InterDigital Q1 Revenue Tops Guidance; Smartphone ARR Jumps 18% to $491.8M
InterDigital delivered Q1 revenue of $205.4M and adjusted EBITDA of $111.8M, both exceeding guidance while recording annualized recurring revenue of $567.2M, up 13% year-over-year, and smartphone ARR at an all-time high of $491.8M, up 18%. The company reaffirmed its full-year 2026 guidance.
1. First Quarter Results
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.
2. Business Highlights
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.
3. Financial Performance
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.
4. Full-Year 2026 Outlook
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.