InterDigital reported full year 2025 annualized recurring revenue of $582.4 million, a 24% increase over the prior year’s $468.0 million, driven by the most valuable license in company history with Samsung and new agreements with vivo, Honor and HP. Total revenue reached $834.0 million, near the record of $868.5 million in 2024, with smartphone licensing revenue up 14% to $678.9 million. The expansion of licensing programs in consumer electronics and IoT/automotive markets contributed to year-over-year gains, offsetting a 42% decline in CE/IoT/auto catch-up revenue for the full year.

In Q4 2025, revenue declined 37% year-over-year to $158.2 million, reflecting a 91% drop in catch-up license revenue to $12.6 million versus $135.8 million in Q4 2024. GAAP net income fell 68% to $43.0 million, or $1.20 per share, with operating expenses rising 22% to $110.4 million, driven by increased investment in AI research. Adjusted EBITDA of $88.2 million represented a 55% decrease, and non-GAAP EPS declined to $2.12 from $5.15 a year earlier, as quarterly catch-up revenue normalized following the large OPPO and Lenovo settlements in 2024.

InterDigital generated record net cash from operating activities of $544.5 million for 2025 and free cash flow of $473.9 million, up substantially from $367.0 million the prior year. The company returned $169.4 million to shareholders through $102.3 million of share repurchases and $67.1 million in dividends. Balance sheet highlights include approximately 38,000 granted patents and applications, following a 14% portfolio expansion, and the completion of video AI startup Deep Render acquisition to bolster long-term royalty streams.

For Q1 2026, InterDigital projects revenue of $194 million to $200 million and adjusted EBITDA of $101 million to $110 million, based exclusively on existing license agreements. Full year 2026 guidance assumes new license and enforcement contributions, targeting revenue of $675 million to $775 million, adjusted EBITDA of $381 million to $477 million and non-GAAP EPS between $8.74 and $11.84. The company anticipates further licensing deals with major handset and cloud service providers and continued margin expansion as recurring revenues scale.