InterDigital (IDCC) Company Report

InterDigital, a global research and development company focused on wireless, video, and AI technologies, provided a financial and business development snapshot as of Q3 2025, with Q4 and full year 2025 results expected in approximately one month. The company's business model is centered on licensing its evergreen patent portfolio, which generates recurring revenue.
The company has demonstrated strong financial performance, achieving a 25% revenue CAGR over the last 4-5 years and signing more than $4 billion in license agreements since 2020. Additionally, it has collected over $1 billion in one-time catch-up payments from past infringements.
InterDigital is progressing towards its long-term goal of $1 billion in annualized recurring revenue (ARR) by 2030, aiming for 10%+ double-digit year-over-year ARR growth and maintaining a 60% adjusted EBITDA margin. As of Q3 2025, smartphone recurring revenue reached $490+ million, ahead of its 2024 target.
The company recently won a litigation battle against Disney, with courts in Brazil and Germany finding four of its patents valid and infringed. InterDigital is also engaged in ongoing litigation with Amazon, asserting patents in multiple jurisdictions.
Capital allocation strategies include a 50% dividend increase (from $0.45 to $0.70 per quarter) and over $1 billion in share buybacks over the last decade, alongside strategic investments in R&D and selective M&A.

18 hours ago

Transcript

InterDigital Outlines Growth Strategy and Financial Performance at Needham Conference

IDCC

Legal Proceedings

New Projects/Investments

Revenue Acceleration/Inflection

InterDigital, a global research and development company focused on wireless, video, and AI technologies, operates an IP as a service licensing model with recurring revenue and high margins, aiming for profitability growth faster than revenue.
The company targets growing its annualized recurring revenue (ARR) from over $400 million to $1 billion by 2030, with smartphone recurring revenue already reaching $490+ million by Q3 2025, ahead of schedule.
InterDigital has signed over $4 billion worth of contracts in the last four-plus years (up to September 2025) and collected over $1 billion in catch-up payments.
The company successfully litigated against Disney, with four out of four asserted patents found valid and infringed in Brazil and Germany, and is currently involved in litigation with Amazon.
InterDigital maintains a target of 60% adjusted EBITDA margin, increased its dividend by approximately 50%, and has repurchased over $1 billion in shares over the last decade.

19 hours ago

Transcript

InterDigital Provides Business Update and Strategic Outlook at Needham Growth Conference

IDCC

Revenue Acceleration/Inflection

Dividends

Legal Proceedings

InterDigital operates an "IP as a service" licensing model for its foundational wireless, video, and AI technologies, generating recurring revenue from a large, evergreen patent portfolio that adds an average of six new patents daily.
The company has demonstrated strong financial momentum, signing over $4 billion in contracts since 2021 (as of September 2025) and achieving a 25% CAGR in Annualized Recurring Revenue (ARR) over the last four to five years. Profitability, measured by adjusted EBITDA, is growing faster than revenue, and the company increased its quarterly dividend by 50% to $0.70 last year.
InterDigital is ahead of schedule on its long-term growth strategy, with smartphone recurring revenue reaching over $490 million by Q3 2025, nearly achieving its $500 million target for 2030. The company aims for $1 billion in total recurring revenue by 2030, including a $300 million+ opportunity in online streaming.
The company recently secured a significant legal victory against Disney, with courts in Brazil and Germany finding four out of four asserted patents valid and infringed, and ordering Disney to pay a license or cease infringement. InterDigital is also involved in ongoing litigation with Amazon.

19 hours ago

Transcript

InterDigital Renews Licensing Agreement

IDCC

New Projects/Investments

InterDigital, Inc. announced the renewal of a worldwide, non-exclusive, royalty-bearing license with a major Chinese vendor.
This renewed license is for a five-year term.
The agreement covers the vendor's cellular products, including smartphones and other cellular-enabled devices, utilizing InterDigital's standard essential cellular, WiFi, and HEVC patents.

8 days ago

8-K

InterDigital Updates on $1 Billion ARR Target and Strategic Growth

IDCC

Guidance Update

Revenue Acceleration/Inflection

Legal Proceedings

InterDigital is targeting $1 billion in recurring revenue (ARR) by 2030, having grown its ARR from approximately $400 million to $588 million in the last 14 months.
The company aims for $500 million from smartphone revenue by 2027, having increased this segment from $350 million to over $490 million in the past 14 months through new agreements with companies like Oppo, Vivo, Lenovo, and Honor.
InterDigital expects to achieve 60%+ Adjusted EBITDA margins associated with the $1 billion ARR target, while also allowing for further investments to drive growth beyond this goal.
The company is expanding into new markets, including streaming, where it has initiated litigation against Amazon and Disney to enforce patent rights and collect royalties for video compression technology.
InterDigital operates as a research company that licenses patents, with 90%+ of license agreements concluded through bilateral negotiation rather than litigation.

