INTERDIGITAL, INC., 10-Q filed on 10/30/2025
Quarterly Report
v3.25.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2025
Oct. 28, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2025  
Document Transition Report false  
Entity File Number 1-33579  
Entity Registrant Name INTERDIGITAL, INC.  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 82-4936666  
Entity Address, Address Line One 200 Bellevue Parkway  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Wilmington  
Entity Address, State or Province DE  
Entity Address, Postal Zip Code 19809-3727  
City Area Code 302  
Local Phone Number 281-3600  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol IDCC  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   25,744,552
Entity Central Index Key 0001405495  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.25.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 840,270 $ 527,360
Short-term investments 422,868 430,848
Accounts receivable 160,641 188,302
Prepaid and other current assets 56,927 84,312
Total current assets 1,480,706 1,230,822
Property and equipment, net 25,138 18,544
Patents, net 313,981 308,630
Deferred tax assets 154,729 128,133
Other non-current assets, net 164,946 149,400
Total assets 2,139,500 1,835,529
Current liabilities:    
Current portion of long-term debt 456,258 456,329
Accounts payable 9,115 12,206
Accrued compensation and related expenses 37,602 42,575
Deferred revenue 234,510 178,009
Dividends payable 18,041 11,557
Other accrued expenses 29,584 25,134
Total current liabilities 785,110 725,810
Long-term debt 17,142 15,443
Long-term deferred revenue 177,403 182,119
Other long-term liabilities 59,869 54,942
Total liabilities 1,039,524 978,314
Commitments and contingencies
Shareholders' equity:    
Preferred Stock, $0.10 par value, 14,399 shares authorized, 0 shares issued and outstanding 0 0
Common Stock, $0.01 par value, 100,000 shares authorized, 70,963 and 70,577 shares issued and 25,783 and 25,682 shares outstanding 709 705
Additional paid-in capital 804,328 808,540
Retained earnings 2,088,823 1,775,823
Accumulated other comprehensive gain (loss) 220 (458)
Treasury stock, 45,180 and 44,895 shares of common stock held at cost (1,794,104) (1,727,395)
Total shareholders' equity 1,099,976 857,215
Total liabilities and shareholders' equity $ 2,139,500 $ 1,835,529
v3.25.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands
Sep. 30, 2025
Dec. 31, 2024
Shareholders' equity:    
Preferred stock, par value (in USD per share) $ 0.10 $ 0.10
Preferred stock, shares authorized (in shares) 14,399 14,399
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000 100,000
Common stock, shares issued (in shares) 70,963 70,577
Common stock, shares outstanding (in shares) 25,783 25,682
Treasury stock, shares of common held at cost (in shares) 45,180 44,895
v3.25.3
Condensed Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Revenue        
Revenue $ 164,682 $ 128,679 $ 675,785 $ 615,714
Operating expenses:        
Research and portfolio development 53,068 48,331 154,172 147,851
Licensing 19,715 27,467 61,301 149,212
General and administrative 16,091 13,539 47,245 41,665
Total operating expenses 88,874 89,337 262,718 338,728
Income from operations 75,808 39,342 413,067 276,986
Interest expense (10,019) (10,681) (29,427) (34,086)
Other income, net 10,188 12,554 35,590 33,483
Income before income taxes 75,977 41,215 419,230 276,383
Income tax provision (8,474) (7,025) (55,557) (50,877)
Net income $ 67,503 $ 34,190 $ 363,673 $ 225,506
Net income per common share — Basic (in USD per share) $ 2.62 $ 1.36 $ 14.09 $ 8.92
Net income per common share — Diluted (in USD per share) $ 1.93 $ 1.14 $ 10.68 $ 7.84
Weighted average number of common shares outstanding — Basic (in shares) 25,797 25,149 25,818 25,286
Weighted average number of common shares outstanding — Diluted (in shares) 34,925 30,034 34,051 28,759
Cash dividends declared per common share (in USD per share) $ 0.70 $ 0.45 $ 1.90 $ 1.25
v3.25.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net income $ 67,503 $ 34,190 $ 363,673 $ 225,506
Unrealized gain on investments, net of tax 327 1,366 678 781
Comprehensive income $ 67,830 $ 35,556 $ 364,351 $ 226,287
v3.25.3
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Beginning balance (in shares) at Dec. 31, 2023   69,507        
Beginning balance at Dec. 31, 2023 $ 581,549 $ 694 $ 742,981 $ 1,462,070 $ (647) $ (1,623,549)
Treasury stock, beginning balance (in shares) at Dec. 31, 2023           43,927
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 81,652     81,652    
Net change in unrealized gain (loss) on short-term investments (495)       (495)  
Dividends declared (10,147)   343 (10,490)    
Issuance of common stock, net (in shares)   131        
Issuance of common stock, net (8,635) $ 2 (8,637)      
Share-based compensation 9,386   9,386      
Repurchase of common stock (in shares)           277
Repurchase of common stock (29,019)         $ (29,019)
Ending balance (in shares) at Mar. 31, 2024   69,638        
Ending balance at Mar. 31, 2024 624,291 $ 696 744,073 1,533,232 (1,142) $ (1,652,568)
Treasury stock, ending balance (in shares) at Mar. 31, 2024           44,204
Beginning balance (in shares) at Dec. 31, 2023   69,507        
Beginning balance at Dec. 31, 2023 581,549 $ 694 742,981 1,462,070 (647) $ (1,623,549)
Treasury stock, beginning balance (in shares) at Dec. 31, 2023           43,927
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 225,506          
Net change in unrealized gain (loss) on short-term investments 781          
Ending balance (in shares) at Sep. 30, 2024   70,137        
Ending balance at Sep. 30, 2024 722,537 $ 701 794,644 1,654,774 134 $ (1,727,716)
Treasury stock, ending balance (in shares) at Sep. 30, 2024           44,895
Beginning balance (in shares) at Mar. 31, 2024   69,638        
Beginning balance at Mar. 31, 2024 624,291 $ 696 744,073 1,533,232 (1,142) $ (1,652,568)
Treasury stock, beginning balance (in shares) at Mar. 31, 2024           44,204
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 109,664     109,664    
Net change in unrealized gain (loss) on short-term investments (90)       (90)  
Dividends declared (10,052)   443 (10,495)    
Issuance of common stock, net (in shares)   39        
Issuance of common stock, net (1,580)   (1,580)      
Share-based compensation 9,655   9,655      
Repurchase of common stock (in shares)           344
Repurchase of common stock (35,111)         $ (35,111)
Settlement of the 2024 Notes (in shares)   324        
Settlement of the 2024 Notes 0 $ 3 (3)      
Settlement of the 2024 Hedges (in shares)           324
Settlement of the 2024 Hedges 0   37,120     $ (37,120)
Ending balance (in shares) at Jun. 30, 2024   70,001        
Ending balance at Jun. 30, 2024 696,777 $ 699 789,708 1,632,401 (1,232) $ (1,724,799)
Treasury stock, ending balance (in shares) at Jun. 30, 2024           44,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 34,190     34,190    
