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InterDigital, Inc. (NASDAQ:IDCC – Get Free Report) CTO Rajesh Pankaj sold 1,500 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $334.32, for a total transaction of $501,480.00. Following the transaction, the chief technology officer owned 63,516 shares in the company, valued at approximately $21,234,669.12. The trade was a 2.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Rajesh Pankaj also recently made the following trade(s):

On Tuesday, September 8th, Rajesh Pankaj sold 1,500 shares of InterDigital stock. The shares were sold at an average price of $338.00, for a total transaction of $507,000.00. On Wednesday, August 5th, Rajesh Pankaj sold 1,500 shares of InterDigital stock. The stock was sold at an average price of $324.88, for a total value of $487,320.00. InterDigital Trading Up 0.9% IDCC opened at $338.19 on Tuesday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. The firm has a market cap of $8.73 billion, a price-to-earnings ratio of 39.01 and a beta of 1.43. InterDigital, Inc. has a 12 month low of $249.14 and a 12 month high of $412.60. The stock has a fifty day moving average price of $331.17 and a 200-day moving average price of $306.60.

InterDigital (NASDAQ:IDCC – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $3.72. The company had revenue of $260.17 million for the quarter, compared to the consensus estimate of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The firm’s revenue for the quarter was down 13.4% compared to the same quarter last year. During the same quarter last year, the company earned $6.52 earnings per share. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. As a group, equities research analysts anticipate that InterDigital, Inc. will post 9.52 earnings per share for the current fiscal year. InterDigital Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Wednesday, October 14th. This is a positive change from InterDigital’s previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a yield of 0.9%. InterDigital’s dividend payout ratio is currently 32.30%.

Analyst Ratings Changes IDCC has been the topic of a number of recent analyst reports. Weiss Ratings raised InterDigital from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, September 18th. Zacks Research upgraded InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $450.00.

Read Our Latest Analysis on InterDigital

Institutional Trading of InterDigital Several large investors have recently bought and sold shares of IDCC. Reinhart Partners LLC. boosted its stake in shares of InterDigital by 9.0% in the second quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider’s stock worth $130,359,000 after buying an additional 38,115 shares during the last quarter. NewEdge Wealth LLC raised its position in InterDigital by 68.4% during the first quarter. NewEdge Wealth LLC now owns 13,783 shares of the Wireless communications provider’s stock valued at $4,163,000 after acquiring an additional 5,599 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in InterDigital by 104.7% in the first quarter. Renaissance Technologies LLC now owns 66,098 shares of the Wireless communications provider’s stock valued at $19,962,000 after acquiring an additional 33,800 shares during the period. TD Asset Management Inc boosted its position in InterDigital by 19.9% in the 4th quarter. TD Asset Management Inc now owns 50,782 shares of the Wireless communications provider’s stock worth $16,168,000 after purchasing an additional 8,420 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its position in InterDigital by 54.9% in the 1st quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider’s stock worth $2,790,000 after purchasing an additional 3,274 shares in the last quarter. Hedge funds and other institutional investors own 99.83% of the company’s stock.

InterDigital Company Profile (Get Free Report)

InterDigital, Inc is a research and development company that designs and develops advanced wireless, video and related technologies. Its work supports cellular communications, including 2G, 3G, 4G and 5G networks, as well as Wi-Fi, video coding, artificial intelligence and other connected-device applications. The company’s technologies are incorporated into mobile phones, network equipment, consumer electronics and other wireless products.

InterDigital primarily commercializes its innovations through a patent-licensing business.

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Key Takeaways InterDigital shares gained 5.2% in a year, partly reflecting comparison with an elevated prior-year base.IDCC's annualized recurring revenues hit a record $625.7 million in Q2 2026, rising 13% year over year.InterDigital raised 2026 revenue guidance to $775-$845 million amid stronger licensing momentum. Shares of InterDigital, Inc. IDCC have gained a mere 5.2% over the past year compared with the industry’s growth of 24.7%. It has underperformed its peers like AST SpaceMobile, Inc. (ASTS - Free Report) and Ericsson (ERIC - Free Report) over this period. ASTS has soared 48.4% and Ericsson gained 26.3%. 

