Revenue volatility remains a primary concern, evidenced by a 37.4% year-over-year decline in 2025Q4 and a 2.4% contraction in 2026Q1, despite maintaining a gross margin profile that peaked at 92.1% in 2024Q4.
| 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 |
|---|
| Sales/Revenue | 828.92M | 834.01M | 868.52M | 549.59M | 457.79M | 425.41M | 358.99M | 318.92M | 307.4M | 532.94M | 665.85M | 441.44M | 415.82M | 325.36M | 663.06M | 301.74M | 394.55M | 297.4M | 228.47M | 234.23M | 480.47M | 163.13M | 103.69M | 114.57M | 87.89M | 52.56M | 56.88M | 70.67M | 99.22M | 49.84M | 53.7M |
| Revenue Growth % | 1.65% | -3.97% | 58.03% | 20.05% | 7.61% | 18.5% | 12.56% | 3.75% | -42.32% | -19.96% | 50.84% | 6.16% | 27.8% | -50.93% | 119.74% | -23.52% | 32.66% | 30.17% | -2.46% | -51.25% | 194.54% | 57.33% | -9.5% | 30.35% | 67.22% | -7.59% | -19.51% | -28.78% | 99.09% | -7.2% | -36.82% |
| Cost of Goods Sold | 137.99M | 164.34M | 169.24M | 79.4M | 71.42M | 64.63M | 170.18M | 154.94M | 124.08M | 102.65M | 103.36M | 120.4M | 133.81M | 143.04M | 126.28M | 71.74M | 58.91M | 56.13M | 63.49M | 67.59M | 51.06M | 0 | 0 | 0 | 0 | 0 | -1.54M | 1.08M | 12.95M | 37.06M | 23.7M |
| COGS % of Revenue | - | 19.7% | 19.49% | 14.45% | 15.6% | 15.19% | 47.4% | 48.58% | 40.36% | 19.26% | 15.52% | 27.27% | 32.18% | 43.96% | 19.05% | 23.77% | 14.93% | 18.87% | 27.79% | 28.85% | 10.63% | - | - | - | - | - | -2.71% | 1.53% | 13.05% | 74.36% | 44.13% |
| Gross Profit | 690.94M | 669.67M | 699.28M | 470.19M | 386.38M | 360.78M | 188.81M | 163.98M | 183.32M | 430.29M | 562.49M | 321.03M | 282.01M | 182.32M | 536.78M | 230.01M | 335.64M | 241.28M | 164.98M | 166.65M | 429.41M | 0 | 0 | 0 | 0 | 0 | 58.42M | 69.59M | 86.27M | 12.78M | 30M |
| Gross Margin % | 83.35% | 80.3% | 80.51% | 85.55% | 84.4% | 84.81% | 52.6% | 51.42% | 59.64% | 80.74% | 84.48% | 72.73% | 67.82% | 56.04% | 80.95% | 76.23% | 85.07% | 81.13% | 72.21% | 71.15% | 89.37% | - | - | - | - | - | 102.71% | 98.47% | 86.95% | 25.64% | 55.87% |
| Gross Profit Growth % | - | -4.23% | 48.72% | 21.69% | 7.09% | 91.08% | 15.14% | -10.55% | -57.4% | -23.5% | 75.21% | 13.84% | 54.68% | -66.03% | 133.38% | -31.47% | 39.11% | 46.25% | -1% | -61.19% | - | - | - | - | - | -100% | -16.05% | -19.34% | 575.22% | -57.41% | -55.88% |
| Operating Expenses | 279.66M | 208.82M | 259.76M | 248.58M | 235.86M | 289.58M | 133.65M | 126.15M | 120.73M | 128.79M | 125.19M | 112.48M | 113.05M | 97.57M | 117.75M | 95.25M | 99.77M | 127.39M | 128.44M | 143.59M | 92.99M | 146.04M | 109.98M | 85.03M | 78.66M | 73.06M | 55.17M | 41.98M | 42.24M | 48.67M | 41.1M |
| OpEx % of Revenue | - | 25.04% | 29.91% | 45.23% | 51.52% | 68.07% | 37.23% | 39.55% | 39.27% | 24.17% | 18.8% | 25.48% | 27.19% | 29.99% | 17.76% | 31.57% | 25.29% | 42.83% | 56.22% | 61.3% | 19.35% | 89.53% | 106.07% | 74.22% | 89.49% | 138.99% | 97% | 59.41% | 42.57% | 97.66% | 76.54% |
| Selling, General & Admin | 69.72M | 68.09M | 62.86M | 53.29M | 47.38M | 61.22M | 49M | 51.29M | 51.03M | 53.07M | 52.07M | 39.78M | 37.75M | 31.3M | 37.35M | 31.49M | 28.3M | 24.78M | 33.45M | 32.04M | 27.56M | 82.94M | 58.76M | 39.1M | 31.97M | 28.55M | 22.42M | 16.7M | 20.44M | 19.57M | 37.4M |
