Q2 2026 InterDigital Inc Earnings Call Transcript
Key Points
- InterDigital Inc (IDCC) delivered an outstanding Q2 2026 with revenue of $260 million, adjusted EBITDA of $184 million, and non-GAAP EPS of $4.62, all far exceeding the top end of guidance.
- The company achieved a record annualized recurring revenue (ARR) of $626 million, a 13% year-over-year increase, keeping it on track for its $1 billion+ ARR goal by 2030.
- A major milestone was reached with a new patent license agreement with Amazon, covering devices and Prime Video services, with final terms to be set via arbitration, resolving all pending litigation.
- InterDigital Inc (IDCC) secured two injunctions against Disney from the European Unified Patent Court (UPC), affirming the validity of its HEVC video encoding patents and Disney's status as an unwilling licensee.
- The company signed new IoT licensing agreements with a leading fintech company for point-of-sale devices and with Kabom for EV chargers, demonstrating expanding reach into new verticals.
- The final terms of the Amazon license agreement are subject to a lengthy 18-24 month arbitration process, creating uncertainty around the ultimate revenue recognition.
- Revenue from the Amazon agreement is currently recognized based on a conservative estimate, with a risk that the final arbitration award could differ, potentially requiring adjustments.
- Operating expenses increased $25.8 million year-over-year, driven by higher intellectual property enforcement costs and performance-based compensation, impacting profitability.
- The company faces ongoing enforcement actions against other streaming services, such as Disney, which continue to incur significant litigation costs and may not resolve quickly.
- While progress is being made, the streaming and cloud services licensing program still relies on future negotiations and enforcement outcomes to achieve its $300 million+ ARR target by 2030.
Thank you for standing by. My name is [Kathleen] and I will be your conference operator for today. At this time, I would like to welcome everyone to the Interdigital Second Quarter 2026 earnings call. (Operator Instructions)
And now, I would like to turn the call over to Raiford Garrabrant, Vice President Investor Relations. Please go ahead, sir.
Thank you, [Kathleen], and good morning, everyone. Welcome to Interdigital's second quarter 2026 earnings conference call. I am Rayford Garabrandt, VP of Investor Relations for Interdigital. With me on today's call are Liren Chen, our President and CEO; and Rich Brezski our CFO.
Consistent with prior calls, we will offer some highlights about the quarter and the company and then open the call up for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our investor relations website.
Before we begin our remarks, I need to remind you that in this call, we
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