InterDigital (NASDAQ:IDCC) Announces Earnings Results

InterDigital (NASDAQ:IDCC) issued its quarterly earnings data on Thursday. The Wireless communications provider reported $2.12 earnings per share for the quarter, beating analysts’ consensus estimates of $1.65 by $0.47, FiscalAI reports. InterDigital had a net margin of 53.50% and a return on equity of 51.89%. The company had revenue of $158.23 million for the quarter, compared to the consensus estimate of $155.57 million. During the same quarter in the prior year, the firm earned $5.15 earnings per share. The firm’s revenue for the quarter was down 37.4% compared to the same quarter last year. InterDigital updated its Q1 2026 guidance to 2.390-2.680 EPS.

Here are the key takeaways from InterDigital’s conference call:

• Reported record 2025 results with full‑year revenue of $834M, ARR up 24% to $582M, record Adjusted EBITDA of $589M and non‑GAAP EPS of $15.31, and issued 2026 guidance for another strong year (revenue $675M–$775M).
• Strong licensing momentum across smartphones and CE/IoT — new smartphone deals (Vivo, Honor), Samsung extended to 2030, Xiaomi renewed, now licensing 8 of the top 10 vendors (~85% market), plus CE deals with HP and LG and over 50 CE licenses (> $4.6B total contract value since 2021).
• Multi‑jurisdiction enforcement campaign against streaming services (Disney+ injunctions in Brazil and Germany) and newly launched actions vs Amazon; litigation costs were elevated (~$19M in Q4) and management expects higher litigation expense and outcome uncertainty in 2026.
• Bolstered R&D and AI capabilities with the acquisition of Deep Render, leadership roles in 6G/AI standards work, and portfolio growth to over 38,000 patents/applications, reinforcing long‑term licensing strength.
• ARR dipped entering 2026 after roughly $90–$92M of expirations; management has renewed about two‑thirds and expects further renewals/new agreements to restore ARR, but Q1 guidance excludes potential new deals or arbitration outcomes.

InterDigital Stock Up 13.2%

Shares of InterDigital stock traded up $41.36 during trading on Thursday, reaching $355.23. The stock had a trading volume of 323,638 shares, compared to its average volume of 284,259. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $9.15 billion, a price-to-earnings ratio of 23.85 and a beta of 1.58. InterDigital has a 52 week low of $180.60 and a 52 week high of $412.60. The stock has a fifty day moving average price of $331.41 and a two-hundred day moving average price of $322.07.

InterDigital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 28th. Investors of record on Wednesday, January 14th were given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, January 14th. InterDigital’s payout ratio is currently 18.89%.

Insider Buying and Selling

In other news, Director John A. Kritzmacher sold 1,250 shares of InterDigital stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $331.00, for a total transaction of $413,750.00. Following the transaction, the director directly owned 15,815 shares of the company’s stock, valued at $5,234,765. The trade was a 7.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Richard Brezski sold 6,981 shares of the business’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $330.49, for a total transaction of $2,307,150.69. Following the sale, the chief financial officer directly owned 83,374 shares of the company’s stock, valued at $27,554,273.26. This represents a 7.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 36,307 shares of company stock worth $11,905,598. Insiders own 2.80% of the company’s stock.

Institutional Trading of InterDigital

Several institutional investors and hedge funds have recently made changes to their positions in the company. Headlands Technologies LLC increased its stake in InterDigital by 47.9% during the second quarter. Headlands Technologies LLC now owns 250 shares of the Wireless communications provider’s stock worth $56,000 after acquiring an additional 81 shares during the last quarter. Danske Bank A S acquired a new position in InterDigital in the third quarter worth about $104,000. New Vernon Capital Holdings II LLC raised its stake in InterDigital by 814.3% during the third quarter. New Vernon Capital Holdings II LLC now owns 320 shares of the Wireless communications provider’s stock valued at $110,000 after buying an additional 285 shares in the last quarter. Palisade Asset Management LLC bought a new stake in shares of InterDigital in the 3rd quarter valued at approximately $197,000. Finally, Schroder Investment Management Group bought a new position in shares of InterDigital in the third quarter worth $205,000. 99.83% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on IDCC. UBS Group set a $425.00 target price on InterDigital in a research note on Monday, December 1st. Roth Mkm reissued a “buy” rating on shares of InterDigital in a report on Tuesday, January 20th. Jefferies Financial Group set a $475.00 price target on shares of InterDigital and gave the stock a “buy” rating in a research report on Thursday, October 30th. Weiss Ratings lowered shares of InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a research report on Monday, December 29th. Finally, Zacks Research lowered InterDigital from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 21st. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, InterDigital has an average rating of “Moderate Buy” and an average target price of $416.67.

InterDigital Company Profile

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.