| SG&A % of Revenue | - | 8.16% | 7.24% | 9.7% | 10.35% | 14.39% | 13.65% | 16.08% | 16.6% | 9.96% | 7.82% | 9.01% | 9.08% | 9.62% | 5.63% | 10.43% | 7.17% | 8.33% | 14.64% | 13.68% | 5.74% | 50.85% | 56.67% | 34.12% | 36.37% | 54.33% | 39.42% | 23.64% | 20.6% | 39.26% | 69.65% |
| Research & Development | 219.84M | 211.43M | 196.9M | 195.28M | 185.2M | 200.48M | 84.65M | 74.86M | 69.7M | 75.72M | 73.12M | 72.7M | 75.3M | 64.73M | 67.86M | 63.76M | 71.46M | 64.01M | 98.93M | 87.14M | 65.43M | 63.09M | 51.22M | 45.94M | 46.69M | 44.5M | 26.01M | 20.48M | 17.17M | 24.25M | 0 |
| R&D % of Revenue | - | 25.35% | 22.67% | 35.53% | 40.46% | 47.13% | 23.58% | 23.47% | 22.67% | 14.21% | 10.98% | 16.47% | 18.11% | 19.89% | 10.23% | 21.13% | 18.11% | 21.52% | 43.3% | 37.2% | 13.62% | 38.68% | 49.4% | 40.09% | 53.12% | 84.66% | 45.73% | 28.98% | 17.3% | 48.66% | - |
| Other Operating Expenses | -1000K | -70.7M | 0 | 0 | 3.28M | 27.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.54M | 12.54M | 0 | 0 | 38.6M | -3.94M | 24.41M | 0 | 0 | 0 | 0 | 0 | 0 | 6.74M | 4.8M | 4.63M | 4.86M | 3.7M |
| Operating Income | 411.28M | 460.85M | 439.51M | 221.62M | 150.52M | 71.21M | 55.17M | 37.84M | 62.59M | 301.5M | 437.31M | 208.55M | 168.96M | 84.76M | 419.03M | 134.76M | 235.87M | 113.89M | 36.53M | 23.05M | 336.42M | 17.09M | -6.29M | 29.54M | 9.24M | -20.49M | 3.24M | 27.61M | 44.03M | -35.89M | -11.1M |
| Operating Margin % | 49.62% | 55.26% | 50.6% | 40.32% | 32.88% | 16.74% | 15.37% | 11.86% | 20.36% | 56.57% | 65.68% | 47.24% | 40.63% | 26.05% | 63.2% | 44.66% | 59.78% | 38.29% | 15.99% | 9.84% | 70.02% | 10.47% | -6.07% | 25.78% | 10.51% | -38.99% | 5.7% | 39.06% | 44.38% | -72.02% | -20.67% |
| Operating Income Growth % | - | 4.86% | 98.32% | 47.24% | 111.38% | 29.07% | 45.81% | -39.56% | -79.24% | -31.06% | 109.69% | 23.43% | 99.35% | -79.77% | 210.95% | -42.87% | 107.11% | 211.74% | 58.47% | -93.15% | 1868.84% | 371.57% | -121.3% | 219.71% | 145.09% | -731.91% | -88.25% | -37.31% | 222.68% | -223.36% | -129.06% |
| EBITDA | 489.08M | 537.65M | 509.43M | 299.41M | 229.09M | 149.4M | 136.21M | 114.93M | 128.7M | 358.55M | 490.06M | 256.34M | 211.21M | 118.14M | 445.28M | 158.56M | 258M | 136.76M | 65.38M | 45.04M | 351.04M | 28.51M | 3.42M | 39.28M | 18.51M | -11.15M | 9.98M | 32.4M | 48.66M | -31.04M | -7.4M |
| EBITDA Margin % | 59% | 64.47% | 58.65% | 54.48% | 50.04% | 35.12% | 37.94% | 36.04% | 41.87% | 67.28% | 73.6% | 58.07% | 50.79% | 36.31% | 67.15% | 52.55% | 65.39% | 45.99% | 28.62% | 19.23% | 73.06% | 17.48% | 3.29% | 34.28% | 21.06% | -21.22% | 17.55% | 45.85% | 49.05% | -62.28% | -13.78% |
| EBITDA Growth % | -9.18% | 5.54% | 70.14% | 30.7% | 53.34% | 9.68% | 18.52% | -10.7% | -64.1% | -26.84% | 91.17% | 21.37% | 78.77% | -73.47% | 180.82% | -38.54% | 88.65% | 109.17% | 45.16% | -87.17% | 1131.36% | 734.79% | -91.31% | 112.21% | 265.92% | -211.75% | -69.19% | -33.41% | 256.79% | -319.43% | -118.55% |
| D&A (Non-Cash Add-back) | 77.8M | 76.8M | 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 | 9.27M | 9.34M | 6.74M | 4.8M | 4.63M | 4.86M | 3.7M |
