InterDigital Announces Financial Results for Third Quarter 2026

The full-year outlook includes only contracted revenue; additional fourth-quarter agreements or enforcement outcomes would be additive.

Rhea-AI Summary

InterDigital (IDCC) reported third-quarter revenue of $193.4 million, up 17% year over year, and raised its full-year revenue outlook midpoint. Net income rose 19% to $80.2 million, while diluted earnings per share increased 21% to $2.34. Adjusted EBITDA, a non-GAAP earnings measure, rose 25% to $131.3 million. Revenue included $36.2 million of catch-up revenue, versus $17.7 million a year earlier.

Annualized recurring revenue reached $628.9 million, up 7%. A new PC licensing agreement leaves final terms to binding arbitration. InterDigital increased its quarterly dividend to $0.75 from $0.70 per share. The company expects full-year revenue of $813–$819 million and diluted EPS of $8.93–$9.16, based only on contracted revenue. Smartphone revenue fell 10%, and quarterly operating cash flow declined to $150.356 million from $395.930 million.

19 points · 1 major

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year revenue outlook midpoint increased; InterDigital expects $813–$819 million based only on contracted revenue.
• Moderate pointQ3 revenue of $193.4 million increased 17% year over year.
• Moderate pointQ3 net income of $80.2 million rose 19%; net income margin remained 41%.
• Moderate pointQ3 diluted EPS of $2.34 increased 21% year over year.
• Moderate pointQ3 adjusted EBITDA of $131.3 million rose 25%; margin increased to 68% from 64%.
• Moderate pointAnnualized recurring revenue of $628.9 million increased 7% to a record.
• Moderate pointNew PC licensing agreement brings coverage to four of the world's top five PC manufacturers.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance is $154–$160 million, based only on contracted revenue.

11 minor points

• Minor pointCatch-up revenue of $36.2 million increased 105% from $17.7 million in Q3 2025.
• Minor pointCE, IoT/Auto revenue of $55.7 million increased 97% year over year.
• Minor pointStreaming and Cloud Services revenue of $15.0 million compared with none a year earlier.
• Minor pointKEBA licensing agreement adds a new IoT license with the EV charging company.
• Minor pointTwo new Disney injunctions bring Unified Patent Court wins to eight across eight patent cases decided.
• Minor pointQuarterly dividend increased to $0.75 per share from $0.70.
• Minor pointQ3 share repurchases totaled $18.7 million.
• Minor pointQ3 debt reduction totaled $83.2 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year diluted EPS guidance is $8.93–$9.16; adjusted EBITDA guidance is $507–$515 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 diluted EPS guidance is $1.04–$1.27; adjusted EBITDA guidance is $80–$88 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Selected $2.2 million note conversions will add no incremental outstanding shares because of offsetting hedges.

Negative

• Moderate pointQ3 smartphone revenue of $122.6 million declined 10% from $136.4 million a year earlier.
• Moderate pointQ3 operating cash flow fell to $150.356 million from $395.930 million a year earlier.
• Moderate pointNine-month net income declined to $271.930 million from $363.673 million; diluted EPS fell to $7.86 from $10.68.
• Moderate pointNine-month operating expenses rose to $338.150 million from $262.718 million a year earlier.
• Moderate pointPC license final terms remain unresolved and will be determined by binding arbitration.
• Moderate pointWarrants covering 6.0 million shares remain outstanding at a $105.30 strike, subject to adjustment, with net-share settlement.

5 minor points

• Minor pointQ3 operating expenses of $94.1 million increased 6% year over year.
• Minor pointNine-month revenue declined to $659.015 million from $675.785 million in the comparable 2025 period.
• Minor pointNine-month operating cash flow declined to $248.973 million from $481.059 million a year earlier.
• Minor pointCash and short-term investments declined to $1,122.603 million from $1,243.160 million at December 31, 2025.
• Minor point2027 convertible notes outstanding totaled $296.7 million in principal at September 30, 2026.

