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InterDigital IDCC Patent Licensing Royalties — Madison arrangement revenue

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Other financials

Income statement

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Revenue$260.2M-13.4%
Operating income$139.2M-32.2%
Net income$116.4M-35.6%
EPS (diluted)$3.40-36.4%

Balance sheet

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Cash & equivalents$624.4M+18.1%
Total debt$401.5M-17.7%
Total equity$1.2B+10.6%
Total assets$2.2B+10.4%

Cash flow

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Operating cash flow$82.5M-21.5%
CapEx$1.6M+185%
Free cash flow$80.9M-22.6%

Valuation

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Market cap$8.53B+22.3%
Enterprise value$8.31B+19.8%
P/E28.2×+13.2×
P/S10.8×+3.0×

Profitability

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Operating margin43.8%-16.6pp
Net margin38.3%-13.6pp
FCF margin70.3%+32.8pp

Returns & leverage

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Return on equity26.4%-25.6pp
Debt / equity0.3×-0.1×
Current ratio1.7×-0.2×

Where this comes from

Reported directly by InterDigital in its filing.

Tagged under the XBRL concept us-gaap:RevenueFromCollaborativeArrangementExcludingRevenueFromContractWithCustomer.

The source filing: InterDigital’s 10-K, filed February 5, 2026.

Filed
Feb 5, 2026, 8:35 AM EST
Fiscal year
FY2025
Accession
0001405495-26-000011

We were deemed to be the principal in this collaborative arrangement under ASC 808, and, as such, in accordance with ASC 606-10-55-36, Revenue From Contracts with Customers - Principal Agent Considerations, we record revenue generated on sales to third parties and costs incurred on a gross basis in the consolidated statements of income. Therefore, we recognize all royalties from customers as revenue and payments to Sony for its royalty share as operating expenses within the consolidated statements of income. Cost reimbursements for expenses incurred resulting from fulfilling the duties of the licensing agent are recorded as contra expenses. During the years ended December 31, 2025, 2024, and 2023, gross revenue recorded related to the Madison Arrangement were $41.7 million, $209.5 million, and $12.3 million, respectively. Net operating expenses related to the Madison Arrangement during the years ended December 31, 2025, 2024, and 2023 were $15.7 million, $84.1 million and $6.2 million, including $10.1 million, $81.3 million, and $3.3 million related to revenue sharing, respectively, and are reflected primarily within "Licensing" expenses in the consolidated statement of income.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

FAQ

What is InterDigital's patent licensing royalties — madison arrangement revenue?
InterDigital (IDCC) reported patent licensing royalties — madison arrangement revenue of $10.43M in Q4 2025.
How has InterDigital's patent licensing royalties — madison arrangement revenue changed year-over-year?
InterDigital's patent licensing royalties — madison arrangement revenue decreased by 80.1% year-over-year, from $52.38M to $10.43M.
What is the long-term trend for InterDigital's patent licensing royalties — madison arrangement revenue?
Over 4 years (2021 to 2025), InterDigital's patent licensing royalties — madison arrangement revenue has grown at a 12.4% compound annual growth rate (CAGR), from $26.1M to $41.7M.
What does patent licensing royalties — madison arrangement revenue mean?
This metric represents revenue recognized specifically from strategic patent licensing arrangements or specialized intellectual property monetization agreements, often characterized by non-recurring or milestone-based payments. It captures the financial contribution of specific high-value licensing partnerships that fall outside of standard recurring royalty streams. Tracking this revenue helps investors assess the impact of unique, deal-based licensing activities on the company's overall intellectual property monetization strategy.

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