% Senior Convertible Notes due 2027 are convertible at a rate of 12.9041 shares of common stock per $1,000 principal amount, with InterDigital having the option to settle in cash, shares, or a combination. Call spread transactions were implemented to economically raise the conversion price from $77.49 to $105.67, thereby reducing the net shares issued upon conversion.
Capital Expenditures
- Research and innovation costs, a primary component of capital expenditures for InterDigital, were $78.3 million in 2023, $74.3 million in 2022, and $89.4 million in 2021.
- The largest portion of these research and innovation costs has been allocated to personnel.
- InterDigital generated $63.2 million in free cash flow in the fourth quarter of 2025, representing cash available after capital expenditures.
Peer Outperformance in Communications Equipment
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| IDCC | InterDigital | 15.1% | 24.6x | -18.3% | 252.3% | 346.4% | — |
| CIEN | Ciena | 13.5% | 64.3x | 42.7% | 570.8% | 386.4% | +40pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 10 | 19.4% | 114.8% | 191.3% | FLEX 488% · TTMI 452% · JBL 307% |
| Technology Distributors | 9 | 60.5% | 64.3% | 60.7% | AVT 146% · SNX 126% · CNXN 82% |
| Semiconductor Materials & Equipment | 28 | 53.9% | 63.2% | 46.6% | AXTI 420% · KLAC 309% · LRCX 304% |
| Electronic Components | 24 | 24.0% | 79.4% | 41.6% | CLS 2005% · BELFA 1139% · APH 301% |
| Communications Equipment ← | 36 | 8.3% | 101.2% | 40.3% | AAOI 825% · LITE 611% · ANET 504% |
| Electronic Equipment & Instruments | 27 | -4.4% | 31.0% | 3.0% | PI 133% · OSIS 106% · KEYS 65% |
| Semiconductors | 55 | 16.9% | 49.3% | -1.9% | MU 1015% · AVGO 579% · NVDA 474% |
| Technology Hardware, Storage & Peripherals | 21 | -12.8% | 87.4% | -12.7% | DELL 633% · WDC 616% · SMCI 587% |
| IT Consulting & Other Services | 30 | -17.7% | -1.9% | -22.0% | APLD 349% · IBM 148% · GIB -8% |
| Internet Services & Infrastructure | 6 | -9.1% | 41.9% | -22.2% | GDDY 61% · VRSN 37% · AKAM -21% |
| Application Software | 126 | -11.5% | -13.2% | -53.8% | PLTR 650% · FROG 196% · AGYS 160% |
| Systems Software | 71 | -8.6% | 20.3% | -58.2% | ZETA 282% · CRWD 226% · CVLT 149% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 239.27 |
| Mkt Cap | 88.6 |
| Rev LTM | 7,956 |
| Op Inc LTM | 2,015 |
| FCF LTM | 1,752 |
| FCF 3Y Avg | 1,647 |
| CFO LTM | 1,944 |
| CFO 3Y Avg | 1,805 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.4% |
| Rev Chg 3Y Avg | 6.2% |
| Rev Chg Q | 14.8% |
| QoQ Delta Rev Chg LTM | 3.3% |
| Op Inc Chg LTM | -10.8% |
| Op Inc Chg 3Y Avg | 8.2% |
| Op Mgn LTM | 25.2% |
| Op Mgn 3Y Avg | 24.6% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 24.2% |
| CFO/Rev 3Y Avg | 26.5% |
| FCF/Rev LTM | 20.1% |
| FCF/Rev 3Y Avg | 23.5% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 88.6 |
| P/S | 6.2 |
| P/Op Inc | 21.8 |
| P/EBIT | 21.8 |
| P/E | 25.0 |
| P/CFO | 25.2 |
| Total Yield | 5.0% |
| Dividend Yield | 0.9% |
| FCF Yield 3Y Avg | 4.2% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -10.1% |
