InterDigital (IDCC) stock is soaring 5.32% in pre-market trading on Thursday following the company's announcement of impressive second-quarter results and a significant boost to its full-year guidance. The mobile and video technology research firm has demonstrated robust financial performance, driven by a major licensing agreement with Samsung and growing momentum in its IP-as-a-service business model.
For the second quarter of 2025, InterDigital reported a 34% year-over-year increase in revenue, reaching $300.6 million. The company's net income surged by 65% to $180.6 million, while diluted earnings per share (EPS) climbed 36% to $5.35. On a non-GAAP basis, InterDigital achieved an all-time high EPS of $6.52, significantly beating analyst estimates of $2.02.
The strong quarterly performance has led InterDigital to raise its full-year 2025 outlook. The company now expects annual revenue to range between $790 million and $850 million, up $110 million from its previous guidance. The non-GAAP EPS forecast has been revised upward to $14.17-$14.77, surpassing the FactSet consensus estimate of $12.40. This positive outlook is largely attributed to InterDigital's recent agreement with Samsung, valued at over $1 billion in total contract value over eight years, and the company's success in signing licenses worth more than $4 billion since 2021. These developments underscore the accelerating momentum of InterDigital's IP-as-a-service business model and its strong position in the mobile, video, and AI technology sectors.