InterDigital Inc

InterDigital, Inc. reaffirmed its goal of exceeding $1 billion in annualized recurring revenue by 2030, as the company's patent-licensing momentum accelerates. At the IDEAS conference, CFO Rich Brezski reported more than $800 million in 2025 revenue, non-GAAP EPS above $15, a 71% adjusted EBITDA margin, and over $1 billion in cash. Annualized recurring revenue reached a record $626 million, up from $356 million in 2020, and the company has signed more than 60 licensing agreements worth roughly $5 billion over the past five years, including deals with Apple, Samsung, Amazon, Xiaomi, and LG. Smartphone recurring revenue is already near its 2027 target of $500 million, while streaming and cloud revenue is emerging following an Amazon agreement. The company also targets $600 million in adjusted EBITDA by 2030, based on a 60% margin.

InterDigital is expanding its technology licensing business beyond smartphones into cloud services, streaming, IoT, and emerging communications technologies. The company recently reached a milestone agreement with Amazon covering devices and services including Prime Video, and signed IoT agreements with a leading fintech company for payment terminals and with KEBA for EV chargers. InterDigital also secured two injunctions against Disney from Europe's Unified Patent Court covering video encoding patents across 11 European countries. The company continues to invest in AI, machine learning, advanced video technologies, and 6G networking to build new patent portfolios, while maintaining a leadership role in global standards organizations. The stock currently holds a Zacks Rank #1 (Strong Buy), though its Value Score of D, Growth Score of C, Momentum Score of F, and VGM Score of F indicate mixed valuation and momentum characteristics.

InterDigital raised its full-year 2026 revenue guidance to a range of $775 million to $845 million, increasing the midpoint by $85 million, following second-quarter results that beat expectations. The company reported revenue of $260.2 million and non-GAAP earnings per share of $4.62, while annualized recurring revenue reached a record $626 million, up 13% from a year earlier. Recent licensing agreements with Amazon covering devices and services including Prime Video, along with new IoT deals involving a leading fintech company and KEBA, expand its recurring royalty opportunities beyond smartphones. At June 30, 2026, InterDigital held more than $1.1 billion in cash and short-term investments, providing financial flexibility for research, intellectual property development, and shareholder returns. The stock trades at approximately 25.6 times trailing earnings and 9.9 times trailing sales, with a 6–12-month price target of $348.83, though customer concentration and licensing timing remain risks.

InterDigital has been awarded another injunction against Disney by the Unified Patent Court. The Düsseldorf Local Division ruled that Disney infringed an InterDigital patent covering video encoding techniques related to HEVC and confirmed the patent's validity. The injunction applies across 11 EU countries, including France, Germany and Italy, and Disney can appeal the decision. This is the second UPC injunction InterDigital has received against Disney over HEVC encoding, adding to earlier injunctions from national courts in Germany and Brazil over other technologies.

In June 2026, the Mannheim Local Division of the Unified Patent Court granted InterDigital an injunction against Walt Disney over alleged infringement of a video encoding patent used in streaming, applying across 11 EU countries and subject to appeal. This pan-European ruling adds to existing injunctions in Germany and Brazil, concentrating legal pressure on Disney's core video technologies across several key markets. The new injunction introduces a fresh layer of legal and operational risk around Disney's streaming tech stack, though modest recent share price moves suggest the market is not yet treating it as thesis-breaking. Even so, it could complicate one of Disney's key profit drivers if appeals or licensing outcomes do not go its way.