| 3M Rtn | -16.0% |
| 6M Rtn | -6.2% |
| 12M Rtn | 17.5% |
| 3Y Rtn | 88.5% |
| 1M Excs Rtn | -7.0% |
| 3M Excs Rtn | -7.8% |
| 6M Excs Rtn | -7.2% |
| 12M Excs Rtn | 7.6% |
| 3Y Excs Rtn | 20.0% |
Comparison Analyses
Price Behavior
| Market Price | $300.72 | |
| Market Cap ($ Bil) | 7.8 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | -20.1% | |
| 50 Days | 200 Days | |
| DMA Price | $325.25 | $315.61 |
| DMA Trend | indeterminate | indeterminate |
| Distance from DMA | -7.5% | -4.7% |
| 3M | 1YR | |
| Volatility | 36.2% | 47.1% |
| Downside Capture | 153.02 | 158.78 |
| Upside Capture | 94.65 | 116.33 |
| Correlation (S&P 500) | 54.6% | 41.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.90 | 1.61 | 1.65 | 1.72 | 1.41 | 1.00 |
| Up Beta | -4.19 | -1.28 | 0.13 | 2.21 | 1.84 | 1.07 |
| Down Beta | 3.29 | 3.39 | 3.36 | 1.28 | 0.84 | 0.67 |
| Up Capture | 140% | 134% | 168% | 200% | 132% | 220% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 11 | 24 | 35 | 68 | 127 | 410 |
| Down Capture | 178% | 163% | 149% | 154% | 138% | 99% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 11 | 19 | 29 | 58 | 124 | 342 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IDCC | |
|---|---|---|---|---|
| IDCC | -16.9% | 47.1% | -0.25 | - |
| Sector ETF (XLK) | 18.5% | 28.6% | 0.58 | 44.4% |
| Equity (SPY) | 12.5% | 13.7% | 0.60 | 41.2% |
| Gold (GLD) | -3.5% | 28.8% | -0.13 | 25.2% |
| Commodities (DBC) | 33.0% | 21.3% | 1.24 | -5.9% |
| Real Estate (VNQ) | 11.7% | 14.2% | 0.53 | 6.9% |
| Bitcoin (BTCUSD) | -30.9% | 43.5% | -0.73 | 14.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IDCC | |
|---|---|---|---|---|
| IDCC | 35.3% | 37.2% | 0.89 | - |
| Sector ETF (XLK) | 17.2% | 26.5% | 0.58 | 45.2% |
| Equity (SPY) | 11.8% | 17.3% | 0.51 | 45.7% |
| Gold (GLD) | 17.1% | 19.2% | 0.72 | 14.1% |
| Commodities (DBC) | 7.9% | 19.6% | 0.29 | 4.9% |
| Real Estate (VNQ) | 1.3% | 18.9% | -0.04 | 29.5% |
| Bitcoin (BTCUSD) | 3.1% | 51.5% | 0.24 | 20.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IDCC | |
|---|---|---|---|---|
| IDCC | 17.7% | 36.1% | 0.55 | - |
| Sector ETF (XLK) | 23.4% | 25.3% | 0.84 | 50.0% |
| Equity (SPY) | 15.5% | 18.0% | 0.73 | 54.1% |
| Gold (GLD) | 11.5% | 16.6% | 0.57 | 10.6% |
| Commodities (DBC) | 7.4% | 18.2% | 0.33 | 15.9% |
| Real Estate (VNQ) | 6.1% | 20.7% | 0.25 | 40.6% |
| Bitcoin (BTCUSD) | 58.6% | 66.3% | 0.99 | 16.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 11/9/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | 4.3% | -3.8% | |
| 7/30/2026 | 16.2% | 26.6% | 28.1% |
| 4/30/2026 | -15.9% | -21.2% | -28.5% |
| 2/5/2026 | 9.9% | 15.9% | 13.8% |
| 10/30/2025 | 3.5% | 0.8% | -8.2% |
| 7/31/2025 | 5.3% | 10.2% | 11.6% |
| 5/1/2025 | 0.6% | 5.7% | 8.1% |
| 2/6/2025 | 16.0% | 15.1% | 18.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 17 | 14 | 15 |
| # Negative | 7 | 10 | 8 |
| Median Positive | 5.3% | 10.7% | 11.6% |
| Median Negative | -3.6% | -3.9% | -5.2% |
| Max Positive | 16.2% | 26.8% | 32.7% |
| Max Negative | -15.9% | -21.2% | -28.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | 4.3% | -3.8% | |
