InterDigital (IDCC)
Market Price (9/27/2026): $334.135 | Market Cap: $8.6 BilSector: Information Technology | Industry: Communications Equipment
InterDigital (IDCC)
Market Price (9/27/2026): $334.135Market Cap: $8.6 BilSector: Information TechnologyIndustry: Communications Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 71%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 63% Attractive yieldFCF Yield is 5.8% Low stock price volatilityVol 12M is 48% 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 14.31, 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 11% | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -12%, Rev Chg QQuarterly Revenue Change % is -13% Key risksIDCC key risks include [1] a heavy dependence on lumpy patent licensing renewals and associated litigation, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 44% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 71%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 63% |
| Attractive yieldFCF Yield is 5.8% |
| Low stock price volatilityVol 12M is 48% |
| 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 14.31, 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 11% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -12%, Rev Chg QQuarterly Revenue Change % is -13% |
| 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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InterDigital (IDCC) stock has gained about 35% since 5/31/2026 because of the following key factors:
1. InterDigital delivered exceptionally strong fiscal Q2 2026 financial results, significantly surpassing analyst expectations, and subsequently raised its full-year guidance.
The company reported an earnings per share (EPS) of $4.62 for fiscal Q2 2026, vastly exceeding the consensus estimate of $0.90 by $3.72, marking a 212.16% beat. Revenue for the quarter also topped expectations at $260.17 million against an anticipated $143.10 million. Following this strong performance, InterDigital increased its full-year 2026 revenue guidance to a range of $775 million to $845 million, up from the prior range of $675 million to $775 million, and raised its non-GAAP EPS guidance to $10.85-$12.81 from $8.74-$11.84. This positive earnings surprise and optimistic outlook drove a 9.69% jump in share price to $286.45 immediately after the announcement.
2. The company demonstrated robust licensing momentum, achieving record Annualized Recurring Revenue (ARR) and securing strategic agreements in new market verticals.
InterDigital's Annualized Recurring Revenue (ARR) reached an all-time high of $626 million in fiscal Q2 2026, representing a 13% increase year-over-year. This reflects the stability and strength of its core patent licensing business. Notably, InterDigital expanded its licensing footprint by signing a significant patent license agreement with Amazon.com, Inc. for streaming and cloud services, broadening its reach beyond traditional smartphone licensing. Additionally, a new patent license agreement was secured with EV charging company KEBA Energy Automation GmbH, covering 3G, 4G, and Wi-Fi standards, indicating successful diversification into the Internet of Things (IoT) sector.
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InterDigital (IDCC) stock has gained about 35% since 5/31/2026 because of the following key factors:
1. InterDigital delivered exceptionally strong fiscal Q2 2026 financial results, significantly surpassing analyst expectations, and subsequently raised its full-year guidance.
The company reported an earnings per share (EPS) of $4.62 for fiscal Q2 2026, vastly exceeding the consensus estimate of $0.90 by $3.72, marking a 212.16% beat. Revenue for the quarter also topped expectations at $260.17 million against an anticipated $143.10 million. Following this strong performance, InterDigital increased its full-year 2026 revenue guidance to a range of $775 million to $845 million, up from the prior range of $675 million to $775 million, and raised its non-GAAP EPS guidance to $10.85-$12.81 from $8.74-$11.84. This positive earnings surprise and optimistic outlook drove a 9.69% jump in share price to $286.45 immediately after the announcement.
2. The company demonstrated robust licensing momentum, achieving record Annualized Recurring Revenue (ARR) and securing strategic agreements in new market verticals.
InterDigital's Annualized Recurring Revenue (ARR) reached an all-time high of $626 million in fiscal Q2 2026, representing a 13% increase year-over-year. This reflects the stability and strength of its core patent licensing business. Notably, InterDigital expanded its licensing footprint by signing a significant patent license agreement with Amazon.com, Inc. for streaming and cloud services, broadening its reach beyond traditional smartphone licensing. Additionally, a new patent license agreement was secured with EV charging company KEBA Energy Automation GmbH, covering 3G, 4G, and Wi-Fi standards, indicating successful diversification into the Internet of Things (IoT) sector.
