Recent News
Jan. 7, 2026 — InterDigital renewed a five-year, worldwide, non‑exclusive royalty-bearing license with a major Chinese vendor covering cellular, Wi‑Fi, and HEVC patents. Jan. 20, 2026 — InterDigital signed a new patent license agreement with LG Electronics covering digital TVs and computer monitors. Feb. 23, 2026 — the company announced a showcase of AI, wireless, and video demonstrations at Mobile World Congress 2026. Mar. 23, 2026 — S&P Dow Jones Indices added InterDigital to the S&P MidCap 400 in the March 23, 2026 rebalance.
Technical Analysis
Directional indicators show bearish dominance: DI+ at 12.84 is decreasing, while DI– at 28.32 is increasing, signaling downside-biased directional pressure; ADX at 25.88 signals a meaningful trend strength.
MACD sits negative at -11.02 and is declining, and it trades below the signal line (-3.92), indicating continuing bearish momentum.
MRO reads 3.7 (positive) and is decreasing, which indicates price currently sits modestly above the WMDST target and carries limited downside pressure toward the target.
RSI at 45.49 and declining shows weakening relative momentum but no oversold condition yet.
Price sits below major moving averages: close $301.25 versus the 20‑day average $337.42, 50‑day $346.00, and 200‑day $315.15, aligning near the lower Bollinger band (1× lower $307.61) and placing the super trend upper band $335.13 and the 20/50‑day averages as near-term resistance.
Fundamental Analysis
Profitability remains elevated on a margin basis: EBIT margin equals 38.39%. That margin sits above the industry peer mean of 26.24% and approaches the industry peer high of 41.52%, supporting a premium multiple despite recent margin deterioration QoQ and YoY (EBIT margin QoQ -26.49%; YoY -40.96%).
Top‑line dynamics show contraction: revenue growth QoQ -91.33% and revenue growth YoY -104.06%, with trailing revenue $158,230,000; the QoQ figure implies one-time timing or lapping effects that materially depressed quarter sequencing.
Earnings detail: reported EPS $2.12 versus estimate $1.78, an EPS surprise of 19.10% (difference $0.34), signaling a positive earnings beat even as YoY earnings growth shows decline. Operating cash flow $63,391,000 and free cash flow $48,138,000 deliver a free cash flow yield of 0.57% and free cash flow decline YoY of -84.13%, reflecting compression in cash conversion of recent periods.
Balance sheet and leverage: cash and short‑term investments total $1,243,160,000 with total debt $488,208,000, yielding a cash ratio of 165.20% and debt to EBITDA 6.04x. Liquidity metrics (current ratio 1.84) support coverage but the debt to EBITDA multiple highlights above‑average leverage relative to cash generation. Dividend metrics show a dividend rate $0.70239 and dividend yield ~0.21% with payout ratio 41.98%.
Market multiples appear rich: trailing P/E ~155.8 and forward P/E ~118.9; price‑to‑book ~7.71 slightly above the industry peer mean of 7.23; price‑to‑sales ~53.63 sits above the industry peer high of 42.55. The current valuation as determined by WMDST: over‑valued, reflecting elevated multiples versus fundamentals despite strong patent licensing indicators.
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: 57.463 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: 0.011 |
|
| 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: 0.554 IDCC: 0.443 low: 0.016 |
|
| 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: 7.231 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: 102.884 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: 42.552 median: 18.342 mean: 15.839 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: 0.142 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: 2.102 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: 106.589 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: 27.991 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: 6.59 % median: 5.944 % IDCC: -3.918 % low: -38.044 % |
|
| Earnings Growth | -16.863 % | |
| Earnings Growth QoQ | -72.306 % | |
| Earnings Growth YoY | -106.517 % | |
| Earnings Growth IPRWA | high: 220.0 % mean: 8.702 % 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 | high: 103.263 % IDCC: 79.561 % median: 62.859 % mean: 57.309 % 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: 26.24 % 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: 24.934 % 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: 1.29 % 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: 3.842 % median: -28.081 % 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: 2.813 % median: 2.35 % IDCC: 2.044 % low: -7.422 % |
|
| 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: 4.469 % median: 4.209 % IDCC: 3.299 % low: -8.444 % |
|