Interdigital ( (IDCC) ) has released its Q1 earnings. Here is a breakdown of the information Interdigital presented to its investors.
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InterDigital, Inc., a leading research and development company in the mobile, video, and AI technology sectors, has announced its financial results for the first quarter of 2025. The company is known for its innovation in wireless and video technologies, licensing its developments to major global players in the smartphone and consumer electronics markets.
In the first quarter of 2025, InterDigital reported revenues of $210.5 million, with adjusted EBITDA and EPS exceeding the top end of their guidance. The company achieved a record annualized recurring revenue, marking a 30% year-over-year increase. Notably, InterDigital has secured licensing agreements with seven of the ten largest smartphone vendors, covering nearly 80% of the global smartphone market.
Key financial highlights include a 42% increase in net income to $115.6 million and a 20% rise in diluted EPS to $3.45 compared to the same quarter last year. Despite a 20% decrease in overall revenue, the company saw a significant 129% increase in smartphone program revenue. Additionally, InterDigital signed a major licensing agreement with HP, contributing to a cumulative contract value of over $3.6 billion since 2021.
Looking ahead, InterDigital has reaffirmed its full-year 2025 guidance, projecting revenues between $660 million and $760 million and adjusted EBITDA ranging from $400 million to $495 million. The company remains optimistic about its growth prospects, driven by existing licenses and anticipated new agreements throughout the year.