3. InterDigital strengthened its intellectual property enforcement position through successful patent litigation.
The company achieved a notable legal victory by securing a third injunction against Disney from Europe's Unified Patent Court (UPC) in early September 2026. This success in defending and monetizing its global patent portfolio reinforces the value of its intellectual property, which is fundamental to InterDigital's business model and provides a strong competitive advantage.
4. InterDigital increased its quarterly cash dividend, signaling financial health and a commitment to shareholder returns.
On September 9, 2026, the Board of Directors approved an increase in the quarterly cash dividend from $0.70 to $0.75 per share, effective with the dividend paid in the fourth quarter of 2026. This 7.14% increase in the regular quarterly payout demonstrates the company's strong financial position and its dedication to returning value to shareholders, which can enhance investor confidence and appeal.
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Stock Movement Drivers
Fundamental Drivers
The 32.9% change in IDCC stock from 5/31/2026 to 9/26/2026 was primarily driven by a 61.8% change in the company's P/E Multiple.| (LTM values as of) | 5312026 | 9262026 | Change |
|---|---|---|---|
| Stock Price ($) | 251.45 | 334.21 | 32.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 829 | 788 | -4.9% |
| Net Income Margin (%) | 44.2% | 38.3% | -13.3% |
| P/E Multiple | 17.7 | 28.6 | 61.8% |
| Shares Outstanding (Mil) | 26 | 26 | -0.4% |
| Cumulative Contribution | 32.9% |
Market Drivers
5/31/2026 to 9/26/2026| Return | Correlation | |
|---|---|---|
| IDCC | 32.9% | |
| Market (SPY) | 2.2% | 53.0% |
| Sector (XLK) | 2.9% | 52.3% |
Fundamental Drivers
The -8.4% change in IDCC stock from 2/28/2026 to 9/26/2026 was primarily driven by a -21.4% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9262026 | Change |
|---|---|---|---|
| Stock Price ($) | 364.79 | 334.21 | -8.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 834 | 788 | -5.5% |
| Net Income Margin (%) | 48.8% | 38.3% | -21.4% |
| P/E Multiple | 23.1 | 28.6 | 23.8% |
| Shares Outstanding (Mil) | 26 | 26 | -0.4% |
| Cumulative Contribution | -8.4% |
Market Drivers
2/28/2026 to 9/26/2026| Return | Correlation | |
|---|---|---|
| IDCC | -8.4% | |
| Market (SPY) | 13.0% | 41.1% |
| Sector (XLK) | 41.8% | 44.4% |
Fundamental Drivers
The 24.1% change in IDCC stock from 8/31/2025 to 9/26/2026 was primarily driven by a 89.7% change in the company's P/E Multiple.| (LTM values as of) | 8312025 | 9262026 | Change |
|---|---|---|---|
| Stock Price ($) | 269.26 | 334.21 | 24.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 893 | 788 | -11.7% |
| Net Income Margin (%) | 51.9% | 38.3% | -26.2% |
| P/E Multiple | 15.1 | 28.6 | 89.7% |
| Shares Outstanding (Mil) | 26 | 26 | 0.3% |
| Cumulative Contribution | 24.1% |
Market Drivers
8/31/2025 to 9/26/2026| Return | Correlation | |
|---|---|---|
| IDCC | 24.1% | |
| Market (SPY) | 20.9% | 36.7% |
| Sector (XLK) | 50.4% | 40.0% |
Fundamental Drivers
The 299.8% change in IDCC stock from 8/31/2023 to 9/26/2026 was primarily driven by a 132.0% change in the company's P/E Multiple.| (LTM values as of) | 8312023 | 9262026 | Change |
|---|---|---|---|
| Stock Price ($) | 83.59 | 334.21 | 299.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 536 | 788 | 47.2% |
