WILMINGTON, DE — InterDigital, Inc. (Nasdaq: IDCC) posted a strong second quarter on the back of a landmark arbitration ruling involving Samsung and a newly secured licensing deal with HP, prompting the company to raise its full-year revenue forecast by $110 million.
Revenue reached $300.6 million in Q2, up 34% from the same period last year. Net income rose to $180.6 million, or $5.35 per diluted share, representing a 65% jump in earnings and a 36% increase in EPS year-over-year. On a non-GAAP basis, EPS climbed to an all-time high of $6.52, while adjusted EBITDA reached $236.7 million.
Driving the results was a finalized agreement with Samsung—valued at more than $1 billion over eight years—which CEO Liren Chen called “the largest license InterDigital has ever signed.” In combination with the new HP agreement, the deals have pushed annualized recurring revenue to a record $553 million, up 44% from the previous year.
With these developments, InterDigital raised its 2025 revenue guidance midpoint to $820 million, signaling continued strength in its IP-as-a-service model. Since 2021, the company has secured more than $4 billion in total contract value across its licensing portfolio.
The company also confirmed that its 3.50% Senior Convertible Notes due in 2027 are now eligible for conversion during the third quarter. The current conversion rate stands at 12.9041 shares per $1,000 principal amount. InterDigital retains the option to settle conversions in cash, stock, or a combination of both.
To manage dilution risk, the company had previously entered into call spread transactions at the time of issuance, effectively increasing the economic conversion price from $77.49 to $106.06 per share.
InterDigital’s licensing momentum, underscored by the Samsung and HP agreements, reflects accelerating demand for its wireless and video technology patents. With recurring revenue at an all-time high and a growing contract pipeline, the company is positioning itself as a key player in the intellectual property monetization space.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.