News Explained

The remaining warrants create a separate potential share-issuance path, with net-share maturities from September 2027 through April 2028.

The 2027 notes are convertible during the quarter ending December 31, 2026; as of September 30, 2026, InterDigital reported $296.7 million in principal still outstanding. Holders elected to convert $2.2 million of principal, to settle in the fourth quarter; the company says those conversions will add no outstanding shares because of hedging arrangements.

For converted notes, the company pays cash up to principal, and may pay any excess conversion obligation in cash, shares, or both, at its election. Separately, warrants to acquire 6.0 million shares remain outstanding at a $105.30 strike price, subject to adjustment.

Key Figures

Q3 revenue: $193.4 million; up 17% year over year Q3 net income: $80.2 million; up 19% year over year Adjusted EBITDA: $131.3 million; up 25% year over year +5 more

Q3 revenue

$193.4 million; up 17% year over year

Third quarter 2026

Q3 net income

$80.2 million; up 19% year over year

Third quarter 2026

Adjusted EBITDA

$131.3 million; up 25% year over year

Third quarter 2026

Annualized recurring revenue

$628.9 million; up 7% year over year

Third quarter 2026

FY26 revenue outlook

$813 million–$819 million

Contracted revenue only; company said the midpoint increased

FY26 diluted EPS outlook

$8.93–$9.16

Full-year 2026 outlook

Q4 revenue outlook

$154 million–$160 million

Contracted revenue only

Quarterly cash dividend

$0.75 per share, increased from $0.70

Increase announced in Q3 2026 highlights

Previous Earnings Reports

5 past events · Latest: Jul 30

Same Type 5 events

1. Jul 30

   Q2 earnings

   24h Move

   +16.2%

   Raised FY26 revenue guidance; ARR reached a record despite lower year-over-year revenue and net income.

2. Apr 30

   Q1 earnings

   24h Move

   -15.9%

   Reported $205.4 million revenue, $2.14 diluted EPS, and reaffirmed full-year 2026 guidance.

3. Feb 05

   FY25 earnings

   24h Move

   +9.9%

   Reported $834.0 million annual revenue, $406.6 million net income, and record non-GAAP EPS.

4. Oct 30

   Q3 earnings

   24h Move

   +3.5%

   Reported higher revenue, net income, diluted EPS, and record annualized recurring revenue.

5. Jul 31

   Q2 earnings

   24h Move

   +5.3%

   Reported 34% year-over-year revenue growth and raised the full-year revenue guidance midpoint.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible notes, call spread transactions, warrants, strike price

4 terms

convertible notes financial

"3.50% Senior Convertible Notes due 2027"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

call spread transactions financial

"entered into call spread transactions that together were designed"

A call spread transaction is an options strategy where an investor buys the right to benefit if a stock rises to a certain level and simultaneously sells a second, higher‑priced right to cap the potential gain. Think of it as paying for a discounted ticket that limits both your upside and cost: it reduces what you pay upfront and trims potential profit, which can make risk and reward more predictable for investors managing exposure or hedging positions.

warrants financial

"we also issued warrants to acquire, subject to customary anti-dilution adjustments"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

strike price financial

"remain outstanding at a strike price of $105.30"

The strike price is the fixed price at which an option gives its holder the right to buy or sell an underlying stock. Think of it like a coupon that lets you transact at a pre-agreed price regardless of the market; for investors it determines whether an option will be profitable, influences potential gains or losses, and is a key factor in the option’s market value and risk profile.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New license agreements drive Q3 results above guidance and increased FY26 outlook
Annualized recurring revenue¹ at all-time high of $629 million
Revenue up 17% YoY; Net income up 19% YoY; Adjusted EBITDA² up 25% YoY

WILMINGTON, Del., Oct. 29, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the quarter ended September 30, 2026.

