InterDigital shares have declined roughly 15% over the past three months as analysts adjust forecasts for more normalized revenue and EPS growth following several years of elevated catch-up licensing. In fiscal 2025 the company generated a record $588 million in annualized recurring revenue, up 12% year-over-year, supported by new and renewed smartphone licenses and growing contributions from consumer electronics and IoT customers. Management attributes recent earnings volatility to the timing of licensing deals rather than underlying demand weakness, noting that catch-up revenue recognized in prior periods inflated comparisons and that future guidance is based solely on visible recurring streams.

For full year 2026 InterDigital projects revenue of $675 million to $775 million, adjusted EBITDA between $381 million and $477 million, GAAP diluted EPS of $5.77 to $8.51 and non-GAAP EPS of $8.74 to $11.84. This outlook reflects existing license agreements plus expected contributions from the recently announced LG Electronics deal and a smartphone renewal with a major Chinese vendor, as well as anticipated enforcement action results. Management will provide first quarter 2026 revenue and earnings guidance, along with additional detail on full year assumptions, when results are released on February 5.