| Net Income Margin (%) | 33.9% | 38.3% | 13.0% |
| P/E Multiple | 12.3 | 28.6 | 132.0% |
| Shares Outstanding (Mil) | 27 | 26 | 3.6% |
| Cumulative Contribution | 299.8% |
Market Drivers
8/31/2023 to 9/26/2026| Return | Correlation | |
|---|---|---|
| IDCC | 299.8% | |
| Market (SPY) | 77.8% | 38.9% |
| Sector (XLK) | 127.9% | 38.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| IDCC Return | 20% | -29% | 124% | 81% | 66% | 4% | 495% |
| Peers Return | 42% | -27% | 23% | 30% | 8% | 16% | 110% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 105% |
Monthly Win Rates [3] | |||||||
| IDCC Win Rate | 58% | 33% | 50% | 67% | 58% | 56% | |
| Peers Win Rate | 69% | 35% | 54% | 65% | 54% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| IDCC Max Drawdown | -24% | -44% | -23% | -18% | -20% | -34% | |
| Peers Max Drawdown | -15% | -38% | -17% | -18% | -27% | -23% | |
| 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 9/25/2026 (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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Asset Allocation
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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 | 15.6% | 28.6x | -2.3% | 333.5% | 426.1% | — |
| CIEN | Ciena | 13.5% | 77.5x | 151.5% | 675.0% | 579.3% | +153pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 67.8% | 202.9% | 283.6% | TTMI 915% · FLEX 725% · SANM 466% |
| Semiconductor Materials & Equipment | 27 | 97.2% | 97.4% | 112.0% | AXTI 797% · AEHR 592% · KLAC 439% |
| Technology Distributors | 9 | 41.0% | 84.4% | 101.6% | CLMB 402% · AVT 204% · SNX 148% |
| Communications Equipment ← | 36 | 17.2% | 95.3% | 67.6% | AAOI 1301% · FEIM 1069% · LITE 995% |
| Electronic Components | 26 | 42.0% | 70.3% | 64.8% | CLS 3788% · BELFA 1333% · COHR 387% |
| Semiconductors | 55 | 34.9% | 42.6% | 39.9% | POET 1808% · MU 1376% · NVDA 944% |
| Technology Hardware, Storage & Peripherals | 20 | 19.0% | 131.3% | 29.5% | STX 1116% · DELL 1073% · SMCI 1042% |
| Internet Services & Infrastructure | 6 | 4.9% | 51.3% | 28.2% | DOCN 71% · VRSN 37% · GDDY 37% |
| Electronic Equipment & Instruments | 26 | -16.6% | 16.4% | -10.4% | PI 192% · OSIS 107% · KEYS 105% |
| IT Consulting & Other Services | 30 | -25.3% | -17.4% | -35.9% | CHRN 522268% · APLD 1174% · TSSI 797% |
| Application Software | 124 | -29.5% | -14.8% | -48.5% | VIDA 144067% · INLX 4910% · PLTR 590% |
| Systems Software | 72 | -20.9% | 9.9% | -62.8% | QNC 640% · ZETA 408% · PANW 363% |
Latest Trefis Analyses
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 268.09 |
| Mkt Cap | 75.8 |
| Rev LTM | 7,773 |
| Op Inc LTM | 1,952 |
| FCF LTM | 1,823 |
| FCF 3Y Avg | 1,657 |
| CFO LTM | 2,012 |
| CFO 3Y Avg | 1,813 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 5.6% |
| Rev Chg 3Y Avg | 5.3% |
| Rev Chg Q | 12.1% |
| QoQ Delta Rev Chg LTM | 2.9% |
| Op Inc Chg LTM | -3.8% |
| Op Inc Chg 3Y Avg | 8.9% |
| Op Mgn LTM | 25.1% |
| Op Mgn 3Y Avg | 24.8% |
| QoQ Delta Op Mgn LTM | -1.2% |
| CFO/Rev LTM | 26.2% |
| CFO/Rev 3Y Avg | 27.2% |
| FCF/Rev LTM | 22.8% |
| FCF/Rev 3Y Avg | 24.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 75.8 |
| P/S | 6.7 |
| P/Op Inc | 25.0 |
| P/EBIT | 23.6 |
| P/E | 31.8 |
| P/CFO | 23.9 |
| Total Yield | 4.3% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 5.5% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -2.5% |
| 3M Rtn | 9.8% |
| 6M Rtn | 23.1% |
