InterDigital Q4 2025 Interdigital Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Interdigital Inc Earnings Call
Speaker #1: Good morning, everyone, and thank you for standing by. My name is Gil, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the InterDigital's fourth quarter, 2025 earnings call.
Operator: Good morning, everyone, and thank you for standing by. My name is Gil, and I will be your operator for today. At this time, I would like to welcome each and every one of you to InterDigital's Q4 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, kindly press star 1 again. I will now turn the call over to Raiford Garrabrant, Head of Investor Relations. Please go ahead.
Operator: Good morning, everyone, and thank you for standing by. My name is Gil, and I will be your operator for today. At this time, I would like to welcome each and every one of you to InterDigital's Q4 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, kindly press star 1 again. I will now turn the call over to Raiford Garrabrant, Head of Investor Relations. Please go ahead.
Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad.
Speaker #1: If you would like to withdraw your question, kindly press star one again. I will now turn the call over to Raiford Garrabrant, Head of Investor Relations.
Speaker #1: Please go ahead.
Raiford Garrabrant: Thank you, Gil, and good morning, everyone. Welcome to InterDigital's Q4 2025 Earnings Conference Call. I'm Raiford Garrabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO, and Richard Brezski, our CFO. Consistent with prior calls, we will offer some highlights about the quarter and the company, and then open the call up for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our investor relations website. Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are made only as of the date hereof.
Raiford Garrabrant: Thank you, Gil, and good morning, everyone. Welcome to InterDigital's Q4 2025 Earnings Conference Call. I'm Raiford Garrabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO, and Richard Brezski, our CFO. Consistent with prior calls, we will offer some highlights about the quarter and the company, and then open the call up for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our investor relations website. Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are made only as of the date hereof.
Speaker #2: morning, everyone. Welcome to InterDigital's fourth quarter, 2025 earnings conference call. Relations for InterDigital. With me on today's call are Liren I'm Rayford Garrabrant, Head of Investor Chen, our President and CFO.
Speaker #2: Consistent with prior and good calls, we will offer some highlights about the CEO; and Rich Brezski, our quarter and the company, and then open the call up for questions.
Speaker #2: For additional details, you can access our earnings accompany this call on our release and slide presentation that Investor Relations website. Before we begin, our remarks, I need to remind you that in this call, regarding our current beliefs, plans, and expectations which are not guarantees of future performance and are made only as of the date hereof.
Speaker #2: Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements.
Raiford Garrabrant: Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the risk factors section of our 2025 annual report on Form 10-K and in our other SEC filings. In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the investor relations section of our website. With that taken care of, I will turn the call over to Liren.
Raiford Garrabrant: Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the risk factors section of our 2025 annual report on Form 10-K and in our other SEC filings. In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the investor relations section of our website. With that taken care of, I will turn the call over to Liren.
Speaker #2: These risks and uncertainties include those described in the risk factors section of our 2025 annual report on Form 10-K, and in our may contain references to non-GAAP financial measures.
Speaker #2: In addition to today's presentation
Speaker #2: Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the other SEC filings and supplemental materials posted to the Investor Relations section of our website.
Speaker #2: With that taken care of, I will turn the call over to
Speaker #2: Liren. morning, everyone.
Speaker #3: Thank you, Rayford. Good
Liren Chen: Thank you, Raiford. Good morning, everyone. Thanks for joining us today. At the beginning of 2025, we set aggressive goals to grow our company, including building on the momentum of the smartphone licensing program to drive revenue growth with a special focus on increasing annualized recurring revenue and margin expansion, building a strong licensing pipeline by advancing our video service licensing program, expanding our AI research capability, and growing our standard leadership and patent portfolio at a critical stage in the development of 6G and the next generation video codecs. I'm pleased to say that we have exceeded our goals on all these fronts.
Liren Chen: Thank you, Raiford. Good morning, everyone. Thanks for joining us today. At the beginning of 2025, we set aggressive goals to grow our company, including building on the momentum of the smartphone licensing program to drive revenue growth with a special focus on increasing annualized recurring revenue and margin expansion, building a strong licensing pipeline by advancing our video service licensing program, expanding our AI research capability, and growing our standard leadership and patent portfolio at a critical stage in the development of 6G and the next generation video codecs. I'm pleased to say that we have exceeded our goals on all these fronts.
Speaker #3: Thanks for joining us today. At the beginning of 2025, we set aggressive goals to grow our company including building on the momentum of smartphone licensing program to drive revenue growth with a special focus on increasing annualized recurring revenue and margin expansion, building a strong licensing pipeline by advancing our video service licensing program, expanding our AI research capability, and growing our standard leadership and patent portfolio at a critical stage in the development of 6G and the next generation video codecs.
Speaker #3: say that we have exceeded our I'm pleased to goals on all these We finished 2025 with a strong fourth quarter delivering fronts. revenue and EPS above the high end of our outlook, built strong momentum across our licensing programs, completed a key acquisition to strengthen our AI research, and added new invention to our patent portfolio reaching a new record-breaking high.
Liren Chen: We finished 2025 with a strong fourth quarter, delivering revenue and EPS above the high end of our outlook, built strong momentum across our licensing programs, completed a key acquisition to strengthen our AI research, and added new invention to our patent portfolio, reaching a new record-breaking high. This rounded off an excellent year where revenue for the full year was $834 million, the second highest in our history. We increased our Annualized Recurring Revenue to $582 million, up 24% year-over-year. The Adjusted EBITDA was $589 million, and our non-GAAP EPS was more than $15, both at all-time highs. Today, I'll focus on our progress throughout the year and why we believe we are well positioned to drive shareholder value in 2026. Rich will then talk you through our fourth quarter financial performance and our 2026 outlook in more details.
Liren Chen: We finished 2025 with a strong fourth quarter, delivering revenue and EPS above the high end of our outlook, built strong momentum across our licensing programs, completed a key acquisition to strengthen our AI research, and added new invention to our patent portfolio, reaching a new record-breaking high. This rounded off an excellent year where revenue for the full year was $834 million, the second highest in our history. We increased our Annualized Recurring Revenue to $582 million, up 24% year-over-year. The Adjusted EBITDA was $589 million, and our non-GAAP EPS was more than $15, both at all-time highs. Today, I'll focus on our progress throughout the year and why we believe we are well positioned to drive shareholder value in 2026. Rich will then talk you through our fourth quarter financial performance and our 2026 outlook in more details.
Speaker #3: These rounded off an excellent year where revenue for the full year was $834 million, the second We increased our annualized recurring revenue to $582 highest in our history.
Speaker #3: million up 24% year over year. The adjusted EBITDA was $589 million, and $15. Both at all-time our non-GAAP EPS was more than we believe we are well-positioned to highs.
Speaker #3: 2026. Rich will then talk you through our fourth quarter financial performance, and our 26th outlook in more detail. In our smartphone program, we 2025.
Liren Chen: In our smartphone program, we had a record-setting year in 2025. We completed the Samsung smartphone licensing contract that extended one of our longest customer relationships all the way to the end of 2030. We signed a new deal with two more top 10 global smartphone vendors, Vivo and Honor. With these additions, we have now licensed eight of the top 10 largest smartphone manufacturers, covering about 85% of the overall market. Our new agreement with Samsung is the most valuable license in our history, continuing our win-win relationship that stretches back to the 1990s. In 2025, we also renewed our agreement with Sharp and Seiko. For the year, our smartphone revenue was just below $680 million, up 14% year-over-year to an all-time high. This strong momentum has continued into 2026 as we renewed our license with Xiaomi at the beginning of the year.
