InterDigital (IDCC) investor relations material

Business overview and innovation

• Focuses on foundational research in wireless, video compression, and AI, with a large, valuable patent portfolio shared through open standards.

• Engineers participate and lead in major standard development organizations, contributing to global technology standards.

• Licensing model monetizes patents, reinvesting revenue into R&D for next-generation technologies.

• Top customers include 85% of the global smartphone industry, major consumer electronics, PC, TV makers, and connected car companies.

• Operates globally with 15 sites in seven countries, recruiting top talent near major universities.

Growth targets and financial performance

• Targets $1 billion ARR by 2030, up from $560 million currently, with significant growth in smartphone licensing.

• Smartphone ARR goal is $500 million, nearly achieved; consumer electronics and IoT contribute $200 million.

• Aims for $300 million ARR from video services by 2030, with technology already widely used but not yet fully monetized.

• Business generates high free cash flow and EBITDA margins due to high-margin licensing revenue.

• Returned $800 million to shareholders over five years, reducing share count by 15-16%.

Technology leadership and standardization

• Holds over 110 leadership roles in standards organizations, including 3GPP for 5G/6G, with two chairs among 15 working groups.

• Engineers drive adoption of proprietary technology into global standards through collaboration and technical merit.

• 6G research focuses on native AI, integrated sensing, and non-terrestrial (satellite) communications, with standard finalization expected by 2029 and adoption by 2030.

• Multi-generation device support ensures continued revenue from legacy technologies during generational transitions.