At a glance
InterDigital, Inc. is worth $8.26B, about 27 times its fiscal 2025 earnings. Revenue fell 4.0% to $834.0M in fiscal 2025, with 48.8% kept as profit; over 5 years it has grown 18.4% a year. It pays a 0.89% dividend yield, raised every year for at least 3 years, and returned $840.5M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −13.1% over the past year with dividends reinvested and +38.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 46.9% in the 2020 crash (S&P 500: 33.7%) and 44.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 4 months after the lows.
The business in plain English
InterDigital, Inc. invents wireless, video and artificial intelligence (AI) technology. It earns money mainly by licensing its patents, which means charging other companies for the right to use its inventions in their own products. It has contributed technology to 3G, 4G and 5G cellular standards, to Wi-Fi standards and to video compression formats such as HEVC. As of December 31, 2025, it held more than 38,000 patents and patent applications. It believes many of them are, or may become, standard-essential. That means products built to a shared standard such as 5G need them.
Its licensees include makers of smartphones, consumer electronics, cars and Internet of Things (IoT) devices, which are everyday gadgets that connect online. Revenue was $834.0 million in 2025, down from $868.5 million in 2024. Smartphone licensing brought in 81.4% of 2025 revenue. Consumer electronics, IoT and auto brought in 18.5%. Operating profit was 55.3% of revenue, and research and portfolio development cost $211.4 million.
By region, China accounted for 37.1% of 2025 revenue, Korea for 31.5% and the United States for 28.7%. Its video portfolio combines inventions made in-house with patents acquired from Technicolor SA's research and licensing business. The company wants to license video streaming and other cloud services. As of its annual report filed February 5, 2026, it had not signed its first video services license.
Price history
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IDCC -13.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Smartphone | $678.9M | 81.4% |
| CE, IoT/Auto | $154.6M | 18.5% |
| Other | $529K | 0.1% |
By geography
| China | $309.3M | 37.1% |
| Korea | $262.5M | 31.5% |
| United States | $239.4M | 28.7% |
| Taiwan | $12.3M | 1.5% |
| Japan | $7.1M | 0.9% |
| Europe | $3.3M | 0.4% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $193.4M, up 17.5% from a year earlier, and net income was $80.2M (+18.9%).
- For fiscal 2025, revenue was $834.0M (-4.0% year over year; +18.4% a year from FY2020 to FY2025) with a 48.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +18.4% good |
|---|---|
| Operating margin | 55.3% good |
| Free cash flow margin | 63.4% good |
| Return on equity (FY2025) | 36.9% good |
| Return on assets (FY2025) | 19.7% good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $359.0M | $44.8M | $151.7M |
| FY2021 | $425.4M | $55.3M | $127.9M |
| FY2022 | $457.8M | $93.7M | $282.9M |
| FY2023 | $549.6M | $214.1M | $209.5M |
| FY2024 | $868.5M | $358.6M | $265.7M |
| FY2025 | $834.0M | $406.6M | $528.6M |
Valuation snapshot
| Market value | $8.26B |
|---|---|
| P/E ratio | 27.2 |
| Dividend yield | 0.89% |
Rank among 1514 US companies
Market value at each year end
InterDigital’s market value went from $3.13B at the end of 2016 to $8.26B on Oct 28, 2026, about 2.6 times as much; since the end of 2025 it is up 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $8.26B | +0.7% |
| 2025 | $8.20B | +66.9% |
| 2024 | $4.91B | +76.0% |
| 2023 | $2.79B | +90.1% |
| 2022 | $1.47B | -33.2% |
| 2021 | $2.20B | +17.6% |
| 2020 | $1.87B | +10.2% |
| 2019 | $1.70B | -24.5% |
| 2018 | $2.25B | -14.9% |
| 2017 | $2.64B | -15.6% |
| 2016 | $3.13B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| IDCC price data to Oct 28, 2026 | +1.6% | -13.1% | +63.6% | +38.8% | +18.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.6% |
| 2025 | +66.0% |
| 2024 | +81.0% |
| 2023 | +123.6% |
| 2022 | -29.3% |
| 2021 | +20.5% |
| 2020 | +14.3% |
| 2019 | -16.1% |
| 2018 | -11.2% |
| 2017 | -15.3% |
| 2016 | +89.2% |
| 2015 | -5.9% |
| 2014 | +82.2% |
| 2013 | -27.7% |
| 2012 | -1.3% |
| 2011 | +5.8% |
| 2010 | +56.8% |
| 2009 | -3.4% |
| 2008 | +17.9% |
| 2007 | -30.5% |
| 2006 | +83.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 1.1% over that stretch · deepest drop along the way 39.6%, back to its old high 2.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.1% over that stretch · deepest drop along the way 46.9%, back to its old high 4.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 34.4% over that stretch · deepest drop along the way 44.1%, back to its old high 4.3 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 4 sales ($1.6M), 4 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 8, 2026 | Rajesh Pankaj Chief Technology Officer | sell (plan) | $507K |
| Oct 5, 2026 | Rajesh Pankaj Chief Technology Officer | sell (plan) | $501K |
| Aug 5, 2026 | Rajesh Pankaj Chief Technology Officer | sell (plan) | $487K |
| Aug 7, 2026 | Joan H Gillman Director | sell (plan) | $99K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.1% | Mar 31, 2026 |
| T. Rowe Price Associates, Inc. | 10.1% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.28% | Mar 31, 2026 |
| Vanguard Capital Management | 5.22% | Mar 31, 2026 |
| Boston Partners | 4.43% | Mar 31, 2025 |
ETFs with the most weight in IDCC
| DAT ProShares Big Data Refiners ETF | 6.09% |
| PSCT Invesco S&P SmallCap Information Technology ETF | 3.76% |
| GLRY Inspire Momentum ETF | 2.98% |
| PTF Invesco Dorsey Wright Technology Momentum ETF | 2.82% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 2.63% |
| XSHQ Invesco S&P SmallCap Quality ETF | 2.15% |
| JSML Janus Henderson Small Cap Growth Alpha ETF | 2.03% |
| XSMO Invesco S&P SmallCap Momentum ETF | 1.87% |
What could go wrong
- Revenue depends on a few big licensees. The annual report flags customer concentration: a small number of large licensees supply much of the revenue. Losing one of them, or failing to renew one, could cut income sharply. Smartphones made up 81.4% of 2025 revenue.