Liren Chen: In our smartphone program, we had a record-setting year in 2025. We completed the Samsung smartphone licensing contract that extended one of our longest customer relationships all the way to the end of 2030. We signed a new deal with two more top 10 global smartphone vendors, Vivo and Honor. With these additions, we have now licensed eight of the top 10 largest smartphone manufacturers, covering about 85% of the overall market. Our new agreement with Samsung is the most valuable license in our history, continuing our win-win relationship that stretches back to the 1990s. In 2025, we also renewed our agreement with Sharp and Seiko. For the year, our smartphone revenue was just below $680 million, up 14% year-over-year to an all-time high. This strong momentum has continued into 2026 as we renewed our license with Xiaomi at the beginning of the year.
Speaker #3: We completed Samsung's smartphone licensing, had a record-setting year in contract that extended one of our longest customer relationships all the way to the end of today. I'll focus on our 2030.
Speaker #3: We signed new deals with two more top-10 global smartphone vendors, Vivo and Honor. With these additions, we have now licensed eight of the top 10 largest smartphone manufacturers, covering about 85% of the overall market.
Speaker #3: Our new agreement with Samsung is the most valuable license in our history. Continuing our win-win relationship that stretches back to the 1990s, in 2025 we also renewed agreements with Sharp and Seiko.
Speaker #3: For the year, our smartphone revenue was just below $680 million, up 14% year over year to an high. This strong momentum has continued into all-time 2026, but renewed our license with Xiaomi at the beginning of the year.
Speaker #3: We now have the three largest smartphone vendors: Apple, Samsung, and Xiaomi, licensed through the end of the decade. Providing a strong foundation for the company to build on future organic growth.
Liren Chen: We now have the three largest smartphone vendors, Apple, Samsung, and Xiaomi, licensed through the end of the decade, providing a strong foundation for the company to build on future organic growth. In our CE and IoT program, we continue to make good progress. In 2025, we signed a new agreement with HP, the world's largest PC manufacturer. We now have licensed about half of the global PC market. In Q4, we signed a CE device license agreement with a significant social media company, covering our video coding and Wi-Fi patents. At the start of 2026, we completed a new license with LG Electronics, covering the company's digital TV and computer display monitors. LG is one of the top global TV manufacturers, with strong sales in the premium part of the market. We are thrilled to add it to our CE licensing program.
Liren Chen: We now have the three largest smartphone vendors, Apple, Samsung, and Xiaomi, licensed through the end of the decade, providing a strong foundation for the company to build on future organic growth. In our CE and IoT program, we continue to make good progress. In 2025, we signed a new agreement with HP, the world's largest PC manufacturer. We now have licensed about half of the global PC market. In Q4, we signed a CE device license agreement with a significant social media company, covering our video coding and Wi-Fi patents. At the start of 2026, we completed a new license with LG Electronics, covering the company's digital TV and computer display monitors. LG is one of the top global TV manufacturers, with strong sales in the premium part of the market. We are thrilled to add it to our CE licensing program.
Speaker #3: In our CE and IoT program, we continue to make good progress. In 2025, we signed a new agreement with HP towards the largest PC manufacturer.
Speaker #3: We now have licensed about half of the global PC market. In the fourth quarter, we signed a CE device license agreement with a significant social media company, covering our video coding and Wi-Fi patterns.
Speaker #3: At the start of 2026, we completed a new license with LG Electronics, covering the company's digital TV and computer display monitors. LG is one of the top global TV manufacturers, with strong sales in the premium part of the market.
Speaker #3: We are thrilled to add it to program. Including the latest deals, we have now licensed over 50 license value of more than $4.6 billion since agreements, with a total contract progress in our video service program and our focus on 2021.
Liren Chen: Including the latest deals, we have now licensed over 50 license agreements, with a total contract value of more than $4.6 billion since 2021. We also continue to make good progress in our video service program and our focus on licensing some of the world's largest streaming platforms. We believe that this space continues to represent an excellent growth opportunity for us. Initially, our focus is on streaming services, but we also see opportunities in other video-driven platforms, where our innovation in areas like video compression is central to the efficient processing and delivery of video content and to the consumer experience overall. At the beginning of 2025, we launched our enforcement campaign against Disney+, Hulu, and ESPN+ streaming services. We received 2 preliminary injunctions in Brazil and 2 injunctions in Germany against Disney. In Q4, we launched enforcement proceedings against Amazon.
Liren Chen: Including the latest deals, we have now licensed over 50 license agreements, with a total contract value of more than $4.6 billion since 2021. We also continue to make good progress in our video service program and our focus on licensing some of the world's largest streaming platforms. We believe that this space continues to represent an excellent growth opportunity for us. Initially, our focus is on streaming services, but we also see opportunities in other video-driven platforms, where our innovation in areas like video compression is central to the efficient processing and delivery of video content and to the consumer experience overall. At the beginning of 2025, we launched our enforcement campaign against Disney+, Hulu, and ESPN+ streaming services. We received 2 preliminary injunctions in Brazil and 2 injunctions in Germany against Disney. In Q4, we launched enforcement proceedings against Amazon.
Speaker #3: licensing some of the world's largest streaming platforms. We believe that this space continues to represent an excellent growth opportunity for us. Initially, our focus is on streaming services, but we also see opportunities in other video-driven platforms.
Speaker #3: We're already innovating in areas like video compression, its central to the efficient processing and delivery of video content, and to the consumer experience overall.
Speaker #3: At the beginning of 2025, we launched our enforcement campaign against We also continue to make good Disney+, Hulu, and ESPN+ streaming services. We received two preliminary injunctions in Brazil and two injunctions in Germany against Disney.
Speaker #3: the fourth quarter, we launched an enforcement proceeding against And in Amazon. These are important steps towards our goal of signing long-term agreements with companies.
Liren Chen: These are important steps towards our goal of signing a long-term agreement with both companies. As I said many times before, we always prefer getting license deals done through bilateral negotiation, but we will rigorously pursue fair value for years of investment in our research and defend the value of our intellectual property, which allows us to continue to invest in the next generation of technology. When we enforce our patent rights, we have a strong track record of ultimately signing a license that's fair to both parties. The central role we play in the connected world is only possible because we have built and continue to expand a research pipeline, which provides us with a strong foundation of assets to license today and which ensures that we have a platform that drives growth across the licensing program through 2030 and beyond.
Liren Chen: These are important steps towards our goal of signing a long-term agreement with both companies. As I said many times before, we always prefer getting license deals done through bilateral negotiation, but we will rigorously pursue fair value for years of investment in our research and defend the value of our intellectual property, which allows us to continue to invest in the next generation of technology. When we enforce our patent rights, we have a strong track record of ultimately signing a license that's fair to both parties. The central role we play in the connected world is only possible because we have built and continue to expand a research pipeline, which provides us with a strong foundation of assets to license today and which ensures that we have a platform that drives growth across the licensing program through 2030 and beyond.
