Recent News
January 21, 2026 — InterDigital signed a patent license agreement with LG Electronics announcing a multi-year arrangement. January 20, 2026 — management issued a full-year 2026 outlook outlining revenue guidance and risks. Early 2026 — InterDigital renewed a multi-year license with a major Chinese vendor and reported a renewed license with Xiaomi at the start of the year.
Technical Analysis
Directional indicators: ADX at 12.48 indicates no strong underlying trend; both DI+ (19.29) and DI- (16.74) show directional pressure toward the downside because DI+ has decreased while DI- displayed a dip-and-reverse pattern (DI- increasing), which amplifies near-term bearish directional bias despite the lack of trend strength.
MACD and momentum: MACD sits at 4.89 and declines while the signal line rests at 6.66; the MACD below its signal line and falling signals bearish momentum and a waning upside impulse relative to recent price action.
MRO and target gap: The Momentum/Regression Oscillator reads 31.62 and decreases; a positive MRO indicates price sits above the calculated target and therefore carries mean-reversion pressure that favors a likely price pullback toward fair-value levels unless offset by fresh licensing catalysts.
RSI and volatility: RSI at 52.33 and decreasing points to fading internals from neutral territory rather than oversold or overbought extremes; decreasing short-term momentum aligns with the MACD signal and suggests consolidation with a slight downside tilt.
Price structure and averages: The last close of $359.07 sits below the 20-day average ($367.63) but above the 50-day ($343.69) and 200-day ($309.81) averages; the 12-day EMA ( $364.10 ) declines, indicating short-term weakness layered on longer-term support. Price trades marginally below the 1x lower Bollinger band ($359.86), reflecting compressed volatility and a potential for volatility-driven mean reversion if licensing news fails to accelerate.
Fundamental Analysis
Revenue and growth: Trailing revenue totaled $158,230,000 with reported revenue growth at -3.92% and revenue growth quarter-over-quarter of -91.33%; the supplied year-over-year revenue change shows -104.06% as reported. Those figures indicate highly lumpy licensing recognition across periods, consistent with catch-up and one-time licensing receipts referenced in company commentary.
Profitability and margins: Gross margin stands at 79.56% and operating margin at 30.20%; EBIT margin of 38.39% sits above the industry peer mean of 26.27%, reflecting high-margin intellectual-property economics, even though EBIT margin contracted quarter-over-quarter by 26.49% and year-over-year by 40.96%.
Earnings and cash flow: Reported EPS of $2.12 exceeded the estimate of $1.78 by $0.34, an EPS surprise of 19.10%. Operating cash flow reached $63,391,000 and free cash flow totaled $48,138,000, but free cash flow yield equals 0.57% and fell markedly quarter-over-quarter and year-over-year per the supplied figures, signaling lower cash conversion relative to recent periods.
Leverage and liquidity: Cash and short-term investments total $1,243,160,000 and cash ratio reads 1.65; current ratio equals 1.84, slightly above the industry peer mean of 1.77. Debt-to-assets equals 23.65%, modestly above the industry peer mean of 21.55%, while debt-to-EBITDA sits at 6.04, reflecting leverage sensitivity if licensing receipts prove lumpy.
Valuation metrics: Price-to-earnings stands at 155.84 and price-to-book at 7.71; both metrics place valuation rich relative to typical peer measures — P/B slightly above the industry peer mean of 7.24 and P/E above the industry peer mean of 102.94. The enterprise value to revenue and enterprise multiple measures also present elevated multiples consistent with a premium applied to a high-margin IP licensing model.
