IDCC

EX-99.1

2 ex991q393026pressrelease.htm

EX-99.1

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INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2026

New license agreements drive Q3 results above guidance and increased FY26 outlook

Annualized recurring revenue1 at all-time high of $629 million

Revenue up 17% YoY; Net income up 19% YoY; Adjusted EBITDA2 up 25% YoY

WILMINGTON, Del. October 29, 2026 - InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the quarter ended September 30, 2026.

“This was another excellent quarter, with double-digit growth in revenue and profitability and record annualized recurring revenue,” said Liren Chen, President and CEO of InterDigital. “We secured a new PC license through arbitration and advanced our video services program. Building on last quarter’s increase in annual guidance, our strong execution in Q3 supports another increase to the midpoint of our full-year revenue guidance, this time based only on revenue already under contract. We continue to pursue additional business in Q4 to build on these results.”

Recent Business Highlights:

•Reached agreement with a top PC manufacturer, with final terms to be determined by binding arbitration; we now have licensed 4 of the top 5 PC makers in the world

•Signed new IoT license agreement with EV charging company KEBA

•Earned revenue of $193 million up 17% year-over-year

•Achieved record annualized recurring revenue of $629 million

•Declared increase in quarterly cash dividend from $0.70 to $0.75 per share

•Awarded two new injunctions against Disney by Europe’s Unified Patent Court; in total eight injunctions won against Disney out of eight patent cases decided to date

•Recognized as one of America's Greatest Companies by Newsweek and one of America's Growth Leaders by Time

Third Quarter 2026 Financial Summary:

Third quarter 2026 revenue included $36.2 million of catch-up revenue, compared with $17.7 million in third quarter 2025.

Three Months Ended September 30,

($ in millions, except per share data)20262025Change

GAAP Results:

Revenue$193.4$164.717%

Operating expenses $94.1$88.96%

Net income$80.2$67.519%

Net income margin41%41%— ppt

Diluted EPS$2.34$1.9321%

Non-GAAP Results:

Adjusted EBITDA 2 $131.3$104.925%

Adjusted EBITDA margin 2 68%64%4 ppt

Non-GAAP Net income 3

$95.7$78.222%

Non-GAAP EPS 3

$3.11$2.5522%

Additional Information:

Revenue by type:

Annualized recurring revenue$628.9$588.07%

Catch-up revenue$36.2$17.7105%

Revenue by program:

Smartphone$122.6$136.4(10)%

CE, IoT/Auto$55.7$28.297%

Streaming and Cloud Services

$15.0$—N/M

Other$0.1$0.154%

N/M     indicates not meaningful

Return of Capital

(in millions, except per share data)Share RepurchasesDividends DeclaredReduction of Debt Total Return of Capital

SharesValuePer ShareValue

Third quarter 2026<0.1$18.7$0.75$19.3$83.2$121.2

Near Term Outlook

The Company has provided an outlook for fourth quarter and full year 2026 in the table below, in both cases based on contracted revenue only and does not include any new agreements or enforcement action results we may sign or receive over the balance of the fourth quarter. Any new agreements and/or enforcement actions we may receive over the balance of the fourth quarter would be additive.

(in millions, except per share data)

Q4 2026

Full Year 2026

Revenue$154 - $160$813 - $819

Adjusted EBITDA 2 $80 - $88$507 - $515

Diluted EPS$1.04 - $1.27$8.93 - $9.16

Non-GAAP EPS 3

$1.72 - $1.98$11.99 - $12.25

Convertibility of 2027 Notes

Pursuant to the terms of the Indenture governing InterDigital’s 3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes are convertible during the calendar quarter ending December 31, 2026. The current conversion rate of the Notes is 13.0351 shares of InterDigital’s Common Stock per $1,000 principal amount of the Notes.

Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital’s election, as set forth in the Indenture governing the Notes.

At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital’s economic standpoint from $76.72 to $105.30. In connection with the Notes issuance, we also issued warrants to acquire, subject to customary anti-dilution adjustments, approximately 6.0 million shares of common stock. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Notes, Hedge, and Warrant Transactions" in Inter

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