Speaker #3: As I said many both times before, we always prefer getting licensed deals down through bilateral negotiation. But we will rigorously pursue fair value for years of investment in our research and defend the value of our intellectual property.
Speaker #3: Which allows us to continue to invest in the next generation of technology. And when we enforce our patent right, we have a strong track record of ultimately signing a license that's fair to both parties.
Speaker #3: central role we played in the connected The world is only possible because we have built and continue to expand a research pipeline which provides us with a strong foundation of assets to license today, and which ensures that we have a platform that drives growth across licensing programs through 2030 and beyond.
Speaker #3: In 2025, we place particular emphasis on deepening our AI expertise and strengthening our leadership in developing AI-based solutions for the next generation of standardized technologies.
Liren Chen: In 2025, we place particular emphasis in deepening our AI expertise and strengthening our leadership in developing AI-based solutions for the next generation of standardized technologies. Through our standard contributions and our technology leadership, we drive much deeper use of AI to make networks more efficient and reliable, to make video better quality and more energy efficient, and we lead in the development of advanced wireless networks to better support the rapid growth use of AI across devices and services. Our recent acquisition of AI startup DeepRender, which we completed in Q4, is a perfect example of how we strengthened our engineering team to lead research in AI and video compression in years to come. In our wireless research, we are already actively contributing to 6G standard development, which is due to be the first native AI wireless standard.
Liren Chen: In 2025, we place particular emphasis in deepening our AI expertise and strengthening our leadership in developing AI-based solutions for the next generation of standardized technologies. Through our standard contributions and our technology leadership, we drive much deeper use of AI to make networks more efficient and reliable, to make video better quality and more energy efficient, and we lead in the development of advanced wireless networks to better support the rapid growth use of AI across devices and services. Our recent acquisition of AI startup DeepRender, which we completed in Q4, is a perfect example of how we strengthened our engineering team to lead research in AI and video compression in years to come. In our wireless research, we are already actively contributing to 6G standard development, which is due to be the first native AI wireless standard.
Speaker #3: Through our standard contributions and our technology leadership, we drive much deeper use of AI to make networks more efficient and reliable. To make video better quality and more energy of advanced wireless networks efficient.
Speaker #3: And we lead in the development growth use of AI across devices and services. Our recent acquisition of AI startup DeepRender which we completed in Q4 is a perfect example of how we strengthened our engineering team to lead research in AI and video compression in years to come.
Speaker #3: In our wireless research, we already actively contributed to 60 standard developments, which is due to be the first native AI standard. As AI impacts wireless and video growth, the leadership position that we hold in multiple standard groups becomes even more important.
Liren Chen: As AI impacts wireless and video growth, the leadership position that we hold in multiple standard groups becomes even more important. In 2025, one of our senior engineers was re-elected chair of a key working group within 3GPP, the standards organization which is leading the development of 6G. We also hold multiple leadership positions in the AI working group in several other standards organizations. The strengths of our research and our expertise in building a world-class patent portfolio to protect our innovation are key drivers behind our business success. In 2025, our portfolio grew by 14% year-over-year and passed 38,000 granted patents and applications. Our portfolio is one of the largest across wireless, video, and AI, and more importantly, it's also ranked as one of the highest quality in the world, according to several independent third-party reports.
Liren Chen: As AI impacts wireless and video growth, the leadership position that we hold in multiple standard groups becomes even more important. In 2025, one of our senior engineers was re-elected chair of a key working group within 3GPP, the standards organization which is leading the development of 6G. We also hold multiple leadership positions in the AI working group in several other standards organizations. The strengths of our research and our expertise in building a world-class patent portfolio to protect our innovation are key drivers behind our business success. In 2025, our portfolio grew by 14% year-over-year and passed 38,000 granted patents and applications. Our portfolio is one of the largest across wireless, video, and AI, and more importantly, it's also ranked as one of the highest quality in the world, according to several independent third-party reports.
Speaker #3: In 2025, one of our senior engineers was re-elected chair of a key working group within 3GPP, the Standard Organization, which is leading the development of 6G.
Speaker #3: We also hold multiple leadership positions in AI working groups in several other standard organizations. The strengths of our research and our expertise in building a world-class patent portfolio to protect our innovation are key drivers behind our business success.
Speaker #3: In 2025, our portfolio year and passed 38,000 granny patents and applications. Our portfolio is one of the largest across wireless, video, and AI, and more importantly, it's also ranked as one of the highest quality in the world.
Speaker #3: According to several independent third-party reports, through 2025, our success was recognized by multiple third parties, including by Newsweek, which named us one of America's greatest and included us among America's fastest-growing companies, and by Time, which recognized us as one of America's growth leaders.
Liren Chen: Through 2025, our success was recognized by multiple third parties, including by Newsweek, which named us one of America's greatest companies, by Fortune, which included us among America's fastest-growing companies, and Time, which recognized us as one of America's growth leaders. More recently, in another sign of our momentum, at the start of 2026, Forbes recognized us as the number 1 most successful mid-cap companies in America for 2026. In its analysis, Forbes looked at long-term performance, and this award reflects our success in building a foundation for the future and delivering even greater shareholder value going forward.
Liren Chen: Through 2025, our success was recognized by multiple third parties, including by Newsweek, which named us one of America's greatest companies, by Fortune, which included us among America's fastest-growing companies, and Time, which recognized us as one of America's growth leaders. More recently, in another sign of our momentum, at the start of 2026, Forbes recognized us as the number 1 most successful mid-cap companies in America for 2026. In its analysis, Forbes looked at long-term performance, and this award reflects our success in building a foundation for the future and delivering even greater shareholder value going forward.
Speaker #3: More recently, in another sign of our momentum, at the start of number one most 2026, Forbes recognized us as the for 2026. In its analysis, Forbes looked at long-term performance, and this award reflects our success in building a foundation for the future and delivering even greater shareholder value going forward.
Speaker #3: Before I hand it over to Rich, I want to let you know that next month we'll be back at Mobile World Congress in Barcelona where we'll be demonstrating some of our cutting-edge technology including how 6G will reshape connectivity, our innovation on our innovative application of AI, and on how we're leading the development of more immersive video.
Liren Chen: Before I hand it over to Rich, I want to let you know that next month we'll be back at Mobile World Congress in Barcelona, where we'll be demonstrating some of our cutting-edge technology, including how 6G will reshape connectivity, our innovation on our innovative application of AI, and on how we're leading the development of more immersive video. We'll also present a demo alongside gaming technology pioneer Razer, continuing our track record of showcasing cutting-edge innovation alongside industry partners. Please get in touch if you'd like to meet at the show. With that, I'll pass the word to Rich.
Liren Chen: Before I hand it over to Rich, I want to let you know that next month we'll be back at Mobile World Congress in Barcelona, where we'll be demonstrating some of our cutting-edge technology, including how 6G will reshape connectivity, our innovation on our innovative application of AI, and on how we're leading the development of more immersive video. We'll also present a demo alongside gaming technology pioneer Razer, continuing our track record of showcasing cutting-edge innovation alongside industry partners. Please get in touch if you'd like to meet at the show. With that, I'll pass the word to Rich.
