InterDigital (NASDAQ: IDCC) Q1 2026 earnings dip but 2026 guidance reaffirmed
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
InterDigital reported mixed first-quarter 2026 results while reaffirming its full-year outlook. Revenue was $205.4 million, down 2% from a year earlier, as catch-up revenue fell to $63.6 million from $84.8 million. Net income declined to $75.3 million, with diluted EPS of $2.14 versus $3.45.
Non-GAAP results also softened, with Adjusted EBITDA of $111.8 million, down 30%, and Non-GAAP EPS of $2.57, down 39%. Operating expenses rose 57% to $123.2 million, mainly from higher revenue-share costs tied to the LG TV agreement and greater intellectual property enforcement spending.
Recurring metrics were stronger. Annualized recurring revenue increased 13% year-over-year to $567.2 million, and smartphone ARR rose 18% to a record $491.8 million. CE, IoT and automotive program revenue grew sharply to $81.9 million, up 212%. The company ended the quarter with $1.08 billion in cash, cash equivalents and short-term investments and returned $114 million of capital through $88 million of debt reduction and $26 million of share repurchases and dividends.
InterDigital signed six new agreements, including a renewal with Xiaomi and a new LG Electronics license, and highlighted injunction wins in Germany and Brazil. Management reaffirmed full-year 2026 guidance, projecting revenue of $675–$775 million, Adjusted EBITDA of $381–$477 million, and diluted EPS of $5.77–$8.51, while guiding second-quarter revenue to $139–$143 million.
Positive
- None.
Negative
- None.
Insights
Results softened year-over-year, but recurring revenue and 2026 guidance remain solid.
InterDigital delivered Q1 2026 revenue of $205.4M, slightly below the prior year as catch-up revenue dropped. GAAP net income fell to $75.3M, with diluted EPS of $2.14, reflecting significantly higher operating expenses tied to revenue sharing and IP enforcement.
Non-GAAP profitability also declined, with Adjusted EBITDA of $111.8M and a 54% Adjusted EBITDA margin versus 76% a year earlier. Despite this, the business showed healthier recurring characteristics: Annualized recurring revenue reached $567.2M, up 13%, and smartphone ARR hit a record $491.8M, up 18%.
Management reaffirmed full-year 2026 guidance, including revenue of $675–$775M and Adjusted EBITDA of $381–$477M, and issued Q2 revenue guidance of $139–$143M. The company maintained a strong liquidity position with $1.08B in cash and short-term investments and returned $114M of capital in Q1 through debt repayment, share repurchases and dividends.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $205.4M
Q1 2026 Net Income: $75.3M
Q1 2026 Diluted EPS: $2.14
+5 more
8 metrics
Q1 2026 Revenue
$205.4M
Three months ended March 31, 2026; down 2% year-over-year
Q1 2026 Net Income
$75.3M
Three months ended March 31, 2026; down 35% year-over-year
Q1 2026 Diluted EPS
$2.14
GAAP diluted earnings per share, three months ended March 31, 2026
Q1 2026 Adjusted EBITDA
$111.8M
Non-GAAP Adjusted EBITDA, down 30% year-over-year
Annualized Recurring Revenue
$567.2M
ARR for Q1 2026, up 13% from $502.9M in Q1 2025
Smartphone ARR
$491.8M
Q1 2026 smartphone ARR, up 18% year-over-year, all-time high
CE, IoT/Auto Revenue
$81.9M
Q1 2026 revenue by program, up 212% from $26.3M in Q1 2025
Full-Year 2026 Revenue Guidance
$675M–$775M
Reaffirmed outlook as of April 30, 2026
Key Terms
Annualized recurring revenue, Adjusted EBITDA, catch-up revenue, FRAND, +2 more
6 terms
Annualized recurring revenue financial
"Annualized recurring revenue2 ("ARR") increased 13% year-over-year from $502.9 million to $567.2 million"
Annualized recurring revenue is the predictable income a business expects to earn over a year from ongoing customer subscriptions or contracts. It’s similar to estimating how much money you would make in a year if your current monthly income stayed the same. Investors use this figure to assess the stability and growth potential of a company's revenue stream.
Adjusted EBITDA financial
"Adjusted EBITDA1 | $111.8 | | $159.1 | | (30)%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
catch-up revenue financial
"First quarter 2026 revenue included $63.6 million of catch-up revenue, compared with $84.8 million in first quarter 2025"
FRAND regulatory
"A court in Brazil found our licensing offer to be FRAND and awarded an injunction against Transsion"
A FRAND commitment is a promise by a patent holder to license technologies that are essential to an industry standard on terms that are fair, reasonable and non‑discriminatory. For investors it matters because FRAND commitments shape how much a company can earn from licensing, how likely it is to face costly legal fights, and how easily its technology can be adopted across the market—like agreeing on a fair price for using a common recipe so everyone can cook with it without endless dispute.
Senior Convertible Notes financial
"InterDigital’s 3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes are convertible during its calendar quarter ending June 30, 2026"
A senior convertible note is a loan a company issues that ranks near the top of payment priority and can be exchanged for the company’s stock under preset terms. Think of it as an IOU that promises interest payments and first dibs on repayments if assets are liquidated, but also gives the lender the option to become an owner later; investors watch these for repayment safety, interest income, and potential stock dilution.