| 7/30/2026 | 16.2% | 26.6% | 28.1% |
| 4/30/2026 | -15.9% | -21.2% | -28.5% |
| 2/5/2026 | 9.9% | 15.9% | 13.8% |
| 10/30/2025 | 3.5% | 0.8% | -8.2% |
| 7/31/2025 | 5.3% | 10.2% | 11.6% |
| 5/1/2025 | 0.6% | 5.7% | 8.1% |
| 2/6/2025 | 16.0% | 15.1% | 18.0% |
| 10/31/2024 | 1.8% | 20.0% | 32.7% |
| 8/1/2024 | 11.5% | 11.1% | 11.3% |
| 2/15/2024 | 11.0% | 4.4% | -1.9% |
| 11/2/2023 | 8.6% | 11.9% | 32.3% |
| 8/3/2023 | -3.6% | -6.7% | -4.6% |
| 5/4/2023 | 9.4% | 26.8% | 26.5% |
| 2/15/2023 | 2.2% | -1.1% | 2.0% |
| 11/3/2022 | -2.1% | 0.4% | 5.9% |
| 8/4/2022 | -1.9% | -10.6% | -23.5% |
| 5/5/2022 | -3.7% | -4.0% | 8.2% |
| 2/17/2022 | -2.5% | -7.0% | -4.3% |
| 11/4/2021 | 0.4% | -0.6% | -5.7% |
| 8/5/2021 | 0.4% | 8.9% | 4.4% |
| 5/6/2021 | 1.4% | -1.0% | 21.9% |
| 2/18/2021 | -5.5% | -3.4% | -4.3% |
| 11/5/2020 | 8.8% | 9.0% | 11.0% |
| SUMMARY STATS | |||
| # Positive | 17 | 14 | 15 |
| # Negative | 7 | 10 | 8 |
| Median Positive | 5.3% | 10.7% | 11.6% |
| Median Negative | -3.6% | -3.9% | -5.2% |
| Max Positive | 16.2% | 26.8% | 32.7% |
| Max Negative | -15.9% | -21.2% | -28.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/29/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/15/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/29/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/15/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/15/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 02/17/2022 | 10-K |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/05/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/18/2021 | 10-K |
| 09/30/2020 | 11/05/2020 | 10-Q |
| 06/30/2020 | 08/06/2020 | 10-Q |
| 03/31/2020 | 05/07/2020 | 10-Q |
| 12/31/2019 | 02/20/2020 | 10-K |
Recent Forward Guidance
Updated 10/30/2026Latest: Q3 2026 Earnings Reported 10/29/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 154.00 Mil | 157.00 Mil | 160.00 Mil | 0.6% | Higher New | Guidance: 156.00 Mil for Q3 2026 | |
| Q4 2026 Adjusted EBITDA | Reported | 80.00 Mil | 84.00 Mil | 88.00 Mil | -5.6% | Lower New | Guidance: 89.00 Mil for Q3 2026 | |
| Q4 2026 Net Income | Reported | 35.00 Mil | 39.00 Mil | 43.00 Mil | ||||
| Q4 2026 Non-GAAP Net Income | Reported | 53.00 Mil | 57.00 Mil | 61.00 Mil | ||||
| Q4 2026 Diluted EPS | Reported | 1.04 | 1.16 | 1.27 | -13.5% | Lower New | Guidance: 1.34 for Q3 2026 | |
| Q4 2026 Non-GAAP EPS | Reported | 1.72 | 1.85 | 1.98 | -9.1% | Lower New | Guidance: 2.04 for Q3 2026 | |
| 2026 Revenue | Reported | 813.00 Mil | 816.00 Mil | 819.00 Mil | 0.7% | Raised | Guidance: 810.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | Reported | 507.00 Mil | 511.00 Mil | 515.00 Mil | 2.4% | Raised | Guidance: 499.00 Mil for 2026 | |
| 2026 Net Income | Reported | 307.00 Mil | 311.00 Mil | 315.00 Mil | ||||
| 2026 Non-GAAP Net Income | Reported | 369.00 Mil | 373.00 Mil | 377.00 Mil | ||||
| 2026 Diluted EPS | Reported | 8.93 | 9.05 | 9.16 | 2.9% | Raised | Guidance: 8.79 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 11.99 | 12.12 | 12.25 | 2.5% | Raised | Guidance: 11.83 for 2026 | |