Speaker #3: We'll also present a demo alongside gaming technology pioneer Razer continuing our track record of showcasing cutting-edge innovation alongside industry partners. Please get in touch if you'd like to with that, I'll pass you over to Rich.
Speaker #2: Thanks, Liren. Q4 was a strong finish to an excellent year, as we delivered revenue, adjusted EBITDA, and non-GAAP EPS in Q4 that all exceeded the high end of our outlook.
Richard Brezski: Thanks, Liren. Q4 was a strong finish to an excellent year as we delivered revenue, adjusted EBITDA, and non-GAAP EPS in Q4 that all exceeded the high end of our outlook. The upside was driven primarily by the new CE device license agreement with a significant social media company that Liren mentioned earlier. Total revenue of $158 million exceeded the high end of our outlook of $144 to $148 million and included $13 million of catch-up revenue. ARR increased 24% year over year in Q4 to $582 million. Our adjusted EBITDA for the quarter of $88 million exceeded the high end of our outlook of $68 to $76 million, resulting in an adjusted EBITDA margin of 56%. GAAP EPS for the quarter of $1.20 exceeded the high end of our outlook of $0.72 to $0.95.
Richard Brezski: Thanks, Liren. Q4 was a strong finish to an excellent year as we delivered revenue, adjusted EBITDA, and non-GAAP EPS in Q4 that all exceeded the high end of our outlook. The upside was driven primarily by the new CE device license agreement with a significant social media company that Liren mentioned earlier. Total revenue of $158 million exceeded the high end of our outlook of $144 to $148 million and included $13 million of catch-up revenue. ARR increased 24% year over year in Q4 to $582 million. Our adjusted EBITDA for the quarter of $88 million exceeded the high end of our outlook of $68 to $76 million, resulting in an adjusted EBITDA margin of 56%. GAAP EPS for the quarter of $1.20 exceeded the high end of our outlook of $0.72 to $0.95.
Speaker #2: The upside was driven primarily by the new CE device license agreement with a significant social media company that Liren mentioned earlier. Total revenue of $158 million exceeded the high end of our outlook of $144 to $148 million.
Speaker #2: And included $13 million of catch-up revenue. ARR increased 24% year over year in Q4 to $582 million. Our adjusted EBITDA for the quarter of $88 million exceeded the high end of our outlook of $68 to $76 million, resulting in an adjusted EBITDA margin for the quarter of $1.20, which exceeded the high end of our outlook of $72 to $95.
Speaker #2: Non-GAAP EPS of $2.12 for the quarter exceeded the high end of our outlook of $1.38 to $1.63. Cash generation for the quarter was robust, with cash from operations of $63 million and free cash flow of $48 million.
Richard Brezski: Non-GAAP EPS of $2.12 for the quarter exceeded the high end of our outlook of $1.38 to $1.63. Cash generation for the quarter was robust, with cash from operations of $63 million and free cash flow of $48 million. Building on Liren's comments, I'll highlight a few key metrics from our full-year 2025 results and provide the additional perspective of how each item has improved over the last four years. First, total revenue for full-year 2025 was a near record at $834 million, roughly two times the 2021 levels of $425 million. Next, Adjusted EBITDA for full-year 2025 reached a record high of $589 million, which is almost three times the 2021 level of $208 million. Finally, for full-year 2025, we delivered record Non-GAAP EPS of $15.31 per share, more than four times the $3.73 per share we reported in 2021.
Richard Brezski: Non-GAAP EPS of $2.12 for the quarter exceeded the high end of our outlook of $1.38 to $1.63. Cash generation for the quarter was robust, with cash from operations of $63 million and free cash flow of $48 million. Building on Liren's comments, I'll highlight a few key metrics from our full-year 2025 results and provide the additional perspective of how each item has improved over the last four years. First, total revenue for full-year 2025 was a near record at $834 million, roughly two times the 2021 levels of $425 million. Next, Adjusted EBITDA for full-year 2025 reached a record high of $589 million, which is almost three times the 2021 level of $208 million. Finally, for full-year 2025, we delivered record Non-GAAP EPS of $15.31 per share, more than four times the $3.73 per share we reported in 2021.
Speaker #2: Building on Liren's comments, I'll highlight a few key metrics from our full year 2025 results and provide the additional perspective of how each item has improved over the last four years.
Speaker #2: First, total revenue for full year 2025 was a near record at $834 million, roughly two times the 2021 level of $425 million. Next, adjusted EBITDA for full year 2025 reached a record high of $589 million, which is almost three times the 2021 level of $208 million.
Speaker #2: Finally, for full year 2025, we delivered record non-GAAP EPS of $15.31 per share more than four times the $3.73 per share we reported in 2021.
Speaker #2: The dramatic gains in these metrics reflect both strong execution and the operating leverage in our business model. Over the past four years, roughly two nearly three times growth in times revenue growth has delivered times growth in non-GAAP EPS.
Richard Brezski: The dramatic gains in these metrics reflect both strong execution and the operating leverage in our business model. Over the past four years, roughly two times revenue growth has delivered nearly three times growth in Adjusted EBITDA and more than four times growth in Non-GAAP EPS, all of which was driven by our recurring long-term investment in research. Turning to our outlook, we have guided to another very strong year in 2026, with expectations for total revenue in the range of $675 to $775 million, Adjusted EBITDA of $381 to $477 million, and Non-GAAP diluted earnings per share of $8.74 to $11.84. For Q1, we expect revenue will be $194 to $200 million from existing contracts, including catch-up sales of $55 to $60 million. Based only on existing contracts, we expect an Adjusted EBITDA margin of 52 to 55% and Non-GAAP diluted earnings per share of $2.39 to $2.68.
Richard Brezski: The dramatic gains in these metrics reflect both strong execution and the operating leverage in our business model. Over the past four years, roughly two times revenue growth has delivered nearly three times growth in Adjusted EBITDA and more than four times growth in Non-GAAP EPS, all of which was driven by our recurring long-term investment in research. Turning to our outlook, we have guided to another very strong year in 2026, with expectations for total revenue in the range of $675 to $775 million, Adjusted EBITDA of $381 to $477 million, and Non-GAAP diluted earnings per share of $8.74 to $11.84. For Q1, we expect revenue will be $194 to $200 million from existing contracts, including catch-up sales of $55 to $60 million. Based only on existing contracts, we expect an Adjusted EBITDA margin of 52 to 55% and Non-GAAP diluted earnings per share of $2.39 to $2.68.
Speaker #2: adjusted EBITDA and more than four All of which was driven by our recurring long-term investment in outlook, we have guided to another very strong year in research.
Speaker #2: revenue in the range of $675 to $775 million, adjusted EBITDA of Turning to our $477 million, and $381 to non-GAAP diluted earnings per share of $8.74 to $11.84.
Speaker #2: For Q1, we expect revenue will be $194 to $200 million from existing contracts. Including catch-up sales of $55 to $60 million. Based only on existing contracts, we expect an adjusted EBITDA margin of $52 to earnings per share of $2.68.
Speaker #2: Entering 2026, we saw a step-down in ARR from year-end $2.39 billion to expirations, but we have already renewed about two-thirds of the $92 million—55%—of non-GAAP diluted revenue that expired at the end of 2025, and we expect additional renewals and new agreements will drive further increases in ARR, keeping us on pace to reach $1 billion by 2030.