| 12M Rtn | 11.5% |
| 3Y Rtn | 107.1% |
| 1M Excs Rtn | -4.9% |
| 3M Excs Rtn | 4.5% |
| 6M Excs Rtn | 2.1% |
| 12M Excs Rtn | -6.5% |
| 3Y Excs Rtn | 26.7% |
Comparison Analyses
Price Behavior
| Market Price | $334.21 | |
| Market Cap ($ Bil) | 8.6 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | -15.1% | |
| 50 Days | 200 Days | |
| DMA Price | $320.91 | $317.06 |
| DMA Trend | indeterminate | up |
| Distance from DMA | 4.1% | 5.4% |
| 3M | 1YR | |
| Volatility | 45.4% | 48.5% |
| Downside Capture | 168.06 | 160.38 |
| Upside Capture | 217.02 | 128.04 |
| Correlation (SPY) | 48.9% | 36.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.64 | 2.48 | 1.96 | 1.49 | 1.39 | 0.98 |
| Up Beta | 1.10 | 3.90 | 3.13 | 1.87 | 1.99 | 1.09 |
| Down Beta | 3.40 | 0.57 | 0.54 | 0.80 | 0.40 | 0.62 |
| Up Capture | 217% | 311% | 323% | 132% | 193% | 206% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 11 | 21 | 33 | 67 | 131 | 402 |
| Down Capture | 104% | 173% | 136% | 161% | 133% | 98% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 10 | 21 | 31 | 60 | 120 | 349 |
[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 | -2.6% | 48.4% | 0.10 | - |
| Sector ETF (XLK) | 41.7% | 26.4% | 1.28 | 40.6% |
| Equity (SPY) | 17.7% | 13.0% | 0.98 | 36.2% |
| Gold (GLD) | 14.7% | 29.3% | 0.46 | 23.7% |
| Commodities (DBC) | 44.3% | 20.7% | 1.66 | -4.1% |
| Real Estate (VNQ) | 4.5% | 13.6% | 0.07 | 3.5% |
| Bitcoin (BTCUSD) | -25.9% | 44.8% | -0.54 | 12.4% |
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 | 39.6% | 36.8% | 0.99 | - |
| Sector ETF (XLK) | 21.3% | 26.0% | 0.73 | 44.5% |
| Equity (SPY) | 13.3% | 17.2% | 0.59 | 45.3% |
| Gold (GLD) | 19.2% | 18.8% | 0.83 | 13.4% |
| Commodities (DBC) | 10.8% | 19.6% | 0.43 | 5.3% |
| Real Estate (VNQ) | 0.9% | 18.9% | -0.06 | 29.8% |
| Bitcoin (BTCUSD) | 12.2% | 52.6% | 0.41 | 19.8% |
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 | 18.1% | 36.1% | 0.56 | - |
| Sector ETF (XLK) | 24.8% | 25.0% | 0.90 | 49.4% |
| Equity (SPY) | 15.5% | 17.9% | 0.73 | 53.6% |
| Gold (GLD) | 12.1% | 16.4% | 0.61 | 10.2% |
| Commodities (DBC) | 8.5% | 18.1% | 0.38 | 15.9% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | 41.0% |
| Bitcoin (BTCUSD) | 63.8% | 66.2% | 1.03 | 15.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 9/1/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 14 | 15 |
| # Negative | 7 | 9 | 8 |
| Median Positive | 6.9% | 10.7% | 11.6% |
| Median Negative | -3.6% | -4.0% | -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 |
| 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 | 16 | 14 | 15 |
| # Negative | 7 | 9 | 8 |
| Median Positive | 6.9% | 10.7% | 11.6% |
| Median Negative | -3.6% | -4.0% | -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 |
|---|---|---|
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 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 |
| 09/30/2019 | 10/31/2019 | 10-Q |
Recent Forward Guidance
Updated 7/31/2026Latest: 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 | 1.33 | 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: 1.5 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 | 10.8 | 11.8 | 12.8 | 15.0% | Raised | Guidance: 10.3 for 2026 | |
Prior: 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 | 1.5 | 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 | 10.3 | 11.8 | 0 | Affirmed | Guidance: 10.3 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: 0.83 for Q4 2025 | |