Prior: Q2 2026 Earnings Reported 7/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | Reported | 154.00 Mil | 156.00 Mil | 158.00 Mil | 10.6% | Higher New | Guidance: 141.00 Mil for Q2 2026 | |
| Q3 2026 Adjusted EBITDA | Reported | 86.00 Mil | 89.00 Mil | 92.00 Mil | 27.1% | Higher New | Guidance: 70.00 Mil for Q2 2026 | |
| Q3 2026 Diluted EPS | Reported | 1.25 | 1.34 | 1.42 | 50.8% | Higher New | Guidance: 0.89 for Q2 2026 | |
| Q3 2026 Non-GAAP EPS | Reported | 1.94 | 2.04 | 2.13 | 35.2% | Higher New | Guidance: 1.51 for Q2 2026 | |
| 2026 Revenue | Reported | 775.00 Mil | 810.00 Mil | 845.00 Mil | 11.7% | Raised | Guidance: 725.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | Reported | 469.00 Mil | 499.00 Mil | 529.00 Mil | 16.3% | Raised | Guidance: 429.00 Mil for 2026 | |
| 2026 Diluted EPS | Reported | 7.91 | 8.79 | 9.67 | 23.1% | Raised | Guidance: 7.14 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 10.85 | 11.83 | 12.81 | 15.0% | Raised | Guidance: 10.29 for 2026 | |
Q1 2026 Earnings Reported 4/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | Reported | 139.00 Mil | 141.00 Mil | 143.00 Mil | -28.4% | Lower New | Guidance: 197.00 Mil for Q1 2026 | |
| Q2 2026 Adjusted EBITDA | Reported | 67.00 Mil | 70.00 Mil | 73.00 Mil | -33.6% | Lower New | Guidance: 105.50 Mil for Q1 2026 | |
| Q2 2026 Diluted EPS | Reported | 0.8 | 0.89 | 0.97 | -49.0% | Lower New | Guidance: 1.74 for Q1 2026 | |
| Q2 2026 Non-GAAP EPS | Reported | 1.41 | 1.51 | 1.6 | -40.6% | Lower New | Guidance: 2.54 for Q1 2026 | |
| 2026 Revenue | Reported | 675.00 Mil | 725.00 Mil | 775.00 Mil | 0 | Affirmed | Guidance: 725.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | Reported | 381.00 Mil | 429.00 Mil | 477.00 Mil | 0 | Affirmed | Guidance: 429.00 Mil for 2026 | |
| 2026 Diluted EPS | Reported | 5.77 | 7.14 | 8.51 | 0 | Affirmed | Guidance: 7.14 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 8.74 | 10.29 | 11.84 | 0 | Affirmed | Guidance: 10.29 for 2026 | |
Q4 2025 Earnings Reported 2/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | Reported | 194.00 Mil | 197.00 Mil | 200.00 Mil | 34.9% | Higher New | Guidance: 146.00 Mil for Q4 2025 | |
| Q1 2026 Adjusted EBITDA | Reported | 101.00 Mil | 105.50 Mil | 110.00 Mil | 46.5% | Higher New | Guidance: 72.00 Mil for Q4 2025 | |
| Q1 2026 Diluted EPS | Reported | 1.61 | 1.74 | 1.86 | 107.8% | Higher New | Guidance: 0.84 for Q4 2025 | |
| Q1 2026 Non-GAAP EPS | Reported | 2.39 | 2.54 | 2.68 | 68.4% | Higher New | Guidance: 1.51 for Q4 2025 | |
| 2026 Revenue | Reported | 675.00 Mil | 725.00 Mil | 775.00 Mil | -11.8% | Lower New | Guidance: 822.00 Mil for 2025 | |
| 2026 Adjusted EBITDA | Reported | 381.00 Mil | 429.00 Mil | 477.00 Mil | -25.1% | Lower New | Guidance: 573.00 Mil for 2025 | |
| 2026 Diluted EPS | Reported | 5.77 | 7.14 | 8.51 | -37.3% | Lower New | Guidance: 11.39 for 2025 | |
| 2026 Non-GAAP EPS | Reported | 8.74 | 10.29 | 11.84 | -30.0% | Lower New | Guidance: 14.7 for 2025 | |
Insider Activity
