InterDigital, Inc. reported financial results for the fiscal quarter ended September 30, 2026. The company announced revenue of $193.4 million for the third quarter of 2026, representing a 17% year-over-year increase. Net income for the period was $80.2 million, a 19% increase compared to the prior year.
Adjusted EBITDA for the quarter was $131.3 million, up 25% year-over-year, with a margin of 68%. The company achieved record annualized recurring revenue of $629 million, which is defined as total revenue less catch-up revenue, multiplied by four.
InterDigital highlighted recent business developments, including a new license agreement with a top PC manufacturer, which brings the total number of top five PC makers licensed to four. The company also signed a new IoT license agreement with KEBA, an EV charging company. Additionally, InterDigital was recognized as one of America's Greatest Companies by Newsweek and one of America's Growth Leaders by Time.
In terms of shareholder returns, the company declared an increase in its quarterly cash dividend from $0.70 to $0.75 per share. The company also repurchased shares and reduced debt in the quarter.
Regarding its outlook for the remainder of 2026, InterDigital provided guidance based on contracted revenue only. The company expects fourth quarter 2026 revenue to be between $154 million and $160 million. For the full year 2026, the company raised its revenue guidance to a range of $813 million to $819 million.
The company also provided details regarding its 3.50% Senior Convertible Notes due 2027. As of September 30, 2026, $296.7 million in principal of these notes remained outstanding. Holders had elected to convert $2.2 million in principal, which will settle in the fourth quarter of 2026.