One-Year IDCC Stock Price Performance

Image Source: Zacks Investment Research

For investors sitting on the stock, the muted return raises the question of whether IDCC still deserves a place in their portfolios. However, the one-year price performance does not reveal the complete story. IDCC entered the current comparison period after a spectacular rally in 2025. Around mid-September last year, the stock surged more than 137% over the preceding 12 months. The current modest year-over-year gain, therefore, partly reflects a difficult comparison against an elevated base rather than a deterioration in the underlying business.

Let us delve a little deeper into the underlying factors affecting the stock.

Record Recurring Revenues Strengthen IDCC’s StoryInterDigital’s licensing model remains the biggest pillar supporting its investment case. The company develops foundational technologies across wireless, video and AI and monetizes its intellectual property through licensing arrangements with device manufacturers and service providers.

Annualized recurring revenues reached an all-time high of $625.7 million in the second quarter of 2026, up 13% year over year. The continued expansion of recurring revenues is particularly encouraging as it improves revenue visibility and reduces dependence on large, irregular catch-up payments.

The shift toward a larger recurring revenue base makes the quality of IDCC’s earnings stream increasingly important for investors looking beyond quarter-to-quarter volatility.

Amazon Deal Opens a New Licensing AvenueInterDigital has expanded beyond its traditional smartphone licensing business by entering into a patent license agreement with Amazon.com, Inc. (AMZN - Free Report) , covering services and devices, including Prime Video. Although the final financial terms are set to be determined through binding arbitration, the agreement represents an important validation of InterDigital’s video intellectual property and its push into streaming and cloud services.

The company is also expanding into the IoT market and recently signed a patent license agreement with KEBA covering certain electric vehicle charging products under its 3G, 4G and Wi-Fi patent portfolio. Such agreements establish the increasing relevance of InterDigital’s intellectual property as connectivity spreads across automobiles, industrial equipment and other smart devices.

Raised Guidance Makes the Bull Case StrongerFollowing the strong second-quarter performance and increased licensing momentum, InterDigital raised its full-year revenue guidance to $775-$845 million from the previous range of $675-$775 million. Adjusted EBITDA is now anticipated between $469 million and $529 million, up from the prior guidance of $381-$477 million. Non-GAAP earnings are projected between $10.85 and $12.81 per share compared with the previous forecast of $8.74-$11.84.

Earnings estimates for IDCC for 2026 have moved up 30% to $11.40 over the past 60 days. The positive estimate revision signals bullish sentiment about the stock’s growth potential and provides evidence that business momentum is improving even though the stock’s one-year performance does not fully reflect it.

Image Source: Zacks Investment Research

End NoteIDCC’s roughly 5% one-year gain looks uninspiring at first glance, particularly for investors accustomed to much stronger returns from technology stocks. However, the figure should be viewed in the context of the stock’s enormous rally before the current comparison period. Fundamentally, the business has continued to move in the right direction. Record annualized recurring revenues, the landmark Amazon agreement, expansion into streaming, cloud and IoT markets and significantly raised 2026 guidance offer compelling reasons to remain optimistic. Rising earnings estimates further suggest that analysts are becoming more bullish about InterDigital’s long-term growth prospects.

IDCC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

With a favorable Zacks Rank and solid demand trends, InterDigital appears primed for healthy long-term growth. Consequently, investors seeking exposure to wireless, video, AI and connected-device licensing opportunities may consider buying the stock on market pullbacks.

 | Source: InterDigital, Inc.

WILMINGTON, Del., Sept. 09, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video and AI technology research and development company, today announced that its Board of Directors has approved an increase in the company’s quarterly cash dividend from $0.70 to $0.75 per share.