Richard Brezski: Entering 2026, we saw a step down in ARR from year-end expirations, but we have already renewed about two-thirds of the $92 million that expired at the end of 2025, and we expect additional renewals and new agreements will drive further increases in ARR, keeping us on pace to reach $1 billion by 2030. Before I turn it back to Raiford, I want to reiterate that our quarterly guidance for Q1 2026 does not include the impact of any new agreements or arbitration results we may sign or receive over the balance of the first quarter. This is because it is harder to predict the timing of new agreements in short windows. In contrast, our full-year guidance includes potential contributions from both new agreements and arbitration results.
Richard Brezski: Entering 2026, we saw a step down in ARR from year-end expirations, but we have already renewed about two-thirds of the $92 million that expired at the end of 2025, and we expect additional renewals and new agreements will drive further increases in ARR, keeping us on pace to reach $1 billion by 2030. Before I turn it back to Raiford, I want to reiterate that our quarterly guidance for Q1 2026 does not include the impact of any new agreements or arbitration results we may sign or receive over the balance of the first quarter. This is because it is harder to predict the timing of new agreements in short windows. In contrast, our full-year guidance includes potential contributions from both new agreements and arbitration results.
Speaker #2: Before I turn it back to Rayford, I want to reiterate that our quarterly guidance for Q1 '26 does not new agreements or arbitration include the impact of any results we may sign or receive over the balance of the first quarter.
Speaker #2: This is because it is harder in short windows. In contrast, our full year to predict the timing of new agreements guidance includes potential contributions from both new agreements and arbitration results.
Speaker #2: As was the case last year, we believe we can achieve financial results within our full year guided range through different arbitration results. combinations of new agreements and With that, I'll turn it back to
Richard Brezski: As was the case last year, we believe we can achieve financial results within our full-year guided range through different combinations of new agreements and arbitration results. With that, I'll turn it back to Raiford.
Richard Brezski: As was the case last year, we believe we can achieve financial results within our full-year guided range through different combinations of new agreements and arbitration results. With that, I'll turn it back to Raiford.
Speaker #3: Thanks, Rich. Before we move to Q&A, I'd like to
Raiford Garrabrant: Thanks, Rich. Before we move to Q&A, I'd like to mention that we'll be attending a number of investor events in Q1, including the Roth Conference in Dana Point, California, and the Sidoti Conference, which is virtual. Please reach out to your representatives at those firms if you'd like to schedule a meeting. Now we are ready to take questions.
Raiford Garrabrant: Thanks, Rich. Before we move to Q&A, I'd like to mention that we'll be attending a number of investor events in Q1, including the Roth Conference in Dana Point, California, and the Sidoti Conference, which is virtual. Please reach out to your representatives at those firms if you'd like to schedule a meeting. Now we are ready to take questions.
Speaker #3: mention that we'll be attending a number of Rayford. investor events in Q1, including the Roth Conference and Dana Point, California, and the Sudeti Conference, which is virtual.
Speaker #3: Please reach out to your representatives at those firms you'd like to schedule a meeting. Now we are ready to take
Speaker #3: questions. At this time,
Operator: At this time, I would like to remind everyone that in order to ask a question, you may press start and the number 1 on your telephone keypad. Also, we kindly ask to please limit your questions to 1 and 1 follow-up only so that everyone can have the chance to engage with our speakers for today. Your first question comes from the line of Scott Searle with Roth Capital. Your line is open.
Operator: At this time, I would like to remind everyone that in order to ask a question, you may press start and the number 1 on your telephone keypad. Also, we kindly ask to please limit your questions to 1 and 1 follow-up only so that everyone can have the chance to engage with our speakers for today. Your first question comes from the line of Scott Searle with Roth Capital. Your line is open.
Speaker #4: I would like to remind everyone that, in order to ask a question, you may press 'star' and the number '1' on your telephone keypad.
Speaker #4: Also, we kindly ask to please limit your questions to one and one follow-up only so that everyone can have the chance to engage with our speakers for today.
Speaker #4: Your first question comes from the line of Scott Seal with Roth Capital. Your line is
Speaker #4: open. Hey, good morning.
Scott Searle: Hey, good morning. Thanks for taking the questions. Congrats on a nice quarter and outlook. Rich, maybe just to dive in quickly on the guidance. I think I heard the number in terms of the $194 to $200 million in Q1, that's got $50 to $55 million of catch-up. So it kind of implies that recurring has gone down, or at least the immediate outlook of contracts in hand is down sequentially from the December quarter. Now, I know that there are expirations that go along with it, but I'm wondering, excuse me, the start of any year, and I believe the number is about $32 million according to the 10-K as we enter 2026.
Scott Searle: Hey, good morning. Thanks for taking the questions. Congrats on a nice quarter and outlook. Rich, maybe just to dive in quickly on the guidance. I think I heard the number in terms of the $194 to $200 million in Q1, that's got $50 to $55 million of catch-up. So it kind of implies that recurring has gone down, or at least the immediate outlook of contracts in hand is down sequentially from the December quarter. Now, I know that there are expirations that go along with it, but I'm wondering, excuse me, the start of any year, and I believe the number is about $32 million according to the 10-K as we enter 2026.
Speaker #5: taking the questions. Congrats on a nice quarter and Thanks for outlook. Hey, Rich, maybe just to dive in quickly on the number in terms of the guidance.
Speaker #5: 194 to 200 million in the first quarter. That's got I think I heard the 50 to 55 million of catch-up. So it kind of implies that recurring has gone down or at least the immediate outlook of contracts in hand is down sequentially.
Speaker #5: From the December quarter. Now, I know that there are expirations that go along with it, but I'm wondering and excuse me, the start of any year.
Speaker #5: And I believe the number is about 32 million. According to the K, as we enter 2026. So I'm wondering if you could provide a little bit of color if that's the right ballpark in terms of where we're starting with recurring fees and the outlook and the expectation of re-signing some of those contracts that I believe I thought Xiaomei was one of them, but Samsung TV, etc., how we should be thinking about that over the course of the next couple of quarters.
Scott Searle: So I'm wondering if you could provide a little bit of color if that's the right ballpark in terms of where we're starting with recurring fees and the outlook and the expectation of resigning some of those contracts that I believe, I thought Xiaomi was one of them, but Samsung TV, etc., how we should be thinking about that over the course of the next couple of quarters?
Scott Searle: So I'm wondering if you could provide a little bit of color if that's the right ballpark in terms of where we're starting with recurring fees and the outlook and the expectation of resigning some of those contracts that I believe, I thought Xiaomi was one of them, but Samsung TV, etc., how we should be thinking about that over the course of the next couple of quarters?
Richard Brezski: Yeah, Scott, that's right. So as we disclosed coming a year ago that we had roughly $90 million of expirations at the end of 2025, and we updated that disclosure in the current K. But as noted, we did renew Xiaomi, so about two-thirds of that was covered. And then we also had the LG agreement, which is contributing recurring revenue as well. So net-net, we haven't recovered all of it yet. We're still working on other renewals and certainly look to get new agreements to drive further increases in ARR over the course of the year.