| EBIT | 449.56M | 509.39M | 474.84M | 279.43M | 147.06M | 82.78M | 72.09M | 66.9M | 68.01M | 310.24M | 443.4M | 211.43M | 169.61M | 76.99M | 423.55M | 135.51M | 235.87M | 113M | 32.59M | 23.05M | 336.42M | 17.09M | -6.29M | 29.54M | 9.24M | -20.49M | 3.24M | 27.61M | 44.03M | -35.89M | -11.1M |
| Net Interest Income | -8.4M | 63K | -5.03M | 1.81M | -15.04M | -23.54M | -35.14M | -27.5M | -21.37M | -9.36M | -17.38M | -26.56M | -14.69M | -1.18M | -10.18M | -8.3M | 2.57M | -300K | 3.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 30.76M | 40.02M | 40.4M | 46.63M | 14.45M | 1.69M | 5.66M | 13.46M | 14.59M | 8.49M | 3.75M | 3.86M | 1.4M | 14.3M | 4.74M | 2.6M | 2.57M | 0 | 5.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 39.16M | 39.96M | 45.42M | 44.82M | 29.5M | 25.23M | 40.8M | 40.95M | 35.96M | 17.84M | 21.13M | 30.42M | 16.08M | 15.47M | 14.92M | 10.9M | 0 | 300K | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 5.72M | 8.58M | -10.1M | 12.99M | -32.95M | -13.65M | -23.88M | -11.89M | -30.54M | -9.11M | -15.04M | -27.53M | -15.43M | -23.24M | -10.4M | -10.15M | 2.57M | -1.19M | 3.43M | 8.95M | 13.2M | 3.16M | 1.74M | 12.19M | 2.02M | 4.63M | 6.06M | 2.35M | 2.19M | 1.66M | 3.1M |
| Pretax Income | 417.01M | 469.43M | 429.42M | 234.61M | 117.56M | 57.56M | 31.29M | 25.94M | 32.06M | 292.39M | 422.27M | 181.01M | 153.53M | 61.52M | 408.63M | 124.61M | 238.45M | 112.7M | 39.96M | 32M | 349.61M | 20.25M | -4.55M | 41.73M | 11.26M | -15.87M | 9.3M | 29.95M | 46.23M | -34.23M | -8M |
| Pretax Margin % | 50.31% | 56.29% | 49.44% | 42.69% | 25.68% | 13.53% | 8.72% | 8.13% | 10.43% | 54.86% | 63.42% | 41.01% | 36.92% | 18.91% | 61.63% | 41.3% | 60.44% | 37.9% | 17.49% | 13.66% | 72.77% | 12.41% | -4.39% | 36.43% | 12.81% | -30.19% | 16.35% | 42.38% | 46.59% | -68.69% | -14.9% |
| Income Tax | 50.64M | 62.79M | 70.8M | 23.56M | 25.5M | 15.37M | -6.65M | 10.99M | -27.42M | 121.68M | 116.79M | 64.62M | 52.11M | 25.84M | 136.83M | 35.14M | 84.83M | 25.45M | 13.76M | 12M | 124.39M | -34.43M | -4.7M | 7.27M | 8.75M | 3.42M | 3.61M | 3.25M | 9.26M | 34K | 3.6M |
| Effective Tax Rate % | 12.14% | 13.38% | 16.49% | 10.04% | 21.69% | 26.7% | -21.24% | 42.37% | -85.52% | 41.61% | 27.66% | 35.7% | 33.94% | 42% | 33.48% | 28.2% | 35.58% | 22.58% | 34.42% | 37.49% | 35.58% | -170.04% | 103.41% | 17.42% | 77.7% | -21.54% | 38.79% | 10.84% | 20.03% | -0.1% | -45% |
| Net Income | 366.37M | 406.64M | 358.61M | 214.07M | 93.69M | 55.3M | 44.8M | 20.93M | 65.03M | 176.22M | 309M | 119.22M | 104.34M | 38.16M | 271.8M | 89.47M | 153.62M | 87.26M | 26.21M | 20M | 225.22M | 54.69M | 155K | 34.47M | 2.51M | -19.28M | -48.18M | 26.71M | 37M | -34.3M | -11.6M |
| Net Margin % | 44.2% | 48.76% | 41.29% | 38.95% | 20.47% | 13% | 12.48% | 6.56% | 21.15% | 33.07% | 46.41% | 27.01% | 25.09% | 11.73% | 40.99% | 29.65% | 38.93% | 29.34% | 11.47% | 8.54% | 46.88% | 33.52% | 0.15% | 30.08% | 2.86% | -36.69% | -84.71% | 37.79% | 37.29% | -68.83% | -21.6% |
