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InterDigital (IDCC) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Software - Application
B
GoodMetricSide Score: 76/100
ProfitabilityProfit30/30
GrowthGrowth9/25
Balance SheetBalance25/25
Cash QualityCash12/20
Price & Volume
Market Cap $7.24B

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies, and artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles, as well as patented technologies are used in various services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

Moat Signals

Competitive analysis based on 62 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~50.3% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 39.8% suggests a durable competitive advantage and efficient capital allocation.

Risk Signals

Data-driven red flags and warnings across 62 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 15.1% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.0 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Watch

Shares outstanding rose 2.0% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$828.92M
1.6%
Q. Revenue
$205.42M
TTM EBITDA
$489.81M
9.0%
TTM Op. Income
$411.28M
12.0%
Q. Op. Income
$82.26M
TTM Net Income
$366.37M
6.7%
Q. Net Income
$75.33M
EPS
$2.93
Shares Out.
$25.72M
0.1%
$828.92M in TTM revenue grew 1.6% YoY, reaching $205.42M last quarter. TTM EBITDA of $489.81M and TTM operating income of $411.28M shows growth is flowing through. Net income of $366.37M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
49.4%
Op. Margin
40.0%
36.1%
Net Margin
36.7%
33.2%
Op. margin of 40.0% is down 22.6% YoY — costs are rising relative to revenue. Net margin at 36.7%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
19.8x
P/S Ratio
8.7x
P/B Ratio
6.6x
At 19.8x P/E, the stock trades in line with market averages — fairly valued. P/S of 8.7x and P/B of 6.6x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$2.07B
Cash
$607.60M
Long-Term Debt
$10.50M
Book Value
$1.10B
D/E Ratio
0.0
Debt/EBITDA
0.1
With $2.07B in assets and $10.50M in long-term debt, the D/E of 0.0and book value of $1.10B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$16.08M
Free Cash Flow
$15.17M
144.0%
FCF Margin
1.8%
FCF / Net Income
0.2
FCF of $15.17M on $16.08M in operating cash flow. The FCF / Net Income ratio of 0.0x indicates partial cash conversion — earnings quality needs attention.

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Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue has grown modestly overall (~13.1%) but trajectory is uneven, suggesting a competitive or cyclical business.