Richard Brezski: Yeah, Scott, that's right. So as we disclosed coming a year ago that we had roughly $90 million of expirations at the end of 2025, and we updated that disclosure in the current K. But as noted, we did renew Xiaomi, so about two-thirds of that was covered. And then we also had the LG agreement, which is contributing recurring revenue as well. So net-net, we haven't recovered all of it yet. We're still working on other renewals and certainly look to get new agreements to drive further increases in ARR over the course of the year.
Speaker #2: That's right. So as we—yeah, Scott—disclosed, coming a year ago that we had roughly $90 million of expirations at the end of '25, and we updated that disclosure in the current K. But as noted, we did renew Xiaomei.
Speaker #2: So about two-thirds of that was covered. And then we also had the LG agreement, which is contributing recurring revenue as well. So net-net we haven't recovered all of it yet.
Speaker #2: We're still working on other renewals and certainly look to get new agreements to drive further increases in ARR over the course of the year.
Speaker #5: Gotcha. Very helpful. And then I'll jump in on the litigation front. I'm wondering, Larry, if you could provide a little bit of color just in terms of potential timelines as it relates to Disney?
Scott Searle: Gotcha. Very helpful. And then I'll jump in on the litigation front. I'm wondering, Liren, if you could provide a little bit of color just in terms of potential timelines as it relates to Disney. You've had some positive outcomes in terms of Brazil and Germany, but is there an expected timeline of when you start to get some more, I guess, court feedback on that front? Similarly, the updated timeline with Amazon. And Rich, on the litigation cost front, I know it was elevated this past quarter. I think the number was about $19 million, which is the highest in recent memory. But given the events and the litigation that's ongoing, how should we think about that going forward into Q1, Q2, and the course of 2026? Thanks.
Scott Searle: Gotcha. Very helpful. And then I'll jump in on the litigation front. I'm wondering, Liren, if you could provide a little bit of color just in terms of potential timelines as it relates to Disney. You've had some positive outcomes in terms of Brazil and Germany, but is there an expected timeline of when you start to get some more, I guess, court feedback on that front? Similarly, the updated timeline with Amazon. And Rich, on the litigation cost front, I know it was elevated this past quarter. I think the number was about $19 million, which is the highest in recent memory. But given the events and the litigation that's ongoing, how should we think about that going forward into Q1, Q2, and the course of 2026? Thanks.
Speaker #5: You've had some positive outcomes in terms of Brazil and Germany. But is there an expected timeline of when you start to get some more, front?
Speaker #5: Similarly, the updated timeline with Amazon and Rich on the litigation cost front, I know it was elevated this past quarter. I think the number was about 19 million, which is the highest in recent memory.
Speaker #5: But given the events and the litigation that's ongoing, how forward into the first, should we think about that going 2026?
Speaker #5: Thanks. Hey,
Liren Chen: Hey, Scott. Good morning. This is Liren. So on the litigation side, we could not be happier with where we are with the Disney case. As I said in my preparatory remark, without the litigation at the beginning of 2025, we already got really positive results from Brazil and Germany. Of the four patents being decided, we essentially went on all of them regarding being infringed, and we already got preliminary injunctions and injunctions in two different countries. And but that's not all, right? We have more than a dozen patents asserted, and therefore, we still have a majority of the case coming to trial in even bigger jurisdictions like America, United States, as well as UPC. And those are starting in the summertime and also second half of this year. We have to have disclosed each case in our 10-K filings.
Liren Chen: Hey, Scott. Good morning. This is Liren. So on the litigation side, we could not be happier with where we are with the Disney case. As I said in my preparatory remark, without the litigation at the beginning of 2025, we already got really positive results from Brazil and Germany. Of the four patents being decided, we essentially went on all of them regarding being infringed, and we already got preliminary injunctions and injunctions in two different countries. And but that's not all, right? We have more than a dozen patents asserted, and therefore, we still have a majority of the case coming to trial in even bigger jurisdictions like America, United States, as well as UPC. And those are starting in the summertime and also second half of this year. We have to have disclosed each case in our 10-K filings.
Speaker #2: be happier with where we Scott. Good morning. This is Larry. the litigation side, we could not are. With Disney case, as I said in my prepared remark, without the litigation at the beginning of '25, we already got really positive results from Brazil and Germany.
Speaker #2: Of the four patents being decided, we essentially went on all of them. Regarding the being infringed and we already got preliminary injunction and injunctions in that's not all, right?
Speaker #2: We have more than a two different countries. dozen patents asserted and And but therefore we still have a majority of the case coming to trial in even bigger jurisdictions like American, United States, as well as UPC.
Speaker #2: And those are starting in the summertime and also second half of this year. We have to have disclosed each case in our 10-K filings.
Speaker #2: So we are confident about our case. And we wait for the outcome of those decisions. Regarding our Amazon case, as I said in my prepared remark, the assertion was frankly started in Q4, as you might recall, Amazon Equity so the case was filed in our side on Q4.
Liren Chen: So we are confident about our case, and we wait for the outcome of those decisions. Regarding our Amazon case, as I said in my preparatory remark, the assertion was frankly starting in Q4, as you might recall. Amazon actually litigated against us first. So the case was filed on our side on Q4. So it's trading a little bit behind on the timing, but we are asserting multiple cases in four-plus jurisdictions plus ITC. And Amazon also have devices that we are also asserting against. So we will take time to go through each one of them. Again, there's more disclosure in our 10-K filing.
Liren Chen: So we are confident about our case, and we wait for the outcome of those decisions. Regarding our Amazon case, as I said in my preparatory remark, the assertion was frankly starting in Q4, as you might recall. Amazon actually litigated against us first. So the case was filed on our side on Q4. So it's trading a little bit behind on the timing, but we are asserting multiple cases in four-plus jurisdictions plus ITC. And Amazon also have devices that we are also asserting against. So we will take time to go through each one of them. Again, there's more disclosure in our 10-K filing.
Speaker #2: litigated against us first. And behind on the timing. But in four plus jurisdictions, plus ITC. And Amazon also has devices that we also are asserting against.
Speaker #2: So we will again. There's more disclosure in our 10-K filing.
Speaker #2: take time to go through each one of them
Scott Searle: Yeah. And Scott, on litigation cost, well, the first thing I'd say is you can infer from our guidance that we have some uptick in expenses going into Q1. Without being too granular, let me give you the broad strokes there. We have rev share on the new Madison agreement we signed, roughly called almost half of the catch-up sales for Q1. And then even accounting for that, expenses are still up a little bit, and that's mostly driven by an expectation for increased litigation expense as we do expect it to be higher in Q1, and broadly for 2026. That's all factored into the 2026 full-year guide as well. And then beyond that, we continue to invest in our research and portfolio, so we have a little bit of an increase there as well.
Richard Brezski: Yeah. And Scott, on litigation cost, well, the first thing I'd say is you can infer from our guidance that we have some uptick in expenses going into Q1. Without being too granular, let me give you the broad strokes there. We have rev share on the new Madison agreement we signed, roughly called almost half of the catch-up sales for Q1. And then even accounting for that, expenses are still up a little bit, and that's mostly driven by an expectation for increased litigation expense as we do expect it to be higher in Q1, and broadly for 2026. That's all factored into the 2026 full-year guide as well. And then beyond that, we continue to invest in our research and portfolio, so we have a little bit of an increase there as well.