WMDST valuation view: The current valuation as determined by WMDST classifies the stock as over-valued given stretched multiples and materially lower free-cash-flow yield despite robust margins and recent licensing momentum.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 848.6 M |
| Operating Cash Flow | $ 63.4 M | |
| Capital Expenditures | $ -15.25 M | |
| Change In Working Capital | $ 58.2 M | |
| Dividends Paid | $ -18.04 M | |
| Cash Flow Delta | $ -94.36 M | |
| End Period Cash Flow | $ 754.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 158.2 M | |
| Forward Revenue | $ 67.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 32.3 M | |
| Depreciation | $ 20.0 M | |
| Depreciation and Amortization | $ 20.0 M | |
| Research and Development | $ 57.3 M | |
| Total Operating Expenses | $ 110.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 125.9 M | |
| EBITDA | $ 80.8 M | |
| EBIT | $ 60.7 M | |
| Operating Income | $ 47.8 M | |
| Interest Income | $ 12.4 M | |
| Interest Expense | $ 10.5 M | |
| Net Interest Income | $ 1.9 M | |
| Income Before Tax | $ 50.2 M | |
| Tax Provision | $ 7.2 M | |
| Tax Rate | 14.404 % | |
| Net Income | $ 43.0 M | |
| Net Income From Continuing Operations | $ 43.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.78 | |
| EPS Actual | $ 2.12 | |
| EPS Difference | $ 0.34 | |
| EPS Surprise | 19.101 % | |
| Forward EPS | $ 2.86 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.1 B | |
| Intangible Assets | $ 342.8 M | |
| Net Tangible Assets | $ 758.3 M | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 739.0 M | |
| Net Receivables | $ 69.8 M | |
| Inventory | — | |
| Long-Term Investments | $ 23.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 10.0 M | |
| Short-Term Debt | $ 458.4 M | |
| Total Current Liabilities | $ 752.5 M | |
| Net Debt | — | |
| Total Debt | $ 488.2 M | |
| Total Liabilities | $ 963.2 M | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 2.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.87 | |
| Shares Outstanding | 25.685 M | |
| Revenue Per-Share | $ 6.16 | |
| VALUATION | Market Capitalization | $ 8.5 B |
| Enterprise Value | $ 7.7 B | |
| Enterprise Multiple | 95.699 | |
| Enterprise Multiple QoQ | 34.419 % | |
| Enterprise Multiple YoY | 324.918 % | |
| Enterprise Multiple IPRWA | high: 162.94 IDCC: 95.699 median: 65.64 mean: 57.519 low: -131.326 |
|
| EV/R | 48.86 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.875 | |
| Asset To Liability | 2.143 | |
| Debt To Capital | 0.307 | |
| Debt To Assets | 0.236 | |
| Debt To Assets QoQ | 3.742 % | |
| Debt To Assets YoY | -4.871 % | |
| Debt To Assets IPRWA | high: 0.485 IDCC: 0.236 median: 0.232 mean: 0.215 low: 0.023 |
|
| Debt To Equity | 0.443 | |
| Debt To Equity QoQ | -0.011 % | |
| Debt To Equity YoY | -16.713 % | |
| Debt To Equity IPRWA | high: 3.018 median: 0.599 mean: 0.556 IDCC: 0.443 low: 0.032 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.707 | |
| Price To Book QoQ | 2.04 % | |
| Price To Book YoY | 43.509 % | |
| Price To Book IPRWA | high: 23.793 IDCC: 7.707 mean: 7.242 median: 5.824 low: -3.96 |
|
| Price To Earnings (P/E) | 155.844 | |
| Price To Earnings QoQ | 23.334 % | |
| Price To Earnings YoY | 255.599 % | |
| Price To Earnings IPRWA | high: 283.513 IDCC: 155.844 mean: 102.943 median: 55.371 low: -106.255 |
|
| PE/G Ratio | -9.242 | |
| Price To Sales (P/S) | 53.631 | |
| Price To Sales QoQ | 6.312 % | |
| Price To Sales YoY | 194.521 % | |
| Price To Sales IPRWA | IDCC: 53.631 high: 18.342 median: 18.342 mean: 13.685 low: -21.103 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 118.943 | |
| Forward PE/G | -7.053 | |
| Forward P/S | 125.682 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.497 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.075 | |
| Asset Turnover Ratio QoQ | -5.735 % | |
| Asset Turnover Ratio YoY | -46.982 % | |
| Asset Turnover Ratio IPRWA | high: 0.274 mean: 0.141 median: 0.126 IDCC: 0.075 low: -0.072 |
|
| Receivables Turnover | 1.373 | |
