The GAAP EPS miss and 30% Adjusted EBITDA decline are negatives, but the non-GAAP EPS beat, record smartphone ARR, and reaffirmed full-year guidance provide support. Watch for Q2 guidance execution and any new licensing announcements — the stock may trade on the ARR trajectory vs. the headline GAAP miss. The $88M debt reduction and $114M total return of capital signal balance sheet strength.
Price Chart
Executive Summary
InterDigital reported Q1 2026 GAAP diluted EPS of $2.14 and revenue of $205.4M, with GAAP EPS missing the $2.52 consensus by 15.1% (a miss). However, non-GAAP EPS of $2.57 beat the consensus. Revenue was slightly above the $196.9M consensus but declined 2% YoY. The company reaffirmed full-year 2026 guidance, signed six new agreements including renewals with Xiaomi and LG, and reported record smartphone ARR of $491.8M (+18% YoY). The mixed results — GAAP miss vs. non-GAAP beat, revenue decline but strong ARR growth — create a nuanced picture for traders.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP diluted EPS $2.14 vs consensus $2.52 (15.1% miss)
- Q1 2026 non-GAAP EPS $2.57 vs consensus $2.52 (2.0% beat)
- Revenue $205.4M vs consensus $196.9M (4.3% beat), but down 2% YoY from $210.5M
- Annualized recurring revenue (ARR) $567.2M, up 13% YoY; smartphone ARR $491.8M (all-time high, +18% YoY)
- Catch-up revenue $63.6M, down 25% from $84.8M in Q1 2025
- Adjusted EBITDA $111.8M, down 30% YoY; margin 54% vs 76% a year ago
- Reaffirmed full-year 2026 guidance: revenue $675M-$775M, GAAP diluted EPS $5.77-$8.51, non-GAAP EPS $8.74-$11.84
- Q2 2026 guidance: revenue $139M-$143M, GAAP diluted EPS $0.80-$0.97, non-GAAP EPS $1.41-$1.60
- Signed six new agreements in Q1, including Xiaomi renewal and LG TV/display license
- Returned $114.3M to shareholders in Q1 via buybacks ($8.2M), dividends ($18.1M), and debt reduction ($88.0M)
Financial Impact
GAAP EPS miss of $0.38 (15.1%) vs consensus; non-GAAP EPS beat by $0.05 (2.0%). Revenue beat by $8.5M (4.3%) but declined 2% YoY. ARR growth of 13% YoY signals underlying licensing momentum.
Risk Factors
- GAAP EPS miss of 15.1% could pressure the stock near-term
- Revenue declined 2% YoY and catch-up revenue fell 25%, indicating lumpy licensing income
- Operating expenses surged 57% YoY, compressing margins (net margin 37% vs 55%)
- Q2 revenue guidance of $139M-$143M implies a sequential decline from Q1's $205.4M
- Convertible note structure adds complexity to EPS calculations; 6.0M warrants outstanding at $105.55 strike
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3284871 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Press Release | $327.98 | awaiting T+20 | — | $328.71 (+0.22%) |
Oct 13, 2026 14d ago | Press Release | $332.88 | awaiting T+20 | — | $328.71 (−1.25%) |
Aug 26, 2026 8w ago | Institutional Cluster | $344.32 $328.03 | ▼ −4.73% | ▼ −4.96% | $328.71 (−4.53%) |
Aug 10, 2026 11w ago | Insider Cluster | $348.25 $340.94 | ▲ +2.10% | ▲ +1.18% | $328.71 (+5.61%) |
Jul 30, 2026 12w ago | 8-K | $303.33 $334.65 | ▲ +10.33% | ▲ +6.36% | $328.71 (+8.37%) |
Jul 30, 2026 12w ago | Press Release | $303.33 $334.65 | ▲ +10.33% | ▲ +6.36% | $328.71 (+8.37%) |
Jul 23, 2026 13w ago | Press Release | $256.06 $341.74 | ▲ +33.46% | ▲ +30.15% | $328.71 (+28.37%) |
Jul 10, 2026 15w ago | Press Release | $261.52 $348.25 | ▲ +33.16% | ▲ +29.98% | $328.71 (+25.69%) |
Jun 16, 2026 19w ago | Insider Cluster | $287.15 $265.49 | ▼ −7.54% | ▼ −7.74% | $328.71 (+14.47%) |
Jun 16, 2026 19w ago | Press Release | $287.15 $265.49 | ▼ −7.54% | ▼ −7.74% | $328.71 (+14.47%) |
US Market Status
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