InterDigital Raises Full-Year Outlook After Record Recurring Revenue

The Tip Desk · October 31, 2026 · 3 min read

Third-quarter revenue was $193.4 million, 17% above a year earlier, as annualized recurring revenue reached a record $629 million.

InterDigital, Inc. (IDCC), a wireless, video, and AI technology research and development company, reported third-quarter revenue of $193.4 million, up 17% from a year earlier, reversing a 13% year-over-year decline in the second quarter.

The licensing company said new agreements lifted results above its prior outlook and supported a second increase to the midpoint of full-year 2026 revenue guidance, this time based only on revenue already under contract. President and CEO Liren Chen said the company continued to pursue additional business in the fourth quarter.

Catch-up revenue, the non-recurring portion of the quarter’s top line, was $36.2 million, down from $103.7 million in the second quarter. Annualized recurring revenue rose to a record $628.9 million from $625.7 million.

Smartphone revenue was $122.6 million, down 10% from a year earlier after a 48% year-over-year decline in the second quarter. CE, IoT/Auto revenue was $55.7 million, up 97% year-over-year after a 58% year-over-year decline in the prior quarter. Streaming and Cloud Services revenue was $15.0 million after $110.0 million in the second quarter, when the first such agreement with Amazon closed. Other revenue was $0.1 million.

Adjusted EBITDA was $131.3 million, up 25% year-over-year, reversing a 22% year-over-year decline in the second quarter. Adjusted EBITDA margin was 68%, after 71%. GAAP net income was $80.2 million, up 19% year-over-year after a 36% year-over-year decline in the second quarter. Diluted earnings were $2.34 a share. Non-GAAP earnings were $3.11 a share. Operating expenses were $94.1 million, up 6% year-over-year after a 27% year-over-year increase in the second quarter.

The company reached agreement with a top PC manufacturer, with final terms to be determined by binding arbitration, and said it now has licensed four of the top five PC makers in the world. It signed a new IoT license with EV charging company KEBA. Europe’s Unified Patent Court awarded two additional injunctions against Disney, bringing the total to eight injunctions out of eight patent cases decided to date.

The company raised full-year 2026 revenue guidance to $813 million–$819 million from $775 million–$845 million. Fourth-quarter 2026 revenue is expected at $154 million–$160 million, versus the prior third-quarter outlook of $154 million–$158 million. Those ranges are based on contracted revenue only and exclude any new agreements or enforcement results in the remainder of the fourth quarter, which the company said would be additive. Full-year adjusted EBITDA is expected at $507 million–$515 million. Fourth-quarter diluted EPS is expected at $1.04–$1.27 and non-GAAP EPS at $1.72–$1.98.

The quarterly cash dividend was increased from $0.70 to $0.75 a share. Total return of capital was $121.2 million, including $83.2 million of debt reduction, $18.7 million of share repurchases and $19.3 million of dividends declared. Cash, cash equivalents, and restricted cash ended the quarter at $646.7 million. Cash, cash equivalents, and short-term investments were $1.12 billion.