What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 247 added, 179 removed, 469 unchanged (48% of the section changed)

36 unchanged sentences

Accumulated other comprehensive (loss) gain

( 1,257 ) 299

Treasury stock, 46,182 and 45,280 shares of common stock held at cost

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 260,170 $ 300,596 $ 465,586 $ 511,103

22 unchanged sentences

(in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 116,372 $ 180,568 $ 191,701 $ 296,170

Unrealized (loss) gain on investments, net of tax

( 621 ) 95 ( 1,556 ) 351

Comprehensive income $ 115,751 $ 180,663 $ 190,145 $ 296,521

9 unchanged sentences

Net income — — — 115,602 — — — 115,602

Net change in unrealized loss on short-term investments

— — — — 256 — — 256

Net change in unrealized gain on short-term investments — — — — 256 — — 256

Dividends declared ($ 0.60 per share)

6 unchanged sentences

70,895 $ 708 $ 793,624 $ 1,875,398 $ ( 202 ) 44,919 $ ( 1,732,644 ) $ 936,884

— — — 180,568 — — — 180,568

Net change in unrealized gain on short-term investments — — — — 95 — — 95

Dividends declared ($ 0.60 per share)

— — 538 ( 16,045 ) — — — ( 15,507 )

Exercise of common stock options 1 — 15 — — — — 15

Issuance of common stock, net 15 1 ( 940 ) — — — — ( 939 )

Share-based compensation — — 11,836 — — — — 11,836

Repurchase of common stock — — — — — 123 ( 26,168 ) ( 26,168 )

Balance, June 30, 2025

70,911 $ 709 $ 805,073 $ 2,039,921 $ ( 107 ) 45,042 $ ( 1,758,812 ) $ 1,086,784

Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss)

4 unchanged sentences

Net income — — — 75,329 — — — 75,329

Net change in unrealized gain (loss) on short-term investments

— — — — ( 935 ) — — ( 935 )

Net change in unrealized loss on short-term investments — — — — ( 935 ) — — ( 935 )

Dividends declared ($ 0.70 per share)

8 unchanged sentences

71,979 $ 719 $ 1,063,941 $ 2,170,071 $ ( 636 ) 46,106 $ ( 2,130,009 ) $ 1,104,086

— — — 116,372 — — — 116,372

Net change in unrealized loss on short-term investments — — — — ( 621 ) — — ( 621 )

Dividends declared ($ 0.70 per share)

— — 420 ( 18,484 ) — — — ( 18,064 )

Issuance of common stock, net 9 — ( 726 ) — — — — ( 726 )

Share-based compensation — — 24,103 — — — — 24,103

Repurchase of common stock — — — — — 76 ( 22,981 ) ( 22,981 )

Settlement of the 2027 Notes and Hedge — — 3 — — — ( 3 ) —

Balance, June 30, 2026

71,988 $ 719 $ 1,087,741 $ 2,267,959 $ ( 1,257 ) 46,182 $ ( 2,152,993 ) $ 1,202,169

The accompanying notes are an integral part of these statements.

3 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

Net income $ 191,701 $ 296,170

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 38,690 37,678

5 unchanged sentences

Receivables ( 123,185 ) ( 200,405 )

Non-current contract assets ( 122,000 ) ( 9,000 )

Deferred charges and other assets ( 40,267 ) ( 5,044 )

Increase (decrease) in liabilities:

(Decrease) Increase in liabilities:

Accounts payable ( 2,278 ) 801

Accrued compensation and other expenses ( 831 ) ( 14,929 )

Net cash provided by (used in) operating activities

16,081 ( 19,989 )

Net cash provided by operating activities 98,617 85,129

Cash flows from investing activities:

1 unchanged sentence

Proceeds from maturities and sales of short-term investments 291,002 254,003

Purchases of property and equipment ( 911 ) ( 14,508 )

Capital expenditures ( 2,549 ) ( 15,082 )

Capitalized patent costs ( 28,466 ) ( 25,125 )

Long-term investments 1,709 —

Net cash provided by investing activities

16,406 59,508

Net cash used in investing activities ( 17,245 ) ( 22,220 )

Cash flows from financing activities:

3 unchanged sentences

Repurchase of common stock ( 31,146 ) ( 31,417 )

Taxes paid on repurchase of common stock ( 277 ) —

Dividends paid ( 36,086 ) ( 27,134 )

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited, condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the financial position of InterDigital, Inc.

(individually and/or collectively with its subsidiaries referred to as “InterDigital,” the “Company,” “we,” “us” or “our,” unless otherwise indicated) as of March 31, 2026, the results of our operations for the three months ended March 31, 2026 and 2025 and our cash flows for the three months ended March 31, 2026 and 2025.

(individually and/or collectively with its subsidiaries referred to as “InterDigital,” the “Company,” “we,” “us” or “our,” unless otherwise indicated) as of June 30, 2026, the results of our operations for the three and six months ended June 30, 2026 and 2025 and our cash flows for the six months ended June 30, 2026 and 2025.

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, accordingly, do not include all of the detailed schedules, information and notes necessary to state fairly the financial condition, results of operations and cash flows in conformity with United States generally accepted accounting principles (“GAAP”).

The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP for year-end financial statements.

Therefore, these financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (our “2025 Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”) on February 5, 2026.

Securities and Exchange Commission (“SEC”) on February 5, 2026.

Definitions of capitalized terms not defined herein appear within our 2025 Form 10-K.