Updated 11/6/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 11062026 | 307.38 | 1,500 | 461,070 | 19,072,865 | Form |
| 2 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 10062026 | 334.32 | 1,500 | 501,480 | 21,234,573 | Form |
| 3 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 9092026 | 338.00 | 1,500 | 507,000 | 21,975,311 | Form |
| 4 | Gillman, Joan H | Direct | Sell | 8102026 | 331.06 | 300 | 99,318 | 7,526,907 | Form | |
| 5 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 8072026 | 324.88 | 1,500 | 487,320 | 21,609,625 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 11062026 | 307.38 | 1,500 | 461,070 | 19,072,865 | Form |
| 2 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 10062026 | 334.32 | 1,500 | 501,480 | 21,234,573 | Form |
| 3 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 9092026 | 338.00 | 1,500 | 507,000 | 21,975,311 | Form |
| 4 | Gillman, Joan H | Direct | Sell | 8102026 | 331.06 | 300 | 99,318 | 7,526,907 | Form | |
| 5 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 8072026 | 324.88 | 1,500 | 487,320 | 21,609,625 | Form |
| 6 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 7072026 | 286.00 | 1,500 | 429,000 | 19,441,268 | Form |
| 7 | Markley, John D JR | Direct | Sell | 6232026 | 300.00 | 400 | 120,000 | 3,520,412 | Form | |
| 8 | Rankin, Jean F | Direct | Sell | 6162026 | 276.64 | 365 | 100,974 | 8,005,408 | Form | |
| 9 | Kritzmacher, John A | Direct | Sell | 6162026 | 276.64 | 365 | 100,974 | 4,525,554 | Form | |
| 10 | Armaly, Samir | Direct | Sell | 6162026 | 276.64 | 470 | 130,021 | 1,274,757 | Form | |
| 11 | Aberle, Derek K | Direct | Sell | 6162026 | 276.64 | 522 | 144,406 | 2,107,997 | Form | |
| 12 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 6122026 | 290.00 | 1,500 | 435,000 | 20,148,174 | Form |
| 13 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 6082026 | 258.38 | 750 | 193,785 | 18,338,898 | Form |
| 14 | Mattis, Julia C | Chief Licensing Officer | Direct | Sell | 6042026 | 257.65 | 1,600 | 412,240 | 2,972,845 | Form |
| 15 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 5062026 | 278.00 | 750 | 208,500 | 19,939,956 | Form |
| 16 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 4072026 | 313.30 | 1,500 | 469,950 | 22,698,426 | Form |
| 17 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 3172026 | 348.21 | 6,000 | 2,089,260 | 9,014,888 | Form |
| 18 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 3062026 | 368.10 | 1,000 | 368,100 | 22,158,173 | Form |
| 19 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 3032026 | 365.86 | 467 | 170,857 | 9,885,791 | Form |
| 20 | Gillman, Joan H | Direct | Sell | 2122026 | 352.24 | 325 | 114,478 | 7,761,926 | Form | |
| 21 | Brezski, Richard | Chief Financial Officer | Direct | Sell | 2122026 | 352.24 | 2,000 | 704,480 | 24,798,962 | Form |
| 22 | Brezski, Richard | Chief Financial Officer | Direct | Sell | 2122026 | 360.80 | 6,005 | 2,166,622 | 26,123,432 | Form |
| 23 | Markley, John D JR | Direct | Sell | 2122026 | 374.95 | 700 | 262,465 | 4,208,190 | Form | |