Net change in unrealized gain (loss) on short-term investments 1,366       1,366  
Dividends declared (11,366)   451 (11,817)    
Exercise of common stock options (in shares)   1        
Exercise of common stock options 11   11      
Issuance of common stock, net (in shares)   53        
Issuance of common stock, net (4,601) $ 1 (4,602)      
Share-based compensation 9,081   9,081      
Repurchase of common stock (in shares)           23
Repurchase of common stock (2,917)         $ (2,917)
Settlement of the 2024 Warrants (in shares)   82        
Settlement of the 2027 Hedge (4) $ 1 (5)      
Ending balance (in shares) at Sep. 30, 2024   70,137        
Ending balance at Sep. 30, 2024 $ 722,537 $ 701 794,644 1,654,774 134 $ (1,727,716)
Treasury stock, ending balance (in shares) at Sep. 30, 2024           44,895
Beginning balance (in shares) at Dec. 31, 2024 25,682 70,577        
Beginning balance at Dec. 31, 2024 $ 857,215 $ 705 808,540 1,775,823 (458) $ (1,727,395)
Treasury stock, beginning balance (in shares) at Dec. 31, 2024 44,895         44,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 115,602     115,602    
Net change in unrealized gain (loss) on short-term investments 256       256  
Dividends declared (15,577)   450 (16,027)    
Exercise of common stock options (in shares)   100        
Exercise of common stock options 7,315 $ 1 7,314      
Issuance of common stock, net (in shares)   218        
Issuance of common stock, net (32,176) $ 2 (32,178)      
Share-based compensation 9,498   9,498      
Repurchase of common stock (in shares)           24
Repurchase of common stock (5,249)         $ (5,249)
Ending balance (in shares) at Mar. 31, 2025   70,895        
Ending balance at Mar. 31, 2025 $ 936,884 $ 708 793,624 1,875,398 (202) $ (1,732,644)
Treasury stock, ending balance (in shares) at Mar. 31, 2025           44,919
Beginning balance (in shares) at Dec. 31, 2024 25,682 70,577        
Beginning balance at Dec. 31, 2024 $ 857,215 $ 705 808,540 1,775,823 (458) $ (1,727,395)
Treasury stock, beginning balance (in shares) at Dec. 31, 2024 44,895         44,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 363,673          
Net change in unrealized gain (loss) on short-term investments $ 678          
Ending balance (in shares) at Sep. 30, 2025 25,783 70,963        
Ending balance at Sep. 30, 2025 $ 1,099,976 $ 709 804,328 2,088,823 220 $ (1,794,104)
Treasury stock, ending balance (in shares) at Sep. 30, 2025 45,180         45,180
Beginning balance (in shares) at Mar. 31, 2025   70,895        
Beginning balance at Mar. 31, 2025 $ 936,884 $ 708 793,624 1,875,398 (202) $ (1,732,644)
Treasury stock, beginning balance (in shares) at Mar. 31, 2025           44,919
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 180,568     180,568    
Net change in unrealized gain (loss) on short-term investments 95       95  
Dividends declared (15,507)   538 (16,045)    
Exercise of common stock options (in shares)   1        
Exercise of common stock options 15   15      
Issuance of common stock, net (in shares)   15        
Issuance of common stock, net (939) $ 1 (940)      
Share-based compensation 11,836   11,836      
Repurchase of common stock (in shares)           123
Repurchase of common stock (26,168)         $ (26,168)
Ending balance (in shares) at Jun. 30, 2025   70,911        
Ending balance at Jun. 30, 2025 1,086,784 $ 709 805,073 2,039,921 (107) $ (1,758,812)
Treasury stock, ending balance (in shares) at Jun. 30, 2025           45,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 67,503     67,503    
Net change in unrealized gain (loss) on short-term investments 327       327  
Dividends declared (18,041)   560 (18,601)    
Issuance of common stock, net (in shares)   52        
Issuance of common stock, net (10,646)   (10,646)      
Share-based compensation 9,301   9,301      
Repurchase of common stock (in shares)           138
Repurchase of common stock (35,252)         $ (35,252)
Settlement of the 2024 Hedges     40     (40)
Settlement of the 2027 Hedge $ 0          
Ending balance (in shares) at Sep. 30, 2025 25,783 70,963        
Ending balance at Sep. 30, 2025 $ 1,099,976 $ 709 $ 804,328 $ 2,088,823 $ 220 $ (1,794,104)
Treasury stock, ending balance (in shares) at Sep. 30, 2025 45,180         45,180
v3.25.3
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2025
Sep. 30, 2024
Statement of Stockholders' Equity [Abstract]                
Dividends declared (in USD per share) $ 0.70 $ 0.60 $ 0.60 $ 0.45 $ 0.40 $ 0.40 $ 1.90 $ 1.25
v3.25.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Cash flows from operating activities:    
Net income $ 363,673 $ 225,506
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 57,482 52,165
Non-cash interest income, net (3,362) (8,290)
Change in deferred revenue 48,785 (3,913)
Deferred income taxes (26,776) 18,020
Share-based compensation 30,635 28,122
Other 914 329
Decrease (Increase) in assets:    
Receivables 27,661 (95,128)
Deferred charges and other assets (20,686) (81,333)
Increase (Decrease) in liabilities:    
Accounts payable 2,408 (2,092)
Customer deposit 0 (76,100)
Accrued compensation and other expenses 325 22,208
Net cash provided by operating activities 481,059 79,494
Cash flows from investing activities:    
Purchases of short-term investments (317,357) (445,434)
Proceeds from maturities and sales of short-term investments 335,682 618,642
Purchases of property and equipment (15,671) (1,928)
Capitalized patent costs (39,591) (33,506)
Long-term investments 0 1,576
Net cash (used in) provided by investing activities (36,937) 139,350
Cash flows from financing activities:    
Payments on long-term debt (1,298) (139,069)
Repurchase of common stock (66,669) (66,726)
Net proceeds from exercise of stock options 7,331 11
Taxes withheld upon restricted stock unit vestings (43,762) (14,816)
Dividends paid (42,641) (30,425)
Net cash used in financing activities (147,039) (251,025)
Net increase (decrease) in cash, cash equivalents and restricted cash 297,083 (32,181)
Cash, cash equivalents and restricted cash, beginning of period 551,547 442,961
Cash, cash equivalents and restricted cash, end of period 848,630 410,780
Other $ 914 $ 329
v3.25.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION 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 September 30, 2025, the results of our operations for the three and nine months ended September 30, 2025 and 2024 and our cash flows for the nine months ended September 30, 2025 and 2024. 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, 2024 (our “2024 Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”) on February 6, 2025. Definitions of capitalized terms not defined herein appear within our 2024 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. We have one reportable segment.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
Change in Accounting Policies
There have been no material changes or updates to our existing accounting policies from the disclosures included in our 2024 Form 10-K, except as indicated below in "New Accounting Guidance".
