InterDigital (NASDAQ:IDCC) Chief Financial Officer Rich Brezski used a presentation at the 21st Annual Needham Technology, Media & Consumer Conference to outline the company’s patent licensing model, recent financial momentum and long-term plan to reach $1 billion in annualized recurring revenue by 2030.
Brezski described InterDigital as “first and foremost a pioneering research company” focused on wireless, video and artificial intelligence technologies. He said the company develops foundational technology that is contributed to standards such as 5G, 6G, Wi-Fi and video compression, then licenses related patents to companies using those standards.
Licensing Model Built Around Standards
Brezski said InterDigital’s business starts with research and innovation, followed by two parallel tracks: contributing technology to standards and filing patents to protect that technology. Companies that implement those standards, he said, are expected to enter into license agreements with InterDigital.
He noted that in some cases, products using InterDigital technology reach the market before a licensing agreement is completed. When agreements are later signed, InterDigital may record “catch-up” revenue tied to prior use, followed by recurring revenue under the license.
The company’s customer base includes major handset manufacturers such as Apple, Samsung and Xiaomi, as well as consumer electronics and computer companies including Lenovo, HP, LG and Panasonic, according to Brezski.
Brezski said the company’s patent portfolio has expanded substantially, from 19,000 assets in 2017 to roughly double that amount in 2025. He said customers typically license InterDigital’s portfolio in a subscription-like model because the portfolio continues to change and grow.
Smartphones Remain the Core Market
Brezski said smartphones remain InterDigital’s most mature licensing market. He said about 1.2 billion smartphones shipped in 2025, with 85% of them under license to InterDigital. He added that eight of the top 10 smartphone manufacturers are under license.
The company’s remaining smartphone opportunities include Transsion and Huawei, Brezski said. He noted that InterDigital recently filed litigation against Transsion, saying the company is using InterDigital technology and that InterDigital is seeking a fair rate.
Brezski said more than 90% of the company’s agreements over the last five years were reached through bilateral negotiation without litigation. However, he said InterDigital will enforce its rights when necessary.
Growth Plan Targets $1 Billion in ARR by 2030
Brezski reiterated InterDigital’s long-term plan, first introduced at its September 2024 investor day, to reach more than $1 billion in annualized recurring revenue by 2030. The target includes:
- $500 million from smartphones;
- $200 million from consumer electronics and Internet of Things markets;
- More than $300 million from streaming and cloud services.
Brezski said smartphone ARR has grown from about $340 million at the time of the investor day to $491 million, putting the company close to its $500 million smartphone target. He said consumer electronics and IoT ARR has increased to about $90 million, with a goal of more than doubling by 2030.
In consumer electronics, Brezski said InterDigital has about 60% coverage of the PC and tablet market, including licenses with Apple, Samsung, LG, Lenovo and HP. He identified Dell and Acer as remaining opportunities. In televisions, he said LG, TPV and Sony are licensed, while Samsung’s TV license expired at the end of last year and is being worked on for renewal. He also said InterDigital recently filed litigation against TCL and Hisense.
Streaming Identified as a Major Opportunity
Brezski said InterDigital currently has no revenue from streaming and cloud services, but believes its video compression technology is important to that market. He cited subscription video-on-demand services such as Netflix and Disney, and advertising-supported video-on-demand platforms such as TikTok and YouTube, as representative examples of the market.
During a question-and-answer exchange, an analyst asked about assumptions behind the $300 million-plus streaming target. Brezski said the SVOD and AVOD market is currently larger than the smartphone market and growing faster. He said the $300 million target represents a reasonable starting point compared with the roughly $500 million smartphone goal, given InterDigital’s role in standards-based video technology.
Brezski also said InterDigital is currently in litigation with Disney and Amazon related to streaming. He said the company maintains a strong balance sheet partly to support its ability to pursue licensing disputes with much larger companies.
On capital allocation, Brezski said InterDigital intends to continue investing organically in the business, consider inorganic opportunities only where they make sense and return excess capital to shareholders. He said the company has repurchased more than $600 million of stock over the last five years and increased its dividend by 56% in 2025.
Brezski closed by saying InterDigital sees a clear opportunity to reach $1 billion of ARR and $600 million of adjusted EBITDA by 2030, supported by its licensing base, standards contributions and opportunities in smartphones, consumer electronics, IoT and streaming.
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.
