InterDigital finished 2025 with a strong fourth quarter, capping a year of outstanding performance driven by accelerated licensing momentum, particularly in smartphones, and significant advancements in AI expertise. The company achieved record levels in net income, adjusted EBITDA, non-GAAP EPS, and free cash flow, reflecting robust business execution and strategic growth initiatives.
Annualized recurring revenue (ARR) increased 24% year-over-year from $468.0 million to $582.4 million.
positiveRecord levels of net income of $406.6 million and adjusted EBITDA of $588.9 million for the full year 2025.
positiveRecord levels of net cash provided by operating activities of $544.5 million and free cash flow of $473.9 million for the full year 2025.
positiveCompleted valuable license agreements with Samsung, vivo, Honor, and HP, contributing to record smartphone revenue of $678.9 million.
positiveGrew patent portfolio by 14% to approximately 38,000 granted patents and applications.
positiveFourth quarter 2025 revenue declined 37% year-over-year to $158.2 million, primarily due to a 91% decrease in catch-up revenue ($12.6 million vs $135.8 million).
negativeFourth quarter 2025 diluted EPS decreased 71% year-over-year to $1.20 from $4.09, impacted by lower catch-up revenue.
negativeFourth quarter 2025 Adjusted EBITDA decreased 55% year-over-year to $88.2 million from $198.1 million.
negativeFull year 2025 revenue decreased 4% year-over-year to $834.0 million, impacted by a 40% decrease in catch-up revenue ($277.4 million vs $460.1 million).
attentionOperating expenses increased 22% year-over-year in Q4 2025, driven by higher R&D and licensing costs.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Smartphone | N/A | — | — | — |
CE, IoT/Auto | N/A | — | — | — |
Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Finished the year with another strong quarter to cap an outstanding performance in 2025.
Accelerated momentum across licensing programs, including a record performance in smartphones.
Significantly deepened AI expertise and industry leadership in research teams.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.