Adjusted EBITDA margin financial
"Adjusted EBITDA margin 1 | 54% | | 76% | | (22) ppt"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
Earnings Snapshot
Revenue: $205.4M · Guidance included
Q1 2026
Revenue
$205.4M
-2% YoY
Net income
$75.3M
-35% YoY
Adjusted EBITDA
$111.8M
-30% YoY
Non-GAAP EPS
$2.57
-39% YoY
Guidance
For Q2 2026, InterDigital guides revenue to $139–$143M, Adjusted EBITDA to $67–$73M, and diluted EPS to $0.80–$0.97. Full-year 2026 guidance is reaffirmed with revenue of $675–$775M, Adjusted EBITDA of $381–$477M, and diluted EPS of $5.77–$8.51.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 30, 2026
______________
(Exact name of Registrant as Specified in Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, Zip code)
Registrant's telephone number, including area code
Not Applicable
Former Name or Former Address, if Changed Since Last Report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2026, InterDigital, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the fiscal quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD.
The supplemental earnings presentation attached hereto as Exhibit 99.2 is being provided to investors in connection with the Company's earnings announcement.
The information contained in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | InterDigital, Inc. press release dated April 30, 2026 | ||||
| 99.2 | Supplemental Earnings Presentation | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INTERDIGITAL, INC. | ||
| By: /s/ Joshua D. Schmidt | ||
| Joshua D. Schmidt | ||
| Chief Legal Officer and | ||
| Corporate Secretary | ||
Date: April 30, 2026
INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2026
Revenue, Adjusted EBITDA1 and EPS above top end of guidance
New agreements drive record Smartphone ARR2
Company reaffirms full year 2026 guidance
WILMINGTON, Del. April 30, 2026 - InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the quarter ended March 31, 2026.
"With six new agreements in the first quarter, including renewing Xiaomi to a long-term contract, we are off to a strong start in 2026. These new agreements drove our results above the top-end of our guidance as we continued our momentum across our licensing programs, our research and innovation pipeline, and our patent portfolio", commented CEO Liren Chen. "Over the last five years, we have signed agreements with a cumulative total contract value of $4.7 billion and now have the world's top-three smartphone vendors under license through the end of the decade. This success provides a strong base from which to drive additional growth."
Business Highlights for First Quarter 2026
•Signed six new agreements in Q1, including a renewal with Xiaomi and a new license with LG Electronics covering TVs & computer displays
•Annualized recurring revenue2 ("ARR") increased 13% year-over-year from $502.9 million to $567.2 million
•Smartphone ARR increased 18% year-over-year to an all-time high of $491.8 million
•Ranked by the European Patent Office among top five US companies in 2025 for patent applications
•Awarded fifth injunction against Disney by a court in Germany
•A court in Brazil found our licensing offer to be FRAND and awarded an injunction against Transsion
•Promoted to the S&P MidCap 400 from the S&P SmallCap 600
•Recognized by LexisNexis as one of the world’s 100 most innovative companies fifth year in a row
First Quarter 2026 Financial Summary:
First quarter 2026 revenue included $63.6 million of catch-up revenue, compared with $84.8 million in first quarter 2025. Operating expenses increased $44.5 million primarily due to an increase in revenue share costs driven by the LG TV agreement and an increase in intellectual property enforcement costs.
| Three Months Ended March 31, | |||||||||||||||||
| ($ in millions, except per share data) | 2026 | 2025 | Change | ||||||||||||||
| GAAP Results: | |||||||||||||||||
| Revenue | $205.4 | $210.5 | (2)% | ||||||||||||||
| Operating expenses | $123.2 | $78.7 | 57% | ||||||||||||||
| Net income | $75.3 | $115.6 | (35)% | ||||||||||||||
| Net income margin | 37% | 55% | (18) ppt | ||||||||||||||
| Diluted EPS | $2.14 | $3.45 | (38)% | ||||||||||||||
| Non-GAAP Results: | |||||||||||||||||
Adjusted EBITDA 1 | $111.8 | $159.1 | (30)% | ||||||||||||||
Adjusted EBITDA margin 1 | 54% | 76% | (22) ppt | ||||||||||||||
Non-GAAP Net income 3 | $79.4 | $125.7 | (37)% | ||||||||||||||
Non-GAAP EPS 3 | $2.57 | $4.21 | (39)% | ||||||||||||||
| Additional Information: | |||||||||||||||||
| Revenue by type: | |||||||||||||||||
Annualized recurring revenue 2 | $567.2 | $502.9 | 13% | ||||||||||||||
| Catch-up revenue | $63.6 | $84.8 | (25)% | ||||||||||||||
| Revenue by program: | |||||||||||||||||
| Smartphone | $123.4 | $184.0 | (33)% | ||||||||||||||
| CE, IoT/Auto | $81.9 | $26.3 | 212% | ||||||||||||||
| Other | $0.1 | $0.2 | (46)% | ||||||||||||||
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 | ||||||||||||||||||||||||||||||||
| First quarter 2026 | <0.1 | $8.2 | $0.70 | $18.1 | $88.0 | $114.3 | |||||||||||||||||||||||||||||
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 its calendar quarter ending June 30, 2026. The current conversion rate of the Notes is 12.9041 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 $77.49 to $105.55. 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 March 31, 2026 for more information.
In December 2025, holders elected to convert $80.0 million principal amount of the 2027 Notes, which was settled in the first quarter of 2026. We paid the $80.0 million principal amount in cash and issued 0.8 million shares to settle the conversion spread. These shares issued were offset by 0.8 million shares received upon partial settlement of the 2027 Note Hedge Transactions, resulting in no incremental outstanding shares resulting from the conversion.