The increase in the regular quarterly dividend will take effect beginning with the dividend paid in fourth quarter 2026. The Board of Directors also declared a regular quarterly cash dividend of $0.75 per share on its common stock, payable on October 28, 2026, to shareholders of record at the close of business on October 14, 2026.

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:
[email protected]
+1 (302) 300-1857

3 Sector ETFs Catching Fire After Earnings BeatsInterDigital NASDAQ: IDCC highlighted its research-driven patent licensing model, recent financial performance and long-term growth targets during the IDEAS conference, with Chief Financial Officer Rich Brezski citing expanding recurring revenue, high operating leverage and opportunities in smartphones, connected devices and streaming video.

Brezski said the company generated more than $800 million in revenue in 2025, non-GAAP earnings per share above $15, a 71% adjusted EBITDA margin and more than $1 billion in cash. He added that the company has continued to deliver a “great year” so far in 2026.

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2 Sizzling Mid-Caps That Could Stay Hot This SummerAt the core of InterDigital’s model is research in wireless, video and artificial intelligence technologies, Brezski said. The company contributes technologies to industry standards, protects its innovations with patents and then negotiates licensing agreements with companies that use those standards in products and services.

Research, Standards and Patent Portfolio Brezski said InterDigital participates in more than 100 standards organizations, including 3GPP for cellular technologies and groups focused on video standards. The company is currently involved in work related to 6G, which Brezski said is expected to emerge in the coming years.

InterDigital Raises Its Earnings GuidanceHe said InterDigital has two chair positions among roughly 15 key research groups within 3GPP, placing it alongside China Mobile and Samsung as the only organizations with more than one such position. He also noted that LexisNexis has included InterDigital among its 100 most innovative companies for five consecutive years.

InterDigital’s patent portfolio has grown to roughly 40,000 assets globally from about 19,000 in 2017, according to Brezski. The company’s video capabilities expanded following its 2018 and 2019 acquisition of Technicolor’s research team and much of its patent portfolio.

Video compression technology is increasingly important to streaming services because it reduces the data required to transmit high-definition content, Brezski said. He cited streaming, video conferencing, cloud gaming and other cloud-based services as markets that rely on compressed video delivery.

Licensing Momentum and Financial Model Over the past five years, InterDigital has signed more than 60 licensing agreements with total contract value of roughly $5 billion, Brezski said. The agreements include companies such as Apple, Samsung, Amazon, Xiaomi and LG.

Annualized recurring revenue rose from $356 million in 2020 to a record $626 million in the most recent quarter, he said. Total revenue has approximately doubled over that period, while adjusted EBITDA has increased roughly fourfold.

Brezski said the company benefits from operating leverage because newly signed license agreements generally relate to technology developed years earlier. As a result, added licensing revenue carries limited incremental cost, although the company continues to invest in research for future standards and technologies.

InterDigital has also returned capital to shareholders through dividends and stock repurchases. Brezski said the company reduced its outstanding share count by 16% during the past five years, while non-GAAP EPS increased sevenfold over the same period.

2030 Revenue Targets and Market Opportunities The company reaffirmed its long-range objective of exceeding $1 billion in annualized recurring revenue by 2030. Its targets include $500 million from smartphones, $200 million from consumer electronics, internet-of-things applications and automotive markets, and more than $300 million from streaming and cloud services.

InterDigital reported smartphone-related recurring revenue of $491 million in mid-2026, nearing its 2027 target of $500 million. Revenue in consumer electronics, IoT and automotive stood at $75 million, while the streaming and cloud segment has begun generating revenue following an agreement with Amazon.

Brezski said Amazon has the right to use InterDigital technology in its streaming services and products, while an arbitration panel will determine the licensing price. InterDigital recognizes revenue on an estimated basis until that outcome is determined.

In the smartphone market, Brezski said 85% of more than 1 billion annual device shipments are made by companies licensed to InterDigital’s technology. The company is in litigation with Transsion and is seeking agreements with other unlicensed manufacturers, including Huawei and HMD.

