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IDCC posted Q4 revenue and earnings beats despite year-over-year declines due to lower catch-up revenues.
IDCC saw smartphone revenues fall, while CE and IoT/Auto sales rose, and recurring revenues jumped 24.4%.
IDCC ended 2025 with $1.24B in cash and guided for Q1 2026 revenues of $194-$200M with higher EBITDA.
InterDigital, Inc. (IDCC - Free Report) reported relatively healthy fourth-quarter 2025 results, with both top and bottom lines beating the Zacks Consensus Estimate.
The company is experiencing a steady growth in licensing programs, smartphone business, and AI capabilities. However, both sales and earnings were affected by a sharp decline in catch-up revenues, mainly related to the 2024 OPPO license agreement and the Lenovo arbitration.
Net Income
On a GAAP basis, net income in the reported quarter declined to $43 million or $1.20 per share from $133.1 million or $4.09 per share in the prior-year quarter, primarily due to lower net sales.
Non-GAAP net income was $65.9 million or $2.12 per share compared with $150.6 million or $5.15 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $1.65.
For 2025, InterDigital reported GAAP net income of $406.6 million or $11.80 per share, compared with $358.6 million or $12.07 per share in 2024. Non-GAAP net income for 2025 was $465.1 million or $15.31 per share compared with $408.9 million or $14.97 per share in 2024.
InterDigital, Inc. Price, Consensus and EPS Surprise
Quarterly revenues decreased to $158.2 million from the year-ago quarter’s tally of $252.8 million. However, the top line beat the Zacks Consensus Estimate of $147.1 million. For 2025, revenues decreased to $834 million from $868.5 million in 2024.
In the fourth quarter, smartphone revenues declined to $123.4 million from $230.6 million in the year-ago quarter. Revenues from CE, IoT/Auto group increased to $34.8 million from $21.8 million in the prior-year quarter.
Annualized recurring revenues increased 24.4% year over year to $582.4 million, while catch-up revenues declined to $12.6 million from $135.8 million a year ago.
Other Details
Adjusted EBITDA declined to $88.2 million from the prior-year figure of $198.1 million. Total operating expenses increased to $110.4 million from $90.3 million in the year-ago quarter. Operating income decreased to $47.8 million from $162.5 million in the year-earlier quarter.
Cash Flow & Liquidity
In the fourth quarter, InterDigital generated $63.4 million in cash from operations compared with $192 million in the year-earlier quarter. For 2025, the company generated $544.5 million of cash from operating activities compared with $271.5 million in 2024.
As of Dec. 31, 2025, it had $1.24 billion in cash, cash equivalents, and short-term investments, with $74.8 million of long-term debt and other liabilities compared with respective tallies of $958.2 million and $70.4 million a year ago.
Outlook
For the first quarter of 2026, InterDigital estimates revenues to be between $194 million and $200 million. Adjusted EBITDA is estimated in the band of $101-$110 million. Non-GAAP earnings are expected to be in the range of $2.39-$2.68 per share.
For 2026, the company expects revenues in the range of $675-$775 million. Adjusted EBITDA is currently forecasted at $381-$477 million. IDCC expects non-GAAP earnings in 2026 in the band of $8.74-$11.84.
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Lyft, Inc. (LYFT - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb. 10. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, suggesting growth of 6.67% from the year-ago reported figure.
Lyft has a long-term earnings growth expectation of 24.41%. The company delivered an average earnings surprise of 1.17% in the last four reported quarters.
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InterDigital Beats Q4 Earnings Estimates Despite Lower Y/Y Revenues
Key Takeaways
InterDigital, Inc. (IDCC - Free Report) reported relatively healthy fourth-quarter 2025 results, with both top and bottom lines beating the Zacks Consensus Estimate.
The company is experiencing a steady growth in licensing programs, smartphone business, and AI capabilities. However, both sales and earnings were affected by a sharp decline in catch-up revenues, mainly related to the 2024 OPPO license agreement and the Lenovo arbitration.
Net Income
On a GAAP basis, net income in the reported quarter declined to $43 million or $1.20 per share from $133.1 million or $4.09 per share in the prior-year quarter, primarily due to lower net sales.
Non-GAAP net income was $65.9 million or $2.12 per share compared with $150.6 million or $5.15 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $1.65.
For 2025, InterDigital reported GAAP net income of $406.6 million or $11.80 per share, compared with $358.6 million or $12.07 per share in 2024. Non-GAAP net income for 2025 was $465.1 million or $15.31 per share compared with $408.9 million or $14.97 per share in 2024.
InterDigital, Inc. Price, Consensus and EPS Surprise
InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote
Revenues
Quarterly revenues decreased to $158.2 million from the year-ago quarter’s tally of $252.8 million. However, the top line beat the Zacks Consensus Estimate of $147.1 million. For 2025, revenues decreased to $834 million from $868.5 million in 2024.
In the fourth quarter, smartphone revenues declined to $123.4 million from $230.6 million in the year-ago quarter. Revenues from CE, IoT/Auto group increased to $34.8 million from $21.8 million in the prior-year quarter.
Annualized recurring revenues increased 24.4% year over year to $582.4 million, while catch-up revenues declined to $12.6 million from $135.8 million a year ago.
Other Details
Adjusted EBITDA declined to $88.2 million from the prior-year figure of $198.1 million. Total operating expenses increased to $110.4 million from $90.3 million in the year-ago quarter. Operating income decreased to $47.8 million from $162.5 million in the year-earlier quarter.
Cash Flow & Liquidity
In the fourth quarter, InterDigital generated $63.4 million in cash from operations compared with $192 million in the year-earlier quarter. For 2025, the company generated $544.5 million of cash from operating activities compared with $271.5 million in 2024.
As of Dec. 31, 2025, it had $1.24 billion in cash, cash equivalents, and short-term investments, with $74.8 million of long-term debt and other liabilities compared with respective tallies of $958.2 million and $70.4 million a year ago.
Outlook
For the first quarter of 2026, InterDigital estimates revenues to be between $194 million and $200 million. Adjusted EBITDA is estimated in the band of $101-$110 million. Non-GAAP earnings are expected to be in the range of $2.39-$2.68 per share.
For 2026, the company expects revenues in the range of $675-$775 million. Adjusted EBITDA is currently forecasted at $381-$477 million. IDCC expects non-GAAP earnings in 2026 in the band of $8.74-$11.84.
Zacks Rank
InterDigital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Lyft, Inc. (LYFT - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb. 10. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, suggesting growth of 6.67% from the year-ago reported figure.
Lyft has a long-term earnings growth expectation of 24.41%. The company delivered an average earnings surprise of 1.17% in the last four reported quarters.