InterDigital Q4 profit tops estimates on license deals with Samsung, others

Overview

• Wireless tech firm's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company completed acquisition of video AI start-up Deep Render

Outlook

• InterDigital projects Q1 2026 revenue between $194 mln and $200 mln

• Company expects full-year 2026 revenue between $675 mln and $775 mln

• InterDigital anticipates Q1 2026 adjusted EBITDA between $101 mln and $110 mln

Result Drivers

• SMARTPHONE LICENSING - Record performance in smartphone licensing drove significant revenue, contributing $678.9 mln for the year

• LICENSING AGREEMENTS - New license agreements with Samsung, Vivo, and Honor boosted revenue

• OPERATING EXPENSES - Decrease in operating expenses, mainly from lower revenue-share costs, supported higher profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for InterDigital Inc is $450.00, about 43.4% above its February 4 closing price of $313.87

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 49 three months ago

Press Release: ID:nGNX8jCk7p

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