InterDigital is also pursuing broader adoption in televisions, connected vehicles and cellular IoT. Brezski said it is in litigation with TCL and Hisense in the television market and is working to renew a Samsung television license that expired at the end of the prior year.

For 2030, InterDigital targets more than $1 billion in recurring revenue and $600 million in adjusted EBITDA, based on a 60% adjusted EBITDA margin. Brezski said the margin assumption leaves room for future investments or acquisitions, while the company’s cash balance provides resources to fund research, pursue opportunities and enforce its patent rights when necessary.

About InterDigital (NASDAQ:IDCC)InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company's principal services include patent licensing, technology evaluation and consulting.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways IDCC is expanding licensing beyond smartphones into streaming, cloud, automotive and IoT markets.InterDigital signed licensing deals with Amazon, a fintech company and KEBA to broaden recurring revenues.IDCC is investing in 6G, AI networking and video technologies to support future licensing opportunities. InterDigital, Inc. (IDCC - Free Report) has long been recognized for monetizing its wireless patent portfolio through smartphone licensing. However, the company is increasingly broadening its reach into adjacent markets, creating additional recurring revenue opportunities beyond its traditional handset business.

Its strategy now spans streaming services, cloud platforms, consumer electronics, automotive applications, Internet of Things (IoT) devices and next-generation communications technologies. This diversification aims to strengthen long-term licensing growth while reducing dependence on any single end market.

How IDCC Builds Revenue Through LicensingInterDigital generates most of its revenue from patent licensing, reflecting the strength of its intellectual property portfolio across wireless and video technologies. In addition to licensing royalties, the company also earns revenue from patent sales, technology solutions licensing, engineering services and product sales. It operates through a single business segment, allowing management to leverage its research investments across multiple end markets.

Its portfolio covers technologies used in cellular communications, video encoding and transmission, artificial intelligence, and connected devices. Continued participation in global technology standards helps InterDigital develop patents that can be licensed across a broad range of products rather than relying on any single device category.

Image Source: Zacks Investment Research

Companies such as QUALCOMM Incorporated (QCOM - Free Report) and Nokia Corporation (NOK - Free Report) also generate licensing revenue from extensive wireless patent portfolios, underscoring the importance of intellectual property ownership within the communications ecosystem.

Why InterDigital Is Diversifying Its BusinessWhile smartphones remain an important licensing market, InterDigital has expanded into streaming services, cloud platforms, consumer electronics, automotive applications and IoT devices. This broader strategy increases the number of industries that can benefit from the company's patented technologies.

Recent agreements illustrate that expansion. InterDigital reached a milestone licensing agreement with Amazon covering devices and services, including Prime Video, with final financial terms to be determined through binding arbitration. The company also signed new IoT licensing agreements with a leading fintech company for payment terminals and with KEBA covering electric vehicle chargers. These agreements expand recurring licensing opportunities beyond traditional handset manufacturers while supporting the company's long-term recurring revenue objectives.

How IDCC Is Positioning for Future TechnologiesInterDigital continues investing heavily in technologies expected to underpin future communications standards. Its research spans 6G, AI-native networking and advanced video technologies, helping position the company to create intellectual property for future licensing opportunities.

The company also maintains significant leadership within global standards organizations, strengthening its influence as next-generation wireless specifications are developed. Management believes these investments should support licensing opportunities across industries ranging from connected vehicles and industrial IoT to streaming platforms and consumer electronics. 

What Could Slow InterDigital's GrowthDespite its diversification strategy, several risks remain. Customer concentration continues to expose results to a relatively small group of major licensees, while revenue can fluctuate depending on the timing of licensing agreements and renewals.

The company also faces ongoing patent enforcement and litigation expenses as it protects its intellectual property portfolio. Sustaining technology leadership requires continued investment in research and development, and slower demand in certain consumer electronics or IoT markets could weigh on licensing activity over time.

