Want to see IDCC full AI Analyst Report?
Top Page
InterDigital
(NASDAQ:IDCC)
Select Model
Select Model
Rating:79Outperform
Price Target:
$347.00
▲(34.34% Upside)
Action:Reiterated
Date:07/31/26
IDCC scores well primarily on strong financial performance (exceptional margins and robust free cash flow) and a constructive earnings update (raised full-year guidance and record ARR growth). The score is tempered by mixed technical posture (still below the 200-day average) and business-model timing uncertainty highlighted on the call (arbitration-driven revenue recognition and elevated enforcement costs), while valuation appears reasonable rather than deeply discounted.
Positive Factors
Cash generation
Consistently strong operating cash flow and near‑one-to-one FCF conversion underpin durable financing capacity. This supports recurring shareholder returns, funds legal and R&D spend, and reduces refinancing risk, giving the licensing model resilience across multi-year cycles.
Negative Factors
Arbitration revenue uncertainty
Material revenue recognized on conservative estimates tied to arbitration creates multi-quarter recognition risk. Final arbitration outcomes (estimated 18–24 months) could adjust prior revenues and create persistent forecast uncertainty for investors and management planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently strong operating cash flow and near‑one-to-one FCF conversion underpin durable financing capacity. This supports recurring shareholder returns, funds legal and R&D spend, and reduces refinancing risk, giving the licensing model resilience across multi-year cycles.
Read all positive factors
InterDigital Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much of InterDigital’s sales come from licensing and patent royalties versus engineering services or product-related revenue, revealing whether the business depends on recurring, high-margin licensing income or on more cyclical services. Highlights concentration risk (heavy reliance on a few licensees or standards), sensitivity to handset and technology cycles, and the parts of the business most likely to drive margins, cash flow stability, and future growth.
Shows how much of InterDigital’s sales come from licensing and patent royalties versus engineering services or product-related revenue, revealing whether the business depends on recurring, high-margin licensing income or on more cyclical services. Highlights concentration risk (heavy reliance on a few licensees or standards), sensitivity to handset and technology cycles, and the parts of the business most likely to drive margins, cash flow stability, and future growth.
Data provided by:
The Fly
The FlyInterDigital (IDCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.87B
Dividend Yield0.92%
Average Volume (3M)319.69K
Price to Earnings (P/E)26.0
Beta (1Y)0.80
Revenue Growth-11.66%
EPS Growth-35.06%
CountryUS
Employees460
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)11.73
Shares Outstanding25,806,007
10 Day Avg. Volume240,356
30 Day Avg. Volume319,692
Financial Highlights & Ratios
PEG Ratio1.78
Price to Book (P/B)7.46
Price to Sales (P/S)9.85
P/FCF Ratio15.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$450.00Price Target Upside74.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)7.21
Revenue Forecast (FY)$706.20M
InterDigital Business Overview & Revenue Model
Company Description
InterDigital, Inc., through its affiliated companies, specializes in the design and advancement of technologies that facilitate and improve wireless communications across major global regions, including the United States, China, South Korea, Japan...
How the Company Makes Money
InterDigital makes money primarily by licensing its intellectual property portfolio to companies that manufacture or sell products implementing cellular and related technologies. The company’s core revenue stream is patent licensing—typically stru...
InterDigital Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented strong financial outperformance for the quarter — materially higher revenue, record ARR (+13% YoY), very high adjusted EBITDA and robust cash generation — and meaningful strategic progress via a framework agreement with Amazon, new IoT/EV licenses and multiple UPC injunctions versus Disney. Offsetting items include elevated IP enforcement costs, the presence of estimated revenue tied to ongoing arbitrations (creating recognition uncertainty), and continued multi‑jurisdictional enforcement obligations that will sustain legal expense and operational complexity. On balance, the positive operational and financial momentum, upgraded guidance, and major licensing milestones outweigh the remaining uncertainties and costs.Positive Updates
Revenue and Profit Outperformance
Total revenue of $260.2M in Q2 2026, far above prior guidance of $139M–$143M; GAAP diluted EPS $3.40 and non-GAAP EPS $4.62; adjusted EBITDA $184.1M with a 71% adjusted EBITDA margin (vs. ~50% implied in prior outlook).
Negative Updates
Enforcement and OpEx Pressure
Operating expenses increased by $25.8M year‑over‑year, largely driven by higher intellectual property enforcement costs and performance‑based compensation tied to business success.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Profit Outperformance
Total revenue of $260.2M in Q2 2026, far above prior guidance of $139M–$143M; GAAP diluted EPS $3.40 and non-GAAP EPS $4.62; adjusted EBITDA $184.1M with a 71% adjusted EBITDA margin (vs. ~50% implied in prior outlook).