8 unchanged sentences

Supplemental Cash Flow Information

The following table presents additional supplemental cash flow information for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

The following table presents additional supplemental cash flow information for the six months ended June 30, 2026 and 2025 (in thousands):

Six Months Ended June 30,

Supplemental cash flow information:

Interest paid $ 6,650 $ 8,050

Income taxes paid, including foreign withholding taxes 24,342 21,764

2 unchanged sentences

Dividend payable 18,064 15,507

Accrued capitalized patent costs and property and equipment purchases ( 494 ) 4,470

(Increase)/Decrease in accrued capitalized expenditures and patent costs ( 2,061 ) 4,961

Right-of-use assets obtained in exchange of operating lease liabilities 597 880

4 unchanged sentences

Induced Conversions of Convertible Debt Instruments

In November 2024, the FASB issued ASU No.

2024-04, "Debt—Debt with Conversion and Other Options (Subtopic 470-20):

In November 2024, the FASB issued ASU 2024-04, "Debt—Debt with Conversion and Other Options (Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments".

The amendments in the ASU require disclosures for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

The amendments in ASU 2024-04 require disclosures for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

ASU 2024-04 is effective for fiscal years beginning after December 15, 2025, with early adoption allowed.

2 unchanged sentences

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU No.

2025-06, "Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40)".

The amendments in the ASU amend certain aspects of the accounting for and disclosure of software costs under ASC 350-40.

In September 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40)".

The amendments in ASU 2025-06 amend certain aspects of the accounting for and disclosure of software costs under ASC 350-40.

ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption allowed.

2 unchanged sentences

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses".

The amendments in the ASU require disclosures about specific types of expenses included in the expense captions presented on the Consolidated Statements of Income, as well as disclosures about selling expenses.

The amendments in ASU 2024-03 require disclosures about specific types of expenses included in the expense captions presented on the Consolidated Statements of Income, as well as disclosures about selling expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption allowed.

4 unchanged sentences

In December 2025, the FASB issued ASU 2025-11 to amend the guidance in “Interim Reporting” (Topic 270).

The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period.

The amendments provide clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period.

The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application.

The guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years.

ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years.

We are currently evaluating the impact of adoption on our consolidated financial statements.

Disaggregated Revenue

The following table presents the disaggregation of our revenue for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

The following table presents the disaggregation of our revenue for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30,

2026 2025 Increase/(Decrease)

1 unchanged sentence

CE, IoT/Auto 27,470 65,331 ( 37,861 ) ( 58 ) %

Streaming and Cloud Services

110,000 — 110,000 N/M

Other — 181 ( 181 ) ( 100 ) %

2 unchanged sentences

$ 103,745 $ 162,328 $ ( 58,583 ) ( 36 ) %

Six Months Ended June 30,

2026 2025 Increase/(Decrease)

Smartphone $ 246,091 $ 419,075 $ ( 172,984 ) ( 41 ) %

CE, IoT/Auto 109,361 91,598 17,763 19 %

Streaming and Cloud Services

110,000 — 110,000 N/M

Other 134 430 ( 296 ) ( 69 ) %

Total Revenue $ 465,586 $ 511,103 $ ( 45,517 ) ( 9 ) %

Catch-up revenue (a) , included above

$ 167,368 $ 247,113 $ ( 79,745 ) ( 32 ) %

(a) Catch-up revenue represents revenue associated with reporting periods prior to the execution of the license agreement.

During the three months ended March 31, 2026, we recognized $ 61.4 million of revenue that had been included in deferred revenue as of the beginning of the period.

As of March 31, 2026, we had contract assets of $ 58.4 million included within " Accounts receivable " and $ 27.0 million included within " Other non-current assets, net " in the condensed consolidated balance sheet.

N/M Not meaningful

During the six months ended June 30, 2026, we recognized $ 108.1 million of revenue that had been included in deferred revenue as of the beginning of the period.

As of June 30, 2026, we had contract assets of $ 32.3 million included within " Accounts receivable " and $ 143.0 million included within " Other non-current assets, net " in the condensed consolidated balance sheet.

As of December 31, 2025, we had contract assets of $ 19.7 million included within " Accounts receivable " and $ 21.0 million included within " Other non-current assets, net " in the condensed consolidated balance sheet.

Contracted Revenue

Based on contracts signed and committed as of March 31, 2026, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):

As of June 30, 2026, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of existing contracts (in thousands):

Remainder of 2026 $ 292,266

1 unchanged sentence

Total Revenue $ 2,112,791

(a) This table includes estimated revenue related to our Lenovo arbitration.

(a) This table includes estimated revenue related to our Lenovo and Amazon arbitrations.

In accordance with ASC 606, this estimate is limited to the amount of revenue we expect to recognize only to the extent we believe it is probable that a subsequent change in the estimate would not result in a significant revenue reversal.

2 unchanged sentences

Cash, cash equivalents, and restricted cash currently consist of money market and demand accounts.

The following table provides a reconciliation of total cash, cash equivalents, and restricted cash as of March 31, 2026, December 31, 2025, and March 31, 2025 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):

March 31, December 31, March 31,

The following table provides a reconciliation of total cash, cash equivalents, and restricted cash as of June 30, 2026, December 31, 2025, and June 30, 2025 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):

June 30, December 31, June 30,

2026 2025 2025

7 unchanged sentences

Our accounts receivable and contract assets are derived principally from patent license and technology solutions agreements.

Three licensees comprised 81 % and 55 % of our accounts receivable balances as of March 31, 2026 and December 31, 2025, respectively.

Three licensees comprised 83 % and 55 % of our accounts receivable balances as of June 30, 2026 and December 31, 2025, respectively.

We perform ongoing credit evaluations of our licensees, who generally include large, multinational, wireless telecommunications and consumer electronics equipment manufacturers.

3 unchanged sentences

We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique.

This guidance established a hierarchy that prioritizes fair value measurements based on the types of input used for the various valuation techniques (market approach, income approach and cost approach).