- License renewals can stall and pause revenue. Most companies start using its inventions before taking a license, and talks can drag on. If a license lapses before renewal, revenue from that licensee can stop during the gap, or the terms may get worse.
- Arbitrators or courts may set lower royalties. Royalties (the fees licensees pay) can be set by outside parties rather than by negotiation. InterDigital agreed to binding arbitration with Samsung and Lenovo, where the arbitrator's ruling is final. Rulings may go against it.
- Video streaming push is still unproven. Growth plans rely on licensing video streaming services. As of its annual report filed February 5, 2026, it had not signed its first video services license. Streamers may hold out or use other technology.
- US-China tensions could hurt licensing. China was the largest source of revenue in 2025, at 37.1%. Worse US-China relations, or wider trade and geopolitical conflict, could hurt the company's business and operations.
- Patent fights are costly and uncertain. InterDigital is often in lawsuits, arbitrations and regulatory cases to enforce its patents and defend how it licenses them. These are expensive. Losses, or antitrust (competition-law) scrutiny, could reduce revenue and cash flow.
Recent events
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Bylaws or fiscal year changed; Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Other company announcement
For income and retirement investors
InterDigital pays a dividend, but the yield was 0.89% as of October 28, 2026. That means most of any return would come from the share price. Dividends per share stayed at $1.40 from 2020 to 2022. They then rose three years in a row to $2.60 in 2025, or about 13.2% a year since 2020. The payout is small: 14.9% of 2025 earnings and 11.5% of free cash flow (cash left after investing in the business). Buybacks get more money. From 2021 through 2025 the company spent $613.2 million repurchasing shares and $227.3 million on dividends. The share count fell 16% from August 2021 to July 2026.
The shares fell sharply in past downturns: 39.6% in 2008, 46.9% in the 2020 COVID crash and 44.1% in the 2022 bear market. Each time they regained their earlier peak 2.3 to 4.5 months after the low. Their worst drop in 21 years of price history was 70%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does InterDigital make money?
InterDigital makes money mainly by licensing its patents. It invents wireless, video and AI technology. Makers of smartphones, consumer electronics, connected devices and cars pay royalties to use those inventions. Smartphone licensing made up 81.4% of its $834.0 million in 2025 revenue. Consumer electronics, Internet of Things and auto licensing made up 18.5%. It is also trying to license video streaming services. As of its annual report filed February 5, 2026, it had not signed its first such deal.
Does InterDigital raise its dividend every year?
No. InterDigital held its dividend at $1.40 a share from 2020 through 2022. It then raised it in each of 2023, 2024 and 2025, to $1.50, $1.70 and $2.60. That works out to about 13.2% a year since 2020. Dividends paid equaled 14.9% of 2025 net income, a modest share. The yield (yearly dividend as a share of the stock price) was 0.89% as of October 28, 2026. The annual report warns that the dividend could be reduced or suspended.
How much of InterDigital's revenue comes from China?
China supplied 37.1% of InterDigital's 2025 revenue, about $309.3 million, more than any other region. Korea supplied 31.5% and the United States 28.7%, with small amounts from Taiwan, Japan and Europe. The annual report lists worse US-China relations, or wider trade and geopolitical strain, as a risk. It also flags customer concentration, meaning a small number of large licensees supply much of its revenue.
Does InterDigital have a lot of debt?
No, not compared with its cash. As of June 30, 2026, InterDigital held $1.11 billion in cash and investments and $389.1 million in debt. That left net cash (cash minus debt) of about $723.3 million. Its debt includes convertible notes called the 2027 Notes, which are bonds that can be exchanged for shares. The annual report says related hedge and warrant deals could affect the share price.
How has InterDigital stock performed?
It did very well over three to ten years but poorly over the past year. As of October 28, 2026, the shares returned 63.6% a year over three years and 18.6% a year over ten years, but lost 13.1% over one year. Within that year, they fell as much as 36.5% from a high. They gained 123.6% in 2023, 81.0% in 2024 and 66.0% in 2025, after a 29.3% loss in 2022. Based on 2025 earnings, the price-to-earnings ratio was 27.2.