Form 8-K - Current report

Share Name	Share Symbol	Market	Type
InterDigital Inc	NASDAQ:IDCC	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-7.40	-3.49%	204.39	200.02	600.00	213.382	198.12	209.13	625,929	01:00:00

UNITED STATES
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): February 6, 2025

______________

INTERDIGITAL, INC.

(Exact name of Registrant as Specified in Charter)


Pennsylvania	1-33579	82-4936666
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

200 Bellevue Parkway, Suite 300

Wilmington, DE 19809-3727

(Address of principal executive offices, Zip code)

302-281-3600

Registrant's telephone number, including area code

Not Applicable

Former Name or Former Address, if Changed Since Last Report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Common Stock, par value $0.01 per share

IDCC

NASDAQ Stock Market LLC

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).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2025, InterDigital, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the fiscal quarter ended December 31, 2024. 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			InterDigital, Inc. press release dated February 6, 2025
99.2			Supplemental Earnings Presentation
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: February 6, 2025

INTERDIGITAL REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS

Strong business performance drove record revenue and EPS in 2024. Increased quarterly dividend by 33%

WILMINGTON, DE. - February 6, 2025 - InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2024.

"Our business momentum accelerated through the fourth quarter with revenue up 140% year-over-year to $253 million. 2024 was another outstanding year for the company with record revenue of $869 million, a 58% year-over-year increase, thanks to increased momentum across all of our licensing programs and new agreements with some of the world’s largest device makers," commented InterDigital CEO and President Liren Chen. "It is clear that our innovation plays a central role in enabling a growing range of devices and services. Earlier this week we filed enforcement actions against The Walt Disney Company, including Disney+, Hulu and ESPN+, over their ongoing and unlicensed use of our innovation. We believe that our technology is crucial to the viability and continued growth of the Disney services, and that we should be fairly compensated for the value of our foundational research over the past several decades, which allows us to continue to invest in the next generation of technology."

Fourth Quarter and Full Year 2024 Results


	Three Months Ended December 31,		Twelve Months Ended December 31,
($ in millions, except per share data)	2024	2023	Change	2024	2023	Change
GAAP Results:
Revenues (a)	$252.8	$105.5	140%	$868.5	$549.6	58%
Operating Expenses	$90.3	$80.2	13%	$429.0	$328.0	31%
Net income 1	$133.1	$39.1	241%	$358.6	$214.1	68%
Net income 1 margin	53%	37%	16 ppt	41%	39%	2 ppt
Diluted EPS 1	$4.09	$1.41	190%	$12.07	$7.62	58%

Non-GAAP Results:
Adjusted EBITDA 2	$198.1	$53.3	272%	$551.0	$345.2	60%
Adjusted EBITDA margin 2	78%	51%	27 ppt	63%	63%	—
Non-GAAP Net income 3	$150.6	$37.5	302%	$408.9	$254.4	61%
Non-GAAP EPS 3	$5.15	$1.41	265%	$14.97	$9.23	62%

Additional Information:



Revenue by program:
Smartphone	$230.6	$88.1	162%	$597.5	$467.3	28%
CE, IoT/Auto	$21.8	$17.0	28%	$268.7	$80.9	232%
Other	$0.4	$0.3	20%	$2.3	$1.4	63%

(a) Increase is primarily due to catch-up revenues from new agreements signed in 2024, including the Samsung TV and OPPO agreements, as well as revenue recognized on the Lenovo cellular license resulting from the UK proceedings and arbitration agreement.

Return of Capital to Shareholders


(in millions, except per share data)	Share Repurchases		Dividends Declared		Total Return of Capital
	Shares	Value	Per Share	Value
Fourth quarter 2024	—	$—	$0.45	$11.6	$11.6
Fiscal year 2024	0.6	$66.7	$1.70	$43.1	$109.8

The company announced that its Board of Directors has approved an increase in the company’s quarterly cash dividend from $0.45 to $0.60 per share. The increase in the regular quarterly dividend will take effect beginning with the dividend paid in second quarter 2025.

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 its calendar quarter ending March 31, 2025. The current conversion rate of the Notes is 12.9041 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 $77.49 to $106.22. Refer to Footnote 10 of the Financial Statements from InterDigital’s Form 10-K for the year ended December 31, 2024 for more information.

Near-Term Outlook

The table below presents guidance of the company's current outlook for first quarter and full year 2025. The outlook for first quarter 2025 covers existing licenses and does not include any new agreements or arbitration results we may sign or receive over the balance of the first quarter. The outlook for full year 2025 includes both existing licenses and the expected contributions from both new agreements and arbitration results over the balance of the year.