This guidance established a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach).

The levels of the hierarchy are described below:

7 unchanged sentences

Our financial assets are generally included within short-term investments on our condensed consolidated balance sheets, unless otherwise indicated.

Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of March 31, 2026 and December 31, 2025 (in thousands):

Fair Value as of March 31, 2026

Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of June 30, 2026 and December 31, 2025 (in thousands):

Fair Value as of June 30, 2026

Level 1 Level 2 Level 3 Total

1 unchanged sentence

$ 605,024 $ — $ — $ 605,024

Commercial paper

— 111,958 — 111,958

government securities (b)

Commercial paper (b)

— 157,289 — 157,289

government securities — 166,507 — 166,507

Corporate bonds, asset backed and other securities

13 unchanged sentences

(a) Primarily included within cash and cash equivalents.

(b) As of March 31, 2026, $ 18.9 million of U.S.

government securities was included within cash and cash equivalents.

(b) As of June 30, 2026, $ 19.4 million of commercial paper was included within cash and cash equivalents.

(c) As of December 31, 2025, $ 9.2 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents.

1 unchanged sentence

Convertible Notes

The principal amount, carrying value and related estimated fair value of the Company's convertible notes (the "Convertible Notes") reported as of March 31, 2026 and December 31, 2025 was as follows (in thousands).

The principal amount, carrying value and related estimated fair value of the Company's convertible notes (the "Convertible Notes") reported as of June 30, 2026 and December 31, 2025, were as follows (in thousands).

The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Amount Carrying

3 unchanged sentences

Technicolor Patent Acquisition Long-Term Debt

The carrying value and related estimated fair value of the Technicolor Patent Acquisition (as defined below) long-term debt reported as of March 31, 2026 and December 31, 2025 was as follows (in thousands).

The carrying value and related estimated fair value of the Technicolor Patent Acquisition (as defined in Note 5, " Obligations ") long-term debt reported as of June 30, 2026 and December 31, 2025 was as follows (in thousands).

The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Value Carrying

1 unchanged sentence

OTHER ASSETS AND LIABILITIES

The amounts included in " Prepaid and other current assets " in the condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

March 31, 2026 December 31, 2025

The amounts included in " Prepaid and other current assets " in the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

June 30, 2026 December 31, 2025

Tax receivables $ 55,576 $ 39,638

3 unchanged sentences

Total Prepaid and other current assets $ 91,151 $ 74,994

The amounts included in " Other non-current assets, net " in the condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

March 31, 2026 December 31, 2025

Tax receivables $ 100,854 $ 98,846

The amounts included in " Other non-current assets, net " in the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

June 30, 2026 December 31, 2025

Contract asset $ 143,000 $ 21,000

Tax receivables 97,231 98,846

Goodwill 24,073 24,073

3 unchanged sentences

Total Other non-current assets, net $ 332,036 $ 192,525

The amounts included in " Other accrued expenses " in the condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

March 31, 2026 December 31, 2025

The amounts included in " Other accrued expenses " in the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

June 30, 2026 December 31, 2025

Accrued legal fees $ 29,754 $ 14,008

1 unchanged sentence

Total Other accrued expenses $ 35,960 $ 22,326

The amounts included in " Other long-term liabilities " in the condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

March 31, 2026 December 31, 2025

The amounts included in " Other long-term liabilities " in the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

June 30, 2026 December 31, 2025

Deferred compensation liabilities $ 29,969 $ 25,454

6 unchanged sentences

The 2027 Notes bear interest at a rate of 3.50 % per year, payable in cash on June 1 and December 1 of each year, commencing on December 1, 2022, and mature on June 1, 2027, unless earlier redeemed, converted or repurchased.

The 2027 Notes will be convertible into cash up to the aggregate principal amount of the 2027 Notes to be converted and in respect of the remainder, if any, of the Company’s obligation in excess of the aggregate principal amount of the 2027 Notes being converted, pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 12.9041 shares of common stock per $1,000 principal amount of the 2027 Notes (which is equivalent to an initial conversion price of approximately $ 77.49 per share).

From the period January 1, 2024 through June 30, 2026, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes.

As such, the 2027 Notes are included in " Current portion of long-term debt " in our condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

The initial conversion rate was 12.9041 shares of common stock per $1,000 principal amount of the 2027 Notes.

Effective July 8, 2026, the conversion rate was adjusted to 13.0351 shares of common stock per $1,000 principal amount of the 2027 Notes (which is equivalent to a conversion price of approximately $ 76.72 per share), subject to further adjustment.

From the period January 1, 2024 through September 30, 2026, the holders of the 2027 Notes have the right, but not the obligation, to convert any portion of the principal amount of the 2027 Notes.

As such, the 2027 Notes are included in " Current portion of long-term debt " in our condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025.

The 2027 Notes are the Company’s senior unsecured obligations and rank equally in right of payment with any of the Company’s current and any future senior unsecured indebtedness.

The 2027 Notes are effectively subordinated to all of the Company’s future secured indebtedness, if any, to the extent of the value of the related collateral, and the 2027 Notes are structurally subordinated to indebtedness and other liabilities, including trade payables, of the Company’s subsidiaries.

On May 24 and May 25, 2022, in connection with the offering of the 2027 Notes, we entered into convertible note hedge transactions ("2027 Note Hedge Transactions") that cover, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock, in the aggregate, at a strike price that initially corresponds to the initial conversion price of the 2027 Notes, subject to adjustment, and are exercisable upon any conversion of the 2027 Notes.