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Supplemental Cash Flow Information
The following table presents additional supplemental cash flow information for the nine months ended September 30, 2025 and 2024 (in thousands):
Nine Months Ended September 30,
Supplemental cash flow information:20252024
Interest paid$8,050 $9,311 
Income taxes paid, including foreign withholding taxes92,711 37,269 
Non-cash investing and financing activities:
Non-cash acquisition of patents19,319 — 
Dividend payable18,041 11,366 
Accrued capitalized patent costs and property and equipment purchases5,499 (2,261)
Right-of-use assets obtained in exchange of operating lease liabilities880 2,023 
Settlement of the 2027 and 2024 Hedge Transactions40 37,120 
New Accounting Guidance
Accounting Standards Update: Improvements to Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU enhance income tax disclosures, primarily through standardization, disaggregation of rate reconciliation categories, and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption allowed. We adopted this guidance as of January 1, 2025, and we will include the necessary disclosures in our Annual Report on Form 10-K. The disclosures are required on an annual basis so there was no impact to this Quarterly Report on Form 10-Q.
Accounting Standards Update: 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): 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. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
Accounting Standards Update: 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): 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. ASU 2024-04 is effective for fiscal years beginning after December 15, 2025, with early adoption allowed. We are currently evaluating the impact of adoption on our consolidated financial statements.
Accounting Standards Update: 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 amends 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. We are currently evaluating the impact of adoption on our consolidated financial statements.
v3.25.3
Revenue
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregated Revenue
The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30,
 20252024
Increase/(Decrease)
Smartphone$136,407 $87,426 $48,981 56%
CE, IoT/Auto28,219 40,633 (12,414)(31)%
Other56 620 (564)(91)%
Total Revenue$164,682 $128,679 $36,003 28%
Catch-up revenue (a), included above
$17,678 $30,045 $(12,367)(41)%
Nine Months Ended September 30,
 20252024
Increase/(Decrease)
Smartphone$555,482 $366,931 $188,551 51%
CE, IoT/Auto119,817 246,905 (127,088)(51)%
Other486 1,878 (1,392)(74)%
Total Revenue$675,785 $615,714 $60,071 10%
Catch-up revenue (a), included above
$264,791 $324,274 $(59,483)(18)%
(a)    Catch-up revenue represents revenue associated with reporting periods prior to the execution of the license agreement.
During the nine months ended September 30, 2025, we recognized $143.8 million of revenue that had been included in deferred revenue as of the beginning of the period. As of September 30, 2025, we had contract assets of $33.6 million included within "Accounts receivable" and $15.0 million included within "Other non-current assets, net" in the condensed consolidated balance sheet. As of December 31, 2024, we had contract assets of $162.8 million included within "Accounts receivable" in the condensed consolidated balance sheet.
Contracted Revenue
Based on contracts signed and committed as of September 30, 2025, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):
Revenue (a)
Remainder of 2025$136,379 
2026452,314 
2027440,577 
2028348,455 
2029294,819 
Thereafter232,338 
Total Revenue$1,904,882 
(a)    This table includes estimated revenue related to our Lenovo arbitration. 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.
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, and Restricted Cash
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 September 30, 2025, December 31, 2024, and September 30, 2024 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202520242024
Cash and cash equivalents$840,270 $527,360 $401,090 
Restricted cash included within prepaid and other current assets8,360 24,187 9,690 
Total cash, cash equivalents, and restricted cash
$848,630 $551,547 $410,780 
Concentration of Credit Risk and Fair Value of Financial Instruments
Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, short-term investments, and accounts receivable. We place our cash equivalents and short-term investments only in highly rated financial instruments and in United States government instruments.
Our accounts receivable and contract assets are derived principally from patent license and technology solutions agreements. Three licensees comprised 65% and 84% of our accounts receivable balances of September 30, 2025 and December 31, 2024, respectively. We perform ongoing credit evaluations of our licensees, who generally include large, multinational, wireless telecommunications and consumer electronics equipment manufacturers. We believe that the book values of our financial instruments approximate their fair values.
Fair Value Measurements
We use various valuation techniques and assumptions when measuring the fair value of our assets and liabilities. 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). The levels of the hierarchy are described below:
Level 1 Inputs — Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets.
Level 2 Inputs — Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transactions (less active markets) or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data, including market interest rate curves, referenced credit spreads and pre-payment rates.
Level 3 Inputs — Level 3 includes financial instruments for which fair value is derived from valuation techniques including pricing models and discounted cash flow models in which one or more significant inputs are unobservable, including the Company’s own assumptions. The pricing models incorporate transaction details such as contractual terms, maturity and, in certain instances, timing and amount of future cash flows, as well as assumptions related to liquidity and credit valuation adjustments of marketplace participants.
Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. We use quoted market prices for similar assets to estimate the fair value of our Level 2 investments.
Recurring Fair Value Measurements
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 September 30, 2025 and December 31, 2024 (in thousands):
 Fair Value as of September 30, 2025
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$836,578 $— $— $836,578 
Commercial paper (b)
— 71,271 — 71,271 
U.S. government securities— 234,542 — 234,542 
Corporate bonds, asset backed and other securities
— 129,107 — 129,107 
  Total$836,578 $434,920 $— $1,271,498 
 Fair Value as of December 31, 2024
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$535,745 $— $— $535,745 
Commercial paper (b)
— 78,870 — 78,870 
U.S. government securities— 230,561 — 230,561 
Corporate bonds, asset backed and other securities (c)
— 137,219 — 137,219 
  Total$535,745 $446,650 $— $982,395 
______________________________
(a)Primarily included within cash and cash equivalents.
(b)As of September 30, 2025 and December 31, 2024, $12.1 million and $4.1 million of commercial paper was included within cash and cash equivalents, respectively.
(c)As of December 31, 2024, $11.7 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.
Fair Value of Long-Term Debt
Convertible Notes
The principal amount, carrying value and related estimated fair value of the Company's convertible notes (the "Convertible Notes") reported as of September 30, 2025 and December 31, 2024 was as follows (in thousands). The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.
