InterDigital (IDCC) investor relations material

Executive summary

• Q3 revenue rose 17% YoY to $193.4M, net income rose 19% to $80.2M and Adjusted EBITDA rose 25% to $131.3M; ARR reached a record $628.9M.

• New licensing activity, including a PC agreement, drove results above guidance; FY26 revenue outlook is based on contracted revenue and excludes potential new agreements and enforcement outcomes.

Financial highlights

• Q3 revenue was $193.4M versus guidance of $154M–$158M; Adjusted EBITDA was $131.3M versus $86M–$92M.

• Q3 diluted EPS was $2.34 versus guidance of $1.25–$1.42; non-GAAP diluted EPS was $3.11 versus $1.94–$2.13.

• GAAP net income was $80.2M versus $67.5M YoY; operating income was $99.4M versus $75.8M.

• Q3 operating cash flow was $150.4M and free cash flow was $136.2M; 9M operating cash flow was $249.0M versus $481.1M.

• 9M revenue was $659.0M versus $675.8M; net income was $271.9M versus $363.7M, and operating expenses rose 29% to $338.2M.

Outlook and guidance

• Q4 2026 outlook: revenue $154M–$160M, Adjusted EBITDA $80M–$88M, diluted EPS $1.04–$1.27 and non-GAAP EPS $1.72–$1.98.

• FY26 outlook: revenue $813M–$819M, Adjusted EBITDA $507M–$515M, diluted EPS $8.93–$9.16 and non-GAAP EPS $11.99–$12.25.

• Existing-contract revenue is expected to exceed the $810M midpoint of FY26 revenue guidance; potential new agreements and enforcement outcomes are excluded and would be additive.

• Contracted dynamic fixed-fee royalty revenue over existing agreements totaled $2.00B, including constrained estimates for three ongoing arbitrations.

• 2030 targets include ARR above $1B, ARR CAGR of 10%+ and Adjusted EBITDA margin of 60%+.