Abstract

InterDigital will report its quarterly results on February 05, 2026 Pre-Market; this preview consolidates recent financial data and forecasts to outline expectations for revenue, profitability metrics, and adjusted EPS together with institutional commentary through January 29, 2026.

Market Forecast

Consensus and company-indicated forecasts point to InterDigital’s current-quarter revenue of USD 150.59 million, a gross profit margin that is likely to remain high given the company’s licensing mix, a net profit margin directionally softer than last quarter, and adjusted EPS of USD 1.00, with year-over-year declines of 38.34% for revenue and 75.82% for EPS. The core licensing business is expected to anchor results with resilience in recurring contracts, while short-term variability stems from the timing of renewals and fixed-fee arrangements. The segment most likely to provide incremental stability is recurring licensing, which contributed USD 164.68 million last quarter and grew 27.98% year over year, positioning the base for cash flow consistency even as new deals cycle.

Last Quarter Review

InterDigital delivered last quarter revenue of USD 164.68 million, a gross profit margin of 88.03%, GAAP net profit attributable to the parent company of USD 67.50 million, a net profit margin of 40.99%, and adjusted EPS of USD 1.93, with year-over-year growth of 69.30% in adjusted EPS. A standout was EBIT of USD 75.81 million, exceeding estimates by USD 15.02 million, underpinned by stronger-than-expected licensing receipts and disciplined expense control. Main business highlights centered on recurring licensing revenue of USD 164.68 million, representing a robust 27.98% year-over-year increase and demonstrating steady monetization from existing portfolios.

Current Quarter Outlook

Main Licensing Business

The primary driver for InterDigital’s quarterly performance remains its core licensing operations across wireless, consumer electronics, and video technologies. The forecast points to USD 150.59 million in total revenue, implying sequential moderation from last quarter due to the timing of renewal cycles and the absence of large, one-off catch-up payments. Despite the projected top-line decline, the business model’s structural economics are poised to preserve a high gross margin near last quarter’s 88.03% level because incremental revenue cost is limited in a licensing framework. The net margin is likely to track lower quarter over quarter given the forecasted EBIT of USD 53.25 million and EPS of USD 1.00, reflecting normalized cash collections and potential seasonal expense patterns.

Most Promising Recurring Licensing Revenue

Recurring licensing revenue showed USD 164.68 million last quarter, up 27.98% year over year, and it continues to be the segment with the highest visibility. In the current quarter, the resilience of recurring contracts can mitigate downside from delayed renewals, maintaining a balanced revenue cadence. The YoY headwind in total revenue, forecast to decline 38.34%, underscores the swing factor of non-recurring items; nonetheless, the recurring base provides a reliable foundation for collections and supports margin stability. Over the medium term, recurring streams are positioned to grow in line with cumulative device shipments and expanded licensing coverage, although quarterly intra-year volatility can remain tied to specific customer dynamics.

Key Stock Price Drivers This Quarter

Three elements will likely influence the stock’s performance around the print: the magnitude of variance versus the forecasted USD 150.59 million revenue, the persistence of the high gross margin profile, and management commentary on renewal timing and pipeline. If revenue tracks near forecast with confirmation of stable gross margins, the market may pivot to guidance language and visibility on upcoming contracts to assess sustainability into subsequent quarters. Conversely, a gap relative to the USD 1.00 adjusted EPS forecast could prompt reassessment of the cadence of cash collections, especially if EBIT deviates from the projected USD 53.25 million. Investors will focus on the balance between recurring receipts and event-driven payments, seeking clarity on the trajectory of revenue normalization following last quarter’s strong performance.

Analyst Opinions

Institutional commentary gathered through January 29, 2026 suggests a majority of views lean cautious to bearish for the near term, pointing to the sharp year-over-year declines implied by current-quarter forecasts for revenue at USD 150.59 million and adjusted EPS at USD 1.00. Analysts emphasize the variability inherent in licensing revenue timing, with attention on whether upcoming renewals can bridge the implied gap to stabilize full-year run-rate. The bearish camp highlights the quarter-on-quarter drop in net profit, with last quarter’s net profit attributable to the parent of USD 67.50 million and a sequential decline rate of 62.62%, framing expectations for softer profitability in the current release. Well-followed institutions indicate that the thesis hinges on conservative assumptions for contract timing, reinforcing a view that near-term results could undershoot prior momentum while longer-term fundamentals remain intact. The majority position, therefore, centers on guarded expectations, anticipating a reset in earnings power relative to the unusually strong prior quarter, with investor reactions likely keyed to the precision of management’s pipeline disclosures and any signals on the pace of new agreements.