As of March 31, 2026, 6.0 million warrants remain outstanding related to the 2027 Warrant Transactions at a weighted-average strike price of $105.55 per share, subject to adjustment, which mature on a net-share basis beginning September 2027 through April 2028.
Near Term Outlook
The Company has reaffirmed its full year 2026 outlook and provided an initial outlook for the second quarter 2026. The outlook for second 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 second 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.
| (in millions, except per share data) | Q2 2026 | Full Year 2026 | |||||||||
| Revenue | $139 - $143 | $675 - $775 | |||||||||
Adjusted EBITDA 1 | $67 - $73 | $381 - $477 | |||||||||
| Diluted EPS | $0.80 - $0.97 | $5.77 - $8.51 | |||||||||
Non-GAAP EPS 3 | $1.41 - $1.60 | $8.74 - $11.84 | |||||||||
Conference Call Information
InterDigital will host a conference call on Thursday, April 30, 2026 at 10:00 a.m. ET to discuss its first 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 2456118 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 first 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,” “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 Q2 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 assumptions and 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 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.
2 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.
3 Non-GAAP net income, Non-GAAP EPS, and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provides 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 205,416 | $ | 210,507 | |||||||
| Operating expenses: | |||||||||||
| Research and portfolio development | 55,835 | 47,430 | |||||||||
| Licensing | 52,119 | 17,677 | |||||||||
| General and administrative | 15,201 | 13,568 | |||||||||
| Total operating expenses | 123,155 | 78,675 | |||||||||
| Income from operations | 82,261 | 131,832 | |||||||||
| Interest expense | (9,067) | (9,871) | |||||||||
| Other income, net | 6,600 | 10,258 | |||||||||
| Income before income taxes | 79,794 | 132,219 | |||||||||
| Income tax provision | (4,465) | (16,617) | |||||||||
| Net income | $ | 75,329 | $ | 115,602 | |||||||
| Net income per common share: | |||||||||||
| Basic | $ | 2.93 | $ | 4.49 | |||||||
| Diluted | $ | 2.14 | $ | 3.45 | |||||||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 25,721 | 25,741 | |||||||||
| Diluted | 35,280 | 33,505 | |||||||||
| Cash dividends declared per common share | $ | 0.70 | $ | 0.60 | |||||||
SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 75,329 | $ | 115,602 | |||||||
| Non-cash adjustments | 122,711 | (1,445) | |||||||||
| Working capital changes | (181,959) | (134,146) | |||||||||
Net cash provided by (used in) operating activities | 16,081 | (19,989) | |||||||||
| Cash flows from investing activities: | |||||||||||
Net sales, maturities, and purchases of short-term investments | 29,775 | 86,165 | |||||||||
| Capitalized patent costs and property and equipment | (15,078) | (26,657) | |||||||||
| Long-term investments | 1,709 | — | |||||||||
Net cash provided by investing activities | 16,406 | 59,508 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payments on long-term debt and warrants | (88,017) | (1,284) | |||||||||
| Repurchase of common stock | (8,165) | (5,249) | |||||||||
| Dividends paid | (17,980) | (11,557) | |||||||||
| Other | (55,003) | (24,861) | |||||||||
| Net cash used in financing activities | (169,165) | (42,951) | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (136,678) | (3,432) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 754,268 | 551,547 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 617,590 | $ | 548,115 | |||||||
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash, cash equivalents, and short-term investments | $ | 1,081,859 | $ | 1,243,160 | |||||||
| Accounts receivable | 208,327 | 69,816 | |||||||||
| Prepaid and other current assets | 96,491 | 74,994 | |||||||||
| Property & equipment and patents, net | 342,029 | 342,469 | |||||||||
| Other long-term assets, net | 342,492 | 333,851 | |||||||||
| Total assets | $ | 2,071,198 | $ | 2,064,290 | |||||||
| Liabilities and Shareholders' equity | |||||||||||
| Current portion of long-term debt | $ | 377,787 | $ | 458,376 | |||||||
| Current deferred revenue | 261,103 | 193,722 | |||||||||
| Other current liabilities | 99,450 | 100,404 | |||||||||
| Long-term deferred revenue | 159,362 | 135,882 | |||||||||
| Long-term debt & other long-term liabilities | 69,410 | 74,786 | |||||||||
| Total liabilities | 967,112 | 963,170 | |||||||||
| Total shareholders' equity | 1,104,086 | 1,101,120 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,071,198 | $ | 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 first quarter ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| (in thousands) | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 75,329 | $ | 115,602 | |||||||
| Income tax provision | 4,465 | 16,617 | |||||||||
| Other income, net & interest expense | 2,467 | (387) | |||||||||
| Depreciation and amortization | 19,208 | 18,213 | |||||||||
| Share-based compensation | 10,339 | 9,498 | |||||||||
Other items (a) | — | (483) | |||||||||
Adjusted EBITDA 1 | $ | 111,808 | $ | 159,060 | |||||||
| Three Months Ended March 31, | |||||||||||
| (in thousands, except for per share data) | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 75,329 | $ | 115,602 | |||||||
| Share-based compensation | 10,339 | 9,498 | |||||||||
| Acquisition related amortization | 7,978 | 8,650 | |||||||||
Other operating items (a) | — | (483) | |||||||||
Other non-operating items | — | — | |||||||||
| Related income tax effect of above items | (3,847) | (3,710) | |||||||||
| Adjustments to income taxes | (10,404) | (3,899) | |||||||||
Non-GAAP net income 3 | $ | 79,395 | $ | 125,658 | |||||||
| Weighted average dilutive shares - GAAP | 35,280 | 33,505 | |||||||||
| Less: Dilutive impact of the Convertible Notes | 4,396 | 3,670 | |||||||||
Weighted average dilutive shares - Non-GAAP 3 | 30,884 | 29,835 | |||||||||
| Diluted EPS | $ | 2.14 | $ | 3.45 | |||||||
Non-GAAP EPS 3 | $ | 2.57 | $ | 4.21 | |||||||
(a) Other items in the above tables include one-time contra-expenses related to litigation fee reimbursements.
