INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2025 (Form 8-K)

INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2025

Samsung arbitration decision and new HP license agreement drive Q2 results, exceeding outlook

Annualized recurring revenue1, at all-time high of $553 million, up 44% YoY

Company raises full year 2025 revenue guidance by $110 million

WILMINGTON, Del. July 31, 2025 - InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the quarter ended June 30, 2025.

•Revenue of $300.6 million, up 34% year-over-year, driven by the conclusion of the Samsung arbitration and the new license agreement with HP.

•Net income was $180.6 million and diluted EPS was $5.35, up year-over-year 65% and 36%, respectively.

•Non-GAAP EPS2 at all-time high of $6.52 and Adjusted EBITDA3 of $236.7 million.

"Our agreement with Samsung is the largest license InterDigital has ever signed, worth more than $1 billion in total contract value over eight years. We have increased the mid-point of our annual revenue guidance by $110 million to $820 million and driven annualized recurring revenue to well over half a billion dollars," commented Liren Chen, President and CEO, InterDigital. "As we continue to make progress across our licensing programs, the total contract value of licenses that we have signed since 2021 is now more than $4 billion, demonstrating the accelerating momentum of our IP-as-a-service business model."

Second Quarter 2025 Financial Highlights, as compared to Second Quarter 2024:

			Three Months Ended June 30,
(in millions, except per share data)			2025						2024						Change
GAAP Results:
Revenue			$300.6						$223.5						34%
Operating expenses			$95.2						$89.6						6%
Net income			$180.6						$109.7						65%
Net income margin			60%						49%						11 ppt
Diluted EPS			$5.35						$3.93						36%
Non-GAAP Results:
Adjusted EBITDA 3			$236.7						$157.7						50%
Adjusted EBITDA margin 3			79%						71%						8 ppt
Non-GAAP Net income 2			$195.3						$118.9						64%
Non-GAAP EPS 2			$6.52						$4.57						43%
Additional Information:
Revenue by type:
Annualized recurring revenue 1			$553.1						$383.8						44%
Catch-up revenue			$162.3						$127.6						27%
Revenue by program:
Smartphone			$235.1						$199.2						18%
CE, IoT/Auto			$65.3						$23.7						175%
Other			$0.2						$0.5						(66)%

Return of Capital to Shareholders

(in millions, except per share data)

Share Repurchases

Dividends Declared

Total Return of Capital

Shares

Value

Per Share

Value

Second quarter 2025

0.1

$26.2

$0.60

$15.5

$41.7

Convertibility of 2027 Notes

Pursuant to the terms of the Indenture governing InterDigital's 3.50% Senior Convertible Notes due 2027 (the "Notes"), the Notes are convertible during its calendar quarter ending September 30, 2025. The current conversion rate of the Notes is 12.9041 shares of InterDigital's Common Stock per $1,000 principal amount of the Notes.

Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock, or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital's election, as set forth in the Indenture governing the Notes.

At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital's economic standpoint from $77.49 to $106.06. Refer to Footnote 5 of the Financial Statements from InterDigital's Form 10-Q for the quarter ended June 30, 2025 for more information.

Near Term Outlook

The Company raised its full year 2025 outlook and provided an initial outlook for third quarter 2025 in the table below. The outlook for third quarter 2025 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the third quarter. The outlook for full year 2025 includes both existing licenses and the expected contributions from new agreements over the balance of the year.

									Full Year 2025
(in millions, except per share data)			Q3 2025						Current						Prior
Revenue			$136 - $140						$790 - $850						$660 - $760
Adjusted EBITDA 3			$69 - $75						$551 - $569						$400 - $495
Diluted EPS			$0.94 - $1.11						$10.94 - $11.47						$6.79 - $9.67
Non-GAAP EPS 2			$1.52 - $1.72						$14.17 - $14.77						$9.69 - $12.92

Conference Call Information

InterDigital will host a conference call on Thursday, July 31, 2025 at 10:00 a.m. ET to discuss its second quarter 2025 financial performance and other company matters.

For a live Internet webcast of the conference call, visit www.interdigital.com and click on the "Webcast" link on the Investors page. The company encourages participants to take advantage of the Internet option.

For telephone access to the conference call, visit www.interdigital.com and click on the "Dial In Registration" link on the Investors page. Registration is necessary to obtain a dial in phone number and PIN to join.

An Internet replay of the conference call will be available on InterDigital's website under Events in the Investors section. The replay will be available for one year.

About InterDigital®

InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence ("AI"), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today's most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit the InterDigital website: www.interdigital.com.

For additional financial measures, refer to our second quarter 2025 Form 10-Q and the financial metrics tracker, which are available on the Investor Relations section of our website.

Forward-Looking Statements