InterDigital, Inc. (IDCC)

InterDigital reported second-quarter 2026 revenue of $260.2 million on 30 July, down 13 percent from $300.6 million a year earlier 3.

The fall came from less catch-up revenue, which is money a new licence pays for past sales made before it was signed 13. Catch-up revenue was $103.7 million against $162.3 million a year earlier 3.

A first streaming deal helped: the new Streaming and Cloud Services line brought in $110.0 million, after an agreement with Amazon whose final terms are to be set by binding arbitration 3.

The company expects 2026 revenue of $775 million to $845 million, after raising that range by $85 million at the midpoint 3. Still open are the Amazon licence terms and the company's patent suits against Disney 2.

InterDigital's predecessor was incorporated in 1972 under Pennsylvania law and the company went public in November 1981 1. It is now based in Wilmington, Delaware 1.

Its wireless patents were built mostly by its own researchers, with joint projects and some purchases 1. Its video patents combine its own work with patents from buying the research unit and patent licensing business of Technicolor SA 1.

Revenue was $868.5 million in 2024 and $834.0 million in 2025, with catch-up revenue of $460.1 million and $277.4 million 1.

The company explains the 2025 dip by the larger catch-up in 2024, which came mainly from the Samsung TV and OPPO agreements and the Lenovo UK ruling and arbitration agreement 1.

On 28 July 2025 arbitrators of the International Chamber of Commerce set total Samsung royalties at $1.05 billion over eight years, to 31 December 2030 1. That gives about $131 million of recurring revenue a year, 67 percent more than the old deal 1. It also added $118 million of catch-up revenue in 2025 1.

In 2025 it signed eight licences, among them new ones with the Chinese phone makers vivo and Honor 1. That left eight of the ten largest smartphone vendors, and about 85 percent of the global smartphone market, under licence 1.

In 2025 it also started patent suits against streaming companies, including Disney and Amazon 1. Courts in Brazil and Germany granted injunctions against Disney's video streaming services that year 1.

In October 2025 it bought Deep Render, an AI startup, which the company says strengthens its work on AI-based video codecs 1.

Smartphone licences

Smartphone licensing is the biggest line: revenue grew 14 percent in 2025 to $678.9 million 1. Licensees include Apple, Samsung, Google, Lenovo, LG, OPPO, vivo, Xiaomi and Honor 1.

Samsung, Apple and vivo each made up 10 percent or more of 2025 revenue 1. The Apple licence runs through 30 September 2029 1.

In the second quarter of 2026 smartphone revenue was $122.7 million, down 48 percent from $235.1 million 3.

TVs, PCs, connected devices and cars

This line, called CE, IoT/Auto, covers televisions, laptops, gaming consoles, set-top boxes, streaming devices and connected cars 1. Its revenue fell 42 percent in 2025 to $154.6 million 1.

The Samsung TV agreement, run with Sony as a joint programme, expired on 31 December 2025, and the company says it is working to renew it 1. In January 2026 it signed LG Electronics for TVs and monitors 1.

Car licences come through Avanci, a shared marketplace for patents, whose licensees include BMW, Audi, Ford, Toyota, BYD and Volvo Cars 1.

Streaming and cloud services

This new line licenses video streaming and cloud services, and it had no revenue when the annual report was filed 1. It brought in $110.0 million in the second quarter of 2026 3.

In June 2026 Amazon agreed to suspend or withdraw its court fights and take licence terms to binding arbitration 2. The Disney suits continue 2.

In May 2026 a court in the Brazil case against Disney affirmed an earlier preliminary injunction 2. The company also reports two injunctions from Europe's Unified Patent Court covering eleven countries 3.

People, places and rivals

Liren Chen is president and chief executive 3. The company had about 460 employees on 31 December 2025, about 240 of them outside the United States 1.

Research is based mainly in Conshohocken, New York, Los Altos, Montreal, London and Rennes 1. The company says it does not compete in the usual sense with other patent holders, but they may argue for a share of the same royalties 1.

Current problems

Five licences expired in 2025 without renewal, including the Samsung TV one, and had brought $31.7 million of recurring revenue in 2025 1. A few customers matter a great deal: 61 percent of 2025 revenue came from companies that each gave 10 percent or more 1.

The umbrella, in words

InterDigital works through wholly owned subsidiaries, which held more than 38,000 patents and patent applications on 31 December 2025 1.

It bought the research and patent licensing business of Technicolor SA, and carried a debt obligation of $17.9 million tied to that purchase at 31 December 2025 1. It agreed with Sony to license their combined TV and monitor patents, with InterDigital as exclusive licensing agent 1.

The company expects third-quarter 2026 revenue of $154 million to $158 million and full-year revenue of $775 million to $845 million 3.

It says the Amazon licence terms will be fixed by binding arbitration, and the Disney suits continue 32.

It measures progress toward its 2030 targets with annualized recurring revenue, which reached $625.7 million in the second quarter of 2026 3.

Its 2027 convertible notes were open to conversion in the quarter ending 30 September 2026, with $380.0 million of principal outstanding at 30 June 2026 3.

No clue on file points to a new direction yet.