On May 24 and May 25, 2022, in connection with the offering of the 2027 Notes, we entered into convertible note hedge transactions ("2027 Note Hedge Transactions") that cover, subject to customary anti-dilution adjustments, approximately 5.9 million shares of common stock, in the aggregate, at a strike price that corresponds to the conversion price of the 2027 Notes, subject to adjustment, and are exercisable upon any conversion of the 2027 Notes.

Also, on May 24 and May 25, 2022, we entered into privately negotiated warrant transactions ("2027 Warrant Transactions"), whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 6.0 million shares of common stock.

As of March 31, 2026, the warrants under the 2027 Warrant Transactions had a weighted average strike price of $ 105.55 per share, subject to adjustment, and mature beginning September 2027 through April 2028.

As of June 30, 2026, the warrants under the 2027 Warrant Transactions had a strike price of $ 105.43 per share, subject to adjustment, and mature beginning September 2027 through April 2028.

In December 2025, holders elected to convert $ 80.0 million principal amount of the 2027 Notes, which was settled in the first quarter of 2026.

1 unchanged sentence

These shares issued were offset by 0.8 million shares received upon partial settlement of the 2027 Note Hedge Transactions, resulting in no incremental outstanding shares resulting from the conversion.

The following table reflects the carrying value of our Convertible Notes long-term debt as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

As of June 30, 2026, $ 380.0 million in principal of the 2027 Notes remains outstanding, of which holders had elected to convert $ 80.3 million principal amount, which will settle in third quarter 2026.

No incremental outstanding shares will result from such conversions due to the offsetting impact of the 2027 Note Hedge Transactions, however the 2027 Warrant Transactions described above remain outstanding.

The following table reflects the carrying value of our Convertible Notes long-term debt as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026 December 31, 2025

3.50 % Senior Convertible Notes due 2027

4 unchanged sentences

Long-term net carrying amount of the Convertible Notes $ — $ —

The following table presents the amount of interest cost recognized, which is included within " Interest expense" in our condensed consolidated statements of income, for the three months ended March 31, 2026 and 2025 relating to the contractual interest coupon and the amortization of deferred financing costs of the 2027 Notes (in thousands):

Three Months Ended March 31,

The following table presents the amount of interest cost recognized, which is included within " Interest expense" in our condensed consolidated statements of income, for the three and six months ended June 30, 2026 and 2025, relating to the contractual interest coupon and the amortization of deferred financing costs of the 2027 Notes (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Contractual coupon interest $ 3,091 $ 4,025 $ 6,416 $ 8,050

10 unchanged sentences

This initial fair value measurement was based on the perspective of a market participant and included significant unobservable inputs which are classified as Level 3 inputs within the fair value hierarchy.

The fair value of the long-term debt as of March 31, 2026 and December 31, 2025 is disclosed within Note 3, " Cash, Concentration of Credit Risk and Fair Value of Financial Instruments.

The fair value of the long-term debt as of June 30, 2026 and December 31, 2025 is disclosed within Note 3, " Cash, Concentration of Credit Risk and Fair Value of Financial Instruments.

" Our repayment obligations are contingent upon future royalty revenue generated from the Madison Arrangement and there are no minimum or maximum payments under the arrangement.

4 unchanged sentences

This rate represents the discount rate that equates the estimated future cash flows with the fair value of the debt as of the acquisition date and is used to compute the amount of interest to be recognized each period based on the estimated life of the future revenue streams.

During the three months ended March 31, 2026 and 2025, we recognized $ 0.6 million and $ 0.3 million, respectively, of interest expense related to this debt.

This amount was included within “ Interest Expense ” in the condensed consolidated statements of income.

Any future payments made to CPPIB Credit, or additional proceeds received from CPPIB Credit, will decrease or increase the long-term debt balance accordingly.

We made $ 8.0 million and $ 1.3 million in payments to CPPIB Credit during the three months ended March 31, 2026 and 2025, respectively.

During the three and six months ended June 30, 2026, we recognized $ 0.4 million and $ 1.0 million, respectively, of interest expense related to this debt, compared to $ 0.6 million and $ 0.8 million during the three and six months ended June 30, 2025, respectively.

These amounts were included within “ Interest expense ” in the condensed consolidated statements of income.

Any future payments made to, or additional proceeds received from, CPPIB Credit will decrease or increase the long-term debt balance accordingly.

We made $ 8.0 million and $ 1.3 million in payments to CPPIB Credit during the six months ended June 30, 2026 and 2025, respectively.

Technicolor Contingent Consideration

1 unchanged sentence

Under the revenue-sharing arrangement, Technicolor receives 42.5 % of future cash receipts from new licensing efforts under the Madison Arrangement only, subject to certain conditions and hurdles.

As of March 31, 2026, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the condensed consolidated financial statements.

As of June 30, 2026, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the condensed consolidated financial statements.

LITIGATION AND LEGAL PROCEEDINGS

ARBITRATIONS AND COURT PROCEEDINGS

United Kingdom Proceedings

In August 2025, Amazon.com, Inc.

and certain of its subsidiaries (“Amazon”) filed a claim in the High Court of Justice of England and Wales against the Company and certain of its subsidiaries.

The claims allege the non-infringement and invalidity of certain patents relating to video coding and video streaming technologies.

Amazon is seeking, among other relief, a rate-setting and order that InterDigital offer Amazon a RAND license as declared by the Court, or a declaration that InterDigital is in breach of its RAND commitment and an unwilling licensor and damages arising from such breach, and a declaration that the challenged patents are invalid and non-essential and not infringed.

The Company made a jurisdictional challenge, which was denied in December 2025.

The Company has appealed that decision.

A subset of the issues raised by Amazon’s complaint are scheduled to be tried in September 2026, with the remainder to be scheduled later.