September 30, 2025December 31, 2024
Principal
Amount		Carrying
Value		Fair
Value		Principal
Amount		Carrying
Value		Fair
Value
2027 Senior Convertible Long-Term Debt$459,986 $456,258 $2,056,938 $460,000 $454,739 $1,166,155 
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 September 30, 2025 and December 31, 2024 was as follows (in thousands). The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.
September 30, 2025December 31, 2024
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Technicolor Patent Acquisition Long-Term Debt$17,142 $15,613 $17,033 $17,102 
v3.25.3
Other Assets and Liabilities
 9 Months Ended
Sep. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS AND LIABILITIES OTHER ASSETS AND LIABILITIES
The amounts included in "Prepaid and other current assets" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Tax receivables$24,964 $16,691 
Prepaid assets18,885 38,952 
Restricted cash8,360 24,187 
Other current assets4,718 4,482 
Total Prepaid and other current assets$56,927 $84,312 
The amounts included in "Other non-current assets, net" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Tax receivables$96,502 $88,619 
Goodwill22,421 22,421 
Contract asset15,000 — 
Right-of-use assets14,050 15,218 
Long-term investments12,700 19,851 
Other non-current assets4,273 3,291 
Total Other non-current assets, net$164,946 $149,400 
The amounts included in "Other accrued expenses" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Accrued legal fees$16,443 $9,571 
Other accrued expenses13,141 15,563 
Total Other accrued expenses$29,584 $25,134 
The amounts included in "Other long-term liabilities" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Deferred compensation liabilities$25,604 $19,969 
Operating lease liabilities14,346 15,772 
Other long-term liabilities19,919 19,201 
Total Other long-term liabilities$59,869 $54,942 
v3.25.3
Obligations
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
OBLIGATIONS OBLIGATIONS
2027 Notes, and Related Note Hedge and Warrant Transactions
On May 27, 2022, we issued $460.0 million in aggregate principal amount of 3.50% Senior Convertible Notes due in 2027 (the "2027 Notes"). The net proceeds from the issuance of the 2027 Notes, after deducting the initial purchasers' transaction fees and offering expenses, were approximately $450.0 million. 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 December 31, 2025, 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 September 30, 2025 and December 31, 2024.
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. 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 5.9 million shares of common stock. As of September 30, 2025, the warrants under the 2027 Warrant Transactions had a weighted average strike price of $105.77 per share, subject to adjustment, and mature beginning September 2027 through April 2028.
2024 Notes, and Related Note Hedge and Warrant Transactions
On June 3, 2019, we issued $400.0 million in aggregate principal amount of Senior Convertible Notes due in 2024 (the "2024 Notes") that bore interest at a rate of 2.00% per year, payable in cash on June 1 and December 1 of each year, commencing on December 1, 2019, and matured on June 1, 2024.
In connection with the offering of the 2024 Notes, we entered into convertible note hedge transactions (collectively, the "2024 Note Hedge Transactions") that covered, subject to customary anti-dilution adjustments, approximately 4.9 million shares of common stock, in the aggregate, at a strike price that corresponded to the conversion price of the 2024 Notes, subject to adjustment, and were exercisable upon any conversion of the 2024 Notes. We also entered into privately negotiated warrant transactions (collectively, the "2024 Warrant Transactions" and, together with the 2024 Note Hedge Transactions, the "2024 Call Spread Transactions"), whereby we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 4.9 million shares of common stock at an initial strike price of approximately $109.43 per share, subject to adjustment.
During second quarter 2022, we repurchased $273.8 million in aggregate principal amount of the 2024 Notes in privately negotiated transactions concurrently with the offering of the 2027 Notes. In connection with the partial repurchase of the 2024 Notes, we entered into partial unwind agreements that amended the terms of the 2024 Call Spread Transactions to reduce the number of options corresponding to the principal amount of the repurchased 2024 Notes. The unwind agreements also reduce the number of warrants exercisable under the 2024 Warrant Transactions. As a result of the partial unwind transactions, approximately 3.3 million shares of common stock in the aggregate that were covered under each of the 2024 Note Hedge Transactions and the 2024 Warrant Transactions were unwound.
On June 1, 2024, the 2024 Notes matured and we repaid the remaining $126.2 million in aggregate principal in cash and issued 0.3 million common shares to settle the remaining obligation. This issuance was effectively offset by our receipt of 0.3 million shares from the settlement of the 2024 Note Hedge Transactions. Additionally, the 2024 Warrant Transactions settled, on a net-share basis, during September through December 2024 resulting in the issuance of 0.5 million shares.
The following table reflects the carrying value of our Convertible Notes long-term debt as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
3.50% Senior Convertible Notes due 2027
$459,986 $460,000 
Less: Deferred financing costs(3,728)(5,261)
Net carrying amount of the Convertible Notes456,258 454,739 
Less: Current portion of long-term debt(456,258)(454,739)
Long-term net carrying amount of the Convertible Notes$— $— 
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 and nine months ended September 30, 2025 and 2024 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):
Three Months Ended September 30,
20252024
2027 Notes2027 Notes2024 NotesTotal
Contractual coupon interest$4,025 $4,025 $— $4,025 
Amortization of deferred financing costs522 483 — 483 
Total$4,547 $4,508 $— $4,508 
Nine Months Ended September 30,
20252024
2027 Notes2027 Notes2024 NotesTotal
Contractual coupon interest$12,075 $12,075 $1,059 $13,134 
Amortization of deferred financing costs1,533 1,419 252 1,671 
Total$13,608 $13,494 $1,311 $14,805 
Technicolor Patent Acquisition Long-Term Debt
On July 30, 2018, we completed our acquisition of the patent licensing business of Technicolor SA ("Technicolor"), a worldwide technology leader in the media and entertainment sector (the "Technicolor Patent Acquisition"). In conjunction with the Technicolor Patent Acquisition, we assumed Technicolor’s rights and obligations under a joint licensing program with Sony relating to digital televisions and standalone computer display monitors, which commenced in 2015 (the "Madison Arrangement"). An affiliate of CPPIB Credit Investments Inc. ("CPPIB Credit"), a wholly owned subsidiary of Canada Pension Plan Investment Board, is a third-party investor in the Madison Arrangement. CPPIB Credit made certain payments to Technicolor and Sony and agreed to contribute cash to fund certain capital reserve obligations under the arrangement in exchange for a percentage of future revenue, specifically through September 11, 2030 in regard to the Technicolor patents.
