Cash flow generation remains erratic due to licensing cycles, with the OCF/NI ratio swinging from a negative 0.17 in 2025Q1 to a peak of 5.87 in 2025Q3, complicating predictable capital allocation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 580.52M | 544.45M | 271.53M | 213.73M | 286.04M | 129.12M | 163.47M | 89.43M | 146.79M | 315.8M | 430.78M | 114.5M | 242.01M | 218.18M | 177.61M | -34.34M | 133.92M | 320.69M | 85.81M | 152.73M | 314.81M | 33.67M | 48.23M | 59.56M | -2.64M | 9.57M | 4.54M | 23.96M | 30.1M | -23.8M | -13.3M |
| Operating CF Margin % | - | 65.28% | 31.26% | 38.89% | 62.48% | 30.35% | 45.54% | 28.04% | 47.75% | 59.26% | 64.7% | 25.94% | 58.2% | 67.06% | 26.79% | -11.38% | 33.94% | 107.83% | 37.56% | 65.2% | 65.52% | 20.64% | 46.52% | 51.98% | -3% | 18.2% | 7.98% | 33.9% | 30.34% | -47.76% | -24.77% |
| Operating CF Growth % | 838.4% | 100.51% | 27.04% | -25.28% | 121.53% | -21.01% | 82.78% | -39.07% | -53.52% | -26.69% | 276.23% | -52.69% | 10.93% | 22.84% | 617.23% | -125.64% | -58.24% | 273.72% | -43.81% | -51.49% | 834.88% | -30.18% | -19.02% | 2359.52% | -127.55% | 110.82% | -81.06% | -20.41% | 226.47% | -78.95% | -126.92% |
| Net Income | 366.37M | 406.64M | 358.61M | 211.05M | 117.56M | 57.56M | 37.94M | 14.95M | 59.48M | 170.71M | 305.48M | 116.39M | 101.42M | 61.52M | 408.63M | 89.47M | 153.62M | 87.26M | 26.21M | 20M | 225.22M | 54.69M | 155K | 34.47M | 2.51M | -19.28M | 5.69M | 26.71M | 37M | -34.3M | -11.6M |
| Depreciation & Amortization | 58.59M | 77.53M | 69.91M | 77.79M | 78.57M | 78.19M | 81.04M | 77.09M | 66.11M | 57.05M | 52.75M | 47.79M | 42.25M | 33.38M | 26.25M | 23.8M | 22.13M | 22.87M | 28.85M | 21.99M | 14.62M | 11.42M | 9.71M | 9.73M | 11.63M | 9.34M | 6.74M | 4.8M | 4.6M | 4.9M | 3.7M |
| Stock-Based Compensation | 21.14M | 43.16M | 45.97M | 35.74M | 22.13M | 28.74M | 10.44M | 7.6M | 7.09M | 18.06M | 21.84M | 15.14M | 18.49M | 15.94M | 6.5M | 8.12M | 5.8M | 9.79M | 5.1M | 9.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -24.05M | -13.39M | 783K | -34.66M | 18.52M | -7.5M | -7.18M | 4.12M | -45.43M | 64.95M | 13.26M | -34.77M | -62.98M | 4.86M | 40.42M | -1.21M | -6.74M | -43.43M | 1.84M | -8.63M | 40.85M | -37.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 138.37M | -37.4M | -34.38M | -74.99M | 77.03M | -21.29M | 44.85M | -1.48M | 32.26M | -23.79M | 217.59M | -28.09M | 120.73M | 37.54M | -186.28M | 7.92M | -201.19M | 404.77M | -42.97M | 72.02M | 147.37M | 4.31M | 8.6M | 996K | 17.01M | 16.45M | -12.5M | -2.65M | 4.9M | -2.7M | -2.4M |
| Working Capital Changes | 20.1M | 67.91M | -169.37M | -1.2M | -27.77M | -6.58M | -3.63M | -12.86M | 27.29M | 28.81M | -180.15M | -1.97M | 22.11M | 64.93M | -117.9M | -162.43M | 160.31M | -160.57M | 66.78M | 37.52M | -113.38M | 558K | 29.77M | 14.37M | -33.79M | 3.07M | 4.61M | -4.89M | -16.4M | 8.3M | -3M |
