Revenue: As of FY2026 Q1, the actual value is USD 205.42 M, beating the estimate of USD 196.9 M.EPS: As of FY2026 Q1, the actual value is USD 2.14, beating the estimate of USD 1.71.EBIT: As of FY2026 Q1, the actual value is USD 84.73 M.<h3>First Quarter 2026 Financial Summary</h3><h4>Revenue</h4><ul><li>Total Revenue for Q1 2026 was $205.4 million, representing a -2% decrease from $210.5 million in Q1 2025, but exceeded the outlook range of $194 million to $200 million .</li><li>Annualized recurring revenue (ARR) increased by 13% year-over-year to $567.2 million in Q1 2026, up from $502.9 million in Q1 2025 .</li><li>Catch-up revenue was $63.6 million in Q1 2026, a -25% decrease from $84.8 million in Q1 2025 .</li></ul><h4>Revenue by Program</h4><ul><li>Smartphone revenue was $123.4 million in Q1 2026, a -33% decrease from $184.0 million in Q1 2025 .</li><li>CE, IoT/Auto revenue significantly increased by 212% to $81.9 million in Q1 2026, compared to $26.3 million in Q1 2025 .</li><li>Other revenue was $0.1 million in Q1 2026, a -46% decrease from $0.2 million in Q1 2025 .</li></ul><h4>Operational Metrics</h4><ul><li>Operating expenses increased by 57% to $123.2 million in Q1 2026 from $78.7 million in Q1 2025, primarily due to increased revenue share costs and intellectual property enforcement costs .<ul><li>Research and portfolio development expenses were $55.835 million in Q1 2026, up from $47.430 million in Q1 2025 .</li><li>Licensing expenses were $52.119 million in Q1 2026, significantly higher than $17.677 million in Q1 2025 .</li><li>General and administrative expenses were $15.201 million in Q1 2026, compared to $13.568 million in Q1 2025 .</li></ul></li><li>Net income decreased by -35% to $75.3 million in Q1 2026 from $115.6 million in Q1 2025 .</li><li>Net income margin was 37% in Q1 2026, a decrease of -18 percentage points from 55% in Q1 2025 .</li><li>Adjusted EBITDA was $111.8 million in Q1 2026, a -30% decrease from $159.1 million in Q1 2025, and surpassed the outlook of $101 million to $110 million .</li><li>Adjusted EBITDA margin was 54% in Q1 2026, a decrease of -22 percentage points from 76% in Q1 2025 .</li><li>Non-GAAP Net income was $79.4 million in Q1 2026, a -37% decrease from $125.7 million in Q1 2025 .</li><li>Diluted EPS reached $2.14, which was above the guidance range of $1.61 to $1.86 .</li><li>Non-GAAP EPS was $2.57, within the outlook range of $2.39 to $2.68, and declined by 39% year-over-year .</li></ul><h4>Cash Flow</h4><ul><li>Net cash provided by operating activities was $16.081 million in Q1 2026, compared to net cash used in operating activities of -$19.989 million in Q1 2025 .</li><li>Net cash provided by investing activities was $16.406 million in Q1 2026, down from $59.508 million in Q1 2025 .</li><li>Net cash used in financing activities was -$169.165 million in Q1 2026, compared to -$42.951 million in Q1 2025 .</li><li>Net decrease in cash, cash equivalents, and restricted cash was -$136.678 million in Q1 2026, compared to -$3.432 million in Q1 2025 .</li><li>Cash, cash equivalents, and restricted cash at the end of Q1 2026 was $617.590 million, down from $548.115 million at the end of Q1 2025 .</li><li>InterDigital, Inc. maintained a strong balance sheet with $1.1 billion in cash .</li></ul><h4>Return of Capital</h4><ul><li>InterDigital, Inc. returned $114.3 million in capital during Q1 2026, including $8.2 million in share repurchases, $18.1 million in dividends declared, and $88.0 million in reduction of debt .</li></ul><h4>2025 Financial Results</h4><ul><li>InterDigital, Inc. reported $834 million in revenue for 2025 .</li><li>Adjusted EBITDA for 2025 was $589 million, with an Adjusted EBITDA margin of 71% .</li><li>Non-GAAP EPS for 2025 was $15.31 .</li><li>Over $800 million was returned to shareholders in 2025, with share repurchases and dividends amounting to $589 million and $145 million, respectively, leading to a share count decrease of more than 16% .</li></ul><h4>Operational Highlights</h4><ul><li>InterDigital, Inc. signed six new agreements in Q1 2026, including a renewal with Xiaomi and a new license with LG Electronics covering TVs &amp; computer displays .</li><li>Smartphone ARR reached an all-time high of $491.8 million, an 18% increase year-over-year .</li><li>The company was ranked among the top five US companies in 2025 for patent applications by the European Patent Office and was recognized by LexisNexis as one of the world’s 100 most innovative companies for the fifth consecutive year .</li><li>InterDigital, Inc. was promoted to the S&amp;P MidCap 400 from the S&amp;P SmallCap 600 .</li></ul><h4>Outlook / Guidance</h4>InterDigital, Inc. reaffirmed its full year 2026 guidance and provided an initial outlook for Q2 2026, noting that the Q2 outlook covers existing licenses while the full year outlook includes expected contributions from new agreements or enforcement actions . For Q2 2026, revenue is projected to be $139 million - $143 million, Adjusted EBITDA is expected to be $67 million - $73 million, Diluted EPS is forecast between $0.80 and $0.97, and Non-GAAP EPS is forecast between $1.41 - $1.60 . The full year 2026 outlook projects revenue of $675 million - $775 million, Adjusted EBITDA of $381 million - $477 million, Diluted EPS of $5.77 to $8.51, and Non-GAAP EPS of $8.74 - $11.84 . Additionally, InterDigital, Inc. targets over $1 billion in Annualized Recurring Revenue, over $600 million in Adjusted EBITDA with a 60%+ margin, and over 10% annual growth by 2030 .

InterDigital Comm | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 205.42 M