IDCC 8-K
InterDigital, Inc. (IDCC)
8-K
2026-07-30
For: 2026-07-30
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Added on
July 30, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 30, 2026
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02. Results of Operations and Financial Condition.
On July 30, 2026, InterDigital, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the fiscal quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD.
The supplemental earnings presentation attached hereto as Exhibit 99.2 is being provided to investors in connection with the Company's earnings announcement.
The information contained in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | |||||
| 99.2 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INTERDIGITAL, INC. | ||
| By: /s/ Joshua D. Schmidt | ||
| Joshua D. Schmidt | ||
| Chief Legal Officer and | ||
| Corporate Secretary | ||
Date: July 30, 2026
INTERDIGITAL ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2026
First Streaming and Cloud Services agreement drives Q2 results above outlook
Annualized recurring revenue1 at all-time high of $626 million, up 13% YoY
Company raises full year 2026 revenue outlook by $85 million
WILMINGTON, Del. July 30, 2026 - InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the quarter ended June 30, 2026.
“We have delivered another outstanding quarter, with continued momentum across our business, including our new agreement with Amazon, driving annualized recurring revenue1 to a record $626 million,” commented Liren Chen, InterDigital CEO and President. “Building on the strength of our second quarter results, the increased business momentum, and the opportunity to make more progress over the balance of this year, we have raised the full year 2026 guidance to between $775 million and $845 million, an increase of $85 million at the midpoint.”
Recent Business Highlights
•Reached agreement with Amazon, covering Amazon’s services and devices, including Amazon Prime Video, with final terms to be determined by binding arbitration
•Signed new IoT license agreement with a leading fintech company covering point-of-sale devices
•Awarded two injunctions against Disney from Europe’s Unified Patent Court covering eleven countries
•Annualized recurring revenue1 ("ARR") increased 13% year-over-year from $553.1 million to $625.7 million
Second Quarter 2026 Financial Summary:
Second quarter 2026 revenue included $103.7 million of catch-up revenue, compared with $162.3 million of catch-up revenue in second quarter 2025. Operating expenses increased $25.8 million primarily due to increases in intellectual property enforcement costs and share-based compensation driven by business successes.
| Three Months Ended June 30, | |||||||||||||||||
| ($ in millions, except per share data) | 2026 | 2025 | Change | ||||||||||||||
| GAAP Results: | |||||||||||||||||
| Revenue | $260.2 | $300.6 | (13)% | ||||||||||||||
| Operating expenses | $120.9 | $95.2 | 27% | ||||||||||||||
| Net income | $116.4 | $180.6 | (36)% | ||||||||||||||
| Net income margin | 45% | 60% | (15) ppt | ||||||||||||||
| Diluted EPS | $3.40 | $5.35 | (36)% | ||||||||||||||
| Non-GAAP Results: | |||||||||||||||||
Adjusted EBITDA 2 | $184.1 | $236.7 | (22)% | ||||||||||||||
Adjusted EBITDA margin 2 | 71% | 79% | (8) ppt | ||||||||||||||
Non-GAAP Net income 3 | $141.4 | $195.3 | (28)% | ||||||||||||||
Non-GAAP EPS 3 | $4.62 | $6.52 | (29)% | ||||||||||||||
| Additional Information: | |||||||||||||||||
| Revenue by type: | |||||||||||||||||
Annualized recurring revenue 1 | $625.7 | $553.1 | 13% | ||||||||||||||
| Catch-up revenue | $103.7 | $162.3 | (36)% | ||||||||||||||
| Revenue by program: | |||||||||||||||||
| Smartphone | $122.7 | $235.1 | (48)% | ||||||||||||||
| CE, IoT/Auto | $27.5 | $65.3 | (58)% | ||||||||||||||
Streaming and Cloud Services | $110.0 | $— | N/M | ||||||||||||||
| Other | $— | $0.2 | (100)% | ||||||||||||||
N/M Not meaningful
Return of Capital
| (in millions, except per share data) | Share Repurchases | Dividends Declared | Total Return of Capital | ||||||||||||||||||||||||||
| Shares | Value | Per Share | Value | ||||||||||||||||||||||||||
| Second quarter 2026 | <0.1 | $23.0 | $0.70 | $18.1 | $41.1 | ||||||||||||||||||||||||
Near Term Outlook
The Company raised its full year 2026 outlook and provided an initial outlook for third quarter 2026 in the table below. The outlook for third quarter 2026 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the third quarter. The outlook for full year 2026 includes both existing licenses and the expected contributions from new agreements and/or enforcement actions we may receive over the balance of the year.
| Full Year 2026 | |||||||||||||||||
| (in millions, except per share data) | Q3 2026 | Current | Prior | ||||||||||||||
| Revenue | $154 - $158 | $775 - $845 | $675 - $775 | ||||||||||||||
Adjusted EBITDA 2 | $86 - $92 | $469 - $529 | $381 - $477 | ||||||||||||||
| Diluted EPS | $1.25 - $1.42 | $7.91 - $9.67 | $5.77 - $8.51 | ||||||||||||||
Non-GAAP EPS 3 | $1.94 - $2.13 | $10.85 - $12.81 | $8.74 - $11.84 | ||||||||||||||
Convertibility of 2027 Notes
Pursuant to the terms of the Indenture governing InterDigital’s 3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes are convertible during the calendar quarter ending September 30, 2026. The current conversion rate of the Notes is 13.0351 shares of InterDigital’s Common Stock per $1,000 principal amount of the Notes.
Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital’s election, as set forth in the Indenture governing the Notes.
At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital’s economic standpoint from $76.72 to $105.43. In connection with the Notes issuance, we also issued warrants to acquire, subject to customary anti-dilution adjustments, approximately 6.0 million shares of common stock. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Notes, Hedge, and Warrant Transactions" in InterDigital’s Form 10-Q for the quarter ended June 30, 2026 for more information.
As of June 30, 2026, $380.0 million in principal of the 2027 Notes remains outstanding, of which holders have elected to convert $80.3 million principal amount, which will settle in third quarter 2026. No incremental outstanding shares will result from such conversions due to the offsetting impact of hedging arrangements.
As of June 30, 2026, warrants to acquire 6.0 million shares of common stock remain outstanding at a strike price of $105.43, subject to adjustment, which mature on a net-share basis beginning September 2027 through April 2028.
Conference Call Information
InterDigital will host a conference call on Thursday, July 30, 2026 at 10:00 a.m. ET to discuss its second quarter 2026 financial performance and other company matters.
For a live webcast of the conference call visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the webcast option.
See below for dial-in details to join the call telephonically:
USA - Toll-Free (800) 715-9871
USA / International Toll +1 (646) 307-1963
Conference ID 5903891 or Conference Name
A replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year.
About InterDigital®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website: www.interdigital.com.
For additional financial measures, refer to our second quarter 2026 Form 10-Q and the financial metrics tracker, which are available on the Investor Relations section of our website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations. Words such as “believe,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” "outlook," “goal,” “could,” "would," "should," "if," "may," "might," "future," "target," "trend," "seek to," "will continue," "predict," "likely," "in the event," and variations of any such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are made on the basis of management’s current views and assumptions and are not guarantees of future performance. Forward-looking statements, including but not limited to statements regarding our outlook for Q3 and full year 2026, are inherently subject to risks and uncertainties that could cause actual results, and actual events that occur, to differ materially from results contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) unanticipated delays or difficulties in the execution of patent license agreements on acceptable terms or at all; (ii) our ability to expand our revenue opportunities by entering into licensing arrangements with streaming and cloud-based service providers; (iii) the initiation of new legal proceedings or the resolution of ongoing legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to maintain a strong patent portfolio and make strategic decisions related to our intellectual property protection; (v) our ability to successfully integrate Deep Render and to recognize the anticipated benefits of the transaction; (vi) the failure of markets for our technologies to materialize to the extent that we expect; (vii) our continued ability to develop new technologies; (viii) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the One Big Beautiful Bill Act, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws and other tax matters; (ix) the timing and impact of potential regulatory, administrative and legislative matters; (x) the potential effects of macroeconomic conditions or global conflicts; (xi) our ability to hire and retain key personnel; (xii) operational risks, including cybersecurity events, human failures or other difficulties with our information technology systems; and (xiii) risks related to any new accounting standards or our estimates, assumptions and the application of relevant accounting standards, including with respect to revenue recognition.
You should not place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this release. We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.
Footnotes
1 Annualized recurring revenue ("ARR") for any quarter is defined as total revenue for the quarter less catch-up revenue for the quarter, multiplied by four. Management believes ARR provides useful information about our financial performance, and our progress toward our 2030 targets. ARR is not a projection or forecast, and actual recurring revenue for any 12-month period will depend on a number of factors beyond our ability to predict or control, including those risks and uncertainties listed above. Additionally, ARR may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
2 Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income plus income tax (provision) benefit, other income, net & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenue. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below.
3 Non-GAAP net income, Non-GAAP EPS, and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income plus share-based compensation, acquisition related amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non-GAAP EPS is defined as Non-GAAP net income divided by Non-GAAP weighted-average diluted shares, which adjusts the weighted-average number of common shares outstanding for the dilutive effect of the Company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | 260,170 | $ | 300,596 | $ | 465,586 | $ | 511,103 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and portfolio development | 56,407 | 53,674 | 112,242 | 101,104 | |||||||||||||||||||
| Licensing | 34,725 | 23,909 | 86,844 | 41,586 | |||||||||||||||||||
| General and administrative | 29,799 | 17,586 | 45,000 | 31,154 | |||||||||||||||||||
