AI Earnings Predictions for InterDigital Inc. (IDCC)

EX-99.1

2 ex991q393026pressrelease.htm

EX-99.1

Document

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

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.ce06d217.1785532992.4b9aca33

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.e618d017.1784333779.427cecf9

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.