InterDigital (IDCC) 17th Annual Midwest IDEAS Conference summary

Leadership and organizational strengths

• Leadership team blends experienced internal executives with recent hires from major industry players, notably Qualcomm.

• Focus remains on research-driven innovation, with labs dedicated to wireless, video, and AI.

• Recognized as one of the 100 most innovative companies globally for five consecutive years.

• Maintains a large, valuable patent portfolio, now at approximately 40,000 assets.

• Strong presence in global standards organizations, holding key chair positions in 3GPP.

Business model and technology

• Revenue is generated through patent licensing, underpinned by foundational research in wireless, video, and AI.

• Technology is contributed to industry standards, enabling widespread adoption by device manufacturers.

• Licensing agreements are negotiated to secure fair compensation, with reinvestment into research.

• Video technology enables efficient streaming by compressing large data files, critical for SVOD and AVOD markets.

• Acquisitions, such as Technicolor's research team, have expanded capabilities in video and AI.

Financial performance and growth

• Achieved over $800 million in revenue and $15+ non-GAAP EPS in 2025, with 71% adjusted EBITDA margin.

• Annualized recurring revenue (ARR) grew from $356 million in 2020 to $626 million in the latest quarter.

• Signed over 60 license agreements worth about $5 billion in total contract value over five years.

• Revenue growth is driven by both recurring ARR and one-time catch-up sales from new agreements.

• Significant cash flow has enabled share buybacks and dividends, reducing share count by 16% in five years.