“This was another excellent quarter, with double-digit growth in revenue and profitability and record annualized recurring revenue,” said Liren Chen, President and CEO of InterDigital. “We secured a new PC license through arbitration and advanced our video services program. Building on last quarter’s increase in annual guidance, our strong execution in Q3 supports another increase to the midpoint of our full-year revenue guidance, this time based only on revenue already under contract. We continue to pursue additional business in Q4 to build on these results.”

Recent Business Highlights:

• Reached agreement with a top PC manufacturer, with final terms to be determined by binding arbitration; we now have licensed 4 of the top 5 PC makers in the world
• Signed new IoT license agreement with EV charging company KEBA
• Earned revenue of $193 million up 17% year-over-year
• Achieved record annualized recurring revenue of $629 million
• Declared increase in quarterly cash dividend from $0.70 to $0.75 per share
• Awarded two new injunctions against Disney by Europe’s Unified Patent Court; in total eight injunctions won against Disney out of eight patent cases decided to date
• Recognized as one of America's Greatest Companies by Newsweek and one of America's Growth Leaders by Time
  
  

Third Quarter 2026 Financial Summary:

Third quarter 2026 revenue included $36.2 million of catch-up revenue, compared with $17.7 million in third quarter 2025.

	Three Months Ended September 30,
($ in millions, except per share data)	2026		2025		Change
GAAP Results:
Revenue	$193.4		$164.7		17%
Operating expenses	$94.1		$88.9		6%
Net income	$80.2		$67.5		19%
Net income margin	41%		41%		— ppt
Diluted EPS	$2.34		$1.93		21%
Non-GAAP Results:
Adjusted EBITDA 2	$131.3		$104.9		25%
Adjusted EBITDA margin 2	68%		64%		4 ppt
Non-GAAP Net income 3	$95.7		$78.2		22%
Non-GAAP EPS 3	$3.11		$2.55		22%
Additional Information:
Revenue by type:
Annualized recurring revenue	$628.9		$588.0		7%
Catch-up revenue	$36.2		$17.7		105%
Revenue by program:
Smartphone	$122.6		$136.4		(10)%
CE, IoT/Auto	$55.7		$28.2		97%
Streaming and Cloud Services	$15.0		$—		N/M
Other	$0.1		$0.1		54%

N/M         indicates not meaningful

Return of Capital

(in millions, except per share data)	Share Repurchases				Dividends Declared				Reduction of Debt		Total Return of Capital
	Shares		Value		Per Share		Value
Third quarter 2026	<0.1		$18.7		$0.75		$19.3		$83.2		$121.2

Near Term Outlook

The Company has provided an outlook for fourth quarter and full year 2026 in the table below, in both cases based on contracted revenue only and does not include any new agreements or enforcement action results we may sign or receive over the balance of the fourth quarter. Any new agreements and/or enforcement actions we may receive over the balance of the fourth quarter would be additive.

(in millions, except per share data)	Q4 2026		Full Year 2026
Revenue	$154 - $160		$813 - $819
Adjusted EBITDA 2	$80 - $88		$507 - $515
Diluted EPS	$1.04 - $1.27		$8.93 - $9.16
Non-GAAP EPS 3	$1.72 - $1.98		$11.99 - $12.25

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 December 31, 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 $105.30. 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 September 30, 2026 for more information.

As of September 30, 2026, $296.7 million in principal of the 2027 Notes remains outstanding, of which holders have elected to convert $2.2 million principal amount, which will settle in fourth quarter 2026. No incremental outstanding shares will result from such conversions due to the offsetting impact of hedging arrangements.