| Q1 2026 Non-GAAP EPS | Reported | 2.39 | 2.54 | 2.68 | 68.4% | Higher New | Guidance: 1.5 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: 11.4 for 2025 | |
| 2026 Non-GAAP EPS | Reported | 8.74 | 10.3 | 11.8 | -30.0% | Lower New | Guidance: 14.7 for 2025 | |
Q3 2025 Earnings Reported 10/30/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2025 Revenue | Reported | 144.00 Mil | 146.00 Mil | 148.00 Mil | 5.8% | Higher New | Actual: 138.00 Mil for Q3 2025 | |
| Q4 2025 Adjusted EBITDA | Reported | 68.00 Mil | 72.00 Mil | 76.00 Mil | 0 | Same New | Actual: 72.00 Mil for Q3 2025 | |
| Q4 2025 Diluted EPS | Reported | 0.72 | 0.83 | 0.95 | -18.5% | Lower New | Actual: 1.02 for Q3 2025 | |
| Q4 2025 Non-GAAP EPS | Reported | 1.38 | 1.5 | 1.63 | -7.1% | Lower New | Actual: 1.62 for Q3 2025 | |
| 2025 Revenue | Reported | 820.00 Mil | 822.00 Mil | 824.00 Mil | 0.2% | Raised | Guidance: 820.00 Mil for 2025 | |
| 2025 Adjusted EBITDA | Reported | 569.00 Mil | 573.00 Mil | 577.00 Mil | 2.3% | Raised | Guidance: 560.00 Mil for 2025 | |
| 2025 Diluted EPS | Reported | 11.3 | 11.4 | 11.5 | 1.6% | Raised | Guidance: 11.2 for 2025 | |
| 2025 Non-GAAP EPS | Reported | 14.6 | 14.7 | 14.8 | 1.6% | Raised | Guidance: 14.5 for 2025 | |
Insider Activity
Updated 9/17/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 9092026 | 338.00 | 1,500 | 507,000 | 21,975,311 | Form |
| 2 | Gillman, Joan H | Direct | Sell | 8102026 | 331.06 | 300 | 99,318 | 7,526,907 | Form | |
| 3 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 8072026 | 324.88 | 1,500 | 487,320 | 21,609,625 | Form |
| 4 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 7072026 | 286.00 | 1,500 | 429,000 | 19,441,268 | Form |
| 5 | Markley, John D JR | Direct | Sell | 6232026 | 300.00 | 400 | 120,000 | 3,520,412 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 9092026 | 338.00 | 1,500 | 507,000 | 21,975,311 | Form |
| 2 | Gillman, Joan H | Direct | Sell | 8102026 | 331.06 | 300 | 99,318 | 7,526,907 | Form | |
| 3 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 8072026 | 324.88 | 1,500 | 487,320 | 21,609,625 | Form |
| 4 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 7072026 | 286.00 | 1,500 | 429,000 | 19,441,268 | Form |
| 5 | Markley, John D JR | Direct | Sell | 6232026 | 300.00 | 400 | 120,000 | 3,520,412 | Form | |
| 6 | Rankin, Jean F | Direct | Sell | 6162026 | 276.64 | 365 | 100,974 | 8,005,408 | Form | |
| 7 | Kritzmacher, John A | Direct | Sell | 6162026 | 276.64 | 365 | 100,974 | 4,525,554 | Form | |
| 8 | Armaly, Samir | Direct | Sell | 6162026 | 276.64 | 470 | 130,021 | 1,274,757 | Form | |
| 9 | Aberle, Derek K | Direct | Sell | 6162026 | 276.64 | 522 | 144,406 | 2,107,997 | Form | |
| 10 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 6122026 | 290.00 | 1,500 | 435,000 | 20,148,174 | Form |
| 11 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 6082026 | 258.38 | 750 | 193,785 | 18,338,898 | Form |
| 12 | Mattis, Julia C | Chief Licensing Officer | Direct | Sell | 6042026 | 257.65 | 1,600 | 412,240 | 2,972,845 | Form |
| 13 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 5062026 | 278.00 | 750 | 208,500 | 19,939,956 | Form |
| 14 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 4072026 | 313.30 | 1,500 | 469,950 | 22,698,426 | Form |
| 15 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 3172026 | 348.21 | 6,000 | 2,089,260 | 9,014,888 | Form |
