InterDigital closed 2025 with near-record total revenue of $834.0 million, driven by a 24% increase in annualized recurring revenue to $582.4 million. Highlights include execution of the most valuable license in company history with Samsung, new agreements with vivo, Honor and HP, and a 14% expansion of the patent portfolio to approximately 38,000 granted patents and applications. Smartphone licensing revenues reached a record $678.9 million, offsetting declines in catch-up revenues year-over-year.

Fourth quarter revenues totaled $158.2 million, including $12.6 million of catch-up revenue compared with $135.8 million a year ago, leading to a 37% year-over-year decline. GAAP net income was $43.0 million, or $1.20 per share diluted, down from $133.1 million and $4.09 in the same period of 2024. Adjusted EBITDA for the quarter was $88.2 million, representing a 56% margin, while non-GAAP EPS amounted to $2.12, reflecting the impact of lower revenue-share costs and reduced catch-up revenue.

InterDigital generated record free cash flow of $473.9 million for the full year, with operating cash flow of $544.5 million. During 2025, the company returned $169.4 million to shareholders, comprising $102.3 million in share repurchases and $67.1 million in dividends. In the fourth quarter alone, InterDigital repurchased 0.1 million shares for $35.7 million and declared $18.0 million in dividends, underscoring strong balance sheet discipline.

For the first quarter of 2026, InterDigital projects revenues between $194 million and $200 million, adjusted EBITDA of $101 million to $110 million, and diluted EPS of $1.61 to $1.86. Full-year guidance anticipates revenues of $675 million to $775 million, adjusted EBITDA of $381 million to $477 million, and non-GAAP EPS of $8.74 to $11.84. These ranges assume contributions from existing licenses and expected new agreements or enforcement actions over the period.