| Net Income Growth % | -6.67% | 13.39% | 67.52% | 128.48% | 69.44% | 23.42% | 114.07% | -67.82% | -63.1% | -42.97% | 159.17% | 14.26% | 173.4% | -85.96% | 203.8% | -41.76% | 76.05% | 232.95% | 31.01% | -91.12% | 311.85% | 35180.65% | -99.55% | 1272.56% | 113.02% | 59.98% | -280.42% | -27.82% | 207.87% | -195.69% | -133.53% |
| Net Income (Continuing) | 366.37M | 406.64M | 358.61M | 211.05M | 92.06M | 42.19M | 37.94M | 14.95M | 59.48M | 170.71M | 305.48M | 116.39M | 101.42M | 35.68M | 271.8M | 89.47M | 153.62M | 87.26M | 26.21M | 20M | 225.22M | 54.69M | 155K | 34.47M | 2.51M | -19.28M | 5.69M | 26.71M | 36.97M | -34.27M | -11.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 5.62M | 7.68M | 23.2M | 24.72M | 10.99M | 17.88M | 14.66M | 11.38M | 7.35M | 5.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.38 | 11.80 | 12.07 | 7.62 | 3.07 | 1.77 | 1.44 | 0.66 | 1.81 | 4.87 | 8.78 | 3.27 | 2.62 | 0.92 | 6.26 | 1.94 | 3.48 | 1.95 | 0.57 | 0.40 | 4.04 | 0.96 | 0.00 | 0.58 | 0.04 | -0.36 | -0.84 | 0.52 | 0.75 | -0.71 | -0.24 |
| EPS Growth % | -15.78% | -2.24% | 58.4% | 148.21% | 73.45% | 22.92% | 118.18% | -63.54% | -62.83% | -44.53% | 168.5% | 24.81% | 184.78% | -85.3% | 222.68% | -44.25% | 78.46% | 242.11% | 42.5% | -90.1% | 320.83% | - | -99.55% | 1350% | 111.11% | 57.14% | -261.54% | -30.67% | 205.63% | -195.83% | -132.43% |
| EPS (Basic) | - | 15.77 | 14.16 | 7.97 | 3.11 | 1.80 | 1.46 | 0.66 | 1.85 | 5.04 | 8.95 | 3.31 | 2.65 | 0.93 | 6.31 | 1.97 | 3.48 | 1.98 | 0.58 | 0.42 | 4.22 | 1.01 | 0.00 | 0.62 | 0.04 | -0.36 | -0.91 | 0.55 | 0.76 | -0.71 | -0.25 |
| Diluted Shares Outstanding | 35.28M | 34.47M | 29.71M | 28.1M | 30.48M | 31.25M | 31.06M | 31.79M | 35.31M | 35.78M | 35.19M | 36.46M | 39.88M | 41.42M | 43.4M | 46.01M | 44.08M | 44.08M | 45.96M | 49.49M | 55.78M | 57.16M | 59.08M | 59.69M | 56.1M | 53.45M | 57.31M | 50.49M | 48.77M | 48.17M | 47.5M |
| Basic Shares Outstanding | 25.72M | 25.79M | 25.32M | 26.86M | 30.11M | 30.76M | 30.78M | 31.55M | 34.49M | 34.6M | 34.53M | 36.05M | 39.42M | 41.12M | 43.07M | 45.41M | 44.08M | 43.3M | 44.93M | 47.77M | 53.43M | 54.06M | 55.26M | 55.27M | 52.98M | 53.45M | 52.85M | 48.36M | 48.38M | 48.17M | 46.46M |
| Dividend Payout Ratio | - | 14.92% | 11.66% | 18.43% | 45.15% | 77.87% | 96.14% | 213.02% | 74.53% | 24.55% | 10.08% | 24.27% | 22.74% | 32.37% | 30.56% | 20.29% | - | - | - | - | - | - | - | 0.22% | 3.66% | - | - | 0.63% | 0.54% | - | - |
Revenue volatility from licensing
As reported in financial statements, InterDigital's revenue trajectory remains highly volatile, evidenced by a 37.4% year-over-year decline in 2025Q4 following a 139.6% surge in 2024Q4, reflecting the inherent lumpiness of multi-year patent licensing agreements and the timing of major OEM contract renewals across global markets.
The top-line performance is heavily influenced by the timing of catch-up payments and the expiration of legacy cellular agreements. Investors should monitor whether the shift toward fixed-fee structures can successfully smooth out these quarterly fluctuations and provide a more predictable organic growth baseline.