In June 2026, the Company reached an agreement with Amazon.com, Inc.

and certain of its subsidiaries (“Amazon”) to suspend or withdraw all pending litigation and enter into binding arbitration to determine the final terms of a patent license agreement.

Brazil Proceedings

In September 2025, Amazon filed a claim in the Second Business Court of Sao Paulo (“Sao Paulo Court”) against the Company and certain of its subsidiaries.

The claims allege the non-infringement and non-essentiality of certain patents relating to video coding and video streaming technologies.

Amazon is seeking a declaration that the challenged Brazilian patents are not infringed, and a declaration preventing enforcement by the Company of any video coding patents anywhere in Brazil.

The claims alleged the non-infringement and non-essentiality of certain patents relating to video coding and video streaming technologies.

Amazon was seeking a declaration that the challenged Brazilian patents were not infringed, and a declaration preventing enforcement by the Company of any video coding patents anywhere in Brazil.

In November 2025, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against Amazon.

The claim alleges infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

The claim alleged infringement of certain of the Company’s patents relating to video coding technologies.

The Company was seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

In July 2026, the parties stayed all Brazil proceedings pending the outcome of the arbitration described above.

Eastern District of Virginia Proceedings

In December 2025, the Company and certain of its subsidiaries filed a claim in the Federal District Court of the Eastern District of Virginia against Amazon.

The claim alleged infringement of four of the Company’s patents relating to video coding and video streaming technologies.

The Company was seeking, among other relief, damages to prevent further infringement of the asserted patents.

In July 2026, the court stayed the case in view of the arbitration agreement described above.

Germany Proceedings

In November and December 2025, the Company and certain of its subsidiaries filed patent infringement claims in three separate proceedings in the Munich and Mannheim Regional Courts against Amazon.

The claims allege infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

Trials are expected in two of the three proceedings in third quarter and fourth quarter 2026.

UPC Proceedings

In November and December of 2025, the Company and certain of its subsidiaries filed patent infringement claims in three separate proceedings in the Mannheim Local Divisional Court and Dusseldorf Local Divisional Court of the UPC against Amazon.

The claims allege infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The claims alleged infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Company withdrew its Germany proceedings following entry into the arbitration agreement described above.

International Trade Commission and Companion District Court Proceedings

In November 2025, the Company and certain of its subsidiaries filed a companion patent infringement complaint against Amazon in the Federal District Court of the District of Delaware.

The claims allege infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.The case is currently stayed pending resolution of the ITC case described below.

In December 2025, the Company and certain of its subsidiaries filed a complaint in the United States International Trade Commission ("ITC") alleging that Amazon is engaged in unfair trade practices, and that certain of Amazon's video-capable electronic devices like smart TVs, streaming devices, tablets and smart display devices, and components thereof, infringe certain claims of the asserted patents.

As relief, the Company is seeking, among other relief, a limited exclusion order against Amazon barring from entry into the United States all of Amazon’s products that infringe the asserted patents and cease and desist orders prohibiting Amazon from importing, selling, offering for sale, marketing, advertising, and distributing, infringing products.

The ITC has instituted the investigation.

Eastern District of Virginia Proceedings

In December 2025, the Company and certain of its subsidiaries filed a claim in the Federal District Court of the Eastern District of Virginia against Amazon.

The claim alleges infringement of four of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, damages to prevent further infringement of the asserted patents.

The claims alleged infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The case has been stayed pending resolution of the arbitration.

In December 2025, the Company and certain of its subsidiaries filed a complaint in the United States International Trade Commission ("ITC") alleging that Amazon was engaged in unfair trade practices, and that certain of Amazon's video-capable electronic devices like smart TVs, streaming devices, tablets and smart display devices, and components thereof, infringe certain claims of the asserted patents.

As relief, the Company was seeking, among other relief, a limited exclusion order against Amazon barring from entry into the United States all of Amazon’s products that infringe the asserted patents and cease and desist orders prohibiting Amazon from importing, selling, offering for sale, marketing, advertising, and distributing, infringing products.

In July 2026, the ITC terminated the investigation following entry into the arbitration agreement.

United Kingdom Proceedings

In August 2025, Amazon.com filed a claim in the High Court of Justice of England and Wales against the Company and certain of its subsidiaries.

The claims alleged the non-infringement and invalidity of certain patents relating to video coding and video streaming technologies.

Amazon was seeking, among other relief, a rate-setting and order that InterDigital offer Amazon a RAND license as declared by the Court, or a declaration that InterDigital is in breach of its RAND commitment and an unwilling licensor and damages arising from such breach, and a declaration that the challenged patents are invalid and non-essential and not infringed.

All deadlines in the UK proceedings were suspended following entry into the arbitration agreement described above.

UPC Proceedings

The claims alleged infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company was seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The UPC proceedings were stayed in July 2026 following entry into the arbitration agreement described above.

Western District of Texas Proceedings

In February 2026, the Company and certain of its subsidiaries filed a complaint with the District Court for the Western District of Texas.

The claim alleges infringement of six of the Company’s patents covering certain networking technologies relating to the delivery of video content.

The Company is seeking, among other relief, damages to prevent further infringement of the asserted patents.

US Central District of California Proceedings

In February 2025, the Company and certain of its subsidiaries filed a claim in the Federal District Court of the Central District of California against The Walt Disney Co.

and certain of its subsidiaries (“Disney”).

The claim alleges infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, damages to prevent further infringement of the asserted patents.

In March 2025, Disney filed an answer and asserted multiple counterclaims against the Company.

In April 2025 Disney filed a motion for an anti-suit injunction to prevent enforcement of any potential injunctive relief in Brazil, which the court denied.