| 24 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 2092026 | 326.26 | 1,000 | 326,260 | 19,965,830 | Form |
| 25 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1282026 | 327.62 | 5,958 | 1,951,978 | 50,151,541 | Form |
| 26 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1212026 | 326.71 | 2,975 | 971,962 | 51,958,327 | Form |
| 27 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1212026 | 303.77 | 2,975 | 903,716 | 49,213,780 | Form |
| 28 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1142026 | 312.72 | 2,975 | 930,342 | 51,594,112 | Form |
| 29 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1142026 | 310.82 | 2,975 | 924,690 | 52,205,330 | Form |
| 30 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 12312025 | 325.34 | 466 | 151,608 | 8,934,459 | Form |
| 31 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 12312025 | 325.34 | 2,975 | 967,886 | 57,547,769 | Form |
| 32 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 12312025 | 329.50 | 2,975 | 980,262 | 59,263,873 | Form |
| 33 | Kritzmacher, John A | Direct | Sell | 12232025 | 331.00 | 1,250 | 413,750 | 5,234,676 | Form | |
| 34 | Kritzmacher, John A | Direct | Sell | 12102025 | 357.37 | 1,250 | 446,712 | 6,098,422 | Form | |
| 35 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 12082025 | 350.79 | 1,000 | 350,790 | 22,154,861 | Form |
| 36 | Kritzmacher, John A | Direct | Sell | 11262025 | 346.62 | 1,250 | 433,275 | 6,348,252 | Form | |
| 37 | Kritzmacher, John A | Direct | Sell | 11122025 | 360.63 | 1,250 | 450,788 | 7,055,629 | Form | |
| 38 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 11062025 | 375.31 | 1,000 | 375,310 | 24,078,782 | Form |
| 39 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 11042025 | 395.63 | 466 | 184,364 | 11,049,121 | Form |
Investor Activity (13F)
Updated Nov 12, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
IDCC Trade Sentinel
Constructive
CONVICTION RATIONALE
InterDigital is successfully executing a pivot into new growth markets, demonstrated by 97% revenue growth in its consumer electronics and IoT program and a landmark new agreement with Amazon. While overall recurring revenue growth has slowed, a strong pipeline of legal catalysts and significant opportunities in under-penetrated markets like video services provide a clear path for re-acceleration.
STOCK ARCHETYPE
IP Licensing / Royalty(Number of Licensees) x (Average License Value) Securing new, high-value license agreements in untapped or under-monetized markets, which adds very high-margin revenue.
INVESTMENT THESIS
Evidence points to a successful pivot, with new licensing programs in streaming and consumer electronics gaining significant traction.
- CE, IoT/Auto program revenue grew 97% year-over-year to $55.7 million in Q3 2026.
- A new patent license agreement was signed with Amazon for its devices and services.
- Annualized Recurring Revenue reached an all-time high of $629 million in Q3 2026.
- The company has signed over 50 license agreements since 2021 with a total contract value over $4.6 billion.
