WILMINGTON, DE — InterDigital, Inc. (Nasdaq: IDCC) reported a record year in 2025, driven by surging licensing momentum that lifted annualized recurring revenue, profits, and cash flow to all-time highs, according to financial results released Thursday.
The Wilmington-based wireless, video, and artificial intelligence technology developer posted full-year revenue of $834.0 million for the year ended December 31, 2025, compared with $868.5 million a year earlier. Despite the modest decline in total revenue, the company delivered record net income of $406.6 million, up from $358.6 million in 2024, as recurring licensing revenue expanded and operating expenses fell sharply.
Annualized recurring revenue rose 24 percent year over year to $582.4 million, reflecting what the company described as accelerating momentum across its licensing programs. Smartphone-related revenue reached a record $678.9 million for the year, highlighting the strength of InterDigital’s core licensing business.
Fourth-quarter results reflected the absence of large one-time items recorded in the prior year. Revenue for the quarter totaled $158.2 million, down from $252.8 million in the fourth quarter of 2024, largely due to a steep drop in catch-up revenue tied to earlier licensing agreements. Even so, the company remained profitable, posting quarterly net income of $43.0 million.
For the full year, InterDigital reported adjusted EBITDA of $588.9 million, up from $551.0 million in 2024, while non-GAAP earnings per share climbed to $15.31. Net cash provided by operating activities reached a record $544.5 million, with free cash flow totaling $473.9 million.
The company pointed to several strategic milestones during the year, including the completion of what it described as the most valuable license in its history with Samsung, new agreements with smartphone makers vivo and Honor, and a licensing deal with HP. InterDigital also expanded its patent portfolio by 14 percent to roughly 38,000 granted patents and applications and completed the acquisition of video AI startup Deep Render.
InterDigital said it ended the year with a strong balance sheet, reporting $1,243,160,000 in cash, cash equivalents, and short-term investments as of December 31, 2025. The company also returned $169.4 million to shareholders during the year through dividends and share repurchases.
Founded in 1972, InterDigital focuses on research and development of foundational technologies used in wireless communications, video processing, and artificial intelligence, licensing its innovations to companies worldwide across smartphones, consumer electronics, vehicles, and cloud-based services.
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