Overview

* InterDigital Q2 revenue up 34% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS at record $6.52, surpassing analyst estimates, per LSEG data

* Company raises full-year 2025 revenue guidance by $110 mln

Outlook

* InterDigital raises full-year 2025 revenue guidance to $790-$850 mln

* Company expects Q3 2025 revenue between $136 mln and $140 mln

* InterDigital forecasts full-year 2025 adjusted EBITDA of $551-$569 mln

* Company anticipates Q3 2025 adjusted EBITDA of $69-$75 mln

* ** Sees FY non-GAAP EPS of $14.17 - $14.77; Q3 non-GAAP EPS of $1.52 - $1.72

Result Drivers

* SAMSUNG ARBITRATION - Conclusion of arbitration with Samsung significantly boosted revenue, per CEO Liren Chen

* HP LICENSE AGREEMENT - New licensing agreement with HP contributed to revenue growth

* RECURRING REVENUE - Annualized recurring revenue reached a record high, up 44% YoY

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $300.60 $170 mln

Revenue mln (3

Analysts

)

Q2 Beat $6.52 $2.74 (3

Adjusted Analysts

EPS )

Q2 EPS $5.35

Q2 Net $180.60

Income mln

Q2 $236.70

Adjusted mln

EBITDA

Q2 79.0%

Adjusted

EBITDA

Margin

Q2 $95.20

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the communications & networking peer group is "buy"

* Wall Street's median 12-month price target for InterDigital Inc ( IDCC ) is $215.00, about 14% below its July 30 closing price of $245.18

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)