(in millions, except per share data)	Q1 2025	Full Year 2025
Revenue	$112 - $116	$660 - $760


Adjusted EBITDA 2	$53 - $60	$400 - $495
Diluted EPS 1	$0.58 - $0.79	$6.79 - $9.67

Non-GAAP EPS 3	$1.19 - $1.42	$9.69 - $12.92

Conference Call Information

InterDigital will host a conference call on Thursday, February 6, 2025 at 10:00 a.m. ET to discuss its fourth quarter and full year 2024 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.

For telephone access to the conference call, visit www.interdigital.com and click on the “Dial In Registration” link on the Investors page. Registration is necessary to obtain a dial in phone number and PIN to join.

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 Annual Report on Form 10-K for the year ended December 31, 2024 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,” “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 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, difficulties or accelerations 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 video streaming and other cloud-based service providers; (iii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to identify and acquire technology and patent portfolios that align with our roadmap; (v) our ability to commercialize our technologies; (vi) the failure of the markets for our current or new technologies to materialize to the extent or at the rate that we expect; (vii) our continued ability to develop new technologies and secure new patents, including the risk of unexpected delays or difficulties related to the development of our technologies; (viii) our continued leadership within standards and industry groups and our ability to ensure our inventions become standardized; (ix) risks associated with our capital allocation strategies, including risks associated with our planned dividend payments and share repurchases; (x) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws; (xi) the timing and impact of potential regulatory, administrative and legislative matters; (xii) U.S./China trade and/or national security tensions; (xiii) changes or inaccuracies in market projections; (xiv) our ability to retain and hire key personnel; (xv) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (xvi) the potential effects that macroeconomic uncertainty could have on our financial position, results of operations and cash flows; (xvii) operational risks, including cybersecurity events, external hazards, human failures or other difficulties with our information technology systems that could disrupt our business or result in the loss of critical and confidential information and/or increased costs; (xviii) impacts from acts of terrorism, war or political or civil unrest, or any responses thereto, in the United States or elsewhere; (xix) changes in our business strategy; and (xx) risks related to any new accounting standards or our assumptions and application of relevant accounting standards, including with respect to revenue recognition. We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.

Footnotes

1 Throughout this press release, net income and diluted earnings per share (“EPS”) are attributable to InterDigital, Inc. (e.g., after adjustments for non-controlling interests), unless otherwise stated. Net income margin is net income attributable to InterDigital, Inc. over total revenues.

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 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 revenues. 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 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, depreciation and 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.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023




Revenues	$	252,802	$	105,518	$	868,516	$	549,588
Operating expenses:
Research and portfolio development	49,052		45,725		196,903		195,285
Licensing	20,027		19,863		169,239		79,397
General and administrative	21,197		14,605		62,862		53,291

Total operating expenses	90,276		80,193		429,004		327,973

Income from operations	162,526		25,325		439,512		221,615

Interest expense	(11,335)		(7,906)		(45,421)		(44,817)
Other income, net	1,842		15,509		35,325		57,812
Income before income taxes	153,033		32,928		429,416		234,610
Income tax (provision) benefit	(19,925)		6,158		(70,802)		(23,557)
Net income	$	133,108	$	39,086	$	358,614	$	211,053
Net loss attributable to noncontrolling interest	—		—		—		(3,016)
Net income attributable to InterDigital, Inc.	$	133,108	$	39,086	$	358,614	$	214,069
Net income per common share — Basic	$	5.23	$	1.52	$	14.16	$	7.97
Weighted average number of common shares outstanding — Basic	25,438		25,676		25,325		26,860
Net income per common share — Diluted	$	4.09	$	1.41	$	12.07	$	7.62
Weighted average number of common shares outstanding — Diluted	32,561		27,640		29,711		28,102

Cash dividends declared per common share	$	0.45	$	0.40	$	1.70	$	1.50

SUMMARY CONSOLIDATED CASH FLOWS

(in thousands)

(unaudited)


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
Cash flows from operating activities:
Net income	$	133,108	$	39,086	$	358,614	$	211,053
Non-cash adjustments	(4,150)		(63,835)		82,283		3,876













Working capital changes	63,076		1,164		(169,369)		(1,196)







Net cash provided by (used in) operating activities	192,034		(23,585)		271,528		213,733
Cash flows from investing activities:
Net (purchases) sales of short-term investments	(16,548)		5,039		156,660		(38,667)
Capitalized patent costs and purchases of patents and property and equipment	(27,553)		(13,467)		(62,987)		(44,626)







Long-term investments	14,202		(2,444)		15,778		(1,877)
Net cash (used in) provided by investing activities	(29,899)		(10,872)		109,451		(85,170)
Cash flows from financing activities:
Payments on long-term debt and warrants	(2,391)		—		(141,460)		(100)
Repurchase of common stock	—		(36,976)		(66,726)		(339,704)
Dividends paid	(11,374)		(10,348)		(41,799)		(39,454)
Other	(7,603)		(970)		(22,408)		(9,505)
















