InterDigital, Inc. has reported impressive financial results for the second quarter of 2025, driven by the conclusion of the Samsung arbitration and a new license agreement with HP. The company's revenue for the quarter was $300.6 million, marking a substantial 34% increase from the same period in 2024. Net income for the quarter stood at $180.6 million, reflecting a significant 65% year-over-year increase.
The company's non-GAAP EPS reached an all-time high of $6.52, demonstrating a substantial 43% increase from the second quarter of 2024. Adjusted EBITDA also saw a substantial rise, reaching $236.7 million, up 50% compared to the previous year.
InterDigital's revenue by type also showed significant growth, with annualized recurring revenue reaching an all-time high of $553.1 million, reflecting a remarkable 44% year-over-year increase. Additionally, revenue from smartphone programs reached $235.1 million, up 18% from the same period in 2024, while revenue from CE, IoT, and automotive programs surged to $65.3 million, representing an impressive 175% increase.
Furthermore, the company announced a return of capital to shareholders, with $0.1 million allocated to share repurchases and $26.2 million declared for dividends, amounting to a total return of capital of $26.2 million.
The strong performance in the second quarter has led InterDigital to raise its full-year 2025 revenue guidance by $110 million, now expecting it to reach $820 million. The company's President and CEO, Liren Chen, emphasized the significant agreements with Samsung and HP, emphasizing that the total contract value of licenses signed since 2021 has surpassed $4 billion, indicating the accelerating momentum of the company's IP-as-a-service business model.
The market has reacted to these announcements by moving the company's shares 10.77% to a price of $245.18. If you want to know more, read the company's complete 8-K report here.
