InterDigital combines genuinely exceptional business quality — 44% gross margins, free cash flow converting at 126% of net income, and a four-quarter earnings beat streak averaging 35% upside to consensus — with the market pricing in uncertainty via a 12% short interest and a declining revenue trend, creating a 36% gap to analyst targets that represents a meaningful opportunity if the revenue trajectory stabilizes.
Thesis pillars
- Declining Revenue Growth Headwind↑Improving
- Exceptional Cash Generation Margins→Stable
- Four Quarter Beat Streak→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 5, 2026· older than 90 days
InterDigital, Inc. (IDCC) Stock Analysis
Technology · Software - Application
Hold if already holding. Not a fresh buy at $313.60, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Elevated risk factors.
InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses them to device makers and service providers worldwide, generating $834.0 million in revenue in 2025. Samsung, Apple, and vivo each comprised 10% or more of 2025... Read more
Hold if already holding. Not a fresh buy at $313.60, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Elevated risk factors. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 6.3/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 92d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
About InterDigital, Inc.
About InterDigital, Inc.
Samsung, Apple, and vivo each comprised 10% or more of InterDigital's $834.0 million in 2025 consolidated revenue — the company's three largest licensees disclosed in descending order. InterDigital holds more than 38,000 patents spanning 3G through 5G cellular, Wi-Fi, HEVC, and VVC video standards. A July 2025 International Chamber of Commerce arbitration panel set Samsung's royalties at $1.05 billion for the eight-year patent license running January 1, 2023 through December 31, 2030, generating approximately $131 million of recurring annual revenue.
InterDigital earns revenue primarily from fixed-fee patent license agreements, with a smaller portion from variable royalty and hybrid arrangements that include catch-up payments for prior unlicensed periods when new agreements execute. The company covers roughly 85% of the global smartphone market under license and approximately 60% of the tablets and personal computers market. License agreements are in place with Apple (through September 30, 2029), vivo (through June 30, 2028), and other major manufacturers including Samsung, Google, Honor, and Lenovo. A joint licensing program with Sony — the Madison Arrangement — combines their respective digital television and computer display monitor patents for joint licensing; the Samsung TV agreement under that arrangement expired December 31, 2025 and is being actively renewed. InterDigital also pursues video services licensing targeting SVOD and AVOD markets; in 2025 the company initiated patent infringement actions against Disney and Amazon, and courts in Brazil and Germany awarded injunctions against Disney video streaming services.
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InterDigital's revenue is subject to renewal risk across its concentrated licensee base. The Samsung TV agreement expiration on December 31, 2025 creates a gap period in which TV-related Samsung revenue cannot be recognized until renewal is completed. The Apple agreement expires September 30, 2029 and will require renegotiation before that date. The 10-K notes that in 2025, Samsung, Apple, and Xiaomi collectively accounted for over 50% of worldwide smartphone shipments, meaning that the commercial health of these three device makers directly shapes the royalty base. If any court or arbitration tribunal sets a worldwide royalty rate unfavorable to InterDigital, the standard-essential patent portfolio could be significantly devalued relative to FRAND royalty benchmarks.
See also: Technology · Software - Application
From InterDigital, Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated Oct 31, 2026Recent Developments — InterDigital, Inc.
Latest news
- NEWS InterDigital (IDCC) Stock Drops As Strong Q3 Results Meet Q4 Margin Questions - Yahoo Finance — Yahoo Finance Oct 31, 2026 negative
- NEWS InterDigital (IDCC) Stock Price Retreats As Q3 Results Revive Margin Concerns - Simply Wall St — Simply Wall St Oct 31, 2026 negative
- NEWS InterDigital Q3 2026 Earnings Call Transcript — benzinga Oct 29, 2026 neutral
- NEWS InterDigital Reports Third Quarter 2026 Financial Results and Updated Guidance — fiscal.ai Oct 29, 2026
- NEWS Is InterDigital (IDCC) Undervalued On Its Brazil Patent Win? - Simply Wall St — Simply Wall St Oct 28, 2026 positive
Latest item Oct 31, 2026 · Generated 2026-11-04T11:34:31Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerSamsung10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
- LOWCustomerApple10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
- LOWCustomervivo10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
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Price Targets
Position Sizing
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Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $313.60, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Elevated risk factors. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Analyst target $393.27 (+25.4%), stop $297.06 (−5.6%), A.R:R 3.1:1. Score 6.3/10, moderate confidence.
Analyst target: $393.27 (+25.4% upside). Analyst target $393.27 (+25.4%), stop $297.06 (−5.6%), A.R:R 3.1:1. Stop-loss: $297.06.
Sector modifier (Technology): -0.8; Elevated risk factors; Below 200-MA (3d, -0.9%).
InterDigital, Inc. trades at a P/E of 34.9 (forward 31.0). TrendMatrix value score: 4.8/10. Verdict: Hold.
11 analysts rate IDCC, with a consensus score of 4.5/5. 3 analysts publish price targets averaging $463.
What does InterDigital, Inc. do?InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses...
InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses them to device makers and service providers worldwide, generating $834.0 million in revenue in 2025. Samsung, Apple, and vivo each comprised 10% or more of 2025 consolidated revenue; a July 2025 ICC arbitration set Samsung's eight-year royalty at $1.05 billion through 2030. Revenue flows primarily from fixed-fee patent license agreements and variable royalty arrangements.