InterDigital (IDCC) investor relations material

Executive summary

• Revenue, adjusted EBITDA, and EPS for Q1 2026 exceeded the top end of guidance, driven by six new agreements, including renewals with Xiaomi and new licenses with LG Electronics and Sony, expanding coverage across major device portfolios.

• Annualized recurring revenue (ARR) rose 13% year-over-year to $567 million, with smartphone ARR up 18% to a record $492 million.

• Multiple legal victories, including injunctions against Disney and Transsion, reinforced IP strength and licensing leverage.

• Promoted to the S&P MidCap 400 and recognized among the world's 100 most innovative companies for the fifth consecutive year.

• Settled $80 million of 2027 convertible notes with no incremental dilution due to hedge transactions.

Financial highlights

• Q1 2026 revenue was $205.4 million, exceeding guidance but down 2% year-over-year due to lower catch-up revenue; recurring revenue from new agreements partially offset the decline.

• Adjusted EBITDA was $111.8 million (54% margin), above guidance but down 30% year-over-year; non-GAAP EPS was $2.57.

• Net income for Q1 2026 was $75.3 million, with diluted EPS of $2.14.

• Cash, cash equivalents, and short-term investments totaled $1.09 billion at March 31, 2026.

• $114 million returned to shareholders in Q1 2026, including $88 million in debt reduction and $26 million in share repurchases/dividends.

Outlook and guidance

• Q2 2026 revenue guidance: $139–$143 million; adjusted EBITDA: $67–$73 million; diluted EPS: $0.80–$0.97; non-GAAP EPS: $1.41–$1.60.

• Full-year 2026 revenue guidance: $675–$775 million; adjusted EBITDA: $381–$477 million; non-GAAP EPS: $8.74–$11.84.

• Deferred revenue balance of $420.5 million as of March 31, 2026, with $261.1 million expected to be amortized over the next twelve months.

• Arbitration with Lenovo and ongoing legal proceedings may impact future revenue recognition.

• Full-year guidance reaffirmed, with growth expected from new agreements and enforcement outcomes.