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↓Deteriorating
- Exceptional Cash Generation Margins→Stable
- Four Quarter Beat Streak→Stable
- +1 more pillar — see the Why tab for full reasoning
InterDigital, Inc. (IDCC) Stock Analysis
Falling Knife setup · Temporary headwind edge
Technology · Software - Application
Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $258.30 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings in 5 days (event risk); Weak growth.
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
Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $258.30 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings in 5 days (event risk); Weak growth. Chart setup: Death cross, below all MAs, RSI 29, MACD bearish. Score 5.3/10, moderate confidence.
Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 5d<=7d. 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 2026-07-26Recent Developments — InterDigital, Inc.
Latest news
- NEWS O Shaughnessy Asset Management LLC Sells 4,579 Shares of InterDigital, Inc. $IDCC - MarketBeat — MarketBeat neutral
- NEWS InterDigital (NASDAQ:IDCC) Stock Price Down 7% - Time to Sell? - MarketBeat — MarketBeat negative
- NEWS InterDigital (NASDAQ:IDCC) Updates FY 2026 Earnings Guidance - MarketBeat — MarketBeat positive
- NEWS InterDigital (NASDAQ:IDCC) Releases Q2 2026 Earnings Guidance - MarketBeat — MarketBeat neutral
- NEWS InterDigital (IDCC) Beats Q1 Earnings and Revenue Estimates - Yahoo Finance — Yahoo Finance positive
Generated 2026-07-26T08:02:04Z.
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.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Revenue shrinking — -2.4% YoY. Growth thesis broken unless recovery story develops.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $258.30 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Earnings in 5 days (event risk); Weak growth. Chart setup: Death cross, below all MAs, RSI 29, MACD bearish. Prior stop was $246.03. Score 5.3/10, moderate confidence.
Take-profit target: $393.27 (+52.3% upside). Prior stop was $246.03. Stop-loss: $246.03.
Earnings in 5 days (event risk); Weak growth; Negative momentum.
InterDigital, Inc. trades at a P/E of 24.4 (forward 23.0). TrendMatrix value score: 5.5/10. Verdict: Sell.
10 analysts cover IDCC with a consensus score of 4.4/5. Average price target: $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.