WILMINGTON, DE — InterDigital, Inc. (NASDAQ: IDCC) reported a sharp increase in third-quarter revenue and profit for 2025, driven by new licensing agreements and expanding demand across smartphone and video technologies.
The mobile, video, and AI technology company posted revenue of $164.7 million, a 28% increase from $128.7 million in the same period last year, fueled by four new license deals and a recently concluded Samsung arbitration. Net income nearly doubled to $67.5 million, or $1.93 per diluted share, compared with $34.2 million, or $1.14 per share, a year earlier. Non-GAAP earnings reached $2.55 per share, up 56% year over year, while adjusted EBITDA rose 62% to $104.9 million.
“This was another outstanding quarter for InterDigital with annualized recurring revenue up 49% year-over-year to an all-time high of $588 million, and net income and diluted EPS up 97% and 69% respectively,” said Liren Chen, President and Chief Executive Officer of InterDigital. “Among numerous business highlights, we completed the Samsung smartphone arbitration, closed four new license agreements, appointed a new chief licensing officer, once again demonstrated our leadership in key technology standards, and deepened our AI expertise.”
Smartphone-related licensing revenue climbed 56% to $136.4 million, reflecting strong demand from global device manufacturers. Meanwhile, consumer electronics, IoT, and automotive-related revenue declined 31% to $28.2 million as InterDigital continues to focus on higher-margin opportunities.
The company’s annualized recurring revenue reached a record $588 million, up 49% year over year, underscoring its continued success in expanding multi-year licensing agreements with major industry players.
For the fourth quarter, InterDigital projects revenue between $144 million and $148 million and adjusted EBITDA of $68 million to $76 million. Full-year guidance calls for revenue of $820 million to $824 million and non-GAAP earnings between $14.57 and $14.83 per share.
InterDigital returned $53.3 million to shareholders during the quarter through $35.3 million in share repurchases and $18 million in dividends. The company declared a quarterly dividend of $0.70 per share.
Founded in 1972, InterDigital develops and licenses technologies that power wireless communications, video, and AI systems across global consumer and industrial markets.
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