InterDigital raises third quarter outlook on new Chinese license

InterDigital Inc. (NASDAQ: IDCC) announced it signed a new license agreement with a major Chinese smartphone vendor and raised its third quarter 2025 financial outlook.

The licensing deal increases the company's projected annualized recurring revenue by approximately $26 million to $579 million, according to the press release. InterDigital now has licensing agreements with eight of the ten largest smartphone vendors, covering approximately 85% of the global smartphone market.

The company revised its third quarter revenue outlook to $155 million to $159 million, up from the prior range of $136 million to $140 million. Adjusted EBITDA guidance increased to $91 million to $97 million from $69 million to $75 million previously.

Diluted earnings per share guidance was raised to $1.39 to $1.56 from $0.94 to $1.11, while non-GAAP earnings per share guidance increased to $2.08 to $2.27 from $1.52 to $1.72.

"This new license agreement, which was concluded through amicable negotiation, adds another major smartphone player to our customer base," said Liren Chen, CEO and President of InterDigital.

InterDigital's existing licensing partners include Apple, Samsung, Xiaomi, OPPO and vivo. The company previously announced a $1 billion licensing deal with Samsung.

The Wilmington, Delaware-based company focuses on wireless, video and artificial intelligence technology research and development. The updated outlook covers existing licenses signed as of the announcement date and excludes potential new agreements or enforcement actions during the remainder of the third quarter.

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