📊 IDCC Key Takeaways
Is InterDigital, Inc. (IDCC) a Good Investment?
InterDigital demonstrates exceptional profitability margins (40% operating, 36.7% net) and a fortress balance sheet with $607.6M cash and minimal debt. However, declining revenue (-4.0% YoY), anemic cash generation ($15.2M FCF vs $75.3M net income), and weak capital returns (6.8% ROE, 3.6% ROA) signal fundamental concerns about earnings quality and the sustainability of the patent licensing business model.
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 operating margin (40%) and net margin (36.7%) demonstrate high-quality profitability
- Conservative balance sheet with $607.6M cash, $10.5M long-term debt, and 0.01x debt/equity ratio
- Strong liquidity position with 1.88x current and quick ratios; 6.9x interest coverage
- 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 declining 4.0% YoY; patent licensing business model creates uncertain, lumpy revenue streams
- Significant earnings quality red flag: $75.3M net income vs only $16.1M operating cash flow and $15.2M FCF indicates aggressive accounting or poor working capital management
- Poor capital efficiency: 6.8% ROE and 3.6% ROA despite strong margins suggest inefficient asset utilization and value creation challenges
- 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
- Operating cash flow trend and FCF conversion rate relative to net income
- Revenue growth trajectory and patent licensing deal pipeline visibility
- Return on equity and return on assets improvement trends
- Licensing revenue growth and renewal cadence/backlog
- FCF conversion and cash collections vs. revenue
InterDigital, Inc. (IDCC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
InterDigital, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $205.4M | $75.3M | $2.14 |
| 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 |
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
❓ 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 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDCC's key strengths?
Claude: Exceptional operating margin (40%) and net margin (36.7%) demonstrate high-quality profitability. Conservative balance sheet with $607.6M cash, $10.5M long-term debt, and 0.01x debt/equity ratio. 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 declining 4.0% YoY; patent licensing business model creates uncertain, lumpy revenue streams. Significant earnings quality red flag: $75.3M net income vs only $16.1M operating cash flow and $15.2M FCF indicates aggressive accounting or poor working capital management. 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 $205.4M.
Does IDCC pay dividends?
InterDigital, Inc. pays dividends, with $18.0M 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 $2.14.
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 May 2026, InterDigital, Inc. has a BUY rating with 74% 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 6.8% (sector avg: 15%), net margin of 36.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
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 $16.1M, with capital expenditures of $911.0K. FCF margin is 7.4%.
How does IDCC compare to other Market stocks?
Vs Default sector averages: Net margin 36.7% (avg: 12%), ROE 6.8% (avg: 15%), current ratio 1.88 (avg: 1.8).