Speaker #5: Scott, on litigation cost, well, the first thing I'd say is you can infer from our Q4 and guidance that we have some uptick in expenses going into Q1, without being too granular.
Speaker #5: Let me give you the broad strokes there. We have RevShare on the new Madison agreement we signed. Roughly, it's called almost half of the catch-up sales for Q1.
Speaker #5: And then even accounting for that, expenses are still up a little bit. And that's mostly driven by an expectation for increased litigation expense as we do expect it to broadly, for 2026, that's all factored into the 26 full-year guide as well.
Speaker #5: And then beyond that, we continue to invest in our research and portfolio so we have some a little bit of an increase there as well.
Speaker #5: Great. Thanks so much. Very helpful. I'll get back in the
Liren Chen: Great. Thanks so much. Very helpful. I'll get back in the queue.
Scott Searle: Great. Thanks so much. Very helpful. I'll get back in the queue.
Speaker #5: queue. Next
Operator: Next question comes from the line of Kevin Garrigan with Jefferies. Please go ahead.
Operator: Next question comes from the line of Kevin Garrigan with Jefferies. Please go ahead.
Speaker #4: question comes from the line of Kevin Kerrigan with Jeffries. Please go ahead.
Speaker #6: Yeah. Hey, good morning, guys. Congrats on the strong results and all the progress. Just wondering if you can talk a little bit more about the consumer electronic device agreement with the social media company.
Kevin Garrigan: Yeah. Hey, good morning, guys. Congrats on the strong results and all the progress. Just wondering if you can talk a little bit more about the consumer electronic device agreement with the social media company. I mean, do you guys see that being a high-volume agreement?
Kevin Garrigan: Yeah. Hey, good morning, guys. Congrats on the strong results and all the progress. Just wondering if you can talk a little bit more about the consumer electronic device agreement with the social media company. I mean, do you guys see that being a high-volume agreement?
Speaker #6: I mean, do you guys see that being a high
Speaker #6: agreement? Yeah.
Liren Chen: Yeah. Hey, Kevin. Good morning. This is Liren. So of that particular agreement, it's a device agreement, and it's licensed on our video access and Wi-Fi. So it's actually not a huge volume agreement, neither does it apply on the service side. So that's as far as I can see on that agreement.
Liren Chen: Yeah. Hey, Kevin. Good morning. This is Liren. So of that particular agreement, it's a device agreement, and it's licensed on our video access and Wi-Fi. So it's actually not a huge volume agreement, neither does it apply on the service side. So that's as far as I can see on that agreement.
Speaker #2: Hey,
Speaker #2: Kevin, good morning. This is Larry. So, volume-wise, that particular agreement—it's a device agreement. And it's licensing our video assets and Wi-Fi. So it's actually not a huge volume agreement, neither do they apply on the service side.
Speaker #2: So that's as far as I can see on that agreement.
Speaker #6: Okay. Got it. That makes sense. And then just litigation question, I mean, what I know you guys had, looking at a as you said, a strong start to you're working on Amazon.
Kevin Garrigan: Okay. Got it. That makes sense. And then just looking at a litigation question, I mean, what I know you guys had, as you said, a strong start to 2025, positives on Disney, and you're working on Amazon. I mean, what do you guys kind of see are the biggest threats on the litigation front? Is it really just kind of the budgets that Disney and Amazon have?
Kevin Garrigan: Okay. Got it. That makes sense. And then just looking at a litigation question, I mean, what I know you guys had, as you said, a strong start to 2025, positives on Disney, and you're working on Amazon. I mean, what do you guys kind of see are the biggest threats on the litigation front? Is it really just kind of the budgets that Disney and Amazon have?
Speaker #6: 2025, positives on Disney and I mean, what threats on the litigation front? Is it really just kind of the budgets that Disney and Amazon have?
Speaker #2: Can you clarify by threat, do you mean threatening to us?
Liren Chen: Can you clarify by threat? You mean threat to us?
Liren Chen: Can you clarify by threat? You mean threat to us?
Kevin Garrigan: I guess just threat to potentially them not signing or the court cases not going your way.
Kevin Garrigan: I guess just threat to potentially them not signing or the court cases not going your way.
Speaker #6: to I guess just threat potentially them not signing or the court cases not going your way.
Speaker #2: Gotcha. Yeah. Hey, Kevin. As I mentioned earlier, we are being very careful in terms of our litigation strategy. We always prefer deal-making. However, on both cases here, after frankly Lindsay negotiations, we decided it's the right thing to do is for us to enforce our patent right.
Liren Chen: Gotcha. Yeah. Hey, Kevin. As I mentioned earlier, we are being very careful in terms of our litigation strategy. We always prefer negotiation for deal-making. However, on both cases here, after frankly lengthy negotiations, we decided it's the right thing to do as far as reinforcing our patent right. As you can also probably tell in our disclosures here, it's a multi-jurisdictional enforcement campaign. In either case, we are asserting more than a dozen different patents, even though there's potential risk for each patent litigation. I mean, any litigation carries its own inherent risk. But our patents are really high quality, and some of the patents have already been better tested regarding durability and other issues. So we are doing really, really well.
Liren Chen: Gotcha. Yeah. Hey, Kevin. As I mentioned earlier, we are being very careful in terms of our litigation strategy. We always prefer negotiation for deal-making. However, on both cases here, after frankly lengthy negotiations, we decided it's the right thing to do as far as reinforcing our patent right. As you can also probably tell in our disclosures here, it's a multi-jurisdictional enforcement campaign. In either case, we are asserting more than a dozen different patents, even though there's potential risk for each patent litigation. I mean, any litigation carries its own inherent risk. But our patents are really high quality, and some of the patents have already been better tested regarding durability and other issues. So we are doing really, really well.
Speaker #2: As you can also probably tell in our disclosures here, it's a multi-jurisdictional enforcement campaign. In either case, we are patents. Even though there's potential risk for each patent asserting more than a dozen different litigations, I mean, any risk.
Speaker #2: But our patents are really high litigation carries its own inherent and other issues. So we are doing battle-tested regarding their validity really, really well.
Speaker #2: And so therefore, our whole litigation quality and some of the patents have already been campaign is not really dependent on winning every single patent assertions, but we feel very strong about the value of our portfolio and we feel that the right thing for us to do is to get fairly compensated so we can keep on funding R&D.
Liren Chen: And so therefore, our whole litigation campaign is not really dependent on winning every single patent assertions, but we feel very strong about the value of our portfolio. And we feel that the right thing for us to do is to get fairly compensated so we can keep on funding R&D. So that's our global enforcement campaign at the broader speaking. And you should know that in most of those cases, when we assert them, we ask both for past damages for the infringement as well as injunction if we win.
Liren Chen: And so therefore, our whole litigation campaign is not really dependent on winning every single patent assertions, but we feel very strong about the value of our portfolio. And we feel that the right thing for us to do is to get fairly compensated so we can keep on funding R&D. So that's our global enforcement campaign at the broader speaking. And you should know that in most of those cases, when we assert them, we ask both for past damages for the infringement as well as injunction if we win.
Speaker #2: So that’s our global enforcement campaign, broadly speaking. And you should know that in most of those cases, when we assert them, we ask both for past damages for the infringement as well as injunction, if we
Speaker #2: win. Okay.