| Receivables Turnover Ratio QoQ | 129.035 % | |
| Receivables Turnover Ratio YoY | 8.833 % | |
| Receivables Turnover Ratio IPRWA | high: 3.545 mean: 2.103 median: 1.902 IDCC: 1.373 low: -0.557 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 66.451 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 22.104 | |
| Cash Conversion Cycle Days QoQ | -81.495 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 244.291 mean: 106.656 median: 48.986 IDCC: 22.104 low: -114.906 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.249 | |
| CapEx To Revenue | -0.096 | |
| CapEx To Depreciation | -0.761 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 758.3 M | |
| Net Working Capital | $ 635.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.652 | |
| Current Ratio | 1.844 | |
| Current Ratio QoQ | -2.201 % | |
| Current Ratio YoY | 8.768 % | |
| Current Ratio IPRWA | high: 3.876 IDCC: 1.844 mean: 1.77 median: 1.294 low: 0.733 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.043 | |
| Cost Of Debt | 1.848 % | |
| Interest Coverage Ratio | 5.765 | |
| Interest Coverage Ratio QoQ | -32.832 % | |
| Interest Coverage Ratio YoY | -60.242 % | |
| Interest Coverage Ratio IPRWA | high: 184.33 mean: 28.037 median: 10.689 IDCC: 5.765 low: -4.065 |
|
| Operating Cash Flow Ratio | 0.206 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 44.348 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.382 | |
| Dividend Payout Ratio | 0.42 | |
| Dividend Rate | $ 0.70 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.515 % | |
| Revenue Growth | -3.918 % | |
| Revenue Growth QoQ | -91.335 % | |
| Revenue Growth YoY | -104.062 % | |
| Revenue Growth IPRWA | high: 26.864 % mean: 6.575 % median: 5.944 % IDCC: -3.918 % low: -16.792 % |
|
| Earnings Growth | -16.863 % | |
| Earnings Growth QoQ | -72.306 % | |
| Earnings Growth YoY | -106.517 % | |
| Earnings Growth IPRWA | high: 220.0 % mean: 8.646 % median: -5.882 % IDCC: -16.863 % low: -130.769 % |
|
| MARGINS | ||
| Gross Margin | 79.561 % | |
| Gross Margin QoQ | -9.619 % | |
| Gross Margin YoY | -13.594 % | |
| Gross Margin IPRWA | IDCC: 79.561 % high: 65.477 % median: 62.859 % mean: 57.285 % low: 17.052 % |
|
| EBIT Margin | 38.385 % | |
| EBIT Margin QoQ | -26.492 % | |
| EBIT Margin YoY | -40.963 % | |
| EBIT Margin IPRWA | high: 41.519 % IDCC: 38.385 % mean: 26.273 % median: 25.136 % low: -19.959 % |
|
| Return On Sales (ROS) | 30.2 % | |
| Return On Sales QoQ | -34.395 % | |
| Return On Sales YoY | -53.551 % | |
| Return On Sales IPRWA | high: 41.519 % IDCC: 30.2 % mean: 24.973 % median: 23.584 % low: -19.959 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 48.1 M | |
| Free Cash Flow Yield | 0.567 % | |
| Free Cash Flow Yield QoQ | -87.634 % | |
| Free Cash Flow Yield YoY | -84.131 % | |
| Free Cash Flow Yield IPRWA | high: 8.108 % mean: 1.294 % median: 1.058 % IDCC: 0.567 % low: -8.625 % |
|
| Free Cash Growth | -87.361 % | |
| Free Cash Growth QoQ | -127.65 % | |
| Free Cash Growth YoY | -156.784 % | |
| Free Cash Growth IPRWA | high: 590.091 % mean: 4.123 % median: -1.066 % IDCC: -87.361 % low: -565.4 % |
|
| Free Cash To Net Income | 1.12 | |
| Cash Flow Margin | 97.818 % | |
| Cash Flow To Earnings | 3.602 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.044 % | |
| Return On Assets QoQ | -37.569 % | |
| Return On Assets YoY | -72.659 % | |
| Return On Assets IPRWA | high: 5.098 % mean: 2.836 % median: 2.35 % IDCC: 2.044 % low: -5.372 % |
|
| Return On Capital Employed (ROCE) | 4.63 % | |
| Return On Equity (ROE) | 0.039 | |
| Return On Equity QoQ | -36.418 % | |
| Return On Equity YoY | -74.871 % | |
| Return On Equity IPRWA | high: 0.23 mean: 0.066 median: 0.061 IDCC: 0.039 low: -0.452 |
|
| DuPont ROE | 3.904 % | |
| Return On Invested Capital (ROIC) | 3.299 % | |
| Return On Invested Capital QoQ | -32.063 % | |
| Return On Invested Capital YoY | -111.581 % | |
| Return On Invested Capital IPRWA | high: 7.017 % mean: 4.474 % median: 4.209 % IDCC: 3.299 % low: -8.444 % |
|