IDCC earnings analysis
What we found in IDCC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
InterDigital's Q1 2026 results show a slight decline in revenue to $205.4 million, missing the consensus estimates while EPS was reported at $2.14, also below expectations. Management highlighted significant contributions from new licensing agreements and reaffirmed its full-year guidance but noted an increase in operating expenses, largely driven by revenue share costs and legal enforcement actions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Q1 2026 revenue fell to $205.4 million from $210.5 million in Q1 2025, a decline of 2%.
- EPS Misses Estimates
- Reported EPS of $2.14 was below the estimated EPS of $2.46.
- Catch-up Revenue Decreased
- Total catch-up revenue was $63.6 million, down from $84.8 million in Q1 2025.
- Significant New Licensing Agreements
- Entered into six new patent license agreements, boosting recurring revenue.
- Operating Expenses Increased
- Operating expenses rose by $44.5 million to $123.2 million, a 57% increase year-over-year.
- Cash and Short-term Investments
- Held $1.1 billion in cash and short-term investments as of March 31, 2026, down from $1.3 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increase in Operating Expenses
- Operating expenses surged to $123.2 million versus $78.7 million in Q1 2025 due to higher revenue share costs and legal fees.
- Lower Catch-up Revenue Impact
- Declining catch-up revenue may affect future earnings, with a drop of $21.2 million year-on-year.
- Intellectual Property Enforcement Costs
- Increased legal costs related to IP enforcement could continue to constrain profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.14
- Segment
- Smartphone: $123.4M
- Segment
- CE, IoT/Auto: $81.9M
- Segment
- Other: $0.1M
What they said about what is next.
Full year 2026 guidance reiterated in light of new and existing agreements.
The filing reads worse than the one before it.
What came before.
- 10-K · February 5, 2026
- InterDigital positions itself as a pure R&D and patent-licensing leader in wireless, video and AI technologies, with a portfolio of >38,000 patents and a strategy focused on continued R&D investment, standards…
- 10-Q · October 30, 2025
- InterDigital reported Q3 revenue of $164,682,000, up 28% year-over-year (from $128,679,000) but down versus the prior quarter (Q2 2025 $301,000,000). GAAP diluted EPS was $1.93 (basic $2.62) versus $1.14 a year ago;…
- 10-Q · May 1, 2025
- InterDigital reported Q1 2025 revenue of $210,507,000 and diluted EPS of $3.45. Revenue declined 20% year-over-year (from $263,542,000) but operating income improved to $131,832,000 (62.6% operating margin) and net…
- 10-K · February 6, 2025
- InterDigital describes itself as a pure R&D and patent licensing company focused on wireless, video and AI technologies; it reported total revenues of $868.5 million in 2024 versus $549.6 million in 2023 and holds a…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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