Net cash used in financing activities	(21,368)		(48,294)		(272,393)		(388,763)
Net increase (decrease) in cash, cash equivalents and restricted cash	140,767		(82,751)		108,586		(260,200)
Cash, cash equivalents and restricted cash, beginning of period	410,780		525,712		442,961		703,161
Cash, cash equivalents and restricted cash, end of period	$	551,547	$	442,961	$	551,547	$	442,961

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)


	December 31, 2024		December 31, 2023
Assets
Cash, cash equivalents and short-term investments	$	958,208	$	1,006,356
Accounts receivable	188,302		117,292
Prepaid and other current assets	84,312		43,976
Property & equipment and patents, net	327,174		324,567
Other long-term assets, net	277,533		278,623
Total assets	$	1,835,529	$	1,770,814
Liabilities and Shareholders' equity
Current portion of long-term debt	$	456,329	$	578,752
Current deferred revenue	178,009		153,597
Other current liabilities	91,472		148,779
Long-term deferred revenue	182,119		223,866
Long-term debt & other long-term liabilities	70,385		84,271
Total liabilities	978,314		1,189,265
Total shareholders' equity	857,215		581,549


Total liabilities and shareholders' equity	$	1,835,529	$	1,770,814

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 fourth quarter and full year periods ended December 31, 2024 and 2023:


	Three Months Ended December 31,				Twelve Months Ended December 31,
	(in thousands)				(in thousands)
	2024		2023		2024		2023
Net income attributable to InterDigital, Inc.	$	133,108	$	39,086	$	358,614	$	214,069
Net loss attributable to non-controlling interest	—		—		—		(3,016)
Income tax provision	19,925		(6,158)		70,802		23,557
Other income, net & interest expense	9,493		(7,603)		10,096		(12,995)
Depreciation and amortization	17,748		19,094		69,913		77,792
Share-based compensation	17,844		8,876		45,966		35,741
Other items(a)	—		—		(4,361)		10,037
Adjusted EBITDA 2	$	198,118	$	53,295	$	551,030	$	345,185


	Three Months Ended December 31,				Twelve Months Ended December 31,
	(in thousands, except for per share data)				(in thousands, except for per share data)
	2024		2023		2024		2023
Net income attributable to InterDigital, Inc.	$	133,108	$	39,086	$	358,614	$	214,069
Share-based compensation	17,844		8,876		45,966		35,741
Acquisition related amortization	8,345		10,145		33,372		40,937
Other operating items (a)	—		—		(4,361)		10,037
Other non-operating items (b)	(201)		(4,745)		(1,989)		(14,115)
Related income tax and noncontrolling interest effect of above items	(5,457)		(2,998)		(15,327)		(16,496)
Adjustments to income taxes	(3,067)		(12,892)		(7,337)		(15,776)
Non-GAAP net income 3	$	150,572	$	37,472	$	408,938	$	254,397

Weighted average dilutive shares - GAAP	32,561		27,640		29,711		28,102
Less: Dilutive impact of the Convertible Notes	3,321		1,154		2,393		538
Weighted average dilutive shares - Non-GAAP 3	29,240		26,486		27,318		27,564

Diluted EPS 1	$	4.09	$	1.41	$	12.07	$	7.62
Non-GAAP EPS 3	$	5.15	$	1.41	$	14.97	$	9.23

(a) Other items in the above tables include one-time contra-expenses of $4.4 million related to litigation fee reimbursements during the twelve months ended December 31, 2024. The twelve months ended December 31, 2023 includes $7.5 million of one-time charges for net litigation fee reimbursements and a $2.5 million one-time impairment on our patents held for sale.

(b) Other non-operating items includes net (gains) or losses from observable price changes of our long-term strategic investments. Other non-operating items for the three and twelve months ended December 31, 2023 also includes a $4.0 million gain related to a revaluation of our long-term debt recognized in conjunction with our acquisition of the patent licensing business of Technicolor SA and a $0.3 million loss on the deconsolidation of Convida.

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the first quarter of fiscal 2025 and full year fiscal 2025 included in this release:


	Outlook
	(in millions)
		Q1 2025	Full Year 2025
Net income attributable to InterDigital, Inc.		$19 - $26	$224 - $319

Income tax provision		5	56
Other income, net & interest expense		—	(2)
Depreciation and amortization		18	78
Share-based compensation		11	44
Other items		—	—
Adjusted EBITDA 2		$53 - $60	$400 - $495


	Outlook
	(in millions, except for per share data)
		Q1 2025	Full Year 2025
Net income attributable to InterDigital, Inc.		$19 - $26	$224 - $319
Share-based compensation		11	44
Acquisition related amortization		9	35
Other operating items		—	—
Other non-operating items		—	—
Related income tax effect of above items		(4)	(17)
Adjustments to income taxes		—	—
Non-GAAP net income 3		$35 - $42	$286 - $381

Weighted average dilutive shares - GAAP		33.0	33.0
Less: Dilutive impact of the Convertible Notes		3.5	3.5
Weighted average dilutive shares - Non-GAAP 3		29.5	29.5