PRIMARY RISK
The year-over-year growth rate of annualized recurring revenue (ARR) has decelerated from 24% over the past four quarters, suggesting the core smartphone market is maturing faster than new markets are accelerating.
- ARR growth slowed YoY in Q4 2025, down from 24% in the prior eight quarters.
- The core global smartphone market is already approximately 85% licensed.
- Fourteen agreements contributing $15.0 million in 2025 recurring revenue expire by the end of 2026.
- Three customers accounted for 54% of revenue in Q3 2026, indicating high concentration.
| KPI | Status | Rationale |
|---|---|---|
| Annualized Recurring Revenue (ARR) | $629 million in Q3 2026 - Decelerating | ARR reached an all-time high in Q3 2026. However, the year-over-year growth rate has decelerated, down from 13% in the prior two quarters and 24% in Q4 2025. The sequential growth from Q2 was minimal, though management noted its top three smartphone customers are licensed through the end of the decade, providing a strong foundation. |
| Revenue from New Growth Programs (CE, IoT/Auto and Streaming) | In Q3 2026, revenue was comprised of $55.7 million from CE, IoT/Auto and $15.0 million from Streaming and Cloud Services. - Accelerating | The underlying growth in new programs is strong, driven by new license agreements. In Q3, the company signed a deal with a top PC manufacturer and an EV charging company. The sequential decline is misleading due to the lumpy nature of catch-up revenue from major new deals. |
| Catch-up Revenue | $36.2 million (Q3 2026) | Represents revenue from new agreements that covers past periods of unlicensed sales. It is a lumpy but direct indicator of success in signing new licensees. |
| Patents and Patent Applications | More than 38,000 (As of 12/31/2025) | Represents the size of the core intellectual property asset base that generates licensing revenue. |
New Growth Engines vs. Maturing Core Market
BULL VIEW
The 97% growth in the CE/IoT segment and new deals with major players like Amazon prove the licensing model is successfully expanding into large new addressable markets, driving a new growth cycle.
CORE TENSION
Can accelerating growth from new programs like Streaming and CE/IoT (97% YoY) offset the maturing, highly penetrated (~85%) smartphone base that caused overall ARR growth to slow to 24%?
PREVAILING SENTIMENT
The latest evidence favors the bulls. The 17.5% Q3 revenue growth inflection and major new agreements are leading indicators of a successful expansion that the headline ARR growth rate currently masks.
BEAR VIEW
The deceleration in overall ARR growth to 24% shows the new segments are not yet large enough to offset saturation in the core smartphone business, risking a period of stagnant growth.
| Timeline | Event & Metric To Watch |
|---|---|
fourth quarter 2026 | Adverse Disney Litigation Ruling Watch: Court rulings from Germany or the UPC, and any announced settlement or change in Disney's service. |
12/9/2026 | Peer FEIM Earnings Report Watch: Peer Frequency Electronics (FEIM) is scheduled to report earnings. |
1/25/2027 | Peer FFIV Earnings Report Watch: Peer F5 (FFIV) is scheduled to report earnings. |
2/2/2027 | Negative Peer Read-Through Watch: Qualcomm's results and guidance for the handset and IoT markets, which are key end markets for InterDigital's licensing programs. |
2/3/2027 | Contract Renewal Miss Watch: Updates on renewal progress for the 14 expiring contracts and the Samsung TV agreement in the Q4 earnings report. |
2/3/2027 | Sustained Margin Pressure Watch: Reported operating expenses in the Q4 results, particularly licensing and litigation costs, and the margin outlook for 2027. |
2/3/2027 | Company Earnings Report Watch: The company is scheduled to report its next quarterly earnings. |
December of this year | Disney VP9 Codec Hearing Watch: A court case against Disney regarding the VP9 video codec is scheduled to be heard. |
| Date | Event | Stock Impact |
|---|---|---|
2026-10-30 | New PC Arbitration Agreement Details: The company reached an agreement with Dell to enter into binding arbitration for a patent license, bringing four of the top five PC makers under license. | -6.8% $334.27 -> $311.57 |
