The beat vs. guidance and record Smartphone ARR are positive signals, but the YoY declines in revenue, EPS, and EBITDA due to lumpy catch-up revenue and rising costs create a mixed picture. The reaffirmed full-year guidance suggests management sees the Q1 weakness as timing-related. Watch for new license signings and enforcement actions in Q2-Q4 to validate the $675M-$775M revenue target. The Q2 guidance midpoint of $141M implies a sequential decline from Q1's $205.4M, which may pressure the stock near-term.
Price Chart
Executive Summary
InterDigital reported Q1 2026 results that beat the top end of its own guidance, with revenue of $205.4M, Adjusted EBITDA of $111.8M, and diluted EPS of $2.14. However, on a year-over-year basis, revenue declined 2%, net income fell 35%, and non-GAAP EPS dropped 39%, driven by lower catch-up revenue and a 57% surge in operating expenses from the LG TV revenue share and higher IP enforcement costs. The company reaffirmed its full-year 2026 guidance, signaling confidence in the underlying licensing momentum despite the noisy quarterly comparison.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $205.4M exceeded the $194M-$200M guidance range but declined 2% YoY from $210.5M.
- GAAP diluted EPS of $2.14 beat the $1.61-$1.86 guidance range but fell 38% YoY from $3.45.
- Non-GAAP EPS of $2.57 beat the $2.39-$2.68 guidance range but fell 39% YoY from $4.21.
- Adjusted EBITDA of $111.8M beat the $101M-$110M guidance range but fell 30% YoY from $159.1M.
- Annualized Recurring Revenue (ARR) grew 13% YoY to $567.2M, with Smartphone ARR hitting an all-time high of $491.8M (+18% YoY).
- Operating expenses surged 57% YoY to $123.2M, driven by higher revenue share costs from the LG TV agreement and increased IP enforcement costs.
- Catch-up revenue declined 25% YoY to $63.6M, compressing margins.
- Full-year 2026 guidance reaffirmed: revenue $675M-$775M, diluted EPS $5.77-$8.51, non-GAAP EPS $8.74-$11.84.
- Q2 2026 guidance provided: revenue $139M-$143M, diluted EPS $0.80-$0.97, non-GAAP EPS $1.41-$1.60.
- Returned $114.3M to shareholders in Q1, including $88.0M debt reduction, $18.1M dividends, and $8.2M in share repurchases.
Financial Impact
Revenue beat guidance by ~$5.4M (2.7% above midpoint), but YoY revenue declined $5.1M (-2.4%). Net income fell $40.3M (-34.9%) YoY.
Risk Factors
- YoY revenue, EPS, and EBITDA all declined materially, which could spook momentum investors.
- Operating expenses surged 57% YoY, and if this trend continues, it could compress margins further.
- Q2 2026 revenue guidance of $139M-$143M implies a sharp sequential decline from Q1's $205.4M, which may disappoint.
- Dependence on lumpy catch-up revenue makes quarterly comparisons volatile and hard to predict.
- Convertible notes and warrants create potential dilution; 6.0M warrants outstanding at $105.55 strike.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001405495-26-000034 |
| Document: supplementalmaterialsq12.htm | 0001405495-26-000034 |
| Document: idcc-20260430.htm | 0001405495-26-000034 |
| Document: 0001405495-26-000034-index-headers.html | 0001405495-26-000034 |
| Document: 0001405495-26-000034-index.html | 0001405495-26-000034 |
| Document: 0001405495-26-000034.txt | 0001405495-26-000034 |
| 8-K Data (Synthetic) | 0001405495-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | Press Release | $332.88 | awaiting T+20 | — | $324.26 (−2.59%) |
Aug 26, 2026 8w ago | Institutional Cluster | $344.32 $328.03 | ▼ −4.73% | ▼ −4.96% | $324.26 (−5.83%) |
Aug 10, 2026 11w ago | Insider Cluster | $348.25 $340.94 | ▲ +2.10% | ▲ +1.18% | $324.26 (+6.89%) |
Jul 30, 2026 12w ago | 8-K | $303.33 $334.65 | ▲ +10.33% | ▲ +6.36% | $324.26 (+6.90%) |
Jul 30, 2026 12w ago | Press Release | $303.33 $334.65 | ▲ +10.33% | ▲ +6.36% | $324.26 (+6.90%) |
Jul 23, 2026 13w ago | Press Release | $256.06 $341.74 | ▲ +33.46% | ▲ +30.15% | $324.26 (+26.63%) |
Jul 10, 2026 15w ago | Press Release | $261.52 $348.25 | ▲ +33.16% | ▲ +29.98% | $324.26 (+23.99%) |
Jun 16, 2026 18w ago | Insider Cluster | $287.15 $265.49 | ▼ −7.54% | ▼ −7.74% | $324.26 (+12.92%) |
Jun 16, 2026 18w ago | Press Release | $287.15 $265.49 | ▼ −7.54% | ▼ −7.74% | $324.26 (+12.92%) |
Jun 8, 2026 20w ago | Insider Cluster | $257.11 $276.02 | ▲ +7.35% | ▲ +5.91% | $324.26 (+26.12%) |
US Market Status
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