Dec 10, 2025, 2:30 PM

Transcript

InterDigital Targets $1 Billion ARR by 2030, Reports Significant Progress

IDCC

Guidance Update

Revenue Acceleration/Inflection

Legal Proceedings

InterDigital aims to achieve $1 billion in annual recurring revenue (ARR) by 2030, having grown its ARR from approximately $400 million to $588 million in the last 14 months.
The company's growth strategy includes reaching $500 million from smartphones by 2027 (currently around $490 million), $200 million from consumer electronics and IoT, and over $300 million from streaming.
InterDigital maintains strong operating margins, with Adjusted EBITDA margins exceeding 60%, and targets $600 million in Adjusted EBITDA alongside its $1 billion ARR goal.
Recent successes include signing Oppo, Vivo, Lenovo, and Honor on the smartphone side, and the company is actively pursuing licensing in the streaming market, including litigation against Amazon and Disney.
The company, led by CEO Liren Chen and CTO Rajesh Pankaj (both from Qualcomm since 2021), emphasizes its identity as a research company focused on wireless and video standards, with long-term investments in technologies like 6G.

Dec 10, 2025, 2:30 PM

Transcript

INTERDIGITAL Discusses Progress Towards $1 Billion ARR Goal

IDCC

Guidance Update

Revenue Acceleration/Inflection

Legal Proceedings

INTERDIGITAL aims to achieve $1 billion in recurring revenue (ARR) by 2030, having increased its ARR from approximately $400 million to $588 million in the past 14 months.
The company's 2030 ARR target includes $500 million from smartphones (by 2027), $200 million from consumer electronics and IoT, and over $300 million from streaming.
Smartphone revenue has grown from around $350 million to over $490 million in the last 14 months, with INTERDIGITAL currently compensated for 85% of the 1.2 billion smartphones sold globally each year.
INTERDIGITAL maintains strong operating margins, with Adjusted EBITDA margins exceeding 60%, and targets $600 million in Adjusted EBITDA in conjunction with the $1 billion ARR goal.
The company is actively pursuing growth in new markets like streaming, having initiated litigation against Amazon and Disney to enforce patent rights and collect royalties for the use of its video compression technology.

Dec 10, 2025, 2:30 PM

Transcript

InterDigital Corporation Targets Over $1 Billion ARR by 2030 and Reports Strong 2024 Financials

IDCC

Guidance Update

Legal Proceedings

Dividends

InterDigital Corporation (IDCC) reported over $800 million in revenue and a 63% adjusted EBITDA margin in 2024, with over $1.2 billion in cash as of its most recent quarter.
The company aims to achieve over $1 billion in annualized recurring revenue (ARR) by 2030, up from approximately $588 million today. This growth is expected from its smartphone business, consumer electronics/IoT, and a new greenfield opportunity in streaming and cloud services, targeting over $300 million by 2030.
IDCC has secured new licensing agreements totaling over $4 billion in contract value since 2021. In recent legal proceedings, the company obtained preliminary injunctions against Disney in Brazil and Germany related to streaming and cloud services.
Capital allocation priorities include maintaining a strong balance sheet, investing in its IP portfolio (which has grown over 70% since 2017), and returning capital to shareholders through $1.4 billion in buybacks since 2011 and a 17% dividend increase on September 25th.

Nov 20, 2025, 3:15 PM

Transcript

InterDigital Outlines 2030 Growth Strategy and 2024 Financial Highlights

IDCC

Revenue Acceleration/Inflection

Legal Proceedings

Share Buyback

InterDigital reported strong financial highlights for 2024, including over $800 million in revenue, a 63% adjusted EBITDA margin, and approximately $1 billion in cash.
The company targets over $1 billion in annualized recurring revenue (ARR) by 2030, with significant growth expected from smartphone licensing, consumer electronics/IoT, and a new greenfield opportunity in streaming and cloud services, which is projected to contribute $300 million+ ARR by 2030 from no current revenue.
Since 2021, InterDigital has secured new agreements with a total contract value exceeding $4 billion, contributing to the growth of its annualized recurring revenue from approximately $400 million in 2021 to nearly $600 million in 2025.
To expand into the streaming and cloud services market, InterDigital has initiated legal proceedings against Disney, resulting in preliminary injunctions in Brazil and Germany for patent infringement.
The company prioritizes maintaining a strong balance sheet with over $1.2 billion in cash, investing organically in its IP portfolio, and returning capital to shareholders, evidenced by $1.4 billion in share buybacks since 2011 and a recent 17% dividend increase.

Nov 20, 2025, 3:15 PM

Transcript

InterDigital Outlines Strong Financial Performance and Growth Strategy Towards $1 Billion ARR by 2030

IDCC

Guidance Update

Revenue Acceleration/Inflection

Legal Proceedings

InterDigital reported over $800 million in revenue and an adjusted EBITDA margin of 63% for 2024, with a balance sheet holding around $1 billion in cash. The company aims to achieve $1 billion+ in annualized recurring revenue (ARR) by 2030, up from approximately $588 million currently.
The company's business model is centered on an evergreen IP portfolio of over 34,000 patent assets, generating revenue through long-term, fixed-price licensing agreements. Since 2021, InterDigital has secured new agreements with a total contract value exceeding $4 billion.
Strategic growth areas include consumer electronics, IoT, and a significant greenfield opportunity in streaming and cloud services, where the company targets $300 million+ in ARR by 2030 despite having no current revenue. In this area, InterDigital has filed lawsuits against Disney for patent infringement, securing three preliminary injunctions in Brazil and Germany.
InterDigital maintains a strong capital allocation strategy, including a fortress balance sheet with over $1.2 billion in cash in the most recent quarter, organic investment in its IP portfolio, and returning cash to shareholders through $1.4 billion in buybacks since 2011 and a recent 17% dividend increase on September 25th.