Based on reported figures, InterDigital maintains a robust gross margin profile that peaked at 92.1% in 2024Q4, though quarterly fluctuations—such as the dip to 74.6% in 2026Q1—suggest that legal enforcement costs and the mix of licensing agreements can materially impact structural profitability metrics.
The company's ability to sustain gross margins above 75% underscores the minimal marginal cost of its intellectual property portfolio. However, the sensitivity of these margins to litigation-related expenses warrants caution, as aggressive enforcement cycles may temporarily compress profitability despite the underlying strength of the licensing model.
According to recent SEC filings, operating income scaling remains inconsistent, with operating margins swinging from 24.0% in 2023Q4 to a high of 68.3% in 2025Q2, indicating that the company's operating leverage is heavily dependent on the timing of revenue recognition rather than purely fixed cost absorption.
While the business model theoretically benefits from high operating leverage, the reality of periodic legal and R&D investments creates a non-linear expense structure. Analysts should evaluate whether the current SG&A efficiency is sustainable or if it is merely a byproduct of deferred litigation spending.
As indicated by the provided income statement data, net income volatility is significant, with EPS dropping from $5.35 in 2025Q2 to $1.20 in 2025Q4, a trend largely driven by the accounting treatment of licensing revenue under ASC 606 rather than fundamental shifts in operational performance.
The presence of stock-based compensation and the lumpy nature of catch-up payments complicate the assessment of core earnings power. Investors should focus on normalized cash flow metrics to strip away the accounting noise that currently obscures the true underlying profitability of the patent portfolio.
Based on the provided financial data, the primary risk to the narrative is the potential for structural margin compression, as evidenced by the 2026Q1 revenue decline of 2.4% and the associated 38.0% drop in EPS, which may signal a cooling in the smartphone licensing cycle.
Short-term observers may argue that the company's reliance on a concentrated group of OEMs leaves it vulnerable to regulatory shifts in FRAND rate determinations. If the transition to IoT and automotive licensing fails to offset the maturation of cellular patents, the current valuation may prove unsustainable.
Quick answers to the most common questions about buying IDCC stock.
For fiscal year 2025, InterDigital, Inc. (IDCC) reported total revenue of $834.0M. This represents a 1453.1% increase compared to $53.7M in 1996.
InterDigital, Inc. (IDCC) is profitable, generating $406.6M in net income for the fiscal year ending 2025 with a net profit margin of 48.8%.
InterDigital, Inc. (IDCC) reported an operating income of $460.9M, resulting in an operating profit margin of 55.3%. This margin reflects the operational efficiency of the business before interest and taxes.
InterDigital, Inc. (IDCC) generated $669.7M in gross profit for the year, representing a gross profit margin of 80.3%. This demonstrates the company's core pricing power and production efficiency.