InterDigital, Inc.
InterDigital, Inc. is a mobile and video technology research and development company. It designs innovations for wireless communications, 5G, and digital media solutions.
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Performance
In 2024, InterDigital, Inc. achieved record financial performance, reporting annual revenue of $869 million, a 58% increase year-over-year. The fourth quarter alone saw revenue surge to $253 million, marking a 140% year-over-year growth. Adjusted EBITA for Q4 was $198 million, with a margin of 78%, and the full-year adjusted EBITA margin improved to 63%, up 20 percentage points over four years. Net income for Q4 was $133.1 million, a 241% increase, and full-year net income rose 68% to $383 million. Non-GAAP EPS for Q4 reached $5.15, and full-year non-GAAP EPS was $14.97. The company generated $169 million in free cash flow during Q4, ending the year with nearly $1 billion in cash and over $500 million in net cash. Shareholder returns for 2024 totaled $110 million through buybacks and dividends. Looking ahead, InterDigital expects 2025 revenue between $660 million and $760 million, with adjusted EBITA ranging from $400 million to $495 million, and non-GAAP EPS between $9.69 and $12.92.
Quality of Earnings
The company demonstrates strong adherence to General Accounting Principles, with financial reports that conform to GAAP, are decision-useful, sustainable, and offer returns exceeding the cost of capital. There have been no recent changes to accounting policies, and all required financial reports are submitted on time. Revenue quality is also robust, marked by high predictability—with a substantial portion of clients returning year after year—strong profitability with gross margins exceeding 70%, diversified income sources with no client accounting for more than 15% of revenue, and clear growth in both revenue and net income. Additionally, there are no significant financial report warning signs: earnings contain minimal accrual components, do not narrowly beat benchmarks in a suspicious pattern, and revenue is not recognized prematurely. Expenses are not misrepresented, audit opinions are unqualified, goodwill is properly assessed, and the company does not rely on aggressive accounting tactics such as related-party transactions or off-balance-sheet debt. Operating ccash flows align with net income, earnings are recurring and persistent, and there is no history of restatements or enforcement actions, reinforcing the reliability and quality of the company’s financial reporting.
Company Summary
InterDigital, Inc. is a global research and development company specializing in wireless, video, and artificial intelligence (AI) technologies, providing foundational innovations for connected and immersive experiences across various communications and entertainment products and services.
