📊 IDCC Key Takeaways
Is IDCC a Good Investment? Thesis Analysis
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.
Why Buy 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
IDCC Investment Risks to Consider
- 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
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
IDCC Financial Metrics
💡 AI Analyst Insight
The 63.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
IDCC Profitability Ratios
IDCC vs Default Sector
How InterDigital, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IDCC Overvalued or Undervalued?
Based on fundamental analysis, InterDigital, Inc. appears fundamentally strong relative to the Default 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.
IDCC Balance Sheet & Liquidity
IDCC 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
IDCC Quarterly 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.
IDCC Capital Allocation
IDCC SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 78% 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.
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.
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 HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. 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 HOLD 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 Default stocks?
Vs Default sector averages: Net margin 48.8% (avg: 12%), ROE 36.9% (avg: 15%), current ratio 1.84 (avg: 1.8).