InterDigital (NASDAQ: IDCC) told investors at the 17th Annual Midwest IDEAS Conference on Aug. 26 that its licensing-driven revenue growth remains on track, with 2025 revenue exceeding $800 million and non-GAAP earnings per share surpassing $15.
The company reported adjusted EBITDA of 71% for 2025 and held more than $1 billion in cash on its balance sheet. Annualized recurring revenue reached $626 million in the latest quarter, up from $356 million in 2020, reflecting a 76% increase over five years. InterDigital has executed more than 60 license agreements in the past five years, with a total contract value of roughly $5 billion, over 90% of which were negotiated bilaterally.
Approximately 90% of the company’s revenue stems from fixed-price agreements, and its outstanding share count has declined by 16% over five years through buybacks and dividends. InterDigital’s market capitalization stood at $8.9 billion, according to the conference moderator.
The company outlined long-term targets for 2030, including total ARR exceeding $1 billion, total revenue surpassing $800 million, and adjusted EBITDA of $600 million at a 60% margin. Within its smartphone segment, ARR reached $491 million, ahead of a $500 million target originally set for 2027, with about 85% of the more than 1 billion annual smartphone shipments currently licensed.
For consumer electronics, IoT, and automotive, ARR totaled $75 million, with a $200 million target by 2030. PCs and tablets are roughly 60% licensed, while televisions are about 20% licensed, with another 30% in litigation. The company also highlighted a new streaming and cloud services business, targeting more than $300 million in ARR by 2030, scaling from a near-zero base. The broader streaming market is projected to expand from $500 billion today to $800 billion by 2030.
InterDigital’s patent portfolio has grown from about 19,000 assets in 2017 to roughly 40,000 worldwide, supported by research labs in wireless, video, and AI. The company participates in over 100 standards organizations and holds two chair positions among 15 key research groups in 3GPP, a role shared only with China Mobile and Samsung.