| 16 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 3062026 | 368.10 | 1,000 | 368,100 | 22,158,173 | Form |
| 17 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 3032026 | 365.86 | 467 | 170,857 | 9,885,791 | Form |
| 18 | Gillman, Joan H | Direct | Sell | 2122026 | 352.24 | 325 | 114,478 | 7,761,926 | Form | |
| 19 | Brezski, Richard | Chief Financial Officer | Direct | Sell | 2122026 | 352.24 | 2,000 | 704,480 | 24,798,962 | Form |
| 20 | Brezski, Richard | Chief Financial Officer | Direct | Sell | 2122026 | 360.80 | 6,005 | 2,166,622 | 26,123,432 | Form |
| 21 | Markley, John D JR | Direct | Sell | 2122026 | 374.95 | 700 | 262,465 | 4,208,190 | Form | |
| 22 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 2092026 | 326.26 | 1,000 | 326,260 | 19,965,830 | Form |
| 23 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1282026 | 327.62 | 5,958 | 1,951,978 | 50,151,541 | Form |
| 24 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1212026 | 326.71 | 2,975 | 971,962 | 51,958,327 | Form |
| 25 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1212026 | 303.77 | 2,975 | 903,716 | 49,213,780 | Form |
| 26 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1142026 | 312.72 | 2,975 | 930,342 | 51,594,112 | Form |
| 27 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 1142026 | 310.82 | 2,975 | 924,690 | 52,205,330 | Form |
| 28 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 12312025 | 325.34 | 466 | 151,608 | 8,934,459 | Form |
| 29 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 12312025 | 325.34 | 2,975 | 967,886 | 57,547,769 | Form |
| 30 | Chen, Lawrence Liren | President and CEO | Direct | Sell | 12312025 | 329.50 | 2,975 | 980,262 | 59,263,873 | Form |
| 31 | Kritzmacher, John A | Direct | Sell | 12232025 | 331.00 | 1,250 | 413,750 | 5,234,676 | Form | |
| 32 | Kritzmacher, John A | Direct | Sell | 12102025 | 357.37 | 1,250 | 446,712 | 6,098,422 | Form | |
| 33 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 12082025 | 350.79 | 1,000 | 350,790 | 22,154,861 | Form |
| 34 | Kritzmacher, John A | Direct | Sell | 11262025 | 346.62 | 1,250 | 433,275 | 6,348,252 | Form | |
| 35 | Kritzmacher, John A | Direct | Sell | 11122025 | 360.63 | 1,250 | 450,788 | 7,055,629 | Form | |
| 36 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 11062025 | 375.31 | 1,000 | 375,310 | 24,078,782 | Form |
| 37 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 11042025 | 395.63 | 466 | 184,364 | 11,049,121 | Form |
| 38 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 10072025 | 338.08 | 1,000 | 338,080 | 22,016,286 | Form |
| 39 | Pankaj, Rajesh | Chief Technology Officer | Direct | Sell | 9082025 | 289.78 | 1,000 | 289,780 | 19,160,696 | Form |
| 40 | Schmidt, Joshua D | CLO & Corp Secretary | Direct | Sell | 9022025 | 273.12 | 466 | 127,274 | 7,748,536 | Form |
Investor Activity (13F)
Updated Sep 27, 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 |
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IDCC Trade Sentinel
Constructive
CONVICTION RATIONALE
InterDigital has validated its expansion into the large video streaming market with a landmark Amazon agreement. This creates a new growth layer, evidenced by a record $625.7 million in recurring revenue and a significant 2026 guidance increase. The primary risk remains execution against other holdouts in this new market.
