WILMINGTON, DE — InterDigital, Inc. (Nasdaq: IDCC) has delivered a strong start to 2025 with first-quarter results that exceeded expectations, driven by significant licensing agreements and record-setting recurring revenue. The company reported revenue, Adjusted EBITDA, and earnings per share (EPS) exceeding the top end of its guidance.
A key highlight of the quarter was the growth in annualized recurring revenue, which surged 30% year-over-year to reach an all-time high. This achievement was fueled by the licensing of vivo Mobile, one of the world’s largest smartphone vendors.
“In the first quarter, we licensed vivo Mobile, a major smartphone vendor, to drive revenue above the top end of our guidance and increase our annualized recurring revenue to a record level. We now have seven of the ten largest smartphone vendors and almost 80% of the entire global smartphone market under license,” said Liren Chen, President and CEO of InterDigital.
Chen also noted a significant agreement signed early in the second quarter with HP as part of the company’s consumer electronics and IoT program. “With these new deals, we have signed agreements with a cumulative total contract value of more than $3.6 billion since 2021, giving us a strong base from which to drive additional growth,” he added.
Strategic Highlights
The inclusion of seven out of the top ten global smartphone vendors in InterDigital’s licensing portfolio underscores the company’s dominant position in the global intellectual property market. This progress reflects the firm’s sustained focus on building broad revenue streams through targeted licensing programs.
Notably, InterDigital signed a licensing deal with HP after the first quarter ended, further bolstering its consumer electronics and IoT program. Combined with prior agreements, the total contract value of deals signed since 2021 exceeds $3.6 billion.
Convertible Notes Update
InterDigital’s 3.50% Senior Convertible Notes due 2027 are convertible during the second quarter of 2025. The company has emphasized that it will settle conversion obligations through cash, shares, or a combination of both, in accordance with the Indenture governing the Notes. The economic structure of the Notes, supported by call spread transactions, effectively raises the company’s conversion price to an equivalent of $106.14 per share.
2025 Outlook
InterDigital reaffirmed its full-year 2025 guidance, reflecting confidence in its current licenses and anticipated contributions from new agreements and arbitration outcomes expected later this year. For the second quarter, the company’s outlook includes only existing licenses, excluding potential revenue from deals or arbitration results yet to be finalized.
With robust licensing momentum and a strategic focus on long-term growth, InterDigital remains poised to build on its strong start to the year and deliver further shareholder value.
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