Upon our assumption of Technicolor’s rights and obligations under the Madison Arrangement, our relationship with CPPIB Credit meets the criteria in ASC 470-10-25 - Sales of Future Revenues or Various Other Measures of Income ("ASC 470"), which relates to cash received from an investor in exchange for a specified percentage or amount of revenue or other measure of income of a particular product line, business segment, trademark, patent, or contractual right for a defined period. Under this guidance, we recognized the fair value of our contingent obligation to CPPIB Credit, as of the acquisition date, as long-term debt in our condensed consolidated balance sheet. 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 September 30, 2025 and December 31, 2024 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.
Under ASC 470, amounts recorded as debt are amortized under the interest method. At each reporting period, we will review the discounted expected future cash flows over the life of the obligation. The Company made an accounting policy election to utilize the catch-up method when there is a change in the estimated future cash flows, whereby we will adjust the carrying amount of the debt to the present value of the revised estimated future cash flows, discounted at the original effective interest rate, with a corresponding adjustment recognized as interest expense within “Interest Expense” in the condensed consolidated statements of income. The effective interest rate as of the acquisition date was approximately 14.5%. 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 and nine months ended September 30, 2025, we recognized $0.6 million and $1.4 million, respectively, of interest expense related to this debt, compared to $0.6 million and $2.2 million during the three and nine months ended September 30, 2024, respectively. This 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 $1.3 million and $12.9 million in payments to CPPIB Credit during the nine months ended September 30, 2025 and 2024, respectively.
Technicolor Contingent Consideration
As part of the Technicolor Patent Acquisition, we entered into a revenue-sharing arrangement with Technicolor that created a contingent consideration liability. Under the revenue-sharing arrangement, Technicolor receives 42.5% of future cash receipts from new licensing efforts from the Madison Arrangement only, subject to certain conditions and hurdles. As of September 30, 2025, the contingent consideration liability from the revenue-sharing arrangement was deemed not probable and is therefore not reflected within the consolidated financial statements.
v3.25.3
Litigation and Legal Proceedings
 9 Months Ended
Sep. 30, 2025
Gain (Loss) from Litigation Settlement [Abstract]  
LITIGATION AND LEGAL PROCEEDINGS LITIGATION AND LEGAL PROCEEDINGS
ARBITRATIONS AND COURT PROCEEDINGS
Lenovo
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. In November 2024, the Company filed a request for arbitration with the International Chamber of Commerce. In March 2025, the International Chamber of Commerce confirmed the full tribunal for the arbitration.
Samsung
The Company reached an agreement with Samsung Electronics Co. Ltd. (“Samsung”) to enter into binding arbitration to determine the final terms of a renewed patent license agreement to certain of the Company’s patents, to be effective from January 1, 2023. The Company and Samsung also agreed not to initiate certain claims against the other during the arbitration. In March 2023, the Company filed a request for arbitration with the International Chamber of Commerce.
The arbitration hearing was held in July 2024, and closing arguments were held in October 2024. In July 2025, a panel of International Chamber of Commerce arbitrators determined the royalties of the patent license between the Company and Samsung covering Samsung’s products other than digital televisions and computer display monitors, which have been licensed under a separate agreement. The panel set the total royalties at $1.05 billion for the eight-year patent license.
Tesla
In December 2023, 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: European Patent (UK) Nos. 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; the jurisdiction challenge was heard during May and June 2024, and in July 2024 the UK High Court issued a judgment dismissing Tesla’s FRAND claims against the Company and Avanci, and maintaining Tesla’s patent claims against the Company. The patent claims against the Company were further stayed by the UK High Court.
Tesla sought permission to appeal the decision; the Company also sought permission to appeal on two limited grounds conditionally, should Tesla’s request for an appeal be granted. The appeal hearing was held in December 2024, and the UK Court of Appeal upheld the lower court's decision and refused Tesla’s request for permission to appeal. Tesla filed an application for permission to appeal to the Supreme Court. In July 2025, the Supreme Court granted Tesla’s request for permission to appeal the issues of whether pool licenses are arguably required to be FRAND, whether all members of the Avanci 5G Platform must be joined to the case, and whether Tesla’s claim advances the possibility of a bilateral license from the Company. In September 2025, the Company filed an application for permission to cross-appeal.
Disney
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.
A trial is scheduled for September 2026.
Brazil Proceedings
In February 2025, the Company and certain of its subsidiaries filed a claim in the Regional Business Court of Rio de Janeiro against The Walt Disney Co. and certain of its subsidiaries. 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 March 2025, Disney filed an answer and asserted a rate-setting counterclaim. In May 2025, the Company requested an anti-interference injunction to prevent Disney from continuing with its anti-suit injunction in California.
In September 2025, the Court granted the Company’s preliminary injunction request. The Appellate Court initially granted Disney’s request to stay the preliminary injunction pending hearing of an appeal, but that stay was lifted. Disney now has until November 30, 2025, to comply fully with the injunction.
In October 2025, the Company filed another claim in the Regional Business Court of Rio de Janeiro against The Walt Disney Co. and certain of its subsidiaries. The claim alleges infringement of one 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 patent.
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 The Walt Disney Co. and certain of its subsidiaries. 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.
Hearings on the asserted patents have been scheduled for October 2025, November 2025, February 2026 and June 2026.
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 Unified Patent Court (“the UPC”) against The Walt Disney Co. and certain of its subsidiaries. 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 asserted patents in May 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 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.
Amazon
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.
Brazil Proceedings
In September 2025, Amazon filed a claim in the Second Business Court of Sao Paolo against the Company and certain of its subsidiaries. The claims allege the non-infringement 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.
Transsion
UPC Proceedings
In September 2025, the Company and certain of its subsidiaries filed patent infringement claims in the Munich Local Divisional Court of the Unified Patent Court 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 and video technologies. The Company is seeking, among other relief, injunctive relief to prevent further infringement of the asserted patents.
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 and video 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 complaint and that Transsion is an unwilling licensee with respect to the FRAND 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. The claim alleges infringement of certain of the Company’s patents relating to cellular SEP technologies. The Company is seeking, among other relief, damages and injunctive relief to prevent further infringement of the asserted patents.
OTHER
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 September 30, 2025, except as noted above.
v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
In the nine months ended September 30, 2025 and 2024, the Company had an estimated effective tax rate of 13.3% and 18.4%, respectively. The change in effective tax rate is due to an increase in the amount of Foreign Derived Intangible Income ("FDII") deduction benefit available to the Company and tax benefits related to share-based compensation. In addition, the Company is subject to a decrease in the Global Intangible Low-Tax Income inclusion derived from the decrease in French revenue. During the nine months ended September 30, 2025 and 2024, the Company recorded discrete net benefits of $9.3 million and $4.3 million, respectively, primarily related to share-based compensation.