Kevin Garrigan: Okay. Perfect. I appreciate the color. Thank you.
Kevin Garrigan: Okay. Perfect. I appreciate the color. Thank you.
Speaker #6: Perfect. I appreciate the color. Thank
Speaker #4: Your
Operator: Your next question comes from the line of Aline Delee with William Blair. Your line is open.
Operator: Your next question comes from the line of Aline Delee with William Blair. Your line is open.
Speaker #4: next question comes from the you. line of Alain Delis with William Blair. Your line is
Speaker #4: open. Thank
Aline Delee: Thank you. With the focus on R&D, how should we think about M&A as part of the effort to expand and deepen the patent portfolio here?
[Analyst] (William Blair): Thank you. With the focus on R&D, how should we think about M&A as part of the effort to expand and deepen the patent portfolio here?
Speaker #7: ank you. With the focus on R&D, how should we think about M&A as part of the effort to patent portfolio expand and deepen the
Speaker #7: here? Yeah.
Liren Chen: Yeah. Hey, good morning, Aline. This is Liren. Yes. So we take a pretty broad approach in our R&D investment. As I said in prior calls, we believe strongly we have one of the most advanced R&D engines in the industry. We have some of the best innovators led by our CTO, Rajesh Pankaj, which is widely recognized as one of the most brilliant minds in our industry. But having said that, though, we are also having the luxury of having resources, having the industry reputation that we can engage leading companies like Deep Render. And it allows us to fill certain gaps in our research and frankly allows us to accelerate some of the areas that we are quite strong already. So we are pretty open-minded, and we have a fairly broad funnel. We are considering them as they come.
Liren Chen: Yeah. Hey, good morning, Aline. This is Liren. Yes. So we take a pretty broad approach in our R&D investment. As I said in prior calls, we believe strongly we have one of the most advanced R&D engines in the industry. We have some of the best innovators led by our CTO, Rajesh Pankaj, which is widely recognized as one of the most brilliant minds in our industry. But having said that, though, we are also having the luxury of having resources, having the industry reputation that we can engage leading companies like Deep Render. And it allows us to fill certain gaps in our research and frankly allows us to accelerate some of the areas that we are quite strong already. So we are pretty open-minded, and we have a fairly broad funnel. We are considering them as they come.
Speaker #2: Hey, good morning, Alain. This is Larry. Yes. So we take a pretty broad approach in our R&D investment. As I said, in prior calls, we believe strongly we engines in the industry.
Speaker #2: innovators. Led by We have some of the best our CTO, Rajesh Pankaj, the most brilliant mining in our industry. But having said that, though, we are also having the luxury of having resources, having the industry reputation that we can DeepRender and it allows us engage leading companies like research and frankly allows us to to fill certain gaps in our accelerate some of the areas that we are quite strong already.
Speaker #2: So we are pretty open-minded and we have a fairly broad funnel. We are considering them as they
Speaker #2: come. Yep.
Aline Delee: Yep. That makes sense. And then from the litigation for streaming services, that side of it, is there anything that's fundamentally different from a litigation perspective as compared to the litigations with the smartphones and also the CEs and IoTs?
[Analyst] (William Blair): Yep. That makes sense. And then from the litigation for streaming services, that side of it, is there anything that's fundamentally different from a litigation perspective as compared to the litigations with the smartphones and also the CEs and IoTs?
Speaker #4: That makes sense. And then from the litigation sourcing that's perspective as compared to the litigations with the smartphones and also the C's and
Speaker #4: IoTs?
Speaker #2: Yeah. Hey, that's a great
Liren Chen: Yeah. Hey, that's a great question. So, as I said earlier, we always prefer bilateral negotiations. And I'll say one of the differences in the smartphone industry, we have been licensing for multiple decades, and we have some of the longest relationship, as I said earlier, including the Samsung relationship that goes all the way to the 1990s. On the streaming platform side, and this is a relatively new industry for us, even though our fundamental technology has been used by those vendors for many, many years now, but it does take a bit extra time for us to demonstrate the strengths of our portfolio to convincing them this would be a fair price. So I'll say we are on the early stage of the industry. So therefore, that's where I see the customer engagement takes a bit extra time.
Liren Chen: Yeah. Hey, that's a great question. So, as I said earlier, we always prefer bilateral negotiations. And I'll say one of the differences in the smartphone industry, we have been licensing for multiple decades, and we have some of the longest relationship, as I said earlier, including the Samsung relationship that goes all the way to the 1990s. On the streaming platform side, and this is a relatively new industry for us, even though our fundamental technology has been used by those vendors for many, many years now, but it does take a bit extra time for us to demonstrate the strengths of our portfolio to convincing them this would be a fair price. So I'll say we are on the early stage of the industry. So therefore, that's where I see the customer engagement takes a bit extra time.
Speaker #2: question. So as I said earlier, we always
Speaker #2: negotiations. And I'll see one of the differences in the smartphone industry we have been licensing for multiple decades and we have some of the longest earlier, including the Samsung services, that side of it, is there anything relationship that goes all the way to 1990s.
Speaker #2: On the streaming platform side, this is a relatively new industry for us, even though our fundamental technology has been used by those vendors for many years now.
Speaker #2: But it does take a bit extra time for us to demonstrate the strengths of our portfolio. To convincing them, this would be a fair price.
Speaker #2: So I'll say we are on the early stage customer engagement takes a bit extra of the industry. time.
Speaker #4: Got it. That makes sense. Thank you so much. Thank you, everyone. And that concludes our Q&A session for today. I will now turn the call over back to Lauren Chen.
Aline Delee: Got it. That makes sense. Thank you so much.
[Analyst] (William Blair): Got it. That makes sense. Thank you so much.
Operator: Thank you, everyone. That concludes our Q&A session for today. I will now turn the call over back to Liren Chen, InterDigital CEO, for the closing remarks. Please go ahead.
Operator: Thank you, everyone. That concludes our Q&A session for today. I will now turn the call over back to Liren Chen, InterDigital CEO, for the closing remarks. Please go ahead.
Speaker #4: InterDigital CEO for the closing remarks. Please go ahead.
Speaker #8: Thank you, thank our employees for their dedication and contributions. To InterDigital, as well as our many partner and licensee for a very strong 2025.
Kevin Garrigan: Thank you, Gil. Before we close, I'd like to thank our employees for their dedication and contributions to InterDigital, as well as our many partners and licensees for a very strong quarter and a record-breaking 2025. Thank you to everyone who joined us today's call, and we look forward to updating you on our progress next quarter.
Liren Chen: Thank you, Gil. Before we close, I'd like to thank our employees for their dedication and contributions to InterDigital, as well as our many partners and licensees for a very strong quarter and a record-breaking 2025. Thank you to everyone who joined us today's call, and we look forward to updating you on our progress next quarter.
Speaker #8: quarter and a record-breaking everyone who joined us today's call, and Thank you to we look forward to updating you on our progress next quarter.
Speaker #4: It is a gentleman that concludes today's call. Now disconnect. Have a nice day, thank you all for joining, and may everyone keep safe always.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect. Have a nice day, everyone, and keep safe always. Thank you.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect. Have a nice day, everyone, and keep safe always. Thank you.
