InterDigital Inc (NASDAQ:IDCC) reported second-quarter earnings that significantly surpassed analyst expectations, driving a strong pre-market reaction. The company’s performance was buoyed by a favorable Samsung arbitration decision and a new licensing agreement with HP, contributing to record annualized recurring revenue.
Key Financial Highlights vs. Estimates
- Revenue: Reported revenue for Q2 2025 came in at $300.6 million, far exceeding the consensus estimate of $173.4 million. This represents a 73.4% beat versus expectations.
- Earnings Per Share (EPS): The company posted $6.52 in EPS, crushing the estimated $2.80, marking a 133% beat.
- Annualized Recurring Revenue (ARR): Reached an all-time high of $553 million, up 44% year-over-year, reflecting strong licensing momentum.
Market Reaction
The stock surged 7.47% in pre-market trading, indicating strong investor approval of the results. Over the past month, shares had already gained 10.5%, suggesting growing optimism ahead of the earnings release. The substantial revenue and EPS outperformance likely reinforced confidence in the company’s growth trajectory.
Full-Year and Q3 Outlook vs. Analyst Estimates
InterDigital raised its full-year 2025 revenue guidance by $110 million, signaling continued strength in licensing deals. Analysts had projected $717.3 million in full-year sales, but the company’s upward revision suggests it may surpass these expectations. For Q3 2025, analysts currently estimate $152.7 million in revenue and $1.38 in EPS—figures that may now be viewed as conservative given InterDigital’s recent execution.
Press Release Takeaways
- The Samsung arbitration ruling and new HP license agreement were key drivers of the strong quarter.
- Licensing revenue growth remains robust, with recurring revenue hitting record levels.
- Management’s confidence is reflected in the raised full-year guidance, pointing to sustained momentum.
For a deeper dive into InterDigital’s earnings and future estimates, review the detailed earnings and estimates page.
Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.