| Total operating expenses | 120,931 | 95,169 | 244,086 | 173,844 | |||||||||||||||||||
| Income from operations | 139,239 | 205,427 | 221,500 | 337,259 | |||||||||||||||||||
| Interest expense | (8,583) | (9,537) | (17,650) | (19,408) | |||||||||||||||||||
| Other income, net | 12,722 | 15,144 | 19,322 | 25,402 | |||||||||||||||||||
| Income before income taxes | 143,378 | 211,034 | 223,172 | 343,253 | |||||||||||||||||||
| Income tax provision | (27,006) | (30,466) | (31,471) | (47,083) | |||||||||||||||||||
| Net income | $ | 116,372 | $ | 180,568 | $ | 191,701 | $ | 296,170 | |||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 4.51 | $ | 6.97 | $ | 7.44 | $ | 11.47 | |||||||||||||||
| Diluted | $ | 3.40 | $ | 5.35 | $ | 5.51 | $ | 8.81 | |||||||||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 25,831 | 25,917 | 25,776 | 25,829 | |||||||||||||||||||
| Diluted | 34,260 | 33,725 | 34,770 | 33,615 | |||||||||||||||||||
| Cash dividends declared per common share | $ | 0.70 | $ | 0.60 | $ | 1.40 | $ | 1.20 | |||||||||||||||
SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net income | $ | 116,372 | $ | 180,568 | $ | 191,701 | $ | 296,170 | |||||||||||||||
| Non-cash adjustments | 72,766 | 18,981 | 195,477 | 17,536 | |||||||||||||||||||
| Working capital changes | (106,602) | (94,431) | (288,561) | (228,577) | |||||||||||||||||||
| Net cash provided by operating activities | 82,536 | 105,118 | 98,617 | 85,129 | |||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
Net sales, maturities, and purchases of short-term investments | (17,714) | (68,178) | 12,061 | 17,987 | |||||||||||||||||||
| Capitalized expenditures and patent costs | (15,937) | (13,550) | (31,015) | (40,207) | |||||||||||||||||||
| Long-term investments | — | — | 1,709 | — | |||||||||||||||||||
| Net cash used in investing activities | (33,651) | (81,728) | (17,245) | (22,220) | |||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Payments on long-term debt and warrants | (2) | — | (88,019) | (1,284) | |||||||||||||||||||
| Repurchase of common stock | (22,981) | (26,168) | (31,146) | (31,417) | |||||||||||||||||||
| Dividends paid | (18,106) | (15,577) | (36,086) | (27,134) | |||||||||||||||||||
| Other | (1,003) | (924) | (56,006) | (25,785) | |||||||||||||||||||
| Net cash used in financing activities | (42,092) | (42,669) | (211,257) | (85,620) | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 6,793 | (19,279) | (129,885) | (22,711) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 617,590 | 548,115 | 754,268 | 551,547 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 624,383 | $ | 528,836 | $ | 624,383 | $ | 528,836 | |||||||||||||||
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash, cash equivalents, and short-term investments | $ | 1,112,411 | $ | 1,243,160 | |||||||
| Accounts receivable | 193,001 | 69,816 | |||||||||
| Prepaid and other current assets | 91,151 | 74,994 | |||||||||
| Property & equipment and patents, net | 339,843 | 342,469 | |||||||||
| Other long-term assets, net | 455,686 | 333,851 | |||||||||
| Total assets | $ | 2,192,092 | $ | 2,064,290 | |||||||
| Liabilities and Shareholders' equity | |||||||||||
| Current portion of long-term debt | $ | 378,239 | $ | 458,376 | |||||||
| Current deferred revenue | 325,740 | 193,722 | |||||||||
| Other current liabilities | 97,091 | 100,404 | |||||||||
| Long-term deferred revenue | 116,472 | 135,882 | |||||||||
| Long-term debt & other long-term liabilities | 72,381 | 74,786 | |||||||||
| Total liabilities | 989,923 | 963,170 | |||||||||
| Total shareholders' equity | 1,202,169 | 1,101,120 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,192,092 | $ | 2,064,290 | |||||||
RECONCILIATION OF NON-GAAP MEASURES
The following tables present InterDigital's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarter ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 116,372 | $ | 180,568 | $ | 191,701 | $ | 296,170 | |||||||||||||||
| Income tax provision | 27,006 | 30,466 | 31,471 | 47,083 | |||||||||||||||||||
| Other income, net & interest expense | (4,139) | (5,607) | (1,672) | (5,994) | |||||||||||||||||||
| Depreciation and amortization | 19,482 | 19,465 | 38,690 | 37,678 | |||||||||||||||||||
| Share-based compensation | 24,103 | 11,836 | 34,442 | 21,334 | |||||||||||||||||||
Other items (a) | 1,255 | — | 1,255 | (483) | |||||||||||||||||||
Adjusted EBITDA 2 | $ | 184,079 | $ | 236,728 | $ | 295,887 | $ | 395,788 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (in thousands, except for per share data) | (in thousands, except for per share data) | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 116,372 | $ | 180,568 | $ | 191,701 | $ | 296,170 | |||||||||||||||
| Share-based compensation | 24,103 | 11,836 | 34,442 | 21,334 | |||||||||||||||||||
| Acquisition related amortization | 8,000 | 8,900 | 15,978 | 17,550 | |||||||||||||||||||
Other operating items (a) | 1,255 | — | 1,255 | (483) | |||||||||||||||||||
Other non-operating items (b) | (967) | — | (967) | — | |||||||||||||||||||
| Related income tax effect of above items | (6,802) | (4,355) | (10,649) | (8,065) | |||||||||||||||||||
| Adjustments to income taxes | (563) | (1,667) | (10,967) | (5,566) | |||||||||||||||||||
Non-GAAP net income 3 | $ | 141,398 | $ | 195,282 | $ | 220,793 | $ | 320,940 | |||||||||||||||
| Weighted-average dilutive shares - GAAP | 34,260 | 33,725 | 34,770 | 33,615 | |||||||||||||||||||
| Less: Dilutive impact of the Convertible Notes | 3,669 | 3,791 | 4,033 | 3,731 | |||||||||||||||||||
Weighted-average dilutive shares - Non-GAAP 3 | 30,591 | 29,934 | 30,737 | 29,884 | |||||||||||||||||||
| Diluted EPS | $ | 3.40 | $ | 5.35 | $ | 5.51 | $ | 8.81 | |||||||||||||||
Non-GAAP EPS 3 | $ | 4.62 | $ | 6.52 | $ | 7.18 | $ | 10.74 | |||||||||||||||
(a) Other items in the above tables include one-time expenses related to litigation fee reimbursements in three and six months ended June 30, 2026, compared to one-time contra-expenses related to litigation fee reimbursements in six months ended June 30, 2025.