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the second quarter of 2026 and full year fiscal 2026 included in this release:
Outlook | |||||||||||
(in millions) | |||||||||||
Q2 2026 | Full Year 2026 | ||||||||||
Net income | $28 - $34 | $202 - $298 | |||||||||
| Income tax provision | 7 | 48 | |||||||||
Other income, net & interest expense | — | (4) | |||||||||
| Depreciation and amortization | 20 | 80 | |||||||||
| Share-based compensation | 12 | 52 | |||||||||
Other items | — | 3 | |||||||||
Adjusted EBITDA 1 | $67 - $73 | $381 - $477 | |||||||||
| Outlook | |||||||||||
| (in millions, except for per share data) | |||||||||||
Q2 2026 | Full Year 2026 | ||||||||||
Net income | $28 - $34 | $202 - $298 | |||||||||
| Share-based compensation | 12 | 52 | |||||||||
| Acquisition related amortization | 8 | 32 | |||||||||
Other operating items | — | 3 | |||||||||
Other non-operating items | — | — | |||||||||
| Related income tax effect of above items | (4) | (18) | |||||||||
| Adjustments to income taxes | — | — | |||||||||
Non-GAAP net income 3 | $44 - $50 | $271 - $367 | |||||||||
| Weighted average dilutive shares - GAAP | 35.1 | 35.0 | |||||||||
| Less: Dilutive impact of the Convertible Notes | 3.9 | 4.0 | |||||||||
Weighted average dilutive shares - Non-GAAP 3 | 31.2 | 31.0 | |||||||||
| Diluted EPS | $0.80 - $0.97 | $5.77 - $8.51 | |||||||||
Non-GAAP EPS 3 | $1.41 - $1.60 | $8.74 - $11.84 | |||||||||
| CONTACT: | InterDigital, Inc. | ||||
| Email: investor.relations@interdigital.com | |||||
| +1 (302) 300-1857 | |||||
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Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act, including but not limited to statements related to our outlook for Q2 and full year 2026, and other financial and business goals. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. Actual results could materially differ because of such factors or circumstances, which include those described in our first quarter 2026 earnings release. You should carefully consider these factors as well as the risks and uncertainties outlined in greater detail in the Risk Factors sections of our 2025 Form 10-K and our other SEC filings before making any investment decision with respect to our common stock. These factors, individually or in the aggregate, may cause our actual results to differ materially from our expected and historical results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law. Industry Data This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. While we believe the industry and market data included in this presentation are reliable and are based on reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Non-GAAP Financial Measures This presentation includes certain non-GAAP measures not based on generally accepted accounting principles. For more information and for reconciliations between GAAP and these non-GAAP measures, see the appendix to this presentation. 2©2026 InterDigital, Inc. All Rights Reserved.
Agenda Q1 Financial & Business Highlights Q2 and FY26 Outlook Background on InterDigital Appendix 3©2026 InterDigital, Inc. All Rights Reserved.
©2026 InterDigital, Inc. All Rights Reserved. 4
Q1 Financial Highlights Revenue, Adj. EBITDAa and Diluted EPS exceed the top end of guidance range Annualized Recurring Revenueb (ARR) up 13% YoY to $567 million Smartphone ARRb up 18% to $492 million (all-time high) Adj. EBITDAa of $112 million Adj. EBITDA margina of 54% Return of capital of $114 million, including $88 million reduction in debt and $26 million of share repurchases and dividends Strong balance sheet with cash of $1.1 billion a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations b Please see appendix for a description of this metric and how it is calculated 5©2026 InterDigital, Inc. All Rights Reserved.
Recent Business Highlights Signed six new agreements in Q1, including a renewal with Xiaomi and a new license with LG Electronics Recognized by LexisNexis as one of the world’s 100 most innovative companies fifth year in a row Awarded fifth injunction against Disney by a court in Germany A court in Brazil found our offer to be FRAND and awarded an injunction against Transsion Launched Haptic Excellence Center with Razer Showcased new services and immersive experiences underpinned by 6G and AI at MWC InterDigital engineers elected to seven leadership positions across wireless and video standards bodies Promoted to the S&P Midcap 400 from the S&P Smallcap 600 6©2026 InterDigital, Inc. All Rights Reserved.
Financial Results vs. Outlook Q 1 ’ 2 6 R E S U L T S Q 1 ’ 2 6 O U T L O O K Revenue $205.4M $194M - $200M Adjusted EBITDAa $111.8M $101M - $110M Diluted EPS $2.14 $1.61 - $1.86 Non-GAAP EPSa $2.57 $2.39 - $2.68 aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. 7©2026 InterDigital, Inc. All Rights Reserved.
