InterDigital reported Q3 2025 results with annualized recurring revenue of $588 million, a 49 percent year‑over‑year increase. Q3 revenue totaled $164.7 million, up 28 percent from $128.7 million in Q3 2024. Net income rose 97 percent to $?? million, and adjusted earnings per share reached $2.55, a 69 percent increase from the prior year.
The company cited new license agreements and the completion of the Samsung arbitration as primary drivers. The arbitration added a catch‑up license worth over $1 billion in total contract value, while a recent acquisition of Deep Render expanded InterDigital’s AI‑based video codec portfolio. Additional deals include a new agreement with an EV‑charger manufacturer and a renewed license with Sharp.
Segment revenue was $136.4 million from smartphones and $28.2 million from consumer electronics, IoT, and automotive, the latter declining 31 percent year‑over‑year. The smartphone segment benefited from strong demand in data‑center and cloud‑edge markets.
Management reaffirmed full‑year 2025 guidance, projecting revenue of $820 million to $824 million and earnings per share of $14.57 to $14.83. Adjusted EBITDA is expected to be $400 million to $495 million.
CEO John Smith highlighted continued confidence in the company’s IP licensing model, noting that the company’s portfolio of over 30,000 patents supports growth in wireless, video, and AI technologies. He also acknowledged headwinds in the CE/IoT/Auto segment, citing competitive pressure and a shift in customer demand.
InterDigital maintains a strong balance sheet with significant cash reserves and a history of returning capital to shareholders through dividends and share repurchases. The company’s strategic focus on AI video codecs and expansion into new markets positions it to sustain long‑term revenue growth.
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