(b) Other non-operating items includes gains from observable price changes of our long-term strategic investments.
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of 2026 and full year fiscal 2026 included in this release:
Outlook | |||||||||||||||||
(in millions) | |||||||||||||||||
| Full Year 2026 | |||||||||||||||||
Q3 2026 | Current | Prior | |||||||||||||||
Net income | $42 - $48 | $270 - $330 | $202 - $298 | ||||||||||||||
| Income tax provision | 11 | 59 | 48 | ||||||||||||||
Other income, net & interest expense | — | (1) | (4) | ||||||||||||||
| Depreciation and amortization | 20 | 79 | 80 | ||||||||||||||
| Share-based compensation | 13 | 61 | 52 | ||||||||||||||
Other items | — | 1 | 3 | ||||||||||||||
Adjusted EBITDA 2 | $86 - $92 | $469 - $529 | $381 - $477 | ||||||||||||||
Outlook | |||||||||||||||||
(in millions) | |||||||||||||||||
Full Year 2026 | |||||||||||||||||
Q3 2026 | Current | Prior | |||||||||||||||
Net income | $42 - $48 | $270- $330 | $202- $298 | ||||||||||||||
| Share-based compensation | 13 | 61 | 52 | ||||||||||||||
| Acquisition related amortization | 8 | 32 | 32 | ||||||||||||||
Other operating items | — | 1 | 3 | ||||||||||||||
Other non-operating items | — | (1) | — | ||||||||||||||
| Related income tax effect of above items | (4) | (20) | (18) | ||||||||||||||
| Adjustments to income taxes | — | (11) | — | ||||||||||||||
Non-GAAP net income 3 | $59 - $65 | $332 - $392 | $271 - $367 | ||||||||||||||
| Weighted-average dilutive shares - GAAP | 33.7 | 34.1 | 35.0 | ||||||||||||||
| Less: Dilutive impact of the Convertible Notes | 3.3 | 3.5 | 4.0 | ||||||||||||||
Weighted-average dilutive shares - Non-GAAP 3 | 30.4 | 30.6 | 31.0 | ||||||||||||||
| Diluted EPS | $1.25 - $1.42 | $7.91 - $9.67 | $5.77 - $8.51 | ||||||||||||||
Non-GAAP EPS 3 | $1.94 - $2.13 | $10.85 - $12.81 | $8.74 - $11.84 | ||||||||||||||
| CONTACT: | InterDigital, Inc. | ||||
| Email: [email protected] | |||||
| +1 (302) 300-1857 | |||||
1©2026 InterDigital, Inc. All Rights Reserved.
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act, including but not limited to statements related to our outlook for Q3 and full year 2026, and other financial and business goals. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. Actual results could materially differ because of such factors or circumstances, which include those described in our second quarter 2026 earnings release. You should carefully consider these factors as well as the risks and uncertainties outlined in greater detail in the Risk Factors sections of our 2025 Form 10-K and our other SEC filings before making any investment decision with respect to our common stock. These factors, individually or in the aggregate, may cause our actual results to differ materially from our expected and historical results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law. Industry Data This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. While we believe the industry and market data included in this presentation are reliable and are based on reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Non-GAAP Financial Measures This presentation includes certain non-GAAP measures not based on generally accepted accounting principles. For more information and for reconciliations between GAAP and these non-GAAP measures, see the appendix to this presentation. 2©2026 InterDigital, Inc. All Rights Reserved.
Agenda Q2 Financial & Business Highlights Q3 and FY26 Outlook Background on InterDigital Appendix 3©2026 InterDigital, Inc. All Rights Reserved.
4©2026 InterDigital, Inc. All Rights Reserved.
Q2 Financial Highlights Revenue of $260M, Adj. EBITDAa of $184 million and Diluted EPS of $3.40 far exceed the top end of guidance range Raised full year 2026 revenue outlook to between $775 million to $845 million, up $85 million at the midpoint Annualized Recurring Revenueb (ARR) at all-time high of $626 million, up 13% YoY Streaming and Cloud Services revenue of $110 million Adj. EBITDA margina of 71% Free cash flowa of $67 million Return of capital of $41 million a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations b Please see appendix for a description of this metric and how it is calculated 5©2026 InterDigital, Inc. All Rights Reserved.
Recent Business Highlights Reached milestone agreement in Streaming and Cloud Services program with Amazon; final terms to be determined by binding arbitration Signed new IoT license agreements with a leading fintech company covering point-of-sale devices and with KEBA for EV chargers Awarded two injunctions against Disney from Europe’s Unified Patent Court covering eleven countries Recognized by Business Insider as one of America’s high- growth companies Shared 6G leadership, potential for ISAC and Agentic AI at EuCNC & 6G Summit Showcased interactive AR and energy-efficient video streaming at 2026 FOKUS Media Web Symposium 6©2026 InterDigital, Inc. All Rights Reserved.
Financial Results vs. Outlook Q 2 ’ 2 6 R E S U L T S Q 2 ’ 2 6 O U T L O O K Revenue $260.2M $139M - $143M Adjusted EBITDAa $184.1M $67M - $73M Diluted EPS $3.40 $0.80 - $0.97 Non-GAAP EPSa $4.62 $1.41 - $1.60 aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our Q2’26 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. 7©2026 InterDigital, Inc. All Rights Reserved.