ARRa +13% YoY Q1’26 Results YoY decline in Q1’26 revenue due to lower catch-up revenue. Operating expenses increased primarily due to higher revenue share costs driven by the LG TV agreement and higher IP enforcement costs. 8 0 100 200 300 400 500 600 700 Q1 ‘25 Q1 ‘26 $567M Ce, IoT/Auto Smartphone $211M $205 0 100 200 300 Q1 ‘25 Q1 ‘26 Revenue <2%> YoY $159M $112M 76% 54% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 Q1 ‘25 Q1 ‘26 Adjusted EBITDAb <30%> YoY $4.21 $2.57 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Q1 ‘25 Q1 ‘26 Non-GAAP EPSb <39%> YoY - - - - - -Adj EBITDA Marginb a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $503M ©2026 InterDigital, Inc. All Rights Reserved.
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Company Reaffirms FY 2026 Guidance (as of April 30, 2026) 10 Q 2 ’ 2 6 O U T L O O K F Y 2 6 O U T L O O K Revenue $139M - $143M $675M - $775M Adjusted EBITDAa $67M - $73M $381M - $477M Diluted EPS $0.80 - $0.97 $5.77 - $8.51 Non-GAAP EPSa $1.41 - $1.60 $8.74 - $11.84 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. The outlook for second 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 second 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. ©2026 InterDigital, Inc. All Rights Reserved.
Upcoming Investor Events May 12 Needham Tech Conference ● New York, NY May 18 J.P. Morgan Tech Conference ● Boston, MA June 2 William Blair Growth Stock Conference ● Chicago, IL June 2 Evercore Tech Conference ● San Francisco, CA June 3 Baird Consumer, Tech & Services Conference ● New York, NY June 10 Corporate Event Annual Meeting of Shareholders ● Virtual 11©2026 InterDigital, Inc. All Rights Reserved.
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Premier Team Essential Technology Development Company Introduction Long-term Growth Strategy Accelerating Business Momentum 01 0304 0205 InterDigital Innovating Today, Empowering Tomorrow 13©2026 InterDigital, Inc. All Rights Reserved.
InterDigital Pioneering Wireless, Video and AI Research 14 71% Adj. EBITDA Margina KEY CUSTOMERS INCLUDE: ~$1.2B Cash 2025 F inancial Resul ts $834M Revenue H I G H L I G H T S Driving foundational research in wireless, video & AI since 1972 World-class team Led by seasoned industry veterans Enabling ecosystem ~9B wireless connections with $7.6T economic value annually Industry-leading patents Evergreen patent portfolio of ~38,000 assets Long-term customers Subscription-like revenue, $4.7B in TCV* added since the start of 2021 *TCV = total contract value a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $15.31 Non-GAAP EPSa ©2026 InterDigital, Inc. All Rights Reserved.
Rich Brezski CFO Julia Mattis Chief Licensing Officer 15 World-Class Leadership Team Robert S. Stien Chief Communications & Public Policy Officer Ken Kaskoun Chief Growth Officer Joshua Schmidt Chief Legal Officer Skip Maloney Chief People Officer Liren Chen CEO Rajesh Pankaj CTO Decades of industry experience. Strong track record. Drive deep collaboration and superb execution. ©2026 InterDigital, Inc. All Rights Reserved.
16 IP as a Service Business Model: A Virtuous Cycle of Innovation We are a foundational R&D company. We share our innovation through the standards process and monetize our technology through IP licensing. $ RESEARCH & INNOVATION PATENT PORTFOLIO LICENSING PRODUCT IMPLEMENTERS STANDARD DEVELOPMENT TECHNOLOGY SHARING ©2026 InterDigital, Inc. All Rights Reserved.
17 We Focus on Foundational Technologies We solve the most complex problems in the system. The technology we created is broadly applicable to many industries W I R E L E S S Cellular wireless - 4G/5G/6G WiFi and wireless local area networks V I D E O Video compression, transport and enhancement Immersive media compression, transport and enhancement A I AI/ML research to deliver next gen wireless and video technologies and services AI/ML innovation to boost performance, save energy, and enable new use cases Our research and patents in these areas underpin our business ©2026 InterDigital, Inc. All Rights Reserved.
18 InterDigital Tech Underpins Surging Mobile Traffic 2017 2022 2027 50 100 150 200 250 3000 10.8 EB 90.4 EB 282.8 EB Video Drives Surge in Mobile Data Traffic Estimated global media traffic by application category (in exabytes per month)* * One exabyte equals one million terabytes. Source: Ericsson Mobility Report Video Other ©2026 InterDigital, Inc. All Rights Reserved.
19 Our Innovations Help Drive Video Codec Evolution 4K Movie 130-Minute Run Time (1) http://www.iam-media.com/litigation/what-will-tv-cost-you-putting-price-hevc-licences (2) Approximated based on the result from 3GPP document https://www.3gpp.org/ftp/Specs/archive/26_series/26.955/26955-h00.zip Source: Counterpoint, WINXDVD Uncompressed: 11,600GB Compressed VP9: ~15 GB HEVC: ~14 GB(1) AV1: ~11 GB VVC: ~9 GB(2) AVC: ~24 GB(1) ©2026 InterDigital, Inc. All Rights Reserved.
20 The Power of the Global Standards System C O N S U M E R S A global system of standards helps ensure interoperability I M P L E M E N T E R S Standards like 5G lower barriers to entry for new entrants into a market like smartphones and benefit from economies of scale O P E R A T O R S A N D S E R V I C E P R O V I D E R S Standards increase system capacity and lower the total cost of ownership ©2026 InterDigital, Inc. All Rights Reserved.
21 InterDigital Drives Standard Development U N I T I N G P R I N C I P L E S Strong belief in global standards Focus on technology merits and neutral on product implementation decisions S T R O N G L E A D E R S H I P Participate in 100+ standard development organizations (SDO) Hold more than 100 leadership positions in these SDOs B R O A D C O L L A B O R A T I O N S Collaborate with many industry partners and leading universities Our technologies benefit the whole eco-system: billions of devices and many cloud-based services each year ©2026 InterDigital, Inc. All Rights Reserved.
