WILMINGTON, DE — InterDigital, Inc. (Nasdaq: IDCC) recently reported first-quarter 2026 results that exceeded its guidance, driven by new licensing agreements and growth in recurring revenue.
The company signed six agreements during the quarter, including a renewal with Xiaomi and a new license with LG Electronics covering televisions and computer displays.
Annualized recurring revenue increased 13% year over year to $567.2 million, with smartphone-related recurring revenue rising 18% to $491.8 million.
First-quarter revenue included $63.6 million in catch-up revenue, down from $84.8 million in the prior-year period.
Operating expenses increased by $44.5 million, primarily due to higher revenue-sharing costs tied to the LG agreement and increased intellectual property enforcement expenses.
InterDigital said it has secured licensing agreements with three of the world’s largest smartphone vendors through the end of the decade, providing a foundation for future growth.
Chief Executive Officer Liren Chen said the company’s results were driven by new agreements and continued momentum across its licensing and research programs.
During the quarter, the company was promoted to the S&P MidCap 400 index and continued legal enforcement actions, including court rulings in Germany and Brazil related to licensing disputes.
InterDigital said its 3.50% senior convertible notes due 2027 are convertible during the quarter ending June 30, 2026, at a rate of 12.9041 shares per $1,000 principal amount.
In the first quarter, the company settled $80 million in converted notes with cash and issued 0.8 million shares, offset by hedge transactions that prevented dilution.
The company reaffirmed its full-year 2026 outlook, projecting revenue between $675 million and $775 million and adjusted EBITDA between $381 million and $477 million.
For the second quarter, InterDigital expects revenue between $139 million and $143 million and adjusted EBITDA between $67 million and $73 million.
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