We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
InterDigital's Q3 revenues rose to $164.7M, driven by strong smartphone licensing momentum.
Net income more than doubled year over year on top-line growth and reduced operating expenses.
AI integration, advanced video and wireless technology development remain key long-term growth drivers.
InterDigital, Inc. (IDCC - Free Report) reported strong third-quarter 2025 results, with both the top and bottom lines beating the Zacks Consensus Estimate. The company generated higher revenues year over year, owing to healthy licensing momentum in the smartphone business. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.
IDCC’s Net Income
GAAP net income improved to $67.5 million or $1.93 per share from $34.2 million or $1.14 per share a year ago. Healthy top-line expansion drove net income.
Non-GAAP net income increased to $78.2 million or $2.55 per share from $44.9 million or $1.63 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.79.
InterDigital, Inc. Price, Consensus and EPS Surprise
Net sales in the quarter rose to $164.7 million from $128.7 million in the year-ago quarter. The year-over-year growth was induced by a multi-year license agreement with Samsung. The top line beat the consensus estimate of $156 million.
In the third quarter, smartphone revenues increased 56% year over year to $136.4 million. A license agreement signed with major smartphone maker Samsung boosted the top line during the quarter. Representing 85% of the global smartphone market, eight out of the 10 largest smartphone vendors are now IDCC’s licensee. Revenues from CE, IoT/Auto group declined to $28.2 million from $40.6 million in the prior year quarter.
Annualized recurring revenue increased to $588 million, up 49% year over year, while catch-up revenues declined to $17.7 million from $30 million a year ago.
IDCC’s Other Details
Adjusted EBITDA rose to $105 million, up 62% year over year. Total operating expenses decreased to $88.9 million from $89.4 million in the year-ago quarter. Operating income increased to $75.8 million from $39.4 million in the year-earlier quarter.
IDCC’s Cash Flow & Liquidity
In the third quarter, InterDigital generated $395.9 million in cash from operations compared with cash generation of $77.6 million in the year-earlier quarter.
As of Sept. 30, 2025, it had $1.26 billion in cash, cash equivalents and short-term investments, with $77 million of long-term debt and other liabilities compared.
IDCC’s Guidance
For 2025, the company expects revenues in the range of $820-824 million. Adjusted EBITDA is currently forecasted at $569-577 million. IDCC expects non-GAAP earnings in the band of $14.57-$14.83. The company is steadily advancing 6G development and placing strong emphasis on AI integration. This bodes well for long-term growth.
For the fourth quarter of 2025, InterDigital estimates revenues to be between $144 million and $148 million. Adjusted EBITDA is estimated in the band of $68-$76 million. Non-GAAP earnings are expected to be within $1.38-$1.63 per share.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. The company delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IDCC Q3 Earnings Beat Estimates, Revenues Surge Y/Y
Key Takeaways
InterDigital, Inc. (IDCC - Free Report) reported strong third-quarter 2025 results, with both the top and bottom lines beating the Zacks Consensus Estimate. The company generated higher revenues year over year, owing to healthy licensing momentum in the smartphone business. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.
IDCC’s Net Income
GAAP net income improved to $67.5 million or $1.93 per share from $34.2 million or $1.14 per share a year ago. Healthy top-line expansion drove net income.
Non-GAAP net income increased to $78.2 million or $2.55 per share from $44.9 million or $1.63 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.79.
InterDigital, Inc. Price, Consensus and EPS Surprise
InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote
IDCC’s Revenues
Net sales in the quarter rose to $164.7 million from $128.7 million in the year-ago quarter. The year-over-year growth was induced by a multi-year license agreement with Samsung. The top line beat the consensus estimate of $156 million.
In the third quarter, smartphone revenues increased 56% year over year to $136.4 million. A license agreement signed with major smartphone maker Samsung boosted the top line during the quarter. Representing 85% of the global smartphone market, eight out of the 10 largest smartphone vendors are now IDCC’s licensee. Revenues from CE, IoT/Auto group declined to $28.2 million from $40.6 million in the prior year quarter.
Annualized recurring revenue increased to $588 million, up 49% year over year, while catch-up revenues declined to $17.7 million from $30 million a year ago.
IDCC’s Other Details
Adjusted EBITDA rose to $105 million, up 62% year over year. Total operating expenses decreased to $88.9 million from $89.4 million in the year-ago quarter. Operating income increased to $75.8 million from $39.4 million in the year-earlier quarter.
IDCC’s Cash Flow & Liquidity
In the third quarter, InterDigital generated $395.9 million in cash from operations compared with cash generation of $77.6 million in the year-earlier quarter.
As of Sept. 30, 2025, it had $1.26 billion in cash, cash equivalents and short-term investments, with $77 million of long-term debt and other liabilities compared.
IDCC’s Guidance
For 2025, the company expects revenues in the range of $820-824 million. Adjusted EBITDA is currently forecasted at $569-577 million. IDCC expects non-GAAP earnings in the band of $14.57-$14.83. The company is steadily advancing 6G development and placing strong emphasis on AI integration. This bodes well for long-term growth.
For the fourth quarter of 2025, InterDigital estimates revenues to be between $144 million and $148 million. Adjusted EBITDA is estimated in the band of $68-$76 million. Non-GAAP earnings are expected to be within $1.38-$1.63 per share.
Zacks Rank & Other Stocks to Consider
IDCC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. The company delivered an average negative earnings surprise of 1.1% in the last four reported quarters.