InterDigital, Inc.IDCC
NasdaqGS•Technology•Software - Application
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.
InterDigital, Inc. (IDCC) reported trailing twelve months revenue of $828.92M as of March 2026, a 1.6% increase year-over-year. Quarterly revenue reached $205.42M, reflecting continued top-line momentum.
InterDigital, Inc. generated $366.37M in TTM net income, with quarterly EBITDA of $101.47M. The operating margin contracted from 62.6% to 40.0%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (40.0%) and net margin (36.7%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 54.9% a year ago, reflecting increased costs or interest expense.
IDCC trades at a P/E of 19.9x (in line with broad market averages) and a P/S of 8.8x. The price-to-book ratio of 6.6x indicates a significant premium over book value.
The company generated $15.17M in free cash flow over the trailing twelve months, a 144.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $2.07B in total assets with $10.50M in long-term debt against $1.10B in stockholders equity for a debt-to-equity ratio of 0.0, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~50.3% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 39.8% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has grown modestly overall (~13.1%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 15.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding rose 2.0% — mild dilution. Compare to earnings growth to assess net per-share impact.