22 JVET Video & AI Standards NNVC Co-Chair & SW Chair Beyond VVC Co-Chair of Two AHG Beyond VVC Co-Chair of Two AHG AI AHG Co-Chair AI-PCC Chair Haptic AHG Chair Steering Board Member TSAG Vice Chair MPEG Green Chair Sustainability in Media & Data Delivery Services Co-Chair We Have Many Standard Development Leadership Positions Cellular, WiFi & AI Standards RAN2 Chair SA6 Chair ETSI Board Member and ISAC ISG Chair SAI Vice Chair Steering Group Co-Chair Technology Roadmap Vice-Chair SA Board of Governors AIML Standing Committee Chair Internet Area Working Group Co-Chair Policy Committee Vice Chair Sphere of Influence Growing: More than 100 Leadership Positions in Wireless, Video & AI Standards NNVC Co-Chair & SW Chair AI AHG Co-Chair AI-PCC Chair AI-Related Positions ©2026 InterDigital, Inc. All Rights Reserved. SA2 Vice-Chair
23 One Of Only Three Companies with Multiple 3GPP Chair Positions Radio Access Network (RAN) WG1 Radio Layer1 WG2 Radio Layer 2/3 WG3 Architecture & Related Network Interfaces WG4 Radio Performance & Protocol Aspects WG5 Mobile Terminal Conformance Test Services & System Aspects (SA) WG1 Services WG2 System Architecture WG3 Security WG4 Codec WG5 Telecom Management WG6 Mission-critical Apps Core Network & Terminals (CT) WG1 User Equipment To Core Network Protocols WG3 Interworking With External Networks WG4 Core Network Protocols WG6 Smart Card Application Aspects ©2026 InterDigital, Inc. All Rights Reserved.
24 2022: 2023: 2024: 2025: ©2026 InterDigital, Inc. All Rights Reserved. InterDigital is a Recognized Global Innovation Leader For the fifth year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2026: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” 2026:
Innovation Engine Fuels Evergreen IP Portfolio Cellular WiFi Video Other ~19,000 Assets ~38,000 Assets Our patent portfolio grew > 100% between 2017 & 2025 with the addition of video & DTV related technologies and continuing growth of wireless assets Growing by about 7 new patents/day 2017: 2025: 25©2026 InterDigital, Inc. All Rights Reserved.
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$0M $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M $4,000M $4,500M $5,000M Licensing Momentum Drives Total Contract Value (TCV) Growth More than 50 licenses with TCV of $4.7B closed since the start of 2021 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 27 2 0 2 6 ©2026 InterDigital, Inc. All Rights Reserved.
Licensing Success Drives ARRa Growth a Please see appendix for a description of this metric and how it is calculated 28 New Agreements and Renewals Drive Increase in ARRa $450M $500M $550M $600M $0M 2021 2022 2023 2024 2025 $406M $582M ©2026 InterDigital, Inc. All Rights Reserved.
$208M $255M $345M $551M $589M 49% 56% 63% 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% $0M $200M $400M $600M $800M $1,000M 2021 2022 2023 2024 2025 Strong Revenue Growth, Margins and Return of Capital Non-GAAP EPSa > 4X growth - - - - - -Adj EBITDA Margina Revenue ~2x growth Adjusted EBITDA ~3X growth a a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $425M $458M $550M $869M $834M 2021 2022 2023 2024 2025 Return of Capital > $800M returned / Share count <16%> $3.73 $5.08 $9.23 $14.97 $15.31 2021 2022 2023 2024 2025 $0M $100M $200M $300M $400M $500M $600M $700M $800M $900M 2021 2022 2023 2024 2025 Repurchases Dividends 29©2026 InterDigital, Inc. All Rights Reserved.
30 Recognized As One Of America’s Best Companies America’s Greatest Companies 2025 100 Fastest- Growing Companies 2025 Newsweek Fortune Time Magazine America’s Growth Leaders 2025 Forbes America’s Best Mid-Cap Companies 2026 #1 ©2026 InterDigital, Inc. All Rights Reserved.
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32 Our Technologies Benefit the Economy and the World Source: GSMA The Mobile Economy 2026 5.8 billion people globally subscribed to a mobile service, including 4.7 billion who used the mobile internet Mobile technologies and services generate $7.6 trillion economic value, 6.4% of global GDP Enables 50 million jobs across the wider mobile ecosystem Mobile technologies and services projected to add nearly $4 trillion to the global economy by 2030 ©2026 InterDigital, Inc. All Rights Reserved.
33 We Address Three Attractive Markets Market Key Market Dynamic Significant Customers CONTENT & CLOUD SERVICES High growth with increasing focus on profitability ~10% <20 CE, IoT/AUTO ~4% ~100 Increasing concentration of top OEMs SMARTPHONES <10 Mix of mature and growth with fragmentation across certain verticals 2025A TAM ’25 – ’30E CAGR ~(1)% Sources: Counterpoint Research, Omdia (1) Represents wholesale revenue (2) Includes CE and cellular IoT only (Auto excluded) (3) Represents SVoD + AVoD ~$485B (3) ~1.8B Units (~$440B)(2) ~1.25B Units (~$465B)(1) ©2026 InterDigital, Inc. All Rights Reserved.
