45867GAB7 Filings — Interdigital, Inc. - FilingSpy
45867GAB7
Interdigital, Inc.
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A research and patent licensing company whose inventions in wireless (3G through 6G, Wi-Fi) and video compression (HEVC, VVC, HDR) power the smartphones and streaming services most people use daily. It was founded in 1972 by Sherwin Seligsohn, who dreamed up a handheld wireless phone while stuck on an Atlantic City beach, and originally built phones under the name International Mobile Machines before shifting to pure licensing. Today its technology lives invisibly inside countless devices, and its patents are licensed through marketplaces like Avanci for cars and connected gadgets.
Q2 2026 revenue fell 13% to $260.2M as catch-up royalties dropped $58.6M, while a new Streaming and Cloud Services segment added $110.0M.
A new Streaming and Cloud Services contributed $110.0M as catch-up royalties fell. declined 13% to $260.2M and fell 36% to $3.40, with at 53.5% down 14.8 points on lower one-off royalties and higher enforcement costs. The business now rests on new agreements replacing expiring licenses and the deferred $325.7M revenue scheduled to amortize.
Key takeaways
The new Streaming and Cloud Services contributed $110.0M, primarily from the Amazon agreement, offsetting part of a $58.6M decline in that drove total down 13% to $260.2M versus a year ago and up 27% from Q1.
Operating expenses rose 27% to $120.9M, driven by a $13.5M increase in and a $12.3M increase in tied to business successes.
Smartphone fell 48% to $122.7M and CE, IoT/Auto fell 58% to $27.5M, while the Amazon-derived masked underlying base-business softness in those categories.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue fell 13% to $260M on lower catch-up revenue, partially offset by new agreements including Amazon.
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Total decreased $40.4M to $260.2M, driven by a $58.6M decline in , partially offset by from 13 new agreements signed since Q2 2025.
Smartphone fell 48% to $122.7M and CE, IoT/Auto fell 58% to $27.5M, while the new Streaming and Cloud Services contributed $110.0M, primarily from the Amazon agreement.
was $98.6M in H1 2026, up $13.5M , as higher cash receipts from new and existing agreements outweighed higher cash operating expenses.
The company returned $41.0M to shareholders via $23.0M repurchases and a $0.70 per share , a 17% increase from Q2 2025.
rose to $442.2M with $325.7M expected to be recognized over the next twelve months, reflecting front-loaded cash collections on patent license agreements.
What changed
The seven agreements covering 22% of that expired end of 2025 were not addressed in this filing; Q2 recurring revenue came from 13 agreements signed since Q2 2025 rather than a stated renewal outcome.
The deferred $46.2M Lenovo award remained unrecognized; the UK appeal was not cited as resolved in this quarterly update.
Operating expenses persisted at elevated levels — $120.9M in Q2 after $123.2M in Q1 — confirming the Q1 flagged watch that share and IP enforcement costs would not fade quickly.
The Streaming and Cloud Services is a new reporting line versus Q1 2026, when video services licenses (Disney, Amazon) were flagged as not yet signed; the Amazon agreement now contributes $110.0M.
rose from $420.5M in Q1 to $442.2M, with the twelve-month amount up from $261.1M to $325.7M.
What to watch
Q3 2026 excluding the Streaming and Cloud Services to confirm base-business trajectory after the 22%-of-recurring agreements expired.
Resolution of the UK Lenovo appeal and recognition of the deferred $46.2M award in 2026.
Whether operating expenses stay above $120M as IP enforcement for Disney, Amazon, and Transsion continues.
Conversion of the $325.7M into reported through Q2 2027 as scheduled.
Operating expenses rose 27% to $120.9M, driven by a $13.5M increase in intellectual property enforcement costs and a $12.3M increase in tied to business successes.
Cash provided by operating activities was $98.6M in H1 2026, up $13.5M , as higher cash receipts from new and existing agreements more than offset higher cash operating expenses.
The company returned $41.0M to shareholders in Q2 via $23.0M in share repurchases and an $0.70 per share , a 17% increase from Q2 2025.
rose to $442.2M, with $325.7M expected to be recognized over the next twelve months, reflecting front-loaded cash collections on patent license agreements.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in quantitative and qualitative market risk from the disclosures included in our 2025 Form 10-K. 34 Table of Contents
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There have been no material changes in quantitative and qualitative market risk from the disclosures included in our 2025 Form 10-K.
34
Table of Contents
See Note 6, “Litigation and Legal Proceedings,” to the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of legal proceedings, which is incorporated herein by reference.
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See Note 6, “Litigation and Legal Proceedings,” to the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of legal proceedings, which is incorporated herein by reference.
Reference is made to Part I, Item 1A, “Risk Factors” included in our 2025 Form 10-K for information concerning risk factors, which should be read in conjunction with the factors set forth in the Statement Pursuant to the Private Securities Litigation Reform Act of 1995 -- Forwar…
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Reference is made to Part I, Item 1A, “Risk Factors” included in our 2025 Form 10-K for information concerning risk factors, which should be read in conjunction with the factors set forth in the Statement Pursuant to the Private Securities Litigation Reform Act of 1995 -- Forward-Looking Statements in Part I, Item 2 of this Quarterly Report on Form 10-Q. There have been no material changes with respect to the risk factors disclosed in our 2025 Form 10-K. You should carefully consider such factors, which could materially affect our business, financial condition or future results. The risks described in the 2025 Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.