Diluted EPS 1		$0.58 - $0.79	$6.79 - $9.67
Non-GAAP EPS 3		$1.19 - $1.42	$9.69 - $12.92


CONTACT:			InterDigital, Inc.
			investor.relations@interdigital.com
			+1 (302) 300-1857

I N N O V A T I N G T O D A Y E M P O W E R I N G T O M O R R O W TM Fourth Quarter 2024 Results February 6, 2025

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 2 Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, the matters set forth below. Words such as "believe," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” "goal," "could," "would," "should," "if," "may," "might," "future," "target," "trend," "seek to," "will continue," "predict," "likely," "in the event," variations of any such words or similar expressions contained herein 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 in this presentation include but are not limited to our revenue and annual recurring revenue targets, growth prospects and anticipated industry leadership, continued growth of our IP portfolio, anticipated future demand, market and technological development including the development of 6G, the anticipated payment of dividends, and others. Although the forward-looking statements in this presentation reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements concerning our business, results of operations and financial condition are inherently subject to risks and uncertainties. We caution readers that actual results and outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including: (i) unanticipated delays, difficulties or accelerations 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 video streaming and other cloud-based service providers; (iii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to identify and acquire technology and patent portfolios that align with our roadmap; (v) our ability to commercialize our technologies; (vi) the failure of the markets for our current or new technologies to materialize to the extent or at the rate that we expect; (vii) our continued ability to develop new technologies and secure new patents, including the risk of unexpected delays or difficulties related to the development of our technologies; (viii) our continued leadership within standards and industry groups and our ability to ensure our inventions become standardized; (ix) risks associated with our capital allocation strategies, including risks associated with our planned dividend payments and share repurchases; (x) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws; (xi) the timing and impact of potential regulatory, administrative and legislative matters; (xii) U.S./China trade and/or national security tensions; (xiii) changes or inaccuracies in market projections; (xiv) our ability to retain and hire key personnel; (xv) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (xvi) the potential effects that macroeconomic uncertainty could have on our financial position, results of operations and cash flows; (xvii) operational risks, including cybersecurity events, external hazards, human failures or other difficulties with our information technology systems that could disrupt our business or result in the loss of critical and confidential information and/or increased costs; (xviii) impacts from acts of terrorism, war or political or civil unrest, or any responses thereto, in the United States or elsewhere; (xix) changes in our business strategy; and (xx) risks related to any new accounting standards or our assumptions and application of relevant accounting standards, including with respect to revenue recognition. You should carefully consider these factors as well as the risks and uncertainties outlined in greater detail in Part I, Item 1A, of our Form 10-K 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. You should understand that it is not possible to predict or identify all such factors. In addition, you should not place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. 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. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP measures used by us may differ from the non-GAAP measures used by other companies. For more information and for reconciliations between GAAP and these non-GAAP measures, see the appendix to this presentation.

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 4 Q4 Financial Highlights  Revenue up 140% y/y to $253 million and Adj. EBITDAa up 272% y/y to $198 million, both above the top end of the outlook  Recurring revenue up 13% y/y to $117 million  Smartphone recurring revenue up 10% y/y to $95 million  CE, IoT/Auto recurring revenue up 28% y/y to $21 million  Adj. EBITDA margina of 78%, up 27 ppt y/y  Free cash flowa of $169 million  Cash balance increased to $958 million  Increased quarterly dividend by 33% to $0.60 per share on February 6, 2025 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 5 Q4 Business Highlights  Signed new license agreement with Oppo  Renewed license agreement with ZTE  Signed a binding arbitration agreement to finalize the terms of a new license with Lenovo  Won Fierce Network Innovation Award for AI  Recognized by Forbes as one of America’s 100 most successful mid-cap companies second year in a row  Eeva Hakoranta named among the 50 most influential people in IP  InterDigital engineers appointed chair of an AI/ML committee within IEEE and re-elected vice chair of key advisory group within the ITU

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 6 License Agreement With OPPO Group  Oppo group is one of the largest smartphone manufacturers based in China  License covers global sales of Oppo, realme and OnePlus branded mobile devices  All pending litigations between the parties has been dismissed  Further validates importance of our foundational innovation and strength of our IP portfolio to drive future growth  Top four smartphone OEMs, including top two Chinese vendors, and ~70% of the global smartphone market are now under license

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 7 Q4’24 Results a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +140% Adj. EBITDAa +272% Non-GAAP EPSa +265% $106M $253M $0 $50 $100 $150 $200 $250 $300 Q4'23 Q4'24 $53M $198M $0 $50 $100 $150 $200 $250 $300 Q4'23 Q4'24 $1.41 $5.15 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Q4'23 Q4'24