34 Clear Pathway to Growth 2025 2030 SMARTPHONE I n c r e a s e p e n e t r a t i o n E n h a n c e v a l u a t i o n d u r i n g r e n e w a l s CE, IOT/AUTO I n c r e a s e p e n e t r a t i o n E x p a n d m a r k e t c o v e r a g e S T R E A M I N G & C L O U D S E R V I C E S G r o w v i d e o s e r v i c e s l i c e n s i n g p r o g r a m $91M ~$200M $0 ~$300M+ $1B+ A R R a T a r g e t 2030 (by 2027) $491M ~$500M a Please see appendix for a description of this metric and how it is calculated ©2026 InterDigital, Inc. All Rights Reserved.
Strong Execution Drives High Penetration 35 In Litigation Licensed Primary Opportunity Note: Lenovo in binding arbitration 2 0 2 6 E S M A R T P H O N E S H I P M E N T S : ~ 1 . 1 B Source: Counterpoint Research Licensing coverage: ~85% • Top 3 vendors under license until end of decade • 8 of top 10 now under license • Large global market • Focus on driving higher value from key customers during renewal cycle 51% 28% 17% ~85% ~8% ~5% Other ©2026 InterDigital, Inc. All Rights Reserved.
Good CE Momentum in Q1 But Opportunity Remains License coverage as of Q1 2026 36 Note: Figures represent 2025 estimated shipments Source: Omdia P C s & T A B L E T S : ~ 4 4 0 M T V s : ~ 2 1 0 M ~60%~25% ~15% ~23% ~30% ~15% ~32% Licensed Primary Opportunity OtherIn Litigation ©2026 InterDigital, Inc. All Rights Reserved.
37 Growth Across Cellular IoT and Automotive Source: Omdia P A S S E N G E R V E H I C L E S H I P M E N T S ( M ) 2025A 2030E ~65 ~90 +7% 5G 4G ~85% of 4G auto market licensed 5G auto market driving value growth ©2026 InterDigital, Inc. All Rights Reserved. C E L L U L A R I O T S H I P M E N T S ( M ) Healthcare Industrial IoT Smart Cities 2025A 2030E ~550 ~860 +9% Unaddressed Addressed Energy & Utilities Remote Monitoring Retail & Payments Transportation & Logistics Automotive
38 SVoD and AVoD Are Our Current Focus Source: Omdia Note: Cloud gaming forecast data limited to 2028 and SVOD includes ad tier subscriptions 2025 TAM 2030 TAM TAM CAGR $300 B$185 B $240 B $170 B $160 B $18 B $21 B $5 B $6 B +11% +5% -1% SVoD AVoD GLOBAL PAY-TV VIDEO CONFERENCING CLOUD GAMING $515 B +3% +4% ©2026 InterDigital, Inc. All Rights Reserved.
39 Capital Allocation Priorities Strong cash flow maintains balance sheet strength, funds organic investment in research, and enables significant share reduction Maintain fortress balance sheet Financial strength is a strategic asset Organic investment in business Prioritize investment into research and IP portfolio Inorganic investment Opportunistic and strategic Return Excess cash to shareholders > $600M in share repurchases last 5 yrs. Dividend increase of 56% in 2025 ©2026 InterDigital, Inc. All Rights Reserved.
40 Target Financial Model for 2030 60%+ Powerful Operating Leverage drives Adjusted EBITDA Marginb Target $1B+ ARRa 10%+ Annual Growth Target High Margin Drives Strong Cash Flow $600M+ Adjusted EBITDAb Target Well positioned to drive value going forward a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to appendix. Calculated based on an assumed 60% Adjusted EBITDA margin. ©2026 InterDigital, Inc. All Rights Reserved.
41 Key Takeaways World-class leadership and functional teams across the board Accelerating momentum for R&I, standard development, patent portfolio creation and licensing driven by continuing investment and strong execution We have a clear strategy, a world-class team and the operational discipline to drive the growth of ARRa to $1B+ target by 2030 Our technologies are critical to devices and services of multiple industries, giving us large addressable markets a Please see appendix for a description of this metric and how it is calculated ©2026 InterDigital, Inc. All Rights Reserved.
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43 Supplemental Metrics 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. 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 attributable to InterDigital Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & 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. 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 provides investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income attributable to InterDigital, Inc. 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. ©2026 InterDigital, Inc. All Rights Reserved.