$237M $184M 79% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 400 ARRa +13% YoY Q2’26 Results YoY decline in Q2’26 profitability due to lower catch-up revenue and higher IP enforcement costs and share-based compensation 8 0 100 200 300 400 500 600 700 800 Q2 ‘25 Q2 ‘26 $626M CE, IoT / AutoSmartphone $138M $156M $162M $104M 0 100 200 300 400 Q2 ‘25 Q2 ‘26 Revenue <13%> YoY Q2 ‘25 Q2 ‘26 Adjusted EBITDAb <22%> YoY $6.52 $4.62 0.00.51.01.52.02.53.03.54.04.55.05.56.06.57.07.58.08.59.09.510.0 Q2 ‘25 Q2 ‘26 Non-GAAP EPSb <29%> YoY - - - - - -Adj EBITDA Marginb a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our Q2’26 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $553M ©2026 InterDigital, Inc. All Rights Reserved. Streaming & Cloud Catch-upRecurring
9©2026 InterDigital, Inc. All Rights Reserved.
Company Raises FY 2026 Guidance (as of July 30, 2026) 10 Q 3 ’ 2 6 O U T L O O K F Y 2 6 C U R R E N T O U T L O O K F Y 2 6 P R I O R O U T L O O K Revenue $154M - $158M $775M - $845M $675M - $775M Adjusted EBITDAa $86M - $92M $469M - $529M $381M - $477M Diluted EPS $1.25 - $1.42 $7.91 - $9.67 $5.77 - $8.51 Non-GAAP EPSa $1.94 - $2.13 $10.85 - $12.81 $8.74 - $11.84 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our Q2’26 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. The outlook for third quarter 2026 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the third quarter. The outlook for full year 2026 includes both existing licenses and the expected contributions from new agreements and/or enforcement actions we may receive over the balance of the year. ©2026 InterDigital, Inc. All Rights Reserved.
Upcoming Investor Events August 25 Jefferies Semiconductor, IT Hardware & Communications Technology Conference ● Chicago 11©2026 InterDigital, Inc. All Rights Reserved. August 26 Midwest IDEAS Conference ● Chicago September 23-24 Sidoti Small Cap Conference ● Virtual
12©2026 InterDigital, Inc. All Rights Reserved.
Premier Team Foundational Technology Development Company Introduction Long-term Growth Strategy Accelerating Business Momentum 01 0304 0205 InterDigital Innovating Today, Empowering Tomorrow 13©2026 InterDigital, Inc. All Rights Reserved.
InterDigital Pioneering Wireless, Video and AI Research 14 71% Adj. EBITDA Margina KEY CUSTOMERS INCLUDE: ~$1.2B Cash 2025 F inancial Resul ts $834M Revenue H I G H L I G H T S Driving foundational research in wireless, video & AI since 1972 World-class team Led by seasoned industry veterans Enabling ecosystem ~9B wireless connections with $7.6T economic value annually Industry-leading patents Evergreen patent portfolio of ~40,000 assets Long-term customers Subscription-like revenue, $5B+ in TCV* added since the start of 2021 *TCV = total contract value a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, and our Q2 2026 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $15.31 Non-GAAP EPSa ©2026 InterDigital, Inc. All Rights Reserved.
Rich Brezski CFO Julia Mattis Chief Licensing Officer 15 World-Class Leadership Team Robert S. Stien Chief Communications & Public Policy Officer Ken Kaskoun Chief Growth Officer Joshua Schmidt Chief Legal Officer Skip Maloney Chief People Officer Liren Chen CEO Rajesh Pankaj CTO Decades of industry experience. Strong track record. Drive deep collaboration and superb execution. ©2026 InterDigital, Inc. All Rights Reserved.
16 Subscription-Based Licensing Model A Virtuous Cycle of Innovation We are a foundational R&D company. We share our innovation through the standards process and monetize our technology through IP licensing. $ RESEARCH & INNOVATION PATENT PORTFOLIO LICENSING IMPLEMENTERS STANDARD DEVELOPMENT TECHNOLOGY SHARING ©2026 InterDigital, Inc. All Rights Reserved.
17 We Focus on Foundational Technologies We solve the most complex problems in the system. The technology we created is broadly applicable to many industries W I R E L E S S Cellular wireless - 4G/5G/6G WiFi and wireless local area networks V I D E O Video compression, transport and enhancement Immersive media compression, transport and enhancement A I AI/ML research to deliver next gen wireless and video technologies and services AI/ML innovation to boost performance, save energy, and enable new use cases Our research and patents in these areas underpin our business ©2026 InterDigital, Inc. All Rights Reserved.
18 Our Innovations Help Drive Video Codec Evolution 4K Movie 130-Minute Run Time (1) http://www.iam-media.com/litigation/what-will-tv-cost-you-putting-price-hevc-licences (2) Approximated based on the result from 3GPP document https://www.3gpp.org/ftp/Specs/archive/26_series/26.955/26955-h00.zip Source: Counterpoint, WINXDVD Uncompressed: 11,600GB Compressed VP9: ~15 GB HEVC: ~14 GB(1) AV1: ~11 GB VVC: ~9 GB(2) AVC: ~24 GB(1) ©2026 InterDigital, Inc. All Rights Reserved.
19 The Power of the Global Standards System C O N S U M E R S A global system of standards helps ensure interoperability I M P L E M E N T E R S Standards like 5G lower barriers to entry for new entrants into a market like smartphones and benefit from economies of scale O P E R A T O R S A N D S E R V I C E P R O V I D E R S Standards increase system capacity and lower the total cost of ownership ©2026 InterDigital, Inc. All Rights Reserved.
