InterDigital Q1 revenue and adjusted EPS beat, helped by new licensing agreements

Overview

• Wireless and video tech R&D firm's Q1 revenue and adjusted EPS beat analyst expectations

• Company signed six new agreements, including Xiaomi renewal and LG Electronics license

• Q1 revenue fell 2% yr/yr as catch-up revenue declined and operating expenses rose

Outlook

• InterDigital sees Q2 2026 revenue of $139 mln to $143 mln

• Company expects full-year 2026 revenue of $675 mln to $775 mln

• InterDigital reaffirms full-year 2026 guidance

Result Drivers

• NEW LICENSING AGREEMENTS - Six new agreements, including Xiaomi renewal and LG Electronics license, contributed to record ARR and smartphone ARR

• CATCH-UP REVENUE DECLINE - Lower catch-up revenue reduced overall revenue compared to prior year

• HIGHER OPERATING EXPENSES - Operating expenses increased due to higher revenue share costs from the LG TV agreement and increased IP enforcement costs

Company press release: ID:nGNXD9HtD

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 27.6% above its April 29 closing price of $352.68

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

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