| Change in Receivables | 234.45M | 118.49M | -71.01M | -64.11M | -22.07M | -15.1M | 11.35M | 6.74M | 31.61M | 12.17M | -169.93M | -2.17M | 26.13M | 77.04M | -141.79M | 5.55M | 0 | -179.01M | 96.99M | 972K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 15.1M | -11.35M | -1.46M | -4.72M | 4.22M | 8.79M | 1.5M | -5.63M | -91.7M | 139.34M | -4.98M | 0 | 15.58M | -3.17M | 7.13M | 0 | 0 | 0 | 0 | 0 | 0 | 3.09M | 2.01M | -800K | 1.6M | -9M |
| Change in Payables | 2.22M | 3.95M | 2.28M | -2.51M | 6.87M | -1.8M | -2.85M | -638K | 6.2M | -3.79M | -5.56M | 2.5M | -10.4M | 14.65M | 2.45M | -571K | 417K | -1.51M | -30.12M | 26.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -183.38M | -140.28M | 109.45M | -85.17M | -314.71M | -36.91M | -310.05M | 268.26M | 69.98M | -220.3M | -219M | -213.97M | -140.31M | -38.31M | 62.97M | -31.01M | -157.92M | -194.59M | 2.55M | -54.32M | -52.38M | 8.03M | -48.18M | -45.31M | -4.76M | -6.31M | -16.08M | -35.52M | -27.5M | 30.5M | 6.7M |
| Capital Expenditures | -52.61M | -15.89M | -5.85M | -4.27M | -42.75M | -38.28M | -42.41M | -37.99M | -36.9M | -37M | -43.44M | -53.47M | -65.33M | -63.66M | -47.39M | -31.01M | -30.33M | -36.42M | -40.83M | -62.12M | -32.72M | -5.37M | -3.75M | -3.93M | -6.52M | -7.73M | -6.81M | -1.65M | -1.8M | -3.5M | -4.1M |
| CapEx % of Revenue | 6.35% | 1.91% | 0.67% | 0.78% | 9.34% | 9% | 11.81% | 11.91% | 12% | 6.94% | 6.52% | 12.11% | 15.71% | 19.57% | 7.15% | 10.28% | 7.69% | 12.25% | 17.87% | 26.52% | 6.81% | 3.29% | 3.61% | 3.43% | 7.42% | 14.71% | 11.97% | 2.33% | 1.81% | 7.02% | 7.63% |
| Acquisitions | 0 | 0 | 0 | 0 | 1.5M | 2.35M | 910K | 10M | -142.99M | 34.93M | -48M | 49.77M | 58.23M | 59.07M | 43.77M | 10.14M | 27.81M | 32.4M | 35.17M | 53.29M | 0 | 169K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -97.59M | -63.79M | -41.36M | -40.36M | -1.5M | 525.45M | 0 | 0 | 0 | -34.93M | -165.12M | -49.77M | -58.23M | -59.07M | -43.77M | -27.17M | -27.81M | -32.4M | -35.17M | -53.29M | 0 | -25M | -13.15M | -21.09M | -5.47M | -2.97M | -1.18M | 2.46M | -1.5M | -1.1M | -1.2M |
| Cash from Financing | -327.66M | -201.45M | -272.39M | -388.76M | 18.6M | -74.47M | -132.86M | -89.32M | -161.06M | -66.56M | -321.29M | 181.12M | -170.85M | -31.99M | -232.94M | 201.67M | 28.59M | -15.38M | -80.24M | -172.77M | -123.93M | -29.56M | -5.19M | -15.71M | 11.84M | 2.29M | 9.29M | 6.1M | -400K | -700K | 9.1M |
| Debt Issued (Net) | -88.23M | -1.5M | -141.44M | 0 | 177.5M | 0 | -94.91M | 168.15M | 0 | 0 | -230M | 251.72M | 0 | 0 | -180K | 179.03M | -584K | -1.88M | -1.59M | -1.25M | -351K | -327K | -199K | -189K | -378K | -218K | -445K | -767K | -688K | -551K | -700K |
| Equity Issued (Net) | -105.22M | -94.99M | -66.73M | -339.7M | -74.44M | -30M | -349K | -148.67M | -110.5M | -7.69M | -64.69M | -96.41M | -152.63M | -29.13M | -152.69M | 36.24M | 21.52M | -17.39M | -80.15M | -176.65M | -144.29M | -29.23M | -4.96M | -15.44M | 11.9M | 2.61M | 9.81M | 7.03M | 537K | 429K | 10M |
| Dividends Paid | -67.11M | -60.68M | -41.8M | -39.45M | -42.31M | -43.06M | -43.07M | -44.58M | -48.47M | -43.26M | -31.14M | -28.94M | -23.73M | -12.35M | -83.08M | -18.15M | 0 | 0 | 0 | 0 | 0 | 0 | -37K | -77K | -92K | -93K | -75K | -168K | -200K | 0 | -200K |
