InterDigital Inc

interdigital.com

What Do They Do?

Licenses patented wireless, video, and related technologies to makers of connected devices and providers of video and cloud services.

How Do They Make Money?

Licensees pay for permission to use InterDigital's patented inventions. Most agreements set fixed fees for a specified term, paid over the term or at signing; some royalties vary with licensed product sales, and new agreements may include payment for earlier unlicensed sales.

revenue

Segment	Share	Revenue	How money arrives
Total Revenue	100%
Catch-up revenues Sold outright	33% FY2022: 12%		Sold outright

Who Are Their Customers?

Device makers, including phone and consumer-electronics companies, license patents directly; TV and display makers can also be covered through a joint licensing program with Sony. InterDigital seeks licenses from video-streaming and other cloud-service providers.

Do Revenues Turn Into Profits?

Yes. It kept 49 cents of every revenue dollar as net income in FY2025 and turned 63 cents into free cash flow.

Operating income, FY2025

55% of revenue

▲ +5% vs FY2024 ($439.5M, 51%)

Net income, FY2025

49% of revenue

▲ +13% vs FY2024 ($358.6M, 41%)

Free cash flow, FY2025

63% of revenue

▲ +99% vs FY2024 ($265.7M, 31%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▼ −13%; vs $300.6M in Q2 FY2025
Net income: ▼ −36%; vs $180.6M in Q2 FY2025

Total Revenue share of revenue vs 100.0% in Q2 FY2025

Jul 30, 2026 Reached an Amazon licensing agreement and raised the revenue outlook The agreement covers Amazon's services and devices, including Prime Video, with final terms to be set by binding arbitration; the company raised its outlook by $85 million.

Growing. Revenue grew 96% in 4 years, from $425.4M in FY2021 to $834M in FY2025, about 18% a year.

Video-services licensing The older report said it intended to seek licenses from video and cloud-service providers; the latest report describes an active video-services licensing program focused on subscription- and ad-supported video on demand.

Revenue over time

Total Revenue Catch-up revenues Other Smartphone CE, IoT/Auto

$1B$500M$0

FY2022 FY2023 FY2024 FY2025

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