|IDCC Overview
IDCC

InterDigital, Inc.

Real Estate • CIK: 0001405495

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Market Cap
$8.21B
P/E (TTM)
20.2x
Rev Growth (TTM)
-4.0%
Net Margin (TTM)
48.8%
FCF Yield (TTM)
6.4%
FCF Margin (TTM)
63.4%

LATEST EARNINGS

Q4 FY2025
29 days ago
View source
Revenue
$158.20M
Flat
Net Income
$43.00M
Flat
EPS
$1.20
Flat
Operating
30.2% -34.1%
Net
27.2% -25.5%
  • Annualized recurring revenue (ARR) increased 24% year-over-year from $468.0 million to $582.4 million.
  • Record levels of net income of $406.6 million and adjusted EBITDA of $588.9 million for the full year 2025.
  • Record 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.
  • Completed valuable license agreements with Samsung, vivo, Honor, and HP, contributing to record smartphone revenue of $678.9 million.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$529M
Q4 '25
$63M-84%
Q3 '25
$395M+278%
FCF Margin
TTM63.4%
Q4 '2539.9%-83%
Sector: 13.8%Top 25%
OCF Margin65.3%
OCF/NI1.34x
CapEx Coverage34.3x
FCF Yield6.4%
FCF Growth (2Y)+23%
Cash Conversion Cycle
108 days
DSO: 108+DIO: DPO:

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.1%
Div Yield0.8%
+
Buyback (TTM)1.2%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.8%
FCF Payout Ratio12.7%
Free Cash Flow (TTM)$528.6M
Stock Repurchases (TTM)$102.3M
Capital Return / FCF30.8%
Est. Dividends Paid (TTM)$67.1M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
P25MedianP75
(med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
Asset Turnover
0.42x
8Q: 0.49x
Leverage (1+D/E)
1.43x
D/E: 0.43x
Asset & CapEx Efficiency
Fixed Asset Turn
33.32x
8Q:46.01x
-6583.3%
CapEx/Depreciation
0.20x
Depreciation Rate Trend
⚠ Declining -84.9%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$834.0M
$158.2M3.9%
$164.7M45.2%
$300.6M42.8%
$210.5M16.7%
$252.8M96.5%
$128.7M42.4%
$223.5M15.2%
$263.5M
Operating Income
$460.9M
$47.8M37.0%
$75.8M63.1%
$205.4M55.8%
$131.8M18.9%
$162.5M313.1%
$39.3M70.6%
$133.9M29.1%
$103.7M
Net Income
$406.6M
$43.0M36.3%
$67.5M62.6%
$180.6M56.2%
$115.6M13.2%
$133.1M289.3%
$34.2M68.8%
$109.7M34.3%
$81.7M
Operating Cash Flow
$544.5M
$63.4M84.0%
$395.9M276.7%
$105.1M625.9%
$-20.0M110.4%
$192.0M147.4%
$77.6M258.7%
$-48.9M196.3%
$50.8M
Free Cash Flow
$528.6M
$63.2M84.0%
$395.3M278.2%
$104.5M403.1%
$-34.5M118.3%
$188.1M145.2%
$76.7M255.1%
$-49.5M198.3%
$50.3M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
20.2x
Volatile
8Q: 41.5x+11764%
Valuation Lenses
Earnings
20.2x
vs sector
Cash Flow
14.4x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
P/E per %ROIC
ROIC: –
Shareholder Returns
Dividend
0.8%
Buyback
1.2%
Total Yield
2.1%
Market Cap$8.21B
EV$7.63B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
100/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
39.6%
8Q:
Return on Invested Capital (ROIC)
8Q:
vs Sector:0.1%

Earnings Quality

Cash Conversion

1.34x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover

Working Capital

Cash Conversion Cycle108 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
56/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
-4.0%
OpInc Growth YoY
-70.6%
EPS Growth YoY
-2.7%
FCF 3Y CAGR
23.2%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
Operating
Net
48.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+14.6 pts
FCF: 63.4% | Net: 48.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $783.80M
Interest Coverage
+Net cash position: $783.80M
Leverage Metrics
Debt-to-Equity
0.43x
Balance sheet risk & solvency analysis