In March of 2026, the court issued a claim construction decision holding that certain claims of a subset of the asserted patents were invalid for lack of sufficient definiteness;

the balance of the decision was favorable.

The Company is seeking reconsideration as to one of the claims held to be indefinite, and further intends to appeal such conclusions.

A trial is scheduled for February 2027.

The claim alleged infringement of six of the Company’s patents covering certain networking technologies relating to the delivery of video content.

The Company was seeking, among other relief, damages to prevent further infringement of the asserted patents.

In July 2026, the court stayed the case in view of the arbitration agreement described above.

Brazil Proceedings

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The Appellate Court initially granted Disney’s request to stay the preliminary injunction pending hearing of an appeal, but that stay was lifted.

In May 2026, the Court affirmed the lower court’s preliminary injunction decision.

In October 2025, the Company filed another claim in the Regional Business Court of Rio de Janeiro against Disney.

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The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patent.

Central District of California Proceedings

In February 2025, the Company and certain of its subsidiaries filed a claim in the Federal District Court of the Central District of California against The Walt Disney Co.

and certain of its subsidiaries (“Disney”).

The claim alleges infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, damages to prevent further infringement of the asserted patents.

In March 2025, Disney filed an answer and asserted multiple counterclaims against the Company.

In April 2025, Disney filed a motion for an anti-suit injunction to prevent enforcement of any potential injunctive relief in Brazil, which the court denied.

In March 2026, the court issued a claim construction decision holding that certain claims of a subset of the asserted patents were invalid for lack of sufficient definiteness;

the balance of the decision was favorable.

The Company is seeking reconsideration as to one of the claims held to be indefinite, and further intends to appeal such conclusions.

The case was stayed in June 2026 pending resolution of ex parte reexamination proceedings and the declaratory judgment action filed by Dolby referenced below.

Delaware Proceedings

In August 2025, a subsidiary of Disney filed an antitrust complaint against the Company and certain of its subsidiaries, and Technicolor in the Federal District Court of the District of Delaware.

The claims allege the Company has engaged in monopolistic conduct in the licensing of its patents relating to video coding and video streaming technologies.

Disney is seeking, among other relief, injunctive relief to halt the licensing practices it views as unlawful, and damages.

In September 2025, the Company filed a motion to dismiss Disney’s complaint, or in the alternative, stay the case pending resolution of the Company’s cases against Disney in California, Europe, and Brazil.

In October 2025, the Antitrust Division of the United States Department of Justice filed a Statement of Interest in the Delaware case.

Germany Proceedings

In February and April of 2025, the Company and certain of its subsidiaries filed patent infringement claims in four separate proceedings in the Munich Regional Court against Disney.

In February and April 2025, the Company and certain of its subsidiaries filed patent infringement claims in four separate proceedings in the Munich Regional Court against Disney.

The claims allege infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

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In January 2026, the Court imposed fines of € 550,000 for Disney’s violations of the injunction following a request for coercive measures from the Company.

Disney appealed, and the fine was adjusted on appeal to € 50,000 .

Enforcement of the patent was stayed in May 2026 pending final decision from the Federal Patent Court on validity.

In November 2025, the Court held another hearing and issued another order finding infringement by Disney of another of the Company’s patents.

The order also enjoined Disney from further infringement.

In July 2026, the Court imposed fines of € 150,000 for Disney’s violations of the injunction following a request for coercive measures from the Company.

In February 2026, the Court held another hearing and issued another order finding infringement by Disney of another of the Company’s patents.

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A hearing on the remaining asserted patent has not yet been scheduled.

In July 2026, the Company filed an additional suit asserting infringement of a patent relating to video streaming technologies.

UPC Proceedings

In February and April of 2025, the Company and certain of its subsidiaries filed patent infringement claims in four separate proceedings in the Mannheim Local Divisional Court and Dusseldorf Local Divisional Court of the UPC against Disney.

In February and April of 2025, the Company and certain of its subsidiaries filed patent infringement claims in four separate proceedings, two in each court, in the Mannheim Local Divisional Court and Dusseldorf Local Divisional Court of the UPC against Disney.

The claims allege infringement of certain of the Company’s patents relating to video coding and video streaming technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Mannheim Court has scheduled a hearing for one of the two asserted patents in May 2026 with the remainder to be scheduled in the second half of 2026.

The Dusseldorf Court has scheduled hearings for two asserted patents in June and July 2026.

Delaware Proceedings

In August 2025, a subsidiary of Disney filed an antitrust complaint against the Company and certain of its subsidiaries, and Technicolor in the Federal District Court of the District of Delaware.

The claims allege the Company has engaged in monopolistic conduct in the licensing of its patents relating to video coding and video streaming technologies.

Disney is seeking, among other relief, injunctive relief to halt the licensing practices it views as unlawful, and damages.

In October 2025, the Antitrust Division of the United States Department of Justice filed a Statement of Interest in the Delaware case.

The Mannheim Court held a hearing for one of the two asserted patents in May 2026, found infringement and issued an injunction in June 2026.

The Dusseldorf Court held a hearing on one of the asserted patents in June 2026, also found infringement and issued an injunction in July 2026.

Each of these injunctions spans 11 EU countries.

The Dusseldorf Court held an additional hearing on the second asserted patent in July 2026, with a decision expected in September 2026.

In July 2026, the Company filed an additional suit asserting infringement of a patent relating to video streaming technologies in the Mannheim Local Divisional Court.

In March 2026, Dolby Laboratories filed two complaints in the Central District of California seeking declaratory judgment relief with respect to six of the Company’s patents.

The first complaint seeks declarations of invalidity and noninfringement with respect to one of the Company’s video technology patents that is also currently being asserted against Disney .