STOCK ARCHETYPE
Intellectual Property Licensing(Number of Licensees) x (Average License Value per Licensee) Operating Leverage. The cost of adding a new licensee is minimal compared to the high-margin revenue generated, leading to significant profit expansion as the licensee base grows.
INVESTMENT THESIS
Evidence points to a successful expansion, validated by a landmark agreement with Amazon and multiple legal victories, creating a significant new revenue stream.
- Annualized recurring revenue hit a record $625.7 million, up 13% YoY.
- Signed a new licensing agreement with Amazon for its services and devices.
- Awarded two injunctions against Disney from Europe’s Unified Patent Court.
- Raised full-year 2026 revenue guidance by $85 million at the midpoint.
- Future contracted cash payments total approximately $1.9 billion.
PRIMARY RISK
The strategy requires costly, multi-jurisdictional legal battles against well-funded holdouts. Operating expenses grew 15.2% YoY, driving operating margins down to 43.8% from 60.4% a year ago. An adverse ruling could derail the growth story.
- Operating expenses grew 15.2% YoY while revenue declined.
- Trailing-twelve-month operating margin fell to 43.8% from 60.4%.
- Engaged in ongoing, costly litigation against Disney, TCL, and Hisense.
- A Disney subsidiary has filed an antitrust complaint against the company.
| KPI | Status | Rationale |
|---|---|---|
| Annualized Recurring Revenue (ARR) | $625.7 million in Q2 2026 - Stable | ARR growth has stabilized at a healthy 13% year-over-year rate after decelerating from a peak of 24% in Q4 2025. The sequential increase to an all-time high in the latest quarter was driven by a new agreement with Amazon, demonstrating continued business momentum despite the lower YoY growth rate compared to late 2025. |
| Streaming and Cloud Services Revenue | $110 million in Q2 2026 | The Streaming and Cloud Services program is a new growth initiative for the company. The $110 million in revenue reported in Q2 2026, driven by a new agreement with Amazon, marks a significant milestone, establishing a material new revenue stream and validating the company's expansion strategy. |
| Smartphone Market Coverage | 8 of the top 10 global smartphone manufacturers under license (Q1 2026) | Indicates the company's deep penetration and entrenchment in its most mature and largest market, providing a stable revenue base. The top 3 vendors are licensed through the end of the decade. |
Amazon Windfall vs. Margin Squeeze
BULL VIEW
The Amazon deal is the first of many, proving the video strategy works. This creates a new, high-margin revenue stream that will drive significant operating leverage once established.
CORE TENSION
Can new streaming revenue outpace rising IP enforcement costs, which drove operating margins down to 43.8%?
PREVAILING SENTIMENT
The latest 11.7% full-year guidance raise and record $625.7 million in recurring revenue suggest new revenue is material and inflecting upwards, outweighing the costs.
BEAR VIEW
The Amazon revenue is a one-time catch-up payment. Ongoing litigation costs against other holdouts will create a permanent drag on profitability, offsetting any future licensing gains.