2026-10-30 | Amazon Arbitration Agreement Details: The company reached an agreement with Amazon to enter into binding arbitration to determine patent license terms, resolving all pending litigation. This marked a major milestone for the video services program. | -6.8% $334.27 -> $311.57 |
2026-10-29 | Q3 Results Beat Guidance Details: The company announced Q3 revenue was up 17% year-over-year and raised its full-year 2026 outlook. Annualized recurring revenue reached a record $629 million. | -2.8% $320.56 -> $311.57 |
2026-10-27 | Injunction Awarded Against TCL Details: A court in Brazil awarded a preliminary injunction against TCL related to HEVC technology, finding that InterDigital's offers met FRAND obligations while TCL's were an order of magnitude too low. | -1.1% $324.26 -> $320.56 |
2026-09-09 | Quarterly Dividend Increased Details: The Board of Directors approved an increase in the company's quarterly cash dividend from $0.70 to $0.75 per share. | +1.6% $340.17 -> $345.66 |
2026-07-30 | Strong Post-Earnings Reaction Details: Following the Q2 earnings report on July 30, which included the Amazon agreement announcement, the stock had a two-day reaction of 17.0%, outperforming the S&P 500. | +16.7% $260.55 -> $304.14 |
2026-05-19 | New IoT License Signed Details: The company signed a new IoT patent license agreement with a fintech company in the payments space, covering point-of-sale devices. | +0.9% $262.59 -> $264.85 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: IDCC trades at roughly 34% annualized realized (three-month) volatility versus about 10% for the S&P 500 (3.3x the market). A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
QCOM - Qualcomm
Large-Cap Scale PlayQualcomm offers vastly greater scale with absolute R&D spend of $9.9 billion versus InterDigital's $226.2 million, providing broader exposure to the wireless technology ecosystem, albeit with lower gross margins (54.2% vs 82.4%).
A high-margin 'patent tollbooth' for the communications and entertainment industries, monetizing decades of R&D through aggressive legal enforcement and long-term contracts.
InterDigital is a pure-play R&D and licensing company whose primary asset is a vast portfolio of patents essential to technologies like 5G and video streaming. The business model involves signing long-term, fixed-fee licenses with device makers and service providers. Growth is driven by expanding into new markets like streaming and IoT, often by using litigation and arbitration as a tool to bring potential licensees to the negotiating table. This results in lumpy 'catch-up' payments followed by stable, high-margin recurring revenue.
Announcements of new, large license agreements, particularly in the streaming and CE/IoT sectors; favorable outcomes in major arbitrations or court cases; and continued growth in Annualized Recurring Revenue (ARR).
Significant legal defeats challenging the validity or essentiality of key patents; failure to renew a major license on favorable terms; or a regulatory shift that weakens patent enforcement rights.
Quarter-to-quarter revenue fluctuations due to the timing of catch-up payments, which can obscure the stable underlying growth in recurring revenue.
Repricing Catalyst
Successful monetization of the video streaming market, as evidenced by the recent agreement with Amazon and the string of legal victories and injunctions against Disney.
Single Segment
$817M TTM (100% of Total)What It Is
The company licenses its portfolio of patents related to wireless, video, and AI technologies. Licensees include makers of smartphones (Apple, Samsung, Xiaomi), consumer electronics (HP, LG), IoT devices, connected cars, and video streaming services (Amazon, Disney).
Who Pays & How
Device manufacturers and service providers pay license fees to legally incorporate InterDigital's foundational, often standard-essential, patented technologies into their products and services, which is necessary for market participation and to avoid costly infringement lawsuits.
Competition
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Communications Equipment Resources |
| Light Reading |
| Fierce Network |
| Telecoms.com |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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