How IDCC's Ratings Fit the Bigger PictureInterDigital's expansion beyond smartphones provides multiple avenues for future growth, but investors should also consider how the stock's quantitative ratings complement that business story.

The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here.  However, its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of F suggest the shares may be less attractive for investors focused on valuation or recent price momentum. Rather than contradicting the company's business strengths, these Style Scores provide a different lens for evaluating the stock based on specific investing styles.

First Streaming and Cloud Services agreement drives Q2 results above outlook
Annualized recurring revenue1 at all-time high of $626 million, up 13% YoY
Company raises full year 2026 revenue outlook by $85 million

WILMINGTON, Del., July 30, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the quarter ended June 30, 2026.

“We have delivered another outstanding quarter, with continued momentum across our business, including our new agreement with Amazon, driving annualized recurring revenue1 to a record $626 million,” commented Liren Chen, InterDigital CEO and President. “Building on the strength of our second quarter results, the increased business momentum, and the opportunity to make more progress over the balance of this year, we have raised the full year 2026 guidance to between $775 million and $845 million, an increase of $85 million at the midpoint.”

Recent Business Highlights

Reached agreement with Amazon, covering Amazon’s services and devices, including Amazon Prime Video, with final terms to be determined by binding arbitrationSigned new IoT license agreement with a leading fintech company covering point-of-sale devicesAwarded two injunctions against Disney from Europe’s Unified Patent Court covering eleven countriesAnnualized recurring revenue1 ("ARR") increased 13% year-over-year from $553.1 million to $625.7 million Second Quarter 2026 Financial Summary:

Second quarter 2026 revenue included $103.7 million of catch-up revenue, compared with $162.3 million of catch-up revenue in second quarter 2025. Operating expenses increased $25.8 million primarily due to increases in intellectual property enforcement costs and share-based compensation driven by business successes.

 Three Months Ended June 30,($ in millions, except per share data)2026
 2025
 ChangeGAAP Results:     Revenue$260.2 $300.6 (13)%Operating expenses$120.9 $95.2 27%Net income$116.4 $180.6 (36)%Net income margin45% 60% (15) pptDiluted EPS$3.40 $5.35 (36)%Non-GAAP Results:     Adjusted EBITDA2$184.1 $236.7 (22)%Adjusted EBITDA margin271% 79% (8) pptNon-GAAP Net income3$141.4 $195.3 (28)%Non-GAAP EPS3$4.62 $6.52 (29)%Additional Information:     Revenue by type:     Annualized recurring revenue1$625.7 $553.1 13%Catch-up revenue$103.7 $162.3 (36)%Revenue by program:     Smartphone$122.7 $235.1 (48)%CE, IoT/Auto$27.5 $65.3 (58)%Streaming and Cloud Services$110.0 $— N/MOther$— $0.2 (100)%      N/M         Not meaningful     
Return of Capital 

(in millions, except per share data)
Share Repurchases Dividends Declared Total Return
of Capital
Shares Value Per Share Value Second quarter 2026<0.1 $23.0 $0.70 $18.1 $41.1
Near Term Outlook

The Company raised its full year 2026 outlook and provided an initial outlook for third quarter 2026 in the table below. The outlook for third quarter 2026 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the third quarter. The outlook for full year 2026 includes both existing licenses and the expected contributions from new agreements and/or enforcement actions we may receive over the balance of the year.

   Full Year 2026(in millions, except per share data)Q3 2026 Current PriorRevenue$154 - $158 $775 - $845 $675 - $775Adjusted EBITDA2$86 - $92 $469 - $529 $381 - $477Diluted EPS$1.25 - $1.42 $7.91 - $9.67 $5.77 - $8.51Non-GAAP EPS3$1.94 - $2.13 $10.85 - $12.81 $8.74 - $11.84
Convertibility of 2027 Notes

Pursuant to the terms of the Indenture governing InterDigital’s 3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes are convertible during the calendar quarter ending September 30, 2026. The current conversion rate of the Notes is 13.0351 shares of InterDigital’s Common Stock per $1,000 principal amount of the Notes.

Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital’s election, as set forth in the Indenture governing the Notes.

At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital’s economic standpoint from $76.72 to $105.43. In connection with the Notes issuance, we also issued warrants to acquire, subject to customary anti-dilution adjustments, approximately 6.0 million shares of common stock. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Notes, Hedge, and Warrant Transactions" in InterDigital’s Form 10-Q for the quarter ended June 30, 2026 for more information.

As of June 30, 2026, $380.0 million in principal of the 2027 Notes remains outstanding, of which holders have elected to convert $80.3 million principal amount, which will settle in third quarter 2026. No incremental outstanding shares will result from such conversions due to the offsetting impact of hedging arrangements.

As of June 30, 2026, warrants to acquire 6.0 million shares of common stock remain outstanding at a strike price of $105.43, subject to adjustment, which mature on a net-share basis beginning September 2027 through April 2028.

Conference Call Information

InterDigital will host a conference call on Thursday, July 30, 2026 at 10:00 a.m. ET to discuss its second quarter 2026 financial performance and other company matters.

For a live webcast of the conference call visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the webcast option.

See below for dial-in details to join the call telephonically:
USA - Toll-Free (800) 715-9871
USA / International Toll +1 (646) 307-1963
Conference ID 5903891 or Conference Name

A replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year.

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit the InterDigital website: www.interdigital.com.

For additional financial measures, refer to our second quarter 2026 Form 10-Q and the financial metrics tracker, which are available on the Investor Relations section of our website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations. Words such as “believe,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” "outlook," “goal,” “could,” "would," "should," "if," "may," "might," "future," "target," "trend," "seek to," "will continue," "predict," "likely," "in the event," and variations of any such words or similar expressions are intended to identify such forward-looking statements.

Forward-looking statements are made on the basis of management’s current views and assumptions and are not guarantees of future performance. Forward-looking statements, including but not limited to statements regarding our outlook for Q3 and full year 2026, are inherently subject to risks and uncertainties that could cause actual results, and actual events that occur, to differ materially from results contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) unanticipated delays or difficulties in the execution of patent license agreements on acceptable terms or at all; (ii) our ability to expand our revenue opportunities by entering into licensing arrangements with streaming and cloud-based service providers; (iii) the initiation of new legal proceedings or the resolution of ongoing legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to maintain a strong patent portfolio and make strategic decisions related to our intellectual property protection; (v) our ability to successfully integrate Deep Render and to recognize the anticipated benefits of the transaction; (vi) the failure of markets for our technologies to materialize to the extent that we expect; (vii) our continued ability to develop new technologies; (viii) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the One Big Beautiful Bill Act, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws and other tax matters; (ix) the timing and impact of potential regulatory, administrative and legislative matters; (x) the potential effects of macroeconomic conditions or global conflicts; (xi) our ability to hire and retain key personnel; (xii) operational risks, including cybersecurity events, human failures or other difficulties with our information technology systems; and (xiii) risks related to any new accounting standards or our estimates, assumptions and the application of relevant accounting standards, including with respect to revenue recognition.

You should not place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this release. We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.

Footnotes

1   Annualized recurring revenue ("ARR") for any quarter is defined as total revenue for the quarter less catch-up revenue for the quarter, multiplied by four. Management believes ARR provides useful information about our financial performance, and our progress toward our 2030 targets. ARR is not a projection or forecast, and actual recurring revenue for any 12-month period will depend on a number of factors beyond our ability to predict or control, including those risks and uncertainties listed above. Additionally, ARR may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

2   Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income plus income tax (provision) benefit, other income, net & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenue. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below.

3   Non-GAAP net income, Non-GAAP EPS, and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income plus share-based compensation, acquisition related amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non-GAAP EPS is defined as Non-GAAP net income divided by Non-GAAP weighted-average diluted shares, which adjusts the weighted-average number of common shares outstanding for the dilutive effect of the Company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below.

SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
     Three Months Ended
June 30, Six Months Ended
June 30, 2026
 2025
 2026
 2025
Revenue$260,170  $300,596  $465,586  $511,103 Operating expenses:       Research and portfolio development 56,407   53,674   112,242   101,104 Licensing 34,725   23,909   86,844   41,586 General and administrative 29,799   17,586   45,000   31,154 Total operating expenses 120,931   95,169   244,086   173,844         Income from operations 139,239   205,427   221,500   337,259         Interest expense (8,583)  (9,537)  (17,650)  (19,408)Other income, net 12,722   15,144   19,322   25,402 Income before income taxes 143,378   211,034   223,172   343,253 Income tax provision (27,006)  (30,466)  (31,471)  (47,083)Net income$116,372  $180,568  $191,701  $296,170         Net income per common share:       Basic$4.51  $6.97  $7.44  $11.47 Diluted$3.40  $5.35  $5.51  $8.81 Weighted-average number of common shares outstanding:       Basic 25,831   25,917   25,776   25,829 Diluted 34,260   33,725   34,770   33,615         Cash dividends declared per common share$0.70  $0.60  $1.40  $1.20  SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
     Three Months Ended
June 30, Six Months Ended
June 30, 2026
 2025
 2026
 2025
Cash flows from operating activities:       Net income$116,372  $180,568  $191,701  $296,170 Non-cash adjustments 72,766   18,981   195,477   17,536 Working capital changes (106,602)  (94,431)  (288,561)  (228,577)Net cash provided by operating activities 82,536   105,118   98,617   85,129 Cash flows from investing activities:       Net sales, maturities, and purchases of short-term investments (17,714)  (68,178)  12,061   17,987 Capitalized expenditures and patent costs (15,937)  (13,550)  (31,015)  (40,207)Long-term investments —   —   1,709   — Net cash used in investing activities (33,651)  (81,728)  (17,245)  (22,220)Cash flows from financing activities:       Payments on long-term debt and warrants (2)  —   (88,019)  (1,284)Repurchase of common stock (22,981)  (26,168)  (31,146)  (31,417)Dividends paid (18,106)  (15,577)  (36,086)  (27,134)Other (1,003)  (924)  (56,006)  (25,785)Net cash used in financing activities (42,092)  (42,669)  (211,257)  (85,620)Net increase (decrease) in cash, cash equivalents, and restricted cash 6,793   (19,279)  (129,885)  (22,711)Cash, cash equivalents, and restricted cash, beginning of period 617,590   548,115   754,268   551,547 Cash, cash equivalents, and restricted cash, end of period$624,383  $528,836  $624,383  $528,836  SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
       June 30, 2026
 December 31, 2025
Assets     Cash, cash equivalents, and short-term investments$1,112,411  $1,243,160 Accounts receivable 193,001   69,816 Prepaid and other current assets 91,151   74,994 Property & equipment and patents, net 339,843   342,469 Other long-term assets, net 455,686   333,851 Total assets$2,192,092  $2,064,290 Liabilities and Shareholders' equity     Current portion of long-term debt$378,239  $458,376 Current deferred revenue 325,740   193,722 Other current liabilities 97,091   100,404 Long-term deferred revenue 116,472   135,882 Long-term debt & other long-term liabilities 72,381   74,786 Total liabilities 989,923   963,170 Total shareholders' equity 1,202,169   1,101,120 Total liabilities and shareholders' equity$2,192,092  $2,064,290  RECONCILIATION OF NON-GAAP MEASURES

The following tables present InterDigital's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarter ended June 30, 2026 and 2025:

