InterDigital, Inc. (NASDAQ: IDCC)

InterDigital, Inc. is a global research and development company focused on wireless, video, artificial intelligence (AI), and related technologies. The company designs and develops foundational technologies that enable connected, immersive experiences across various communications and entertainment products and services. InterDigital's innovations are licensed worldwide to companies that manufacture wireless communications devices, consumer electronics, internet of things (IoT) devices, cars, and other motor vehicles, as well as providers of cloud-based services such as video streaming. The company has a long history of contributing to wireless standards, including 3G, 4G, 5G, and the development of 6G cellular standards, and the IEEE 802.11 suite of standards. Additionally, InterDigital is a leader in video processing and video encoding/decoding technology used in video-enabled products and services, with a focus on the intersection of AI with both wireless and video technologies.

InterDigital generates revenue primarily through licensing its patented innovations. In 2025 and 2024, the company's total revenue was $834.0 million and $868.5 million, respectively. The company's revenue comes from fixed-fee patent license agreements, with a smaller portion from variable royalty agreements, and hybrid agreements that combine both fixed-fee and variable components. InterDigital's customers include major mobile communications and consumer electronics companies globally, such as Apple Inc., Google LLC, Honor Device Co., Ltd., Lenovo Group Limited, LG Electronics, Inc., Guangdong OPPO Mobile Telecommunications Corp., Ltd., Samsung Electronics Co., Ltd., vivo Mobile Communication Co., Ltd., and Xiaomi Corporation, among others. The company also seeks to license its relevant assets to companies providing video streaming and certain other cloud services.

• Wireless Technology: InterDigital has a long history of developing cellular technologies, including physical layer design covering CDMA, TDMA, OFDM/OFDMA, and MIMO, radio interface protocols, as well as system architecture and services supporting cellular networks. The company's inventions are used in all 2G, 3G, 4G, and 5G wireless networks and mobile terminal devices. InterDigital continues to engage in development efforts to build and enhance its 3GPP technology portfolio in current and future generations, including 5G Advanced and 6G. The company is one of a handful bringing wireless, video, and AI technologies together to meet IMT 2030 requirements for 6G. InterDigital's horizontal technologies are essential to support various use cases across several vertical market segments that use connected devices, such as mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products, including tablets and PCs. The company is developing evolutionary and revolutionary solutions that enable connectivity in both licensed and unlicensed spectrum, terrestrial and non-terrestrial networks, to provide ubiquitous coverage across a large range of frequencies up to the terahertz (THz) bands. Segments outside of 3GPP primarily fall within the scope of the IEEE 802.11 for Wi-Fi devices and IETF standards for Internet protocols. InterDigital's IEEE 802.11 standards-based inventions are used in devices that are certified for Wi-Fi 4/5/6/7 and provide improvements in spectral efficiency, higher throughput, reduced latency, energy efficiency, and many other features. The company is developing new technologies towards Wi-Fi 8 by continuing novel innovations and participation in IEEE 802.11 standards and Wi-Fi Alliance forums.

• Advanced Video Coding and Transmission Technology: An important and growing segment of wireless traffic is devoted to video streaming. InterDigital has a rich history in developing advanced technologies that address the challenges of video products and services. Specifically, in the area of video research, the company has a long history of research and innovation in technologies that provide the basis for nearly all modern video codecs. InterDigital has been actively engaged in video codec standards development work in the ISO/IEC Moving Picture Expert Group (MPEG), the ITU-T Video Coding Expert Group (VCEG), the Joint Collaborative Team on Video Coding (JCT-VC), and the Joint Video Expert Team (JVET), among others. Those efforts have focused on H.264/Advanced Video Coding, H.265/High Efficiency Video Coding (HEVC) versions 1 to 4, as well as development of the H.266/VVC and the MPEG Immersive (MPEG-I) standards suite. InterDigital R&I is now conducting research in groundbreaking technologies preparing for the next generation of video codecs beyond VVC using both traditional and AI-based techniques. The recent acquisition of the Deep Render team has enhanced the company's ability to develop novel end-to-end AI-based codecs. Even codecs, such as AV1/VP9, developed by non-standard groups, use fundamental techniques that InterDigital has been instrumental in developing. In addition to the video codec, InterDigital has pioneered technologies that enhance video quality in other ways. An example is the technology enabling production, distribution, and display of high dynamic range (HDR) video that leverages AI to maximize the quality of video delivered to consumers. The company is also investigating new media coding such as point cloud compression, haptics, or avatars using both traditional and AI-based techniques that will form the basis of future immersive video experiences. The technologies developed in video compression and in high-quality media delivery form the foundation of streaming and many other cloud services and enable consumers to enjoy them on their favorite devices.

• Artificial Intelligence/Machine Learning (AI/ML): InterDigital is using AI to drive both wireless and video standards towards the future, leveraging AI as a valuable tool to drive efficiency and new capabilities in wireless networks and in video compression and delivery systems. The company is researching a variety of aspects of AI that can be applied to complex problems in video and wireless technologies. Those areas of research include energy-efficient deep learning aimed at reducing the energy-intensive rollout of AI, design of novel video codecs based on deep learning techniques and optimized for different use cases (e.g., for machine consumption), and the integration of AI into current and next-generation 3GPP wireless systems. InterDigital is also actively investing in leveraging AI as technology, using existing large language model (LLM) based solutions to help improve research outcomes, streamline internal workflows, and further enhance its IP portfolio.

InterDigital holds a significant position within the industry, boasting one of the most substantial patent portfolios of fundamental wireless and video technologies. As of December 31, 2025, the company's wholly-owned subsidiaries held a portfolio of more than 38,000 patents and patent applications related to wireless communications, video coding, display technology, and other areas relevant to communications and entertainment products and services. The company's portfolio includes numerous patents and patent applications that are or may be essential to existing standards or may become essential to future standards established by many Standards Development Organizations (SDOs). InterDigital's competitive advantages include its extensive patent portfolio, its leadership in wireless and video technology standards, and its ability to attract and retain top talent in specialized engineering and other technical fields. The company faces competition from various technology providers, including other wireless and video technology companies, consumer electronics device companies, semiconductor companies, wireless operators, video streaming and cloud service companies, and other technology providers developing competitive technologies.

InterDigital's customers include major mobile communications and consumer electronics companies globally, such as Apple Inc., Google LLC, Honor Device Co., Ltd., Lenovo Group Limited, LG Electronics, Inc., Guangdong OPPO Mobile Telecommunications Corp., Ltd., Samsung Electronics Co., Ltd., vivo Mobile Communication Co., Ltd., and Xiaomi Corporation, among others. The company also seeks to license its relevant assets to companies providing video streaming and certain other cloud services.