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 8 Q4’24 Revenue By Program $88M $231M 0 50 100 150 200 250 Q4'23 Q4'24 Recurring Catch Up $17M $22M 0 5 10 15 20 25 30 35 40 45 50 Q4'23 Q4'24 Recurring Catch Up Smartphone +162% CE, IoT/Auto +28%

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 9 Financial Results vs. Outlook Q 4 ’ 2 4 R E S U L T S Q 4 ’ 2 4 O U T L O O K * F Y 2 4 R E S U L T S F Y 2 4 O U T L O O K * Revenue $252.8M $239M - $249M $868.5M $855M - $865M Adjusted EBITDAa $198.1M $180M - $190M $551.0M $533M - $543M Diluted EPS $4.09 $3.72 - $3.98 $12.07 $11.63 - $11.90 Non-GAAP EPSa $5.15 $5.42 - $5.70 $14.97 $14.69 - $14.99 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations. * Outlook provided on October 31, 2024

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 11 FY24 Financial Highlights  Record revenue of $869 million, up 58% y/y  Record adjusted EBITDAa of $551 million, up 60% y/y  Record non-GAAP EPSa of $14.97, up 62% y/y  Adj. EBITDA margina of 63%  CE, IoT/Auto recurring revenue of $89 million, up 49% y/y  Free cash flowa of $213 million  Cash balance of $958 million  Return of capital and repayment of debt of $236 million a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 12 FY24 Business Highlights  Signed 14 new license agreements with Oppo, Google, ZTE, Samsung TV, TPV and more  Increased cumulative value of new contracts to more than $3.3 billion since the start of 2021  Held an Investor Day and announced annual recurring revenue target of $1 billion by 2030  Ranked among the world’s top IP portfolios in 5G, WiFi and video codecs by LexisNexis  Named one of the world’s 100 most innovative companies for the third year in a row by LexisNexis  Multiple InterDigital engineers elected to leadership positions for standards development organizations

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 13 FY24 Results a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations Revenue +58% Adj. EBITDAa +60% Non-GAAP EPSa +62% $550M $869M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 FY23 FY24 $345M $551M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 FY23 FY24 $9.23 $14.97 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 FY23 FY24

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 14 FY24 Revenue By Program $467M $598M 0 100 200 300 400 500 600 FY23 FY24 Recurring Catch Up $81M $269M 0 100 200 300 400 500 600 FY23 FY24 Recurring Catch Up Smartphone +28% CE, IoT/Auto +232%

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 16 FY25 Guidance As of February 6, 2025 Q 1 ’ 2 5 O U T L O O K F Y 2 5 O U T L O O K Revenue $112M - $116M $660M - $760M Adjusted EBITDAa $53M - $60M $400M - $495M Diluted EPS $0.58 - $0.79 $6.79 - $9.67 Non-GAAP EPSa $1.19 - $1.42 $9.69 - $12.92 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations. The table above presents guidance of the Company's current outlook for first quarter and full year 2025. The outlook for first quarter 2025 covers existing licenses and does not include any new agreements or arbitration results we may sign or receive over the balance of the first quarter. The outlook for full year 2025 includes both existing licenses and the expected contributions from both new agreements and arbitration results over the balance of the year.

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 19 Premier Team Essential Technology Development Company Introduction Long-term Growth Strategy Accelerating Business Momentum 01 0304 0205 InterDigital Innovating Today, Empowering Tomorrow

©2025 InterDigital, Inc. All Rights Reserved. 20 InterDigital Pioneering Wireless, Video and AI Research 63% Adj. EBITDA Margina TOP CUSTOMERS: ~$1B Cash 2024 F inancial Resul ts $869M 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 Over two billion devices and $5.7T economic value annually Industry-leading patents Evergreen patent portfolio of 33,000+ assets Long-term customers Subscription-like revenue, $3.3B in new contracts in the last four years 58% Y/Y a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix 2/6/2025 $14.97 Non-GAAP EPSa 62% Y/Y

World-Class Leadership Team Robert S. Stien Chief Communications & Public Policy Officer Ken Kaskoun Chief Growth Officer Joshua Schmidt Chief Legal Officer Michael Cortino Chief Information Officer Skip Maloney Chief People Officer Rich Brezski CFO Eeva Hakoranta Chief Licensing Officer 2/6/2025 21 Liren Chen CEO Rajesh Pankaj CTO Decades of industry experience. Strong track record. Drive deep collaboration and superb execution ©2025 InterDigital, Inc. All Rights Reserved.

Business 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. 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 22 $ RESEARCH & INNOVATION PATENT PORTFOLIO LICENSING PRODUCT IMPLEMENTERS STANDARD DEVELOPMENT TECHNOLOGY SHARING

We Focus on Foundational Technologies 2/6/2025 23©2025 InterDigital, Inc. All Rights Reserved. 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 Using AI for wireless and video Video coding for use by AI Our research and patents in these areas underpin our business We solve the most complex problems in the system. The technology we created is broadly applicable to many industries

InterDigital Tech Underpins Surging Mobile Traffic 2/6/2025 24 2017 2022 2027 50 100 150 200 250 3000 10.8 EB 90.4 EB 282.8 EB Video Drives Surge in Mobile Data Traffic Estimated global media traffic by application category (in exabytes per month)* * One exabyte equals one million terabytes. Source: Ericsson Mobility Report Video Other ©2025 InterDigital, Inc. All Rights Reserved.

