IDCC InterDigital, Inc.

Overview and Growth

Fiscal 2025 results for InterDigital, Inc. combined $834.01M of revenue with net income of $406.64M and an operating cash inflow of $544.45M. Revenue of $834.01M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 4.0% below fiscal 2024 revenue of $868.52M, marking a top-line contraction. Diluted earnings per share were $11.80, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $12.07 in fiscal 2024, the current result was 2.2% lower. The revenue-to-assets relationship was 0.4x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Operations produced $460.85M of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 55.3%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $406.64M for the fiscal year. Net margin was 48.8%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $469.43M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 56.3% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $62.79M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 13.4% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 36.9%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 19.7%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

At period end, the $2.06B asset base was financed through $963.17M of liabilities and $1.10B of equity. The near-term balance sheet paired $1.39B of current assets with $752.50M of current liabilities at the reporting date. The current ratio was 1.84x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $738.96M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 98.2% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $474.67M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.43x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 23.0%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 46.7%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 35.8%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $1.84B in fiscal 2024, the current asset base moved 12.5% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $544.45M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.34x, showing the relationship between accrual earnings and operating cash. Capital spending was $15.89M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 2.9% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $528.56M of positive free cash flow for the period. Free cash flow represented 63.4% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 25.6% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.