 Three Months Ended
June 30, Six Months Ended
June 30, (in thousands) (in thousands) 2026
 2025
 2026
 2025
Net income$116,372  $180,568  $191,701  $296,170 Income tax provision 27,006   30,466   31,471   47,083 Other income, net & interest expense (4,139)  (5,607)  (1,672)  (5,994)Depreciation and amortization 19,482   19,465   38,690   37,678 Share-based compensation 24,103   11,836   34,442   21,334 Other items(a) 1,255   —   1,255   (483)Adjusted EBITDA2$184,079  $236,728  $295,887  $395,788   Three Months Ended
June 30, Six Months Ended
June 30, (in thousands, except
for per share data) (in thousands, except
for per share data) 2026
 2025
 2026
 2025
Net income$116,372  $180,568  $191,701  $296,170 Share-based compensation 24,103   11,836   34,442   21,334 Acquisition related amortization 8,000   8,900   15,978   17,550 Other operating items(a) 1,255   —   1,255   (483)Other non-operating items(b) (967)  —   (967)  — Related income tax effect of above items (6,802)  (4,355)  (10,649)  (8,065)Adjustments to income taxes (563)  (1,667)  (10,967)  (5,566)Non-GAAP net income3$141,398  $195,282  $220,793  $320,940         Weighted-average dilutive shares - GAAP 34,260   33,725   34,770   33,615 Less: Dilutive impact of the Convertible Notes 3,669   3,791   4,033   3,731 Weighted-average dilutive shares - Non-GAAP3 30,591   29,934   30,737   29,884         Diluted EPS$3.40  $5.35  $5.51  $8.81 Non-GAAP EPS3$4.62  $6.52  $7.18  $10.74  (a)   Other items in the above tables include one-time expenses related to litigation fee reimbursements in three and six months ended June 30, 2026, compared to one-time contra-expenses related to litigation fee reimbursements in six months ended June 30, 2025.
(b)   Other non-operating items includes gains from observable price changes of our long-term strategic investments.

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of 2026 and full year fiscal 2026 included in this release:

 Outlook (in millions)   Full Year 2026 Q3 2026
 Current PriorNet income$42 - $48  $270 - $330  $202 - $298 Income tax provision11  59  48 Other income, net & interest expense—  (1) (4)Depreciation and amortization20  79  80 Share-based compensation13  61  52 Other items—  1  3 Adjusted EBITDA2$86 - $92  $469 - $529  $381 - $477   Outlook (in millions)   Full Year 2026 Q3 2026 Current PriorNet income$42 - $48  $270- $330  $202- $298 Share-based compensation13  61  52 Acquisition related amortization8  32  32 Other operating items—  1  3 Other non-operating items—  (1) — Related income tax effect of above items(4) (20) (18)Adjustments to income taxes—  (11) — Non-GAAP net income3$59 - $65  $332 - $392  $271 - $367       Weighted-average dilutive shares - GAAP33.7  34.1  35.0 Less: Dilutive impact of the Convertible Notes3.3  3.5  4.0 Weighted-average dilutive shares - Non-GAAP330.4  30.6  31.0       Diluted EPS$1.25 - $1.42  $7.91 - $9.67  $5.77 - $8.51 Non-GAAP EPS3$1.94 - $2.13  $10.85 - $12.81  $8.74 - $11.84  CONTACT:InterDigital, Inc. Email: [email protected] +1 (302) 300-1857

July 21, 2026 08:30 ET  | Source: InterDigital, Inc.

WILMINGTON, Del., July 21, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced that the company has signed a new patent license agreement with KEBA Energy Automation GmbH.

The agreement covers certain KEBA EV charger products under InterDigital’s global patent portfolio related to the 3G, 4G and Wi-Fi standards.

“This license reflects the expansion of connectivity into new verticals and demonstrates KEBA’s recognition of the value our innovation brings to products in the Internet of Things,” commented Julia Mattis, Chief Licensing Officer, InterDigital. “We expect to see continued licensing momentum as more manufacturers implement our technology across new device categories in the IoT market.”

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:
Richard Lloyd
Email: [email protected]
+1 (202) 349-1716