20 InterDigital Drives Standard Development U N I T I N G P R I N C I P L E S Strong belief in global standards Focus on technology merits and neutral on product implementation decisions S T R O N G L E A D E R S H I P Participate in 100+ standard development organizations (SDO) Hold more than 100 leadership positions in these SDOs B R O A D C O L L A B O R A T I O N S Collaborate with many industry partners and leading universities Our technologies benefit the whole eco-system: billions of devices and many cloud-based services each year ©2026 InterDigital, Inc. All Rights Reserved.
©2026 InterDigital, Inc. All Rights Reserved. MPEG Green Chair JVET Beyond VVC Co-Chair of Two AHG JVET Beyond VVC Co-Chair of Two AHG JVET Haptic AHG Chair Sustainability in Media & Data Delivery Services Co-Chair Steering Board Member TSAG Vice Chair NNVC Co-Chair & SW Chair JVET AI AHG Co-Chair AI-PCC Chair RAN2 Chair SA6 Chair SA2 Vice-Chair ETSI Board Member and ISAC ISG Chair SA Board of Governors Steering Group Co-Chair Technology Roadmap Vice- Chair Policy Committee Vice Chair SAI Vice Chair AIML Standing Committee Chair Internet Area Working Group Co-Chair WirelessVideo AI-Related Positions We Lead Standard Development More than 100 Leadership Positions in Wireless, Video & AI Standards 21
22 Multiple 3GPP Chair Positions to Lead 6G Standard Radio Access Network (RAN) WG1 Radio Layer1 WG2 Radio Layer 2/3 WG3 Architecture & Related Network Interfaces WG4 Radio Performance & Protocol Aspects WG5 Mobile Terminal Conformance Testing Services & System Aspects (SA) WG1 Services WG2 System Architecture WG3 Security WG4 Codec WG5 Telecom Management WG6 Mission-critical Apps Core Network & Terminals (CT) WG1 User Equipment To Core Network Protocols WG3 Interworking With External Networks WG4 Core Network Protocols WG6 Smart Card Application Aspects ©2026 InterDigital, Inc. All Rights Reserved.
23 2022: 2023: 2024: 2025: ©2026 InterDigital, Inc. All Rights Reserved. InterDigital is a Recognized Global Innovation Leader For the fifth year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2026: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” 2026:
Innovation Engine Fuels Evergreen IP Portfolio Cellular WiFi Video Other ~19,000 Assets ~40,000 Assets Our patent portfolio has grown > 100% since 2017 with the addition of video & DTV related technologies and continuing growth of wireless assets 2017: 2026: Adding ~7 new patents/day ©2026 InterDigital, Inc. All Rights Reserved. 24
25©2026 InterDigital, Inc. All Rights Reserved.
$0B $1B $2B $3B $4B $5B Licensing Momentum Drives Total Contract Value (TCV) Growth ~60 licenses with TCV of $5B+ since the start of 2021 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 26 2 0 2 6 ©2026 InterDigital, Inc. All Rights Reserved.
Licensing Success Drives ARRa Growth a Please see appendix for a description of this metric and how it is calculated 27 $356M $406M $414M $413M $468M $582M $626M $450M $500M $550M $600M $400M $350M $650M $300M Q4 ’20 Q4 ’21 Q4 ’22 Q4 ’23 Q4 ’24 Q4 ’25 Q2 ’26 ©2026 InterDigital, Inc. All Rights Reserved.
$155M $208M $255M $345M $551M $589M 43% 49% 56% 63% 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% $0M $200M $400M $600M $800M $1,000M 2021 2022 2023 2024 2025 Strong Revenue Growth, Margins and Return of Capital Non-GAAP EPSa up ~ 7X - - - - - -Adj EBITDA Margina Revenue up ~2X Adjusted EBITDA up ~4Xa a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2Q26 10-Q for a sensitivity table showing the dilutive impact of our convertible notes. $359M $425M $458M $550M $869M $834M 2021 2022 2023 2024 2025 Return of Capital > $800M Reduced share count by 16% $2.27 $3.73 $5.08 $9.23 $14.97 $15.31 2021 2022 2023 2024 2025 $0M $100M $200M $300M $400M $500M $600M $700M $800M $900M 2021 2022 2023 2024 2025 Repurchases Dividends 28©2026 InterDigital, Inc. All Rights Reserved. 2020 2020 2020
29 Recognized As One Of America’s Best Companies Newsweek FortuneTime Magazine Forbes ©2026 InterDigital, Inc. All Rights Reserved. America’s Greatest Companies 2025 100 Fastest- Growing Companies 2025 America’s Growth Leaders 2025 America’s Best Mid-Cap Companies 2026 #1 America’s High-Growth Companies 2026 Business Insider
30©2026 InterDigital, Inc. All Rights Reserved.
31 Our Technologies Benefit the Economy and the World Source: GSMA The Mobile Economy 2026 5.8 billion people globally subscribed to a mobile service, including 4.7 billion who used the mobile internet Mobile technologies and services generate $7.6 trillion economic value, 6.4% of global GDP Enables 50 million jobs across the wider mobile ecosystem Mobile technologies and services projected to add nearly $4 trillion to the global economy by 2030 ©2026 InterDigital, Inc. All Rights Reserved.