The One Big Beautiful Bill Act (the “Act”) was signed into law on July 4th, 2025. The Act contains significant tax law changes with various effective dates affecting business taxpayers. Among the tax law changes that will impact the Company relate to the timing and amount of certain tax deductions including FDII, depreciation expense, R&D expenditures and interest expense. The tax law changes did not have an impact on the tax provision in the third quarter of 2025.
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 nine months ended September 30, 2025 and 2024, the Company paid approximately $78.6 million and $14.5 million, respectively, in foreign source creditable withholding tax.
v3.25.3
Net Income Per Share
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic Earnings Per Share ("EPS") is calculated by dividing net income or loss available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other securities with features that could result in the issuance of common stock were exercised or converted to common stock or resulting from the unvested outstanding restricted stock units ("RSUs"). 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 September 30,Nine Months Ended September 30,
2025202420252024
Net income
$67,503 $34,190 $363,673 $225,506 
Weighted-average shares outstanding:
Basic25,797 25,149 25,818 25,286 
Dilutive effect of stock options and RSUs
1,207 1,067 1,172 917 
Dilutive effect of warrants
3,645 1,379 3,149 472 
Dilutive effect of convertible securities
4,276 2,439 3,912 2,084 
Diluted34,925 30,034 34,051 28,759 
Earnings per share:
Basic$2.62 $1.36 $14.09 $8.92 
Dilutive effect of stock options and RSUs
(0.10)(0.05)(0.49)(0.25)
Dilutive effect of warrants
(0.27)(0.06)(1.30)(0.15)
Dilutive effect of convertible securities
(0.32)(0.11)(1.62)(0.68)
Diluted$1.93 $1.14 $10.68 $7.84 
Shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of EPS because the strike price or conversion rate, as applicable, of such securities was greater than the average market price of our common stock and, as a result, the effect of such exercise or conversion would have been anti-dilutive. 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 September 30,Nine Months Ended September 30,
2025202420252024
Warrants2,324 6,056 2,813 7,002 
Convertible Notes and Warrants
Refer to Note 5, "Obligations," for information about the Company's convertible notes and warrants and related conversion and strike prices. During periods in which the average market price of the Company's common stock is above the applicable conversion price of the Company's convertible notes, or above the strike price of the Company's outstanding warrants, the impact of conversion or exercise, as applicable, would be dilutive and such dilutive effect is reflected in diluted EPS. As a result, in periods where the average market price of the Company's common stock is above the conversion price or strike price, as applicable, under the if-converted method, the Company calculates the number of shares issuable under the terms of the convertible notes and the warrants based on the average market price of the stock during the period, and includes that number in the total diluted shares outstanding for the period.
v3.25.3
Segment Performance Measures and Expenses
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT PERFORMANCE MEASURES AND EXPENSES SEGMENT PERFORMANCE MEASURES AND EXPENSES
Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, assesses company-wide performance and allocates resources based on consolidated financial information. Consequently, we view the entire organization as one reportable segment and the strategic purpose of all operating activities is to support that one segment. Our CODM evaluates company-wide performance based on multiple performance measures, including, but not limited to, net income. Our CODM does not generally evaluate our performance using asset or historical cash flow information.
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
September 30,
Nine Months Ended
September 30,
 2025202420252024
Revenue$164,682 $128,679 $675,785 $615,714 
Less:
Departmental expenses (a)
46,839 42,811 137,531 131,762 
Depreciation and amortization19,804 17,549 57,482 52,165 
Intellectual property enforcement10,487 12,867 29,428 47,956 
Share-based compensation9,301 9,081 30,635 28,122 
Revenue share costs2,443 7,029 7,642 78,723 
Other non-operating (income) expense, net (b)
(169)(1,873)(6,163)603 
Income tax provision8,474 7,025 55,557 50,877 
Net income$67,503 $34,190 $363,673 $225,506 
(a) Includes personnel costs, consulting costs, outside services, administrative costs, and other operating expenses.
(b) Includes interest income, interest expense, and other non-operating income and expenses
v3.25.3
Other Income, Net
 9 Months Ended
Sep. 30, 2025
Other Income and Expenses [Abstract]  
OTHER INCOME, NET OTHER INCOME, NET
The amounts included in "Other income, net" in the condensed consolidated statements of income for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Interest and investment income$9,484 $9,175 $27,576 $31,078 
Other704 3,379 8,014 2,405 
Other income, net$10,188 $12,554 $35,590 $33,483 
The change in Other was primarily due to foreign currency translation which resulted in a loss of $0.6 million and a gain of $5.9 million in the three and nine months ending September 30, 2025, respectively, compared to a gain of $2.8 million and a loss of $0.5 million in the three and nine months ending September 30, 2024, respectively.
v3.25.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Samir Armaly [Member]  
Trading Arrangements, by Individual  
Name Samir Armaly
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 8, 2025
Expiration Date August 7, 2026
Arrangement Duration 364 days
Aggregate Available 466
John Markley, Jr. [Member]  
Trading Arrangements, by Individual  
Name John Markley, Jr.
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 8, 2025
Expiration Date August 7, 2026
Arrangement Duration 364 days
Aggregate Available 663
John Kritzmacher [Member]  
Trading Arrangements, by Individual  
Name John Kritzmacher
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 12, 2025
Expiration Date June 30, 2026
Arrangement Duration 322 days
Aggregate Available 5,362
Jean Rankin [Member]  
Trading Arrangements, by Individual  
Name Jean Rankin
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 15, 2025
Expiration Date June 30, 2026
Arrangement Duration 319 days
Aggregate Available 362
Richard Brezski [Member]  
Trading Arrangements, by Individual  
Name Richard Brezski
Rule 10b5-1 Arrangement Adopted true
Adoption Date September 26, 2025
Expiration Date December 31, 2026
Arrangement Duration 461 days
Aggregate Available 19,988
Liren Chen [Member]  
Trading Arrangements, by Individual  
Name Liren Chen
Rule 10b5-1 Arrangement Adopted true
Adoption Date September 29, 2025
Expiration Date September 29, 2026
Arrangement Duration 365 days
Aggregate Available 29,758
v3.25.3
Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation 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, 2024 (our “2024 Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”) on February 6, 2025. Definitions of capitalized terms not defined herein appear within our 2024 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. We have one reportable segment.
Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
Reclassifications
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
New Accounting Guidance
New Accounting Guidance
Accounting Standards Update: Improvements to Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in the ASU enhance income tax disclosures, primarily through standardization, disaggregation of rate reconciliation categories, and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption allowed. We adopted this guidance as of January 1, 2025, and we will include the necessary disclosures in our Annual Report on Form 10-K. The disclosures are required on an annual basis so there was no impact to this Quarterly Report on Form 10-Q.