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 25 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)

The Power of the Global Standards System 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 26 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

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 InterDigital Drives Standard Development 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 27

JVT 2/6/2025 28 We Have Many Standard Development Leadership Positions Cellular & WiFi Standards Video Standards Sphere of Influence Growing: More than 100 Leadership Positions in Wireless & Video Standards RAN2 Chair SA6 Chair ETSI Board Member ISAC ISG Chair RIS ISG Chair PDL Vice Chair SAI Vice Chair Steering Group Co-Chair SA Board of Governors Policy & Procedures C/SAB Chair AIML Standing Committee Chair Internet WG Vice Chair NNVC Co-Chair & SW Chair Beyond VVC Co-Chair of Two AHG Beyond VVC Co-Chair of Two AHG AI AHG Co-Chair AI-PCC Chair Haptic AHG Chair Steering Board Member TSAG Vice Chair ©2025 InterDigital, Inc. All Rights Reserved.

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 29 Recognized Global Innovation Leader For the third year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2024: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” 2 0 2 2 : 2 0 2 3 : 2 0 2 4 :

~19,000 Assets >33,000 Assets Innovation Engine Fuels Evergreen IP Portfolio Our patent portfolio grew > 70% between 2017 & 2024 with the addition of video & DTV related technologies and continuing growth of wireless assets 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 30 2 0 1 7 : 2 0 2 4 : Portfolio is evergreen, growing by ~6 new patents each day Cellular WiFi Video DTVBroadcast & Home Network Implementation

Average Competitive Impact InterDigital Ranks Among the Highest in Patent Quality for 5G, Video Codec, and WiFi Patents 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 31 Video Codec Patent Holders 5G Patent Holders Source: LexisNexis PatentSight Jan 2025, top 10 Patent Asset Index owners 5G = 5G 3GPP ETSI declared, Video Codec = HEVC, VVC, AVC LexisNexis classification, WiFi = WiFi 6, WiFi 7, WiFi 8 LexisNexis classification WiFi Patent Holders 0 5 10 15 InterDigital Company # 2 Company # 3 Company # 4 Company # 5 Company # 6 Company # 7 Company # 8 Company # 9 Company # 10 0 2 4 6 8 Company # 1 Company # 2 Company # 3 Company # 4 InterDigital Company # 6 Company # 7 Company # 8 Company # 9 Company # 10 0 2 4 6 8 InterDigital Company # 2 Company # 3 Company # 4 Company # 5 Company # 6 Company # 7 Company # 8 Company # 9 Company # 10

Licensing Success Over 40 licenses worth > $3.3B closed since the start of 2021 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 33 2021 2024 #1 Chinese Smartphone vendor 2022 2023 Top-10 TV vendor Largest license in company history Major CE/IoT License 80% of 4G connected car market under license HEVC license #1 TV vendorLicensee since 1995* Top-10 TV vendor #2 Chinese smartphone vendor Arbitration agreement *Currently in binding arbitration to set royalty

$155M $208M $255M $345M $551M 43% 49% 56% 63% 63% 0% 10% 20% 30% 40% 50% 60% 70% $0M $100M $200M $300M $400M $500M $600M $359M $425M $458M $550M $869M $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2020 2021 2022 2023 2024 Strong Revenue Growth, Margins and Return of Capital 2/6/2025 34 2020 2021 2022 2023 2024 Non-GAAP EPSa > 6.5X growth - - - - - -Adj EBITDA Margina Revenue 25% CAGR $2.27 $3.73 $5.08 $9.23 $14.97 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 2020 2021 2022 2023 2024 Adjusted EBITDA > 3.5X growth a a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix $0M $500M $1,000M $1,500M $2,000M 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Dividends Repurchases Return of Capital Nearly $1.9B cumulative since 2011 ©2025 InterDigital, Inc. All Rights Reserved. 34

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 36 Our Technologies Benefit the Economy and the World Source: GSMA The Mobile Economy 2024 5.6 billion people globally subscribed to a mobile service, including 4.7 billion who used the mobile internet Mobile technologies and services generate $5.7 trillion economic value, 5.4% of global GDP Enables 35 million jobs across the wider mobile ecosystem 5G is projected to add nearly $1 trillion to the global economy in 2030

2/6/2025 37 We Address Three Attractive Markets Sources: Counterpoint Research, OMDIA 1 Includes only value for Consumer Electronics and IoT Devices Market 2025E TAM Key Market Dynamic ’25 – ’28E CAGR Significant Customers CONTENT & CLOUD SERVICES ~$430B High growth with increasing focus on profitability ~8% <20 CE, IoT/AUTO ~1.6B Units (~$400B)1 High shipment growth with fragmentation across segments ~6% ~100 ~1.3B Units (~$470B) Increasing concentration of top OEMs SMARTPHONES ~3% <10 ©2025 InterDigital, Inc. All Rights Reserved.