Read all positive updates
Company Guidance
InterDigital raised full‑year 2026 guidance to revenue of $775–$845 million (up $85 million at the midpoint from prior $675–$775M), with adjusted EBITDA $469–$529 million and non‑GAAP EPS $10.85–$12.81. The upgrade was driven by strong Q2 results: revenue $260.2M (including $103.7M of catch‑up), record ARR $625.7M (+13% YoY), adjusted EBITDA $184.1M (71% margin), GAAP diluted EPS $3.40 and non‑GAAP EPS $4.62, cash from operations $82.5M, free cash flow $66.6M, operating expenses up $25.8M YoY, $41.1M returned to shareholders ($23M buybacks, $18M dividends) and $1.1B of cash/short‑term investments. For Q3 the company expects $154–$158M of revenue from existing contracts, an adjusted EBITDA margin of about 57%, non‑GAAP EPS of $1.94–$2.13 and another strong quarter of free cash flow, while reiterating long‑term targets such as $300M+ ARR from streaming/cloud and $1B+ ARR by 2030.InterDigital Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 788.50M | 834.01M | 868.52M | 549.59M | 457.79M | 425.41M |
| Gross Profit | 620.21M | 669.67M | 699.28M | 470.19M | 386.38M | 360.78M |
| EBITDA | 452.64M | 586.19M | 544.75M | 357.22M | 225.63M | 160.97M |
| Net Income | 302.18M | 406.64M | 358.61M | 214.07M | 93.69M | 55.30M |
Balance Sheet | ||||||
| Total Assets | 2.19B | 2.06B | 1.84B | 1.77B | 1.90B | 1.63B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.24B | 958.21M | 1.01B | 1.20B | 941.63M |
| Total Debt | 401.54M | 488.21M | 490.94M | 625.16M | 626.99M | 444.37M |
| Total Liabilities | 989.92M | 963.17M | 978.31M | 1.19B | 1.17B | 875.24M |
| Stockholders Equity | 1.20B | 1.10B | 857.22M | 581.55M | 724.89M | 745.24M |
Cash Flow | ||||||
| Free Cash Flow | 541.34M | 528.56M | 265.68M | 169.11M | 243.29M | 90.84M |
| Operating Cash Flow | 574.02M | 544.45M | 271.53M | 213.73M | 286.04M | 129.12M |
| Investing Cash Flow | -118.90M | -140.28M | 109.45M | -85.17M | -314.71M | -36.91M |
| Financing Cash Flow | -496.25M | -201.45M | -272.39M | -388.76M | 18.60M | -74.47M |
InterDigital Technical Analysis
Positive
258.30
Price Trends
269.23
Positive
296.08
Positive
321.57
Negative
Market Momentum
-4.82
Positive
40.88
Neutral
22.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDCC, the sentiment is Positive. The current price of 258.3 is below the 20-day moving average (MA) of 268.22, below the 50-day MA of 269.23, and below the 200-day MA of 321.57, indicating a neutral trend. The MACD of -4.82 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDCC.
InterDigital Risk Analysis
InterDigital disclosed 36 risk factors in its most recent earnings report. InterDigital reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
InterDigital Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.87B | 25.99 | 26.82% | 1.08% | -11.66% | -35.06% | |
75 Outperform | $6.84B | 18.56 | 37.43% | ― | 17.26% | ― | |
73 Outperform | $4.48B | 54.08 | 7.31% | ― | 24.38% | 25.18% | |
69 Neutral | $4.88B | 74.56 | 56.13% | ― | 15.47% | -13.79% | |
68 Neutral | $5.02B | 16.08 | 48.90% | 0.45% | 3.60% | 48.92% | |
67 Neutral | $5.68B | 11.32 | 14.07% | ― | 9.29% | 18.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IDCC
InterDigital
304.83
36.81
13.73%
CVLT
CommVault Systems
117.80
-68.70
-36.84%
NICE
NICE
98.79
-57.03
-36.60%
PEGA
Pegasystems
30.55
-27.78
-47.63%
ESTC
Elastic
65.79
-14.74
-18.30%
SRAD
Sportradar Group AG
14.54
-14.99
-50.76%
InterDigital Corporate Events
Executive/Board ChangesShareholder Meetings
InterDigital Shareholders Approve Bylaw Changes and Governance Items
Positive
Jun 15, 2026
At its June 10, 2026 annual meeting, InterDigital shareholders approved an amendment to the company’s bylaws to provide for officer exculpation under Pennsylvania corporate law, reinforcing legal protections for senior management and potenti...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.