| Share Repurchases | -105.23M | -102.32M | -66.73M | -339.7M | -74.44M | -30M | -349K | -196.27M | -110.5M | -7.69M | -64.69M | -96.41M | -152.63M | -29.13M | -152.69M | 0 | 0 | -25.02M | -82.33M | -183.12M | -184.87M | -34.09M | -17.11M | -34.69M | 0 | 0 | -2.44M | -5.35M | -278K | 0 | 0 |
| Other Financing | -67.11M | -44.28M | -22.43M | -9.61M | -42.15M | -1.41M | 5.47M | -64.22M | -2.08M | -15.62M | 4.53M | 54.74M | 5.5M | 9.5M | 3.01M | 41.37M | 29.17M | 3.88M | 1.5M | 5.12M | 20.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49K | -578K | 0 |
| Net Change in Cash | 69.47M | 202.72M | 108.59M | -260.2M | -10.06M | 235.56M | -279.44M | 268.37M | 55.72M | 28.94M | -106.13M | 81.64M | -69.15M | 147.87M | 7.63M | 136.32M | 4.59M | 110.72M | 8.13M | -74.37M | 138.51M | 12.14M | -5.14M | -1.46M | 4.45M | 5.55M | -2.25M | -5.47M | -17.8M | -12M | -9.4M |
| Free Cash Flow | 579.95M | 528.56M | 265.68M | 169.11M | 243.29M | 90.84M | 121.06M | 51.44M | 109.9M | 278.8M | 387.34M | 61.03M | 176.69M | 154.51M | 130.22M | -65.34M | 103.59M | 284.27M | 44.99M | 90.61M | 282.09M | 28.3M | 44.48M | 55.63M | -9.15M | 1.83M | -2.27M | 22.31M | 28.3M | -27.3M | -17.4M |
| FCF Margin % | 69.96% | 63.38% | 30.59% | 30.77% | 53.14% | 21.35% | 33.72% | 16.13% | 35.75% | 52.31% | 58.17% | 13.83% | 42.49% | 47.49% | 19.64% | -21.66% | 26.26% | 95.58% | 19.69% | 38.68% | 58.71% | 17.35% | 42.9% | 48.56% | -10.42% | 3.49% | -3.99% | 31.57% | 28.52% | -54.78% | -32.4% |
| FCF Growth % | 301.07% | 98.95% | 57.11% | -30.49% | 167.82% | -24.96% | 135.33% | -53.19% | -60.58% | -28.02% | 534.64% | -65.46% | 14.35% | 18.66% | 299.28% | -163.08% | -63.56% | 531.91% | -50.35% | -67.88% | 896.73% | -36.38% | -20.04% | 707.7% | -599.18% | 180.86% | -110.17% | -21.17% | 203.66% | -56.9% | -137.02% |
| FCF per Share | 16.44 | 15.33 | 8.94 | 6.02 | 7.98 | 2.91 | 3.90 | 1.62 | 3.11 | 7.79 | 11.01 | 1.67 | 4.43 | 3.73 | 3.00 | -1.42 | 2.35 | 6.45 | 0.98 | 1.83 | 5.06 | 0.50 | 0.75 | 0.93 | -0.16 | 0.03 | -0.04 | 0.44 | 0.58 | -0.57 | -0.37 |
| FCF Conversion (FCF/Net Income) | 1.58x | 1.34x | 0.76x | 1.00x | 3.05x | 2.34x | 3.65x | 4.27x | 2.26x | 1.79x | 1.39x | 0.96x | 2.32x | 5.72x | 0.65x | -0.38x | 0.87x | 3.68x | 3.27x | 7.63x | 1.40x | 0.62x | 311.16x | 1.73x | -1.05x | -0.50x | -0.09x | 0.90x | 0.81x | 0.69x | 1.15x |
| Interest Paid | 8.05M | 0 | 17.36M | 18.62M | 13.43M | 8M | 0 | 0 | 4.74M | 4.74M | 7.62M | 7.99M | 5.75M | 5.75M | 5.75M | 2.6M | 51K | 198K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 82.51M | 0 | 67.54M | 59.2M | 6.8M | 23.09M | 0 | 0 | 33.9M | 66.79M | 108.64M | 85.78M | 114.88M | 24.96M | 116.87M | 36.59M | 113.82M | 44.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Lumpy cash flow recognition
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a negative 0.17 in 2025Q1 to a massive 5.87 in 2025Q3, highlighting the significant disconnect between accounting profit and actual cash collection.