As of September 30, 2026, warrants to acquire 6.0 million shares of common stock remain outstanding at a strike price of $105.30, 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, October 29, 2026 at 10:00 a.m. ET to discuss its third 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 9344581  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 third 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 Q4 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, 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 earnings per share ("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 September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Revenue	$	193,429			$	164,682			$	659,015			$	675,785
Operating expenses:
Research and portfolio development		56,692				53,068				168,934				154,172
Licensing		24,371				19,715				111,215				61,301
General and administrative		13,001				16,091				58,001				47,245
Total operating expenses		94,064				88,874				338,150				262,718
Income from operations		99,365				75,808				320,865				413,067
Interest expense		(8,956	)			(10,019	)			(26,606	)			(29,427	)
Other income, net		9,098				10,188				28,420				35,590
Income before income taxes		99,507				75,977				322,679				419,230
Income tax provision		(19,278	)			(8,474	)			(50,749	)			(55,557	)
Net income	$	80,229			$	67,503			$	271,930			$	363,673
Net income per common share:
Basic	$	3.11			$	2.62			$	10.55			$	14.09
Diluted	$	2.34			$	1.93			$	7.86			$	10.68
Weighted-average number of common shares outstanding:
Basic		25,795				25,797				25,782				25,818
Diluted		34,214				34,925				34,585				34,051
Cash dividends declared per common share	$	0.75			$	0.70			$	2.15			$	1.90

SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Cash flows from operating activities:
Net income	$	80,229			$	67,503			$	271,930			$	363,673
Non-cash adjustments		12,043				90,142				207,520				107,678
Working capital changes		58,084				238,285				(230,477	)			9,708
Net cash provided by operating activities		150,356				395,930				248,973				481,059
Cash flows from investing activities:
Net sales, maturities, and purchases of short-term investments		13,694				338				25,755				18,325
Capitalized expenditures and patent costs		(14,141	)			(15,055	)			(45,156	)			(55,262	)
Long-term investments		—				—				1,709				—
Net cash used in investing activities		(447	)			(14,717	)			(17,692	)			(36,937	)
Cash flows from financing activities:
Payments on long-term debt and warrants		(83,239	)			(14	)			(171,258	)			(1,298	)
Repurchase of common stock		(18,741	)			(35,252	)			(49,887	)			(66,669	)
Dividends paid		(18,064	)			(15,507	)			(54,150	)			(42,641	)
Other		(7,547	)			(10,646	)			(63,553	)			(36,431	)
Net cash used in financing activities		(127,591	)			(61,419	)			(338,848	)			(147,039	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		22,318				319,794				(107,567	)			297,083
Cash, cash equivalents, and restricted cash, beginning of period		624,383				528,836				754,268				551,547
Cash, cash equivalents, and restricted cash, end of period	$	646,701			$	848,630			$	646,701			$	848,630

SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
	September 30, 2026			December 31, 2025
Assets
Cash, cash equivalents, and short-term investments	$	1,122,603		$	1,243,160
Accounts receivable		116,170			69,816
Prepaid and other current assets		87,096			74,994
Property & equipment and patents, net		335,401			342,469
Other long-term assets, net		496,396			333,851
Total assets	$	2,157,666		$	2,064,290
Liabilities and Shareholders' equity
Current portion of long-term debt	$	295,750		$	458,376
Current deferred revenue		294,935			193,722
Other current liabilities		108,785			100,404
Long-term deferred revenue		138,363			135,882
Long-term debt & other long-term liabilities		71,431			74,786
Total liabilities		909,264			963,170
Total shareholders' equity		1,248,402			1,101,120
Total liabilities and shareholders' equity	$	2,157,666		$	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 third quarter ended September 30, 2026 and 2025:

	Three Months Ended September 30,								Nine Months Ended September 30,
	(in thousands)								(in thousands)
	2026				2025				2026				2025
Net income	$	80,229			$	67,503			$	271,930			$	363,673
Income tax provision		19,278				8,474				50,749				55,557
Other income, net & interest expense		(142	)			(169	)			(1,814	)			(6,163	)
Depreciation and amortization		19,663				19,804				58,353				57,482
Share-based compensation		13,316				9,301				47,758				30,635
Other items 4		(1,034	)			—				221				(483	)
Adjusted EBITDA 2	$	131,310			$	104,913			$	427,197			$	500,701

	Three Months Ended September 30,								Nine Months Ended September 30,
	(in thousands, except for per share data)								(in thousands, except for per share data)
	2026				2025				2026				2025
Net income	$	80,229			$	67,503			$	271,930			$	363,673
Share-based compensation		13,316				9,301				47,758				30,635
Acquisition related amortization		7,998				9,058				23,976				26,608
Other operating items 4		(1,034	)			—				221				(483	)
Other non-operating items 5		—				—				(967	)			—
Related income tax effect of above items		(4,259	)			(3,855	)			(14,907	)			(11,920	)
Adjustments to income taxes		(566	)			(3,771	)			(11,533	)			(9,337	)
Non-GAAP net income 3	$	95,684			$	78,236			$	316,478			$	399,176
Weighted-average dilutive shares - GAAP		34,214				34,925				34,585				34,051
Less: Dilutive impact of the Convertible Notes		3,471				4,276				3,845				3,912
Weighted-average dilutive shares - Non-GAAP 3		30,743				30,649				30,740				30,139
Diluted EPS	$	2.34			$	1.93			$	7.86			$	10.68
Non-GAAP EPS 3	$	3.11			$	2.55			$	10.30			$	13.24

4     Other items in the above tables include one-time net expenses related to litigation fee reimbursements.
5     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 fourth quarter of 2026 and full year fiscal 2026 included in this release:

	Outlook
	(in millions)
	Q4 2026		Full Year 2026
Net income	$35 - $43		$307 - $315
Income tax provision	10		61
Other income, net & interest expense	—		(2	)
Depreciation and amortization	20		78
Share-based compensation	15		63
Adjusted EBITDA 2	$80 - $88		$507 - $515

	Outlook
	(in millions)
	Q4 2026			Full Year 2026
Net income	$35 - $43			$307 - $315
Share-based compensation	15			63
Acquisition related amortization	8			32
Other non-operating items	—			(1	)
Related income tax effect of above items	(5	)		(20	)
Adjustments to income taxes	—			(12	)
Non-GAAP net income 3	$53 - $61			$369 - $377
Weighted-average dilutive shares - GAAP	33.8			34.4
Less: Dilutive impact of the Convertible Notes	3.0			3.6
Weighted-average dilutive shares - Non-GAAP 3	30.8			30.8
Diluted EPS	$1.04 - $1.27			$8.93 - $9.16
Non-GAAP EPS 3	$1.72 - $1.98			$11.99 - $12.25

CONTACT:	InterDigital, Inc.
	Email: investor.relations@interdigital.com
	+1 (302) 300-1857

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were InterDigital's third-quarter 2026 earnings and revenue?

InterDigital reported $193.4 million in revenue and $2.34 in diluted EPS for the quarter ended September 30, 2026. Revenue increased 17% and diluted EPS increased 21% year over year. Net income rose 19% to $80.2 million.

What is InterDigital's full-year 2026 outlook?

InterDigital expects $813–$819 million in revenue, $8.93–$9.16 in diluted EPS and $507–$515 million in adjusted EBITDA for full-year 2026. The outlook includes only contracted revenue; additional agreements or enforcement outcomes received during the rest of the fourth quarter would be additive.

How does InterDigital calculate annualized recurring revenue?

InterDigital calculates annualized recurring revenue by subtracting quarterly catch-up revenue from total quarterly revenue and multiplying the remainder by four. It is not a projection or forecast of revenue for a 12-month period, and other companies may calculate similarly named measures differently.

How will InterDigital settle conversions of its 2027 convertible notes?

InterDigital will pay cash up to the principal amount converted and may settle any excess obligation in cash, shares or both. The notes are convertible during the quarter ending December 31, 2026, at 13.0351 shares per $1,000 principal. Holders elected to convert $2.2 million principal, settling in Q4 without incremental outstanding shares because of offsetting hedges.

When do InterDigital's outstanding warrants mature?

InterDigital's outstanding warrants mature on a net-share basis beginning September 2027 through April 2028. At September 30, 2026, they covered 6.0 million common shares at a strike price of $105.30, subject to adjustment.