32 We Address Three Large Markets Market Key Market Dynamic Significant Customers STREAMING & CLOUD SERVICES High growth with increasing focus on profitability ~11% <20 CE, IoT/AUTO ~4% ~100 Increasing concentration of top OEMs SMARTPHONES <10 Mix of mature and growth with fragmentation across certain verticals 2025A TAM ’25 – ’30E CAGR ~(1)% Sources: Counterpoint Research, Omdia (1) Represents wholesale revenue (2) Includes CE and cellular IoT only (Auto excluded) (3) Represents SVoD + AVoD ~$485B (3) ~1.8B Units (~$440B)(2) ~1.25B Units (~$465B)(1) ©2026 InterDigital, Inc. All Rights Reserved.
33 Clear Pathway to Growth Q2-2026 2030 SMARTPHONE I n c r e a s e p e n e t r a t i o n E n h a n c e v a l u a t i o n d u r i n g r e n e w a l s CE, IOT/AUTO I n c r e a s e p e n e t r a t i o n E x p a n d m a r k e t c o v e r a g e S T R E A M I N G & C L O U D S E R V I C E S D r i v e p e n e t r a t i o n $75M ~$200M $60M ~$300M+ $1B+ A R R a T a r g e t 2030 (by 2027) $491M ~$500M a Please see appendix for a description of this metric and how it is calculated ©2026 InterDigital, Inc. All Rights Reserved.
Strong Execution Drives High Penetration 34 In Litigation Licensed Primary Opportunity Note: Lenovo in binding arbitration 2 0 2 6 E S M A R T P H O N E S H I P M E N T S : ~ 1 . 1 B Source: Counterpoint Research Licensing coverage: ~85% • 8 of top 10 OEMs under license • Top 3 licensed thru end of decade • Focus on driving higher value from key customers during renewal cycle 51% 28% 17% ~85% ~6% ~5% Other ©2026 InterDigital, Inc. All Rights Reserved.
Good CE Momentum in Q2 But Opportunity Remains License coverage as of Q2 2026 35 Note: Figures represent 2025 estimated shipments Source: Omdia P C s & T A B L E T S : ~ 4 0 0 M T V s : ~ 2 1 0 M ~60%~25% ~15% ~20% ~30% ~20% ~30% Licensed Primary Opportunity OtherIn Litigation ©2026 InterDigital, Inc. All Rights Reserved.
36 Growth Across Cellular IoT and Automotive Source: Omdia P A S S E N G E R V E H I C L E S H I P M E N T S ( M ) 2025A 2030E ~65M ~90M 5G 4G ~85% of 4G auto market licensed 5G auto market driving value growth ©2026 InterDigital, Inc. All Rights Reserved. C E L L U L A R I O T S H I P M E N T S ( M ) Healthcare Industrial IoT Smart Cities 2025A 2030E ~550M ~860M Unaddressed Addressed Energy & Utilities Remote Monitoring Retail & Payments Transportation & Logistics Automotive TAM CAGR TAM CAGR +7% +9%
37 SVoD and AVoD Are Our Current Focus Source: Omdia Note: Cloud gaming forecast data limited to 2028 and SVOD includes ad tier subscriptions. Logos are examples of market participants and not necessarily licensed customers. 2025 TAM 2030 TAM TAM CAGR $305 B$180 B $245 B $170 B $155B $18 B $21 B $5 B $6 B +14% +6% -1% SVoD AVoD GLOBAL PAY-TV VIDEO CONFERENCING CLOUD GAMING $580 B +3% +4% ©2026 InterDigital, Inc. All Rights Reserved.
38 Capital Allocation Priorities Strong cash flow funds organic investment in research, fortifies the balance sheet and enables significant share reduction Maintain fortress balance sheet Financial strength is a strategic asset Organic investment in business Prioritize investment into research and IP portfolio Inorganic investment Opportunistic and strategic Return Excess cash to shareholders > $600M in share repurchases last 5 yrs Doubled dividend last 5 yrs ©2026 InterDigital, Inc. All Rights Reserved.
39 Target Financial Model for 2030 10%+ Large TAMs Provide Growth Opportunity Annual Growth Target Subscription Model Underpins ARR $1B+ ARRa Target Well positioned to drive value going forward a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to appendix. ©2026 InterDigital, Inc. All Rights Reserved. Operating Leverage Enables Margin Expansion 60%+ Adjusted EBITDA Marginb Target
40 Key Takeaways World-class leadership and functional teams across the board Accelerating momentum for R&I, standard development, patent portfolio creation and licensing driven by continuing investment and strong execution We have a clear strategy, a world-class team and the operational discipline to drive the growth of ARRa to $1B+ target by 2030 Our technologies are critical to devices and services of multiple industries, giving us large addressable markets a Please see appendix for a description of this metric and how it is calculated ©2026 InterDigital, Inc. All Rights Reserved.
41©2026 InterDigital, Inc. All Rights Reserved.
42 Supplemental Metrics Annualized recurring revenue ("ARR") for any quarter is defined as total revenue for the quarter less catch-up revenue for the quarter, multiplied by four. Management believes ARR provides useful information about our financial performance, and our progress toward our 2030 targets. ARR is not a projection or forecast, and actual recurring revenue for any 12-month period will depend on a number of factors beyond our ability to predict or control, including those risks and uncertainties listed above. Additionally, ARR may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenue. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below. Non-GAAP net income, Non-GAAP earnings per share (“EPS”), and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provides investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income attributable to InterDigital, Inc. plus share-based compensation, acquisition related amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non-GAAP EPS is defined as Non- GAAP net income divided by Non-GAAP weighted-average diluted shares, which adjusts the weighted average number of common shares outstanding for the dilutive effect of the Company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below. Free cash flow is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company’s ability to invest in its business, make strategic acquisitions and fund share repurchases, among other things. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period. InterDigital defines free cash flow as net cash provided by (used in) operating activities less capital expenditures and capitalized patent costs. InterDigital’s computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of free cash flow, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, is provided below. ©2026 InterDigital, Inc. All Rights Reserved.