Accounting Standards Update: 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): 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. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption allowed. We are currently evaluating the impact of adoption on our financial disclosures.
Accounting Standards Update: 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): 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. ASU 2024-04 is effective for fiscal years beginning after December 15, 2025, with early adoption allowed. We are currently evaluating the impact of adoption on our consolidated financial statements.
Accounting Standards Update: 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 amends 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. We are currently evaluating the impact of adoption on our consolidated financial statements.
v3.25.3
Basis of Presentation (Tables)
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of supplemental cash flow information
The following table presents additional supplemental cash flow information for the nine months ended September 30, 2025 and 2024 (in thousands):
Nine Months Ended September 30,
Supplemental cash flow information:20252024
Interest paid$8,050 $9,311 
Income taxes paid, including foreign withholding taxes92,711 37,269 
Non-cash investing and financing activities:
Non-cash acquisition of patents19,319 — 
Dividend payable18,041 11,366 
Accrued capitalized patent costs and property and equipment purchases5,499 (2,261)
Right-of-use assets obtained in exchange of operating lease liabilities880 2,023 
Settlement of the 2027 and 2024 Hedge Transactions40 37,120 
v3.25.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30,
 20252024
Increase/(Decrease)
Smartphone$136,407 $87,426 $48,981 56%
CE, IoT/Auto28,219 40,633 (12,414)(31)%
Other56 620 (564)(91)%
Total Revenue$164,682 $128,679 $36,003 28%
Catch-up revenue (a), included above
$17,678 $30,045 $(12,367)(41)%
Nine Months Ended September 30,
 20252024
Increase/(Decrease)
Smartphone$555,482 $366,931 $188,551 51%
CE, IoT/Auto119,817 246,905 (127,088)(51)%
Other486 1,878 (1,392)(74)%
Total Revenue$675,785 $615,714 $60,071 10%
Catch-up revenue (a), included above
$264,791 $324,274 $(59,483)(18)%
(a)    Catch-up revenue represents revenue associated with reporting periods prior to the execution of the license agreement.
Schedule of contracted revenue
Based on contracts signed and committed as of September 30, 2025, we expect to recognize the following revenue from dynamic fixed-fee royalty payments over the term of such contracts (in thousands):
Revenue (a)
Remainder of 2025$136,379 
2026452,314 
2027440,577 
2028348,455 
2029294,819 
Thereafter232,338 
Total Revenue$1,904,882 
(a)    This table includes estimated revenue related to our Lenovo arbitration. 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.
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of cash and cash equivalents The following table provides a reconciliation of total cash, cash equivalents, and restricted cash as of September 30, 2025, December 31, 2024, and September 30, 2024 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202520242024
Cash and cash equivalents$840,270 $527,360 $401,090 
Restricted cash included within prepaid and other current assets8,360 24,187 9,690 
Total cash, cash equivalents, and restricted cash
$848,630 $551,547 $410,780 
Schedule of restricted cash and cash equivalents The following table provides a reconciliation of total cash, cash equivalents, and restricted cash as of September 30, 2025, December 31, 2024, and September 30, 2024 to the captions within the condensed consolidated balance sheets and condensed consolidated statements of cash flows (in thousands):
 September 30,December 31,September 30,
 202520242024
Cash and cash equivalents$840,270 $527,360 $401,090 
Restricted cash included within prepaid and other current assets8,360 24,187 9,690 
Total cash, cash equivalents, and restricted cash
$848,630 $551,547 $410,780 
Schedule of fair value on a recurring basis Our financial assets and liabilities that are accounted for at fair value on a recurring basis are presented in the tables below as of September 30, 2025 and December 31, 2024 (in thousands):
 Fair Value as of September 30, 2025
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$836,578 $— $— $836,578 
Commercial paper (b)
— 71,271 — 71,271 
U.S. government securities— 234,542 — 234,542 
Corporate bonds, asset backed and other securities
— 129,107 — 129,107 
  Total$836,578 $434,920 $— $1,271,498 
 Fair Value as of December 31, 2024
 Level 1Level 2Level 3Total
Assets:    
Money market and demand accounts (a)
$535,745 $— $— $535,745 
Commercial paper (b)
— 78,870 — 78,870 
U.S. government securities— 230,561 — 230,561 
Corporate bonds, asset backed and other securities (c)
— 137,219 — 137,219 
  Total$535,745 $446,650 $— $982,395 
______________________________
(a)Primarily included within cash and cash equivalents.
(b)As of September 30, 2025 and December 31, 2024, $12.1 million and $4.1 million of commercial paper was included within cash and cash equivalents, respectively.
(c)As of December 31, 2024, $11.7 million of corporate bonds, asset backed and other securities was included within cash and cash equivalents, respectively.
Schedule of aggregate fair value The aggregate fair value of the principal amount of the Convertible Notes is a Level 2 fair value measurement.
September 30, 2025December 31, 2024
Principal
Amount		Carrying
Value		Fair
Value		Principal
Amount		Carrying
Value		Fair
Value
2027 Senior Convertible Long-Term Debt$459,986 $456,258 $2,056,938 $460,000 $454,739 $1,166,155 
The aggregate fair value of the Technicolor Patent Acquisition long-term debt is a Level 3 fair value measurement.