The second complaint seeks declarations of noninfringement with respect to five of the Company’s video technology patents that are also being asserted against Amazon, Hisense and TCL.

The second complaint seeks declarations of noninfringement with respect to five of the Company’s video technology patents that have been asserted against Amazon, Hisense and TCL.

In April 2026, the Company filed a motion to dismiss the first complaint;

the deadline to respond to the second complaint has not yet passed.

UPC Proceedings

In February 2026, the Company and certain of its subsidiaries filed patent infringement claims in the Mannheim Local Divisional Court of the UPC against Hisense Group Co., Ltd.

and certain of its subsidiaries (“Hisense”).

The claims allege infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

that motion was denied.

The Company filed a motion to dismiss the second complaint, which was granted in July 2026.

Brazil Proceedings

In February 2026, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against Hisense.

The claim alleges infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

In April 2026, Hisense filed an antitrust action against the Company in the Conselho Administrativo de Defesa Econômica, alleging that the Company has acted as an unwilling licensor.

The Company submitted its answer to the complaint in May 2026.

Germany Proceedings

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The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Court has scheduled a hearing for January 2027.

The Munich Court has scheduled a hearing for first quarter 2027.

India Proceedings

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The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents, damages, and a declaration that the Company is FRAND compliant and that Hisense is an unwilling licensee with respect to the FRAND claims.

Brazil Proceedings

In February 2026, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against Hisense.

The claim alleges infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

International Trade Commission and Companion District Court Proceedings

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The ITC has instituted the investigation.

A hearing is scheduled for second quarter 2027, with a final determination currently expected by the end of 2027.

UPC Proceedings

In February 2026, the Company and certain of its subsidiaries filed patent infringement claims in the Mannheim Local Divisional Court of the UPC against Hisense Group Co., Ltd.

and certain of its subsidiaries (“Hisense”).

The claims allege infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In fourth quarter 2024, the Company reached an agreement with Lenovo Group Limited and certain of its subsidiaries (“Lenovo”) to enter into binding arbitration to determine the final terms of a new patent license agreement, which will be effective from January 1, 2024.

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In March 2025, the International Chamber of Commerce confirm ed the full tribunal for the arbitration.

The Company anticipates that the arbitration hearing will occur before year end.

The arbitration hearing is scheduled for fourth quarter 2026.

The Company reached an agreement with Samsung Electronics Co.

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In December 2025, Samsung filed a request to the International Chamber of Commerce seeking to challenge the previously determined royalties.

UPC Proceedings

In February 2026, the Company and certain of its subsidiaries filed patent infringement claims in the Munich Local Divisional Court of the UPC against TCL Technology Group Corp.

and certain of its subsidiaries (“TCL”).

The claims allege infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In July 2026, the Company filed jurisdictional objections.

Brazil Proceedings

In February 2026, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against TCL.

The claim alleges infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

A hearing has been scheduled for third quarter 2026.

China Proceedings

In July 2026, the Company and certain of its subsidiaries were served with two complaints filed by TCL in the Shenzhen Intermediate People’s Court.

The first suit seeks, among other things, a declaration that the Company’s proposed licensing terms for its HEVC portfolio does not comply with FRAND principles, and for the court to determine global FRAND licensing terms for the Company’s HEVC portfolio applicable to TCL’s television products.

The second suit seeks, among other things, a declaration that the Company has abused a dominant market position in licensing its Chinese SEPs, and compensation for alleged economic losses caused by this abuse of dominant market position.

Germany Proceedings

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The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Court has scheduled a hearing for January 2027.

The Munich Court has scheduled a hearing for first quarter 2027.

India Proceedings

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The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents, damages, and a declaration that the Company is FRAND compliant and that TCL is an unwilling licensee with respect to the FRAND claims.

Brazil Proceedings

In February 2026, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against TCL.

The claim alleges infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.

A hearing has been scheduled for July 2026.

International Trade Commission and Companion District Court Proceedings

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The ITC has instituted the investigation.

In December 2023, Tesla and certain of its subsidiaries filed a claim in the UK High Court against the Company and Avanci.

An evidentiary hearing is scheduled for second quarter 2027, with a final determination currently expected by the end of 2027.

UPC Proceedings

In February 2026, the Company and certain of its subsidiaries filed patent infringement claims in the Munich Local Divisional Court of the UPC against TCL Technology Group Corp.

and certain of its subsidiaries (“TCL”).

The claims allege infringement of certain of the Company’s patents relating to video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

In December 2023, Tesla, Inc.

("Tesla") and certain of its subsidiaries filed a claim in the UK High Court against the Company and Avanci.

The claim alleges invalidity of three of the Company’s patents relating to 5G standards:

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3,718,369, 3,566,413, and 3,455,985.

Tesla sought, among other relief, a declaration that the patents at issue are invalid, not essential, and not infringed, revocation of the patents at issue, a declaration that the terms of the Avanci 5G Connected Vehicle platform license are not FRAND, and a determination of FRAND terms for a license between Tesla and Avanci covering its Avanci’s 5G Connected Vehicle platform.

In March 2024, the Company filed a jurisdiction challenge;

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In September 2025, the Company filed an application for permission to cross-appeal.

The Supreme Court heard the appeal in April 2026, and a decision is forthcoming .

UPC Proceedings

In September 2025, the Company and certain of its subsidiaries filed patent infringement claims in the Munich Local Divisional Court of the UPC against Transsion Holdings Pvt Ltd and certain of its subsidiaries (“Transsion”).

The claims allege infringement of certain of the Company’s patents relating to cellular SEP technologies and video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Court has scheduled a hearing for March 2027.

India Proceedings

In September and October 2025, the Company and certain of its subsidiaries filed patent infringement claims in the Delhi High Court against Transsion.