Non-GAAP Reconciliation 44©2026 InterDigital, Inc. All Rights Reserved. (In millions) 2021 2022 2023 2024 2025 Q1'26 Q1'25 Q1'26 Q2'26 Full Year 2026 Net income attributable to InterDigital, Inc. 55$ 94$ 214$ 359$ 407$ 75$ 116$ $57 - $66 $28 - $34 $202 - $298 Net loss attributable to non-controlling interest (13) (2) (3) - - - - - - - Income tax (provision) benefit 15 26 24 71 63 4 17 12 7 48 Other income (expense) & interest expense 14 33 (13) 10 (9) 2 - - - (4) Depreciation and amortization 78 79 78 70 78 19 18 19 20 80 Share-based compensation 29 22 36 46 43 10 9 12 12 52 Other operating items 30 3 10 (4) 7 - (1) 1 - 3 Adjusted EBITDA 208$ 255$ 345$ 551$ 589$ 112$ 159$ $101 - $110 $67 - $73 $381 - $477 Adjusted EBITDA Margin 49% 56% 63% 63% 71% 54% 76% 54% 50% 59% Other Operating Items Restructuring 28$ 3$ -$ -$ -$ -$ -$ -$ -$ -$ Other non-cash charges - - 3 - - - - - - - Non-Recurring Personnel-Related 2 - - - 7 - - 1 - 3 Net Litigation Fee Reimbursement - - 8 (4) - - (1) - - - Total Other Operating Items 30$ 3$ 10$ (4)$ 7$ -$ (1)$ 1$ -$ 3$ NOTE: Sums may not equal total due to rounding Full Year Three Months Ended Outlook
Non-GAAP Reconciliation 45©2026 InterDigital, Inc. All Rights Reserved. (In millions, except per share data) 2021 2022 2023 2024 2025 Q1'26 Q1'25 Q1'26 Q2'26 Full Year 2026 Net income attributable to InterDigital, Inc. 55$ 94$ 214$ 359$ 407$ 75$ 116$ $57 - $66 $28 - $34 $202 - $298 Share-based compensation 29 22 36 46 43 10 9 12 12 52 Acquisition related amortization 42 42 41 33 36 8 9 8 8 32 Other operating items 30 3 10 (4) 7 - (1) 1 - 3 Other non-operating items (11) 13 (14) (2) - - - - - - Related income tax and noncontrolling interest effect of above items (26) (17) (17) (15) (18) (4) (4) (4) (4) (18) Adjustments to income taxes (2) (2) (16) (7) (10) (10) (4) - - - Non-GAAP net income 117$ 155$ 254$ 409$ 465$ 79$ 125$ $74 - $83 $44 - $50 $271 - $367 Weighted average diluted shares - GAAP 31.3 30.5 28.1 29.7 34.5 35.3 33.5 35.4 35.1 35.0 Less: Dilutive impact of the Convertible Notes - - 0.5 2.4 4.1 4.4 3.7 4.4 3.9 4.0 Weighted average diluted shares - Non-GAAP 31.3 30.5 27.6 27.3 30.4 30.9 29.8 31.0 31.2 31.0 Diluted EPS 1.77$ 3.07$ 7.62$ 12.07$ 11.80$ 2.14$ 3.45$ $1.61 - $1.86 $0.80 - $0.97 $5.77 - $8.51 Non-GAAP EPS 3.73$ 5.08$ 9.23$ 14.97$ 15.31$ 2.57$ 4.21$ $2.39 - $2.68 $1.41- $1.60 $8.74 - $11.84 Other Operating Items Restructuring 28$ 3$ -$ -$ -$ -$ - -$ -$ -$ Other non-cash charges - - 3 - 1 - - - - - Non-recurring personnel-related 2 - - - 6 - - 1 - 3 Net litigation fee reimbursement - - 8 (4) 1 - (1) - - - Total Other Operating Items 30$ 3$ 10$ (4)$ 7$ -$ (1)$ 1$ -$ 3$ Other Non-operating Items Fair value changes (9)$ 2$ (10)$ (2)$ -$ -$ - -$ -$ -$ Loss on extinguishment of debt - 11 - - - - - - - - Other non-cash charges (2) - (4) - - - - - - - Total Other Non-operating Items (11)$ 13$ (14)$ (2)$ -$ -$ -$ -$ -$ -$ NOTE: Sums may not equal total due to rounding Full Year Three Months Ended Outlook
FAQ
How did InterDigital (IDCC) perform financially in Q1 2026?
InterDigital reported Q1 2026 revenue of $205.4 million, down 2% year-over-year, and net income of $75.3 million. Diluted EPS was $2.14. Higher operating expenses, largely from revenue-share and IP enforcement costs, drove GAAP and non-GAAP profit declines versus the prior year.
What were InterDigital’s key non-GAAP metrics for Q1 2026?
InterDigital’s Q1 2026 Adjusted EBITDA was $111.8 million, with a 54% margin, compared with $159.1 million and 76% a year earlier. Non-GAAP net income was $79.4 million, and Non-GAAP EPS was $2.57, reflecting lower catch-up revenue and higher operating costs.
How is InterDigital’s recurring revenue trending, including smartphone ARR?
InterDigital’s annualized recurring revenue (ARR) rose 13% year-over-year to $567.2 million in Q1 2026. Smartphone ARR increased 18% to an all-time high of $491.8 million, showing continued strength in core handset licensing relationships and multi-year agreements.
What guidance did InterDigital provide for Q2 and full year 2026?
For Q2 2026, InterDigital guided revenue to $139–$143 million, Adjusted EBITDA to $67–$73 million, and diluted EPS to $0.80–$0.97. For full year 2026, it reaffirmed revenue of $675–$775 million and diluted EPS of $5.77–$8.51, with higher non-GAAP EPS targets.
How strong is InterDigital’s balance sheet and capital return in Q1 2026?
InterDigital ended March 31, 2026 with $1.08 billion in cash, cash equivalents and short-term investments, and total assets of $2.07 billion. During Q1 2026, it returned $114 million of capital through $88 million of debt reduction and $26 million of share repurchases and dividends.
What were InterDigital’s major business and legal milestones in Q1 2026?
In Q1 2026, InterDigital signed six new agreements, including a Xiaomi renewal and a new LG Electronics license. It reported injunctions against Disney in Germany and Transsion in Brazil, where a court also found its licensing offer to be FRAND, reinforcing its IP enforcement strategy.
How are InterDigital’s different licensing programs performing?
In Q1 2026, smartphone program revenue was $123.4 million, down 33% year-over-year, while CE, IoT/Auto revenue surged to $81.9 million, up 212%. Catch-up revenue decreased to $63.6 million, affecting total revenue despite stronger recurring and diversified program contributions.