2/6/2025 38 Clear Pathway to Growth 2024 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 G r o w v i d e o s e r v i c e s l i c e n s i n g p r o g r a m $317M ~$500M $89M ~$200M $0 ~$300M+ $1B+ A R R T a r g e t 2030 (by 2027) ©2025 InterDigital, Inc. All Rights Reserved.

~70%~25% ~5% Strong Runway for Continued Smartphone Growth 1.3B global device shipments 2025 Long Tail Primary Opportunity Licensed1 Long Tail 1. Samsung and Lenovo in binding arbitration • Large global market, projected to grow with 3% CAGR 2025-28 • Revenue growth from licensing remaining top OEMs • Driving higher value from key accounts during renewal S M A R T P H O N E S G L O B A L M A R K E T 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 39 Source: Counterpoint Research

Good Momentum in CE - Large Opportunity Remains Licensing coverage for PCs and Tablets based on HEVC - e.g. Amazon licensed for WLAN Licensing coverage for TVs based on our DTV patents – e.g. LG licensed for HEVC and VVC Deals with major OEMs such as Apple, Samsung, Lenovo, Sony, LG Licensed % global device shipments P C s : 2 9 8 M 2 0 2 5 Proof of our robust video coding portfolio, including HEVC patents that have driven successful outcomes with enforcement Approx. 40% licensing coverage across these sectors, aiming to grow T A B L E T S : 1 2 1 M 2 0 2 5 T V s : 2 1 4 M 2 0 2 5 % global device shipments % current focus area1 shipments 36% 53% 11% 51% 72%11% 17% 30% 62% 9% Primary Opportunity Long Tail 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 40 1 Current focus area for Madison Program is North America, Europe, Japan and Korea. Source: Omdia

Strong Growth Opportunity in Automotive and IoT Sources: Counterpoint Research, Omdia 2025E 2028E ~60 ~80 2025E 2028E Others Healthcare Enterprise Industrial PoS Smart Meters Asset Tracking ~250 ~350 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 41 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 ) C E L L U L A R I O T S H I P M E N T S ( M ) Active Licensing Program CAGR ~15% 5G 4G CAGR ~10% ~85% of 4G auto market licensed 5G auto market driving value growth

2/6/2025 42 SVoD and AVoD Are Our Focus Verticals Source: OMDIA 2025 TAM 2028 TAM TAM CAGR $270 B $160 B $190 B $180 B $170 B $18 B $21 B $5 B $6 B +13% +10% +5% +5% -1% SVoD AVoD GLOBAL PAY-TV VIDEO CONFERENCING CLOUD GAMING ©2025 InterDigital, Inc. All Rights Reserved. $360 B

Capital Allocation Priorities Strong cash flow maintains balance sheet strength, funds organic investment in research, and enables significant share reduction Maintain fortress balance sheet Financial strength is a strategic asset Organic investment in business Reinvest ~50% of recurring revenue into research and IP portfolio Inorganic investment Opportunistic and strategic Return Excess cash to shareholders $1.3B+ in share repurchases since ‘11 Dividend increase of 33% announced Feb ‘25 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 43

Target Financial Model for 2030 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 44 60%+ Powerful Operating Leverage drives Adjusted EBITDA Margina Target $1B+ Annual Recurring Revenue 14%+ Annual Growth Target High Margin Drives Strong Cash Flow $600M+ Adjusted EBITDAa Target Well positioned to drive value going forward a Non-GAAP financial measure. Refer to appendix. Calculated based on an assumed 60% Adjusted EBITDA margin.

2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 45 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 ARR to $1B+ target by 2030 Our technologies are critical to devices and services of multiple industries, giving us large addressable markets

Non-GAAP Financial Measures 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 47 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 revenues. 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 each of these metrics to its most directly comparable GAAP financial measure is provided below. Non-GAAP net income, Non-GAAP earnings per share (“EPS”), and Non-GAAP weighted-average dilutive 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, depreciation and 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 number of common shares outstanding–diluted, 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 from operating activities less purchases of property and equipment 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 from operating activities, the most directly comparable GAAP financial measure, is provided below.

Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 48 (In millions) 2020 2021 2022 2023 2024 Q4'24 Q4'23 Q4'24 Full Year 2024 Q1'25 Full Year 2025 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 133$ 39$ $118 - $126 $343 - $351 $19 - $26 $224 - $319 Net loss attributable to non-controlling interest (7) (13) (2) (3) - - - - - - - Income tax (provision) benefit (7) 15 26 24 71 20 (6) 24 - 26 75 - 77 5 56 Other income (expense) & interest expense 24 14 33 (13) 10 9 (8) 1 2 - (2) Depreciation and amortization 81 78 79 78 70 18 19 18 70 18 78 Share-based compensation 10 29 22 36 46 18 9 19 47 11 44 Other operating items 9 30 3 10 (4) - - - (4) - - Adjusted EBITDA 155$ 208$ 255$ 345$ 551$ 198$ 53$ $180 - $190 $533 - $543 $53 - $60 $400 - $495 Adjusted EBITDA Margin 43% 49% 56% 63% 63% 78% 51% 76% 63% 50% 63% Other Operating Items Restructuring - 28 3 - - - - - - - - Other non-cash charges 9 - - 3 - - - - - - - Non-Recurring Personnel-Related - 2 - - - - - - - - - Net Litigation Fee Reimbursement - - - 8 (4) - - - (4) - - Total Other Operating Items 9$ 30$ 3$ 10$ (4)$ -$ -$ -$ (4)$ -$ -$ NOTE: Sums may not equal total due to rounding Three Months EndedFull Year Outlook

Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 49 (In millions, except per share data) 2020 2021 2022 2023 2024 Q4'24 Q4'23 Q4'24 Full Year 2024 Q1'25 Full Year 2025 Net income attributable to InterDigital, Inc. 45$ 55$ 94$ 214$ 359$ 133$ 39$ $118 - $126 $343 - $351 $19 - $26 $224 - $319 Share-based compensation 10 29 22 36 46 18 9 19 47 11 44 Acquisition related amortization 44 42 42 41 33 8 10 33 33 9 35 Other operating items 9 30 3 10 (4) - - - (4) - - Other non-operating items (4) (11) 13 (14) (2) - (5) (2) (2) - - Related income tax and noncontrolling interest effect of above items (12) (26) (17) (17) (15) (5) (3) (11) (16) (4) (17) Adjustments to income taxes (21) (2) (2) (16) (7) (3) (13) (2) (2) - - Non-GAAP net income 70$ 117$ 155$ 254$ 409$ 151$ 37$ $155 - $163 $399 - $407 $35 - $42 $286 - $381 Weighted average dilutive shares - GAAP 31.1 31.3 30.5 28.1 29.7 32.6 27.6 31.6 29.5 33.0 33.0 Less: Dilutive impact of the Convertible Notes - - - 0.5 2.4 3.3 1.2 3.0 2.3 3.5 3.5 Weighted average dilutive shares - Non-GAAP 31.1 31.3 30.5 27.6 27.3 29.2 26.5 28.6 27.2 29.5 29.5 Diluted EPS 1.44$ 1.77$ 3.07$ 7.62$ 12.07$ 4.09$ 1.41$ $3.72 - 3.98 $11.63 - 11.90 $0.58 - 0.79 $6.79 - 9.67 Non-GAAP EPS 2.27$ 3.73$ 5.08$ 9.23$ 14.97$ 5.15$ 1.41$ $5.42 - 5.70 $14.69 - 14.99 $1.19 - 1.42 $9.69 - 12.92 Other Operating Items Restructuring - 28 3 - - - - - - - - Other non-cash charges 9 - - 3 - - - - - - - Non-recurring personnel-related - 2 - - - - - - - - - Net litigation fee reimbursement - - - 8 (4) - - - (4) - - Total Other Operating Items 9$ 30$ 3$ 10$ (4)$ -$ -$ -$ (4)$ -$ -$ Other Non-operating Items Fair value changes (4) (9) 2 (10) (2) - (5) (1) (1) - - Loss on extinguishment of debt - - 11 - - - - - - - - Other non-cash charges - (2) - (4) - - - (1) (1) - - Total Other Non-operating Items (4)$ (11)$ 13$ (14)$ (2)$ -$ (5)$ (2)$ (2)$ -$ -$ NOTE: Sums may not equal total due to rounding Three Months EndedFull Year Outlook

Non-GAAP Reconciliation 2/6/2025©2025 InterDigital, Inc. All Rights Reserved. 50 Cash Flow Data: Q4 Full Year Net cash provided by operating activities 192$ 272$ Purchases of property and equipment (4) (6) Capitalized patent costs (19) (53) Free cash flow $ 169 $ 213 NOTE: Sums may not equal total due to rounding 2024

Cover	Feb. 06, 2025
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 06, 2025
Entity Registrant Name	INTERDIGITAL, INC.
Entity Central Index Key	0001405495
Amendment Flag	false
Entity Incorporation, State or Country Code	PA
Entity File Number	1-33579
Entity Tax Identification Number	82-4936666
Entity Address, Address Line One	200 Bellevue Parkway
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19809-3727
City Area Code	302
Local Phone Number	281-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	IDCC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

IDCC InterDigital Inc