The extreme volatility in the OCF/NI ratio suggests that net income is a poor proxy for the company's immediate liquidity position due to the timing of multi-year licensing contract payments. Investors should interpret these fluctuations as a reflection of revenue recognition accounting rather than a fundamental breakdown in the underlying cash-generating capability of the patent portfolio.
Based on InterDigital's reported figures, free cash flow trajectory remains inconsistent, oscillating between a peak of $395.9M in 2025Q3 and a low of -$62.1M in 2024Q2, which underscores the inherent difficulty in predicting cash flow generation given the lumpy nature of major OEM contract renewals.
The negative FCF periods observed in several quarters suggest that the company's cash flow is highly sensitive to the timing of cash receipts from licensees. This pattern implies that while the business model is structurally high-margin, the cash flow profile is not yet stable enough to support a predictable, linear growth narrative for investors.
According to recent SEC filings, working capital changes are the primary driver of cash flow volatility, with a massive $238.3M inflow in 2025Q3 contrasting sharply with a $182.0M outflow in 2026Q1, indicating that the timing of billings and collections significantly dictates the company's quarterly cash position.
The substantial swings in working capital suggest that management's ability to convert contract assets into cash is subject to the negotiation and payment schedules of large handset OEMs. This dependency warrants further investigation into the credit quality and payment terms of the company's largest licensing partners, as these factors directly influence short-term liquidity.
As indicated by financial statements, InterDigital consistently utilizes its cash reserves for dividends and share repurchases, with buybacks reaching $35.6M in 2025Q4, demonstrating a clear commitment to returning capital to shareholders despite the inherent volatility in the company's quarterly operating cash flow generation.
The company's willingness to maintain dividend and buyback programs during periods of negative operating cash flow suggests a high degree of confidence in the long-term durability of its patent licensing revenue. However, investors should monitor whether this capital allocation strategy remains sustainable if the current smartphone licensing cycle faces prolonged stagnation.
Quick answers to the most common questions about buying IDCC stock.
InterDigital, Inc. (IDCC) generated $544.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
InterDigital, Inc. (IDCC) generated $528.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
InterDigital, Inc. (IDCC) spent $15.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, InterDigital, Inc. (IDCC) returned $60.7M to shareholders via cash dividends and spent $102.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.