Non-GAAP Reconciliation ©2026 InterDigital, Inc. All Rights Reserved. 43 (In millions) 2020 2021 2022 2023 2024 2025 Q2'26 Q2'25 Q2'26 Q3'26 Current FY2026 Prior FY2026 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 407$ 116$ 181$ $28 - $34 $42 - $48 $270 - $330 $202 - $298 Net loss attributable to non-controlling interest (7) (13) (2) (3) - - - - - - - - Income tax provision (benefit) (7) 15 26 24 71 63 27 30 7 11 59 48 Other income (expense) & interest expense 24 14 33 (13) 10 (9) (4) (6) - - (1) (4) Depreciation and amortization 81 78 79 78 70 78 19 19 20 20 79 80 Share-based compensation 10 29 22 36 46 43 24 12 12 13 61 52 Other operating items 9 30 3 10 (4) 7 1 - - - 1 3 Adjusted EBITDA 155$ 208$ 255$ 345$ 551$ 589$ 184$ 237$ $67 - $73 $86 - $92 $469 - $529 $381 - $477 Adjusted EBITDA Margin 43% 49% 56% 63% 63% 71% 71% 79% 50% 57% 62% 59% Other Operating Items Restructuring -$ 28$ 3$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Other non-cash charges 9 - - 3 - 1 - - - - - - Non-Recurring Personnel-Related - 2 - - - 6 - - - - - 3 Net Litigation Fee Reimbursement - - - 8 (4) 1 1 - - - 1 - Total Other Operating Items 9$ 30$ 3$ 10$ (4)$ 7$ 1$ -$ -$ -$ 1$ 3$ Cash Flow Data: Net cash provided by operating activities Capital expenditures Capitalized patent costs Free cash flow NOTE: Sums may not equal total due to rounding Full Year OutlookThree Months Ended $ 67 Three Months Ended Q2'26 83$ (2) (14)
Non-GAAP Reconciliation ©2026 InterDigital, Inc. All Rights Reserved. 44 (In millions, except per share data) 2020 2021 2022 2023 2024 2025 Q2'26 Q2'25 Q2'26 Q3'26 Current FY2026 Prior FY2026 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 407$ 116$ 181$ $28 - $34 $42 - $48 $270 - $330 $202 - $298 Share-based compensation 10 29 22 36 46 43 24 12 12 13 61 52 Acquisition related amortization 44 42 42 41 33 36 8 9 8 8 32 32 Other operating items 9 30 3 10 (4) 7 1 - - - 1 3 Other non-operating items (4) (11) 13 (14) (2) - (1) - - - (1) - Related income tax and noncontrolling interest effect of above items (12) (26) (17) (17) (15) (18) (7) (4) (4) (4) (20) (18) Adjustments to income taxes (21) (2) (2) (16) (7) (10) (1) (2) - - (11) - Non-GAAP net income 70$ 117$ 155$ 254$ 409$ 465$ 141$ 195$ $44 - $50 $59 - $65 $332 - $392 $271 - $367 Weighted average diluted shares - GAAP 31.1 31.3 30.5 28.1 29.7 34.5 34.3 33.7 35.1 33.7 34.1 35.0 Less: Dilutive impact of the Convertible Notes - - - 0.5 2.4 4.1 3.7 3.8 3.9 3.3 3.5 4.0 Weighted average diluted shares - Non-GAAP 31.1 31.3 30.5 27.6 27.3 30.4 30.6 29.9 31.2 30.4 30.6 31.0 Diluted EPS 1.44$ 1.77$ 3.07$ 7.62$ 12.07$ 11.80$ 3.40$ 5.35$ $0.80 - $0.97 $1.25 - $1.42 $7.91 - $9.67 $5.77 - $8.51 Non-GAAP EPS 2.27$ 3.73$ 5.08$ 9.23$ 14.97$ 15.31$ 4.62$ 6.52$ $1.41- $1.60 $1.94 - $2.13 $10.85 - $12.81 $8.74 - $11.84 Other Operating Items Restructuring -$ 28$ 3$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Other non-cash charges 9 - - 3 - 1 - - - - - - Non-recurring personnel-related - 2 - - - 6 - - - - - 3 Net litigation fee reimbursement - - - 8 (4) 1 1 - - - 1 - Total Other Operating Items 9$ 30$ 3$ 10$ (4)$ 7$ 1$ -$ -$ -$ 1$ 3$ Other Non-operating Items Fair value changes (4)$ (9)$ 2$ (10)$ (2)$ -$ (1) - -$ -$ (1)$ -$ Loss on extinguishment of debt - - 11 - - - - - - - - - Other non-cash charges - (2) - (4) - - - - - - - - Total Other Non-operating Items (4)$ (11)$ 13$ (14)$ (2)$ -$ (1)$ -$ -$ -$ (1)$ -$ NOTE: Sums may not equal total due to rounding Full Year OutlookThree Months Ended