The claims allege infringement of certain of the Company’s patents relating to cellular SEP technologies and video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents, damages, and a declaration that the Company is FRAND compliant and that Transsion is an unwilling licensee with respect to the FRAND claims.

The Supreme Court heard the appeal in April 2026 .

In July 2026, the Supreme Court reversed the decision of the lower courts finding that there was an issue to be tried regarding Tesla’s FRAND claims against the Company and Avanci, and that the UK High Court has jurisdiction to hear those claims.

Brazil Proceedings

In September 2025, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against Transsion.

In September 2025, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against Transsion and distributors.

The claim alleges infringement of certain of the Company’s patents relating to cellular SEP technologies.

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Transsion has appealed this decision, and the appeal is pending.

India Proceedings

In September and October 2025, the Company and certain of its subsidiaries filed patent infringement claims in the Delhi High Court against Transsion.

The claims allege infringement of certain of the Company’s patents relating to cellular SEP technologies and video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents, damages, and a declaration that the Company is FRAND compliant and that Transsion is an unwilling licensee with respect to the FRAND claims.

UPC Proceedings

The claims allege infringement of certain of the Company’s patents relating to cellular SEP technologies and video coding technologies.

The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.

The Munich Court has scheduled a hearing for first quarter 2027.

We are party to certain other disputes and legal actions in the ordinary course of business, including arbitrations and legal proceedings with licensees regarding the terms of their agreements and the negotiation thereof.

We do not currently believe that these matters, even if adversely adjudicated or settled, would have a material adverse effect on our financial condition, results of operations or cash flows.

None of the preceding matters have met the requirements for accrual or disclosure of a potential range as of March 31, 2026, except as noted above.

In the three months ended March 31, 2026 and 2025, the Company had an estimated effective tax rate of 5.6 % and 12.6 %, respectively.

The change in effective tax rate is due to an increase in the amount of tax benefits related to share-based compensation.

During the three months ended March 31, 2026 and 2025, the Company recorded discrete net benefits of $ 10.4 million and $ 3.9 million, respectively, primarily related to share-based compensation.

The One Big Beautiful Bill Act (the “OBBBA”) was signed into law on July 4th, 2025.

None of the preceding matters have met the requirements for accrual or disclosure of a potential range as of June 30, 2026, except as noted above.

In the six months ended June 30, 2026 and 2025, the Company had an estimated effective tax rate of 14.1 % and 13.7 %, respectively.

The change in effective tax rate is due to an increase in the amount of non-deductible officer’s compensation.

During the six months ended June 30, 2026 and 2025, the Company recorded discrete net benefits of $ 11.0 million and $ 5.6 million, respectively, primarily related to share-based compensation.

The One Big Beautiful Bill Act (the “OBBBA”) was signed into law on July 4, 2025.

The OBBBA contains significant tax law changes with various effective dates affecting business taxpayers.

The tax law changes affecting the Company primarily involve changes to the timing and amount of certain tax deductions, including those related to FDII, GILTI, depreciation, R&D expenditures, and interest expense.

This bill did not have a material impact on our financial statements in first quarter 2026.

The tax law changes affecting the Company primarily involve changes to the timing and amount of certain tax deductions, including those related to Foreign-Derived Deduction Eligible Income (FDDEI), Net CFC Tested Income (NCTI), depreciation, R&D expenditures, and interest expense.

The OBBBA did not have a material impact on our financial statements in second quarter 2026.

The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including timing differences between the recognition of book and tax revenue, the level of pre-tax income or loss, the foreign vs.

domestic classification of the Company’s customers, and any discrete items that may occur.

During the three months ended March 31, 2026 and 2025, the Company paid approximately $ 3.1 million and $ 3.2 million, respectively, in foreign source creditable withholding tax.

During the six months ended June 30, 2026 and 2025, the Company paid approximately $ 19.7 million and $ 14.5 million, respectively, in foreign source creditable withholding tax.

NET INCOME PER SHARE

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The following tables reconcile the numerator and the denominator of the basic and diluted net income per share computation (in thousands, except for per share data):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

$ 116,372 $ 180,568 $ 191,701 $ 296,170

Weighted-average shares outstanding:

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Dilutive effect of stock options and RSUs

895 1,035 966 1,154

Dilutive effect of warrants

3,865 2,982 3,995 2,901

Dilutive effect of convertible securities

3,669 3,791 4,033 3,731

Diluted 34,260 33,725 34,770 33,615

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Dilutive effect of stock options and RSUs ( 0.12 ) ( 0.22 ) ( 0.22 ) ( 0.40 )

( 0.09 ) ( 0.17 )

Dilutive effect of warrants

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Set forth below are the securities and the weighted-average number of shares of common stock underlying such securities that were excluded from our computation of EPS for the periods presented (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Warrants 2,123 2,980 1,991 3,058

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The table below provides the calculation of net income, which is the performance measure that is most consistent with GAAP, and the significant operating expenses included in this performance measure (in thousands):

Three months ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 260,170 $ 300,596 $ 465,586 $ 511,103

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Intellectual property enforcement

25,417 11,963 42,922 18,941

Share-based compensation 24,103 11,836 34,442 21,334

Revenue share costs 924 2,550 28,422 5,199

Other non-operating expense (income), net (b)

Other non-operating income, net (b)

( 4,139 ) ( 5,607 ) ( 1,672 ) ( 5,994 )

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OTHER INCOME, NET

The amounts included in " Other income, net " in the condensed consolidated statements of income for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

Three Months Ended March 31,

The amounts included in " Other income, net " in the condensed consolidated statements of income for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Interest and investment income $ 10,100 $ 8,828 $ 20,629 $ 18,092

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements