InterDigital, Inc.

Q2 revenue was $260.2 million versus guidance of $139 million to $143 million; revenue included $103.7 million of catch-up revenue. Adjusted EBITDA was $184.1 million, with a 71% margin, and non-GAAP EPS was $4.62; GAAP diluted EPS was $3.40. ARR rose 13% year over year to a record $625.7 million. By program, smartphone revenue was $122.7 million, CE/IoT/auto revenue was $27.5 million, and streaming/cloud services contributed $110 million. Cash from operations was $82.5 million and free cash flow was $66.6 million; the company ended the quarter with $1.1 billion of cash, cash equivalents and short-term investments. For Q3, management expects revenue of $154 million to $158 million from existing contracts, adjusted EBITDA margin of about 57%, and non-GAAP EPS of $1.94 to $2.13. Full-year 2026 guidance was raised to revenue of $775 million to $845 million, adjusted EBITDA of $469 million to $529 million, and non-GAAP EPS of $10.85 to $12.81.

Liren Chen framed the quarter as an “outstanding” one and emphasized momentum across licensing, enforcement and standards leadership. He highlighted the Amazon agreement as a major milestone for streaming/cloud licensing and said InterDigital remains on track toward a $300 million plus ARR goal from that program by 2030, while also stressing that the company’s target is a “plus” sign, not a hard ceiling. He also pointed to the Disney injunctions, new IoT deals, and continued investment in wireless, video and AI research as evidence that the portfolio is gaining traction across multiple markets.

Rich Brezski emphasized the operating leverage in the business and tied the quarter’s performance to the Amazon milestone and strong collections. He cited $260.2 million of revenue, $184.1 million of adjusted EBITDA, a 71% margin, $82.5 million of cash from operations, and $66.6 million of free cash flow, along with $41.1 million returned to shareholders via $23 million of buybacks and $18 million of dividends. He also said Q3 should deliver $154 million to $158 million of revenue from existing contracts and that full-year guidance is now $775 million to $845 million of revenue, $469 million to $529 million of adjusted EBITDA, and $10.85 to $12.81 of non-GAAP EPS.

Analysts focused heavily on the Amazon arbitration, whether the streaming market opportunity could expand beyond the $300 million plus ARR framework, and what the Disney injunctions mean operationally. Management said Amazon is a major milestone, that the company is proceeding with other major streaming negotiations, and that the market estimate was always meant as a milestone rather than a ceiling. On Disney, management said the UPC injunctions are being enforced and that third-party reports suggest some premium services in Europe, including 4K HD content, have been disrupted, reinforcing the value of InterDigital’s patents. Questions also covered litigation costs and capital allocation; Brezski said arbitration should make Amazon enforcement more efficient, but other enforcement actions remain active, and he reiterated that the company is balancing growth investment, a strong balance sheet, and shareholder returns.