| Timeline | Event & Metric To Watch |
|---|---|
September 2026 | Adverse Litigation or Arbitration Rulings Watch: Company announcements or court filings on the outcomes of the Disney and Lenovo proceedings. |
through September 30, 2026 | Convertible Notes Conversion Window Watch: The current period during which holders of the 2027 Notes have the right to convert them concludes. |
10/26/2026 | Peer F5 Earnings Watch: Peer F5 (FFIV) is scheduled to report earnings. |
10/28/2026 | Failure to Meet Raised Expectations Watch: Q3 revenue and ARR versus expectations, and the outlook provided for Q4. |
10/28/2026 | Company Q3 Earnings Watch: The company is scheduled to report its next quarterly earnings. |
11/3/2026 | Negative Peer Commentary on Handsets Watch: Qualcomm's QCT handset revenue, QTL licensing revenue, and forward guidance for the smartphone market. |
11/10/2026 | Peer Cisco Systems Earnings Watch: Peer Cisco Systems (CSCO) is scheduled to report earnings. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-30 | Announces Amazon Deal, Raises Guidance Details: The company announced a new agreement with Amazon, reported Q2 results, and raised its full-year 2026 revenue outlook by $85 million. The stock rallied 17.0% over two days. | +16.7% $261.14 -> $304.83 |
2026-06-16 | Wins Injunction Against Disney Details: InterDigital announced it was awarded an injunction against Disney by the Unified Patent Court (UPC) in Europe. | -1.0% $288.14 -> $285.37 |
2026-05-19 | Signs New IoT License Details: The company signed a new IoT patent license agreement with a fintech company in the payments space. | +0.9% $263.18 -> $265.45 |
2026-04-30 | Stock Declines After Q1 Earnings Details: Following its earnings call on April 30, 2026, the company's stock experienced a negative two-day reaction of -18.0%. | -17.6% $351.79 -> $289.76 |
2026-03-24 | Declares Quarterly Dividend Details: The Board of Directors declared a regular quarterly cash dividend of $0.70 per share on its common stock. | -0.1% $309.98 -> $309.57 |
2026-02-10 | Initiates Litigation Against TV Makers Details: The company announced it had initiated litigation against Hisense and TCL over infringement of its intellectual property, primarily related to its joint TV licensing program. | -3.4% $374.81 -> $362.17 |
2026-02-05 | Reports Strong 2025 Results Details: The company reported full-year 2025 results including near-record annual revenue, which drove record net income and free cash flow. The stock reacted with an 18.0% gain over two days. | +18.2% $312.38 -> $369.32 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: IDCC trades at roughly 45% annualized options-implied volatility versus about 14% for the S&P 500 (3.2x the market), around the 53rd percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
QCOM - Qualcomm
Direct Licensing PeerVastly larger R&D budget and revenue scale, with exposure to both patent licensing and high-performance semiconductor products for mobile and auto.
CSCO - a business partner
Diversified Tech PlayOffers exposure to enterprise networking and security, with a more stable, diversified revenue base 77 times larger than InterDigital's.
A high-leverage 'IP-as-a-Service' business monetizing foundational patents essential for modern connectivity and media consumption.
InterDigital operates a highly profitable business model by investing heavily in R&D to create foundational technologies for wireless and video, embedding them into global standards, and then licensing the resulting patent portfolio. This creates a recurring, high-margin revenue stream from global tech giants who need the IP to build their products. The company is now applying this proven playbook to the large and growing video streaming market.
Signing new, large licensees in the streaming/cloud services space; favorable outcomes in binding arbitrations with major tech companies; continued wins and injunctions in ongoing litigation.
Loss of key patent litigation, invalidation of essential patents, or a trend of major licensees successfully negotiating significantly lower royalty rates.
Quarter-to-quarter volatility in 'catch-up' revenue, which is lumpy by nature; short-term stock price movements unrelated to major licensing or legal events.
Repricing Catalyst
The successful execution of its video streaming licensing strategy, validated by the recent agreement with Amazon and multiple legal victories against Disney, which opens a significant new revenue stream.
Single Segment
$788M TTM (100% of Total)What It Is
The company licenses its portfolio of more than 38,000 patents and applications related to wireless, video, and AI technologies. Licensees include global manufacturers of smartphones, tablets, consumer electronics (TVs, PCs, gaming consoles), IoT devices, and connected automobiles, as well as providers of video streaming and other cloud services.
Who Pays & How
Global technology companies like Apple, Samsung, Amazon, and Xiaomi write checks for licenses to incorporate InterDigital's patented, standards-essential technologies into their products and services, ensuring interoperability and avoiding costly patent 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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