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Dec 31, 2025
InterDigital Q4 2025 Earnings Report
InterDigital reported a decrease in revenue and diluted EPS for the fourth quarter of 2025 compared to the previous year, while full-year results showed an increase in net income and adjusted EBITDA.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
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.
Positive Outlook
- Expected Q1 2026 revenue of $194-$200 million, indicating a potential rebound from Q4 2025.
- Full year 2026 revenue guidance of $675-$775 million suggests continued strong performance.
- Anticipated Q1 2026 Adjusted EBITDA of $101-$110 million.
- Full year 2026 Adjusted EBITDA guidance of $381-$477 million.
- Non-GAAP EPS for full year 2026 is projected to be $8.74-$11.84.
Challenges Ahead
- Q1 2026 revenue guidance is lower than Q4 2024 actual revenue of $252.8 million.
- Diluted EPS guidance for Q1 2026 ($1.61-$1.86) is lower than Q4 2024 actual diluted EPS of $4.09.
- Full year 2026 revenue guidance ($675-$775 million) is lower than full year 2025 actual revenue of $834.0 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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