InterDigital experienced a challenging fourth quarter in 2025 with a significant decline in revenue and diluted EPS, primarily due to lower catch-up revenue compared to the prior year. However, the full fiscal year 2025 demonstrated strong performance with record levels of net income, adjusted EBITDA, non-GAAP EPS, and free cash flow, driven by increased annualized recurring revenue and reduced operating expenses.
Fourth quarter 2025 revenue decreased by 37% year-over-year to $158.2 million, largely due to a decline in catch-up revenue.
Diluted EPS for Q4 2025 was $1.20, a 71% decrease from $4.09 in Q4 2024.
Full year 2025 revenue was $834.0 million, a 4% decrease from $868.5 million in 2024, but net income increased by 13% to $406.6 million.
Annualized recurring revenue increased by 24% year-over-year to $582.4 million, contributing to record full-year financial metrics.
InterDigital projects Q1 2026 revenue between $194 million and $200 million, with full-year 2026 revenue expected to be between $675 million and $775 million. Adjusted EBITDA for Q1 2026 is anticipated to be $101 million to $110 million, and for the full year, $381 million to $477 million.
Analyze how earnings announcements historically affect stock price performance