IDCCNasdaqPatent Owners & LessorsUS GAAP · USD

InterDigital, Inc.

InterDigital, Inc. is a U.S.-based research and development company that creates foundational wireless, video, and AI technologies and monetizes them through patent licensing. Its portfolio is used in smartphones, consumer electronics, IoT/automotive products, and video streaming services, with revenue driven by license agreements and periodic catch-up payments tied to new or renewed contracts.

Revenue834m USD
−4.0 %y/y
Operating profit (EBIT)461m USD
+4.9 %y/y
EBIT margin55.3%
+4.7 ppy/y
Net income407m USD
+13.4 %y/y
Free cash flow529m USD
+98.9 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02004006008001,000m USD2020: 359 m USD2020: EBIT 55 m USD20202021: 425 m USD2021: EBIT 71 m USD20212022: 458 m USD2022: EBIT 151 m USD20222023: 550 m USD2023: EBIT 222 m USD20232024: 869 m USD2024: EBIT 440 m USD20242025: 834 m USD2025: EBIT 461 m USD2025834461
RevenueOperating profit (EBIT)

Business

Share of revenue
Device-based licensing70 %

Patent licenses for smartphones, tablets, PCs, TVs, and other connected devices.

IoT and automotive licensing15 %

Cellular standards-essential licensing for connected cars, IoT devices, and related verticals.

Video services licensing10 %

Licensing for subscription and ad-supported streaming services using video technologies.

Research and technology development5 %

Internal R&D that creates wireless, video, and AI inventions for future licensing.

Products

Reported · share of revenue
81.4%18.6%FY2025100 %
  • Revenue Smartphone81.4 %
  • Revenue CE Auto Io T18.6 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

InterDigital sells primarily to large technology companies that need access to its patent portfolio to make or sell standards-compliant devices and services. Its customer base is concentrated in a limited number of licensees, including major smartphone OEMs, consumer electronics makers, PC vendors, automotive licensors through Avanci, and streaming platforms. Revenue can be lumpy because new agreements often generate catch-up revenue for prior periods and because a few counterparties can represent a large share of sales.

Smartphone manufacturers

Buy cellular and Wi-Fi patent licenses to ship standards-compliant handsets and capture 5G demand.

Consumer electronics OEMs

License video, Wi-Fi, and wireless patents for TVs, PCs, tablets, and other devices.

IoT and automotive companies

Use Avanci-based cellular licenses for connected cars, smart meters, and other IoT products.

Video streaming services

License video codec and streaming-related patents for subscription and ad-supported services.

Cloud and technology platforms

License patents tied to video delivery and related cloud-based services.

Strategy

InterDigital’s strategy is to expand monetization of its patent portfolio across wireless, video, and AI by signing new licenses, renewing existing ones, and enforcing rights when needed. The company is also broadening beyond smartphones into IoT, automotive, PCs, and streaming, which reduces dependence on any single end market and supports longer-term royalty growth.

Renew and expand major license agreementsShort term

Large licensees drive a meaningful share of revenue and renewals can reset royalty economics upward.

Broaden licensing into adjacent end marketsMedium term

Diversification into PCs, IoT, automotive, and streaming reduces reliance on smartphones.

Strengthen patent portfolio through R&D and acquisitionsMedium term

Fresh inventions support future licensing leverage and defend the company’s royalty position.

Geography

2025

InterDigital is headquartered in Wilmington, Delaware, and its R&D footprint is spread across the U.S., Canada, the U.K., France, Belgium, Finland, and China. The business is global because patent licenses are negotiated and enforced across major handset, electronics, automotive, and streaming markets, while legal disputes and injunctions can arise in multiple jurisdictions. Its exposure to China and broader U.S.-China trade conditions matters because many licensees, suppliers, and end markets are international.

China37 %
South Korea31 %
United States29 %
Taiwan1.5 %
Japan0.9 %
Europe0.4 %

Share of the revenue the company reports by geography.

Risks

InterDigital’s business is highly concentrated, so the loss, delay, or renegotiation of a few large licenses can materially affect revenue and cash flow. The company also faces litigation, arbitration, and geopolitical risk because its model depends on enforcing intellectual property rights across multiple countries and against large global technology customers. Broader risks include regulatory change in privacy/cybersecurity, trade tensions, and the inherent volatility of licensing revenue timing.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration1Patent litigation and arbitration outcomes2Geopolitical and trade tensions3Regulatory privacy and cybersecurity compliance4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentrationImpact: HighLikelihood: Medium

    A limited number of licensees account for a significant portion of revenue, so one renewal failure can materially reduce cash flow.

    ExposureSamsungAppleVivoOther large licensees
  2. Patent litigation and arbitration outcomesImpact: HighLikelihood: Medium

    The licensing model depends on enforcing IP rights and obtaining favorable royalty terms through disputes or negotiations.

    ExposureStreamingSmartphoneAutomotive license negotiations
  3. Geopolitical and trade tensionsImpact: MediumLikelihood: Medium

    International licensing and enforcement can be disrupted by U.S.-China relations and broader trade restrictions.

    Exposure: China and cross-border technology markets

  4. Regulatory privacy and cybersecurity complianceImpact: MediumLikelihood: Medium

    Global data rules can increase costs and create penalties if compliance systems are inadequate.

    ExposureGDPRUK GDPRCCPA/CPRAPIPL

Accounting

Judgemental items
Revenue recognition and catch-up revenue

New or amended license agreements can require recognition of prior-period royalties, distorting period-to-period comparability.

Impact: 2025 revenue included significant catch-up revenue from Samsung, vivo, HP, and Honor

Litigation-related accounting

Legal disputes can affect revenue timing, fee reimbursements, and contingent outcomes tied to enforcement success.

Impact: One-time contra expense and litigation fee reimbursement affected operating expenses

Income tax estimates

Effective tax rates depend on FDII, GILTI, share-based compensation, and foreign jurisdiction mix.

Impact: Tax rate can shift materially quarter to quarter

Acquisition and intangible asset accounting

Patent and technology acquisitions require valuation and amortization judgments that affect earnings.

Impact: Deep Render acquisition and non-cash patent investments increase complexity

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026

InterDigital, Inc. (IDCC) Revenue, Earnings & Financials 2025 – Clarifo