InterDigital (NASDAQ:IDCC) said it closed fiscal 2025 with a fourth quarter that exceeded the high end of management’s outlook for revenue, profitability, and earnings per share, supported in part by a new consumer electronics (CE) device license agreement signed late in the year. Executives also emphasized progress across smartphone licensing renewals, expansion in CE and IoT licensing, continued enforcement activity tied to video streaming services, and increased investment in AI-related research and development.
Full-year 2025 results and annual metrics
President and CEO Liren Chen said the company set “aggressive goals” at the beginning of 2025 focused on revenue growth, higher annualized recurring revenue (ARR), margin expansion, licensing pipeline development, expanded AI research capabilities, and leadership in standards and patents as the industry moves toward 6G and next-generation video codecs. Chen said the company “exceeded” those goals.
CFO Rich Brezski also compared 2025 results to 2021, citing revenue of $834 million versus $425 million in 2021, adjusted EBITDA of $589 million versus $208 million, and record non-GAAP EPS of $15.31 versus $3.73. Brezski attributed the expansion to execution and operating leverage, saying the gains were driven by the company’s recurring investment in research.
Fourth quarter performance exceeded outlook
InterDigital reported fourth-quarter revenue of $158 million, above its outlook range of $144 million to $148 million. The result included $13 million of catch-up revenue, and Brezski said the upside was driven primarily by a new CE device license agreement with what management described as a “significant social media company.”
Adjusted EBITDA in the quarter was $88 million, above the company’s outlook of $68 million to $76 million, for an adjusted EBITDA margin of 56%. GAAP EPS was $1.20, above the high end of guidance of $0.72 to $0.95, while non-GAAP EPS was $2.12, above the high end of guidance of $1.38 to $1.63.
Cash generation was also highlighted, with $63 million of cash from operations and $48 million of free cash flow in the quarter.
Licensing updates: smartphones, CE and IoT, and video services
On smartphones, Chen said 2025 was a “record-setting year,” including a contract extension with a long-standing customer relationship through the end of 2030 and new deals with Vivo and Honor. Chen said that with these additions the company has licensed eight of the top 10 global smartphone manufacturers, covering about 85% of the overall market. Chen also called the company’s new agreement with Samsung its “most valuable license” in company history, while noting renewals with Sharp and Seiko during the year.
For 2025, smartphone revenue was “just below $680 million,” up 14% year-over-year and an all-time high, according to Chen. He added that momentum continued into 2026 with a renewal signed with Xiaomi early in the year, leaving Apple, Samsung, and Xiaomi licensed through the end of the decade.
In CE and IoT, Chen said InterDigital signed a new agreement with HP and now has licensed about half of the global PC market. He also noted the CE device license agreement signed in the fourth quarter with the social media company, covering video coding and Wi‑Fi patents. In early 2026, the company completed a new license with LG Electronics covering digital TVs and computer display monitors, describing LG as a top global TV manufacturer with strength in premium categories.
Chen said that including the latest deals, InterDigital has signed over 50 license agreements with total contract value of more than $4.6 billion since 2021.
Management also discussed the Video Service Licensing Program and efforts to license major streaming platforms. Chen said InterDigital sees streaming and other video-driven platforms as an “excellent growth opportunity,” given the importance of video compression to processing and delivery.
Enforcement actions and litigation commentary
Chen said InterDigital launched an enforcement campaign against Disney+ / Hulu / ESPN+ at the beginning of 2025 and obtained two preliminary injunctions in Brazil and two injunctions in Germany against Disney. He said enforcement proceedings were launched against Amazon in the fourth quarter.
During Q&A, Chen said he was “very happy” with the status of the Disney case, noting that four patents had been decided in Brazil and Germany and that the company “essentially” prevailed on infringement findings tied to those rulings. He added that InterDigital has asserted more than a dozen patents, with additional proceedings expected in larger jurisdictions including the U.S. and the Unified Patent Court (UPC), with trials starting in the summer and the second half of the year, as described in company disclosures.
On Amazon, Chen said InterDigital’s case began in Q4 and trails the Disney timeline, and that the company is asserting multiple cases across “four plus” jurisdictions and the ITC, including assertions related to Amazon devices.
Asked about litigation risks, Chen said any litigation carries inherent risk, but emphasized the company’s view that its patents are high quality, with some “battle tested” on validity, and that the enforcement strategy is not dependent on winning every assertion. He also said the company seeks past damages as well as injunctions in most cases.
Brezski said litigation expense was expected to be higher in the first quarter and “broadly for 2026,” and said that outlook was reflected in guidance. He also noted other cost drivers including revenue share tied to a New Madison agreement and continued investments in research and the patent portfolio.
2026 outlook and near-term guidance
For 2026, InterDigital guided to total revenue of $675 million to $775 million, adjusted EBITDA of $381 million to $477 million, and non-GAAP diluted EPS of $8.74 to $11.84.
For the first quarter, the company expects revenue of $194 million to $200 million from existing contracts, including $55 million to $60 million of catch-up revenue. Based on existing contracts only, InterDigital expects an adjusted EBITDA margin of 52% to 55% and non-GAAP diluted EPS of $2.39 to $2.68.
Brezski said the company entered 2026 with a step down in ARR due to year-end expirations, but noted that InterDigital had already renewed about two-thirds of $92 million that expired at the end of 2025, with additional renewals and new agreements expected to drive increases in ARR and keep the company on track toward a goal of reaching $1 billion by 2030. He added that Q1 guidance excludes potential impacts from new agreements or arbitration results due to timing uncertainty, while the full-year outlook includes potential contributions from both.
Chen also highlighted the company’s AI-focused acquisition of Deep Render completed in Q4, increased involvement in 6G standards work, and a 14% year-over-year increase in the patent portfolio to more than 38,000 granted patents and applications. Management said the company plans to demonstrate technology at Mobile World Congress in Barcelona next month, including 6G, AI applications, and immersive video, with a demo alongside Razer.
About InterDigital (NASDAQ:IDCC)
InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.
The company’s principal services include patent licensing, technology evaluation and consulting.
