InterDigital Q1 Revenue Tops Guidance; Smartphone ARR Jumps 18% to $491.8M

InterDigital reported Q1 revenue of $205.4M, a 2% year-over-year decline from $210.5M, and non-GAAP adjusted EBITDA of $111.8M, outperforming its top-end guidance. Annualized recurring revenue rose 13% to $567.2M, with smartphone ARR up 18% to $491.8M, driven by six new licensing agreements.

The company secured six new agreements, including a long-term renewal with Xiaomi and a license with LG Electronics covering TVs and computer displays. These deals generated $63.6M of catch-up revenue and reinforced its patent portfolio, earning a top-five US filer ranking at the European Patent Office.

Operating expenses increased 57% to $123.2M, primarily due to higher revenue share costs from the LG agreement and elevated intellectual property enforcement spending. GAAP net income declined 35% to $75.3M with diluted EPS of $2.14, while non-GAAP EPS fell 39% to $2.57.

InterDigital reaffirmed full-year guidance for revenue of $675M to $775M, adjusted EBITDA of $381M to $477M, and non-GAAP EPS of $8.74 to $11.84. For Q2, it forecasts revenue of $139M to $143M and non-GAAP EPS between $1.41 and $1.60, based solely on existing licenses.