InterDigital (IDCC) investor relations material

Executive summary

• Q2 2026 revenue reached $260.2 million, with adjusted EBITDA of $184.1 million and non-GAAP EPS of $4.62, all exceeding guidance.

• Annualized recurring revenue hit a record $626 million, up 13% year-over-year, driven by new Amazon and fintech IoT agreements and growth in streaming/cloud services.

• Major milestones included a new patent license agreement with Amazon, resolving litigation and initiating arbitration, and two pan-European injunctions against Disney for patent infringement.

• Returned $41.1 million to shareholders in Q2 2026 through $23 million in buybacks and $18 million in dividends.

• Raised full-year 2026 revenue guidance to $775–$845 million, up $85 million at the midpoint.

Financial highlights

• Q2 2026 revenue was $260.2 million, above guidance but down 13% year-over-year due to lower catch-up revenue.

• Adjusted EBITDA was $184.1 million (71% margin), down 22% year-over-year.

• Non-GAAP EPS was $4.62; GAAP diluted EPS was $3.40, both down from prior year.

• Net income for Q2 2026 was $116.4 million, a 36% decrease year-over-year.

• Cash, cash equivalents, and short-term investments totaled $1.1 billion as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $775–$845 million, with Adjusted EBITDA of $469–$529 million and non-GAAP EPS of $10.85–$12.81.

• Q3 2026 revenue expected at $154–$158 million; Adjusted EBITDA at $86–$92 million.

• Deferred revenue balance of $442.2 million as of June 30, 2026, with $325.7 million to be amortized over the next 12 months.

• Management expects available liquidity and cash flows to meet obligations in the short and long term.

• Expect to recognize $2.1 billion in revenue from existing contracts over future periods, including estimates for Lenovo and Amazon arbitrations.