📊 IDCC Key Takeaways
Is InterDigital, Inc. (IDCC) a Good Investment?
InterDigital demonstrates fortress-like financial strength with exceptional profitability (55.3% operating margin, 48.8% net margin) and outstanding cash generation ($528.6M FCF), but revenue is declining (-4.0% YoY) with flat net income growth, signaling business model pressure in the patent licensing space. The balance sheet is pristine with minimal debt ($16.3M) and strong cash reserves, providing substantial downside protection.
InterDigital’s asset-light licensing model delivers exceptional profitability and free cash flow, backed by a net-cash balance sheet and strong ROE/ROA. Despite a modest revenue decline and flat earnings YoY, fundamentals remain resilient; continued execution on renewals and new 5G/6G agreements should sustain cash generation.
Why Buy InterDigital, Inc. Stock? IDCC Key Strengths
- Exceptional profitability: 55.3% operating margin and 48.8% net margin indicate strong pricing power and operational efficiency
- Outstanding cash generation: $528.6M free cash flow with 63.4% FCF margin demonstrates efficient capital conversion
- Fortress balance sheet: $739M cash, $16.3M debt (0.01x debt/equity ratio), and zero financial distress risk
- Superior returns on capital: 36.9% ROE and 19.7% ROA significantly exceed capital costs
- Asset-light model: Minimal $15.9M CapEx requirements provide operational flexibility
- Exceptional margins (55% operating, 49% net) and high ROE/ROA
- Strong FCF generation (63% margin) with minimal capex
- Net-cash balance sheet, low leverage, robust liquidity
IDCC Stock Risks: InterDigital, Inc. Investment Risks
- Revenue contraction: -4.0% YoY decline indicates core patent licensing business facing headwinds and portfolio pressure
- Flat earnings growth: Net income essentially unchanged YoY despite high margins suggests limited expansion opportunity
- Business model sustainability: Dependence on patent license agreements creates uncertain and potentially declining future revenue streams
- EPS dilution: -2.2% YoY decline suggests shareholder dilution or shrinking per-share profitability
- Patent portfolio lifecycle: Risk of non-renewal or reduced licensing values as patent portfolios age
- Revenue concentration/renewal timing drives volatility; revenue down 4% YoY
- Patent expirations and tech transitions (5G→6G) may pressure licensing
- Litigation/regulatory outcomes can materially affect collections and timing
Key Metrics to Watch
- Revenue trends and patent licensing agreement pipeline renewal rates
- Operating cash flow and free cash flow maintenance under declining revenue
- EPS and diluted share count trends to assess shareholder value creation
- Licensing revenue growth and renewal cadence/backlog
- FCF conversion and cash collections vs. revenue
InterDigital, Inc. (IDCC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 63.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
IDCC Profit Margin, ROE & Profitability Analysis
IDCC vs Market Sector: How InterDigital, Inc. Compares
How InterDigital, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is InterDigital, Inc. Stock Overvalued? IDCC Valuation Analysis 2026
Based on fundamental analysis, InterDigital, Inc. appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
InterDigital, Inc. Balance Sheet: IDCC Debt, Cash & Liquidity
IDCC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: InterDigital, Inc.'s revenue has grown significantly by 104% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.62 reflects profitable operations.
IDCC Revenue Growth, EPS Growth & YoY Performance
IDCC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $128.7M | $34.2M | $1.14 |
| Q2 2025 | $223.5M | $81.7M | $3.93 |
| Q1 2025 | $210.5M | $81.7M | $2.88 |
| Q3 2024 | $128.7M | $21.8M | $1.14 |
| Q2 2024 | $101.6M | $21.8M | $0.79 |
| Q1 2024 | $202.4M | $81.7M | $2.88 |
| Q3 2023 | $114.8M | $18.0M | $0.74 |
| Q2 2023 | $101.6M | $18.0M | $0.69 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
InterDigital, Inc. Dividends, Buybacks & Capital Allocation
IDCC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for InterDigital, Inc. (CIK: 0001405495)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775565291.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775125740.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775125705.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775125661.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775125610.xml | View → |
❓ Frequently Asked Questions about IDCC
What is the AI rating for IDCC?
InterDigital, Inc. (IDCC) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDCC's key strengths?
Claude: Exceptional profitability: 55.3% operating margin and 48.8% net margin indicate strong pricing power and operational efficiency. Outstanding cash generation: $528.6M free cash flow with 63.4% FCF margin demonstrates efficient capital conversion. ChatGPT: Exceptional margins (55% operating, 49% net) and high ROE/ROA. Strong FCF generation (63% margin) with minimal capex.
What are the risks of investing in IDCC?
Claude: Revenue contraction: -4.0% YoY decline indicates core patent licensing business facing headwinds and portfolio pressure. Flat earnings growth: Net income essentially unchanged YoY despite high margins suggests limited expansion opportunity. ChatGPT: Revenue concentration/renewal timing drives volatility; revenue down 4% YoY. Patent expirations and tech transitions (5G→6G) may pressure licensing.
What is IDCC's revenue and growth?
InterDigital, Inc. reported revenue of $834.0M.
Does IDCC pay dividends?
InterDigital, Inc. pays dividends, with $60.7M distributed to shareholders in the trailing twelve months.
Where can I find IDCC SEC filings?
Official SEC filings for InterDigital, Inc. (CIK: 0001405495) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IDCC's EPS?
InterDigital, Inc. has a diluted EPS of $11.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IDCC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, InterDigital, Inc. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is IDCC stock overvalued or undervalued?
Valuation metrics for IDCC: ROE of 36.9% (sector avg: 15%), net margin of 48.8% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy IDCC stock in 2026?
Our dual AI analysis gives InterDigital, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IDCC's free cash flow?
InterDigital, Inc.'s operating cash flow is $544.5M, with capital expenditures of $15.9M. FCF margin is 63.4%.
How does IDCC compare to other Market stocks?
Vs Default sector averages: Net margin 48.8% (avg: 12%), ROE 36.9% (avg: 15%), current ratio 1.84 (avg: 1.8).
Why is IDCC's return on equity (ROE) so high?
InterDigital, Inc. has a return on equity of 36.9%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 48.8% net margin.