InterDigital: License Locked In, Catalysts Needed

  • InterDigital's 2024 revenue soared to a record $869M after signing 14 major licensing deals, with an impressive 63% EBITDA margin. The company's business model is driven by R&D and patent licensing, with a growing shift from smartphones to consumer electronics and IoT segments. Despite a 1Q25 revenue dip due to lower catch-up payments, underlying royalty flows are accelerating, and the royalty base is stabilizing.