September 30, 2025December 31, 2024
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Technicolor Patent Acquisition Long-Term Debt$17,142 $15,613 $17,033 $17,102 
v3.25.3
Other Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of prepaid and other current assets
The amounts included in "Prepaid and other current assets" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Tax receivables$24,964 $16,691 
Prepaid assets18,885 38,952 
Restricted cash8,360 24,187 
Other current assets4,718 4,482 
Total Prepaid and other current assets$56,927 $84,312 
Schedule of other non-current assets
The amounts included in "Other non-current assets, net" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Tax receivables$96,502 $88,619 
Goodwill22,421 22,421 
Contract asset15,000 — 
Right-of-use assets14,050 15,218 
Long-term investments12,700 19,851 
Other non-current assets4,273 3,291 
Total Other non-current assets, net$164,946 $149,400 
Schedule of other accrued expenses
The amounts included in "Other accrued expenses" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Accrued legal fees$16,443 $9,571 
Other accrued expenses13,141 15,563 
Total Other accrued expenses$29,584 $25,134 
Schedule of other long-term liabilities
The amounts included in "Other long-term liabilities" in the condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Deferred compensation liabilities$25,604 $19,969 
Operating lease liabilities14,346 15,772 
Other long-term liabilities19,919 19,201 
Total Other long-term liabilities$59,869 $54,942 
v3.25.3
Obligations (Tables)
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Schedule of debt
The following table reflects the carrying value of our Convertible Notes long-term debt as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
3.50% Senior Convertible Notes due 2027
$459,986 $460,000 
Less: Deferred financing costs(3,728)(5,261)
Net carrying amount of the Convertible Notes456,258 454,739 
Less: Current portion of long-term debt(456,258)(454,739)
Long-term net carrying amount of the Convertible Notes$— $— 
Schedule of accretion of the debt discount, and the amortization of financing costs
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 nine months ended September 30, 2025 and 2024 relating to the contractual interest coupon and the amortization of deferred financing costs of the Convertible Notes (in thousands):
Three Months Ended September 30,
20252024
2027 Notes2027 Notes2024 NotesTotal
Contractual coupon interest$4,025 $4,025 $— $4,025 
Amortization of deferred financing costs522 483 — 483 
Total$4,547 $4,508 $— $4,508 
Nine Months Ended September 30,
20252024
2027 Notes2027 Notes2024 NotesTotal
Contractual coupon interest$12,075 $12,075 $1,059 $13,134 
Amortization of deferred financing costs1,533 1,419 252 1,671 
Total$13,608 $13,494 $1,311 $14,805 
v3.25.3
Net Income Per Share (Tables)
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
Schedule of numerator and the denominator of the basic and diluted 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 September 30,Nine Months Ended September 30,
2025202420252024
Net income
$67,503 $34,190 $363,673 $225,506 
Weighted-average shares outstanding:
Basic25,797 25,149 25,818 25,286 
Dilutive effect of stock options and RSUs
1,207 1,067 1,172 917 
Dilutive effect of warrants
3,645 1,379 3,149 472 
Dilutive effect of convertible securities
4,276 2,439 3,912 2,084 
Diluted34,925 30,034 34,051 28,759 
Earnings per share:
Basic$2.62 $1.36 $14.09 $8.92 
Dilutive effect of stock options and RSUs
(0.10)(0.05)(0.49)(0.25)
Dilutive effect of warrants
(0.27)(0.06)(1.30)(0.15)
Dilutive effect of convertible securities
(0.32)(0.11)(1.62)(0.68)
Diluted$1.93 $1.14 $10.68 $7.84 
Schedule of excluded from our computation of EPS 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 September 30,Nine Months Ended September 30,
2025202420252024
Warrants2,324 6,056 2,813 7,002 
v3.25.3
Segment Performance Measures and Expenses (Tables)
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment
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
September 30,
Nine Months Ended
September 30,
 2025202420252024
Revenue$164,682 $128,679 $675,785 $615,714 
Less:
Departmental expenses (a)
46,839 42,811 137,531 131,762 
Depreciation and amortization19,804 17,549 57,482 52,165 
Intellectual property enforcement10,487 12,867 29,428 47,956 
Share-based compensation9,301 9,081 30,635 28,122 
Revenue share costs2,443 7,029 7,642 78,723 
Other non-operating (income) expense, net (b)
(169)(1,873)(6,163)603 
Income tax provision8,474 7,025 55,557 50,877 
Net income$67,503 $34,190 $363,673 $225,506 
(a) Includes personnel costs, consulting costs, outside services, administrative costs, and other operating expenses.
(b) Includes interest income, interest expense, and other non-operating income and expenses
v3.25.3
Other Income, Net (Tables)
 9 Months Ended
Sep. 30, 2025
Other Income and Expenses [Abstract]  
Schedule of other income (expense), net
The amounts included in "Other income, net" in the condensed consolidated statements of income for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Interest and investment income$9,484 $9,175 $27,576 $31,078 
Other704 3,379 8,014 2,405 
Other income, net$10,188 $12,554 $35,590 $33,483 
v3.25.3
Basis of Presentation - Narrative (Details)
 9 Months Ended
Sep. 30, 2025
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 1
v3.25.3
Basis of Presentation - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Dec. 31, 2024
Supplemental cash flow information:      
Interest paid $ 8,050 $ 9,311  
Income taxes paid, including foreign withholding taxes 92,711 37,269  
Non-cash investing and financing activities:      
Non-cash acquisition of patents 19,319 0  
Dividend payable 18,041 11,366 $ 11,557
Accrued capitalized patent costs and property and equipment purchases 5,499 (2,261)  
Right-of-use assets obtained in exchange of operating lease liabilities 880 2,023  
Settlement of the 2027 and 2024 Hedge Transactions $ 40 $ 37,120  
v3.25.3
Revenue - Disaggregated Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Disaggregation of Revenue [Line Items]        
Total revenue $ 164,682 $ 128,679 $ 675,785 $ 615,714
Total Revenue        
Disaggregation of Revenue [Line Items]        
Total revenue 164,682 128,679 675,785 615,714
Increase/(decrease) in disaggregated revenue $ 36,003   $ 60,071  
Percentage increase/(decrease) in disaggregated revenue (as a percent) 28.00%   10.00%  
Smartphone        
Disaggregation of Revenue [Line Items]        
Total revenue $ 136,407 87,426 $ 555,482 366,931
Increase/(decrease) in disaggregated revenue $ 48,981   $ 188,551  
Percentage increase/(decrease) in disaggregated revenue (as a percent) 56.00%   51.00%  
CE, IoT/Auto        
Disaggregation of Revenue [Line Items]        
Total revenue $ 28,219 40,633 $ 119,817 246,905
Increase/(decrease) in disaggregated revenue $ (12,414)   $ (127,088)  
Percentage increase/(decrease) in disaggregated revenue (as a percent) (31.00%)   (51.00%)  
Other        
Disaggregation of Revenue [Line Items]        
Total revenue $ 56 620 $ 486 1,878
Increase/(decrease) in disaggregated revenue $ (564)   $ (1,392)  
Percentage increase/(decrease) in disaggregated revenue (as a percent) (91.00%)   (74.00%)  
Catch-up revenue        
Disaggregation of Revenue [Line Items]        
Total revenue $ 17,678 $ 30,045 $ 264,791 $ 324,274
Increase/(decrease) in disaggregated revenue $ (12,367)   $ (59,483)  
Percentage increase/(decrease) in disaggregated revenue (as a percent) (41.00%)   (18.00%)  
v3.25.3
Revenue - Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Revenue recognized that had been included in deferred revenue as of the beginning of the period $ 143,800  
Contract assets, current 33,600 $ 162,800
Contract assets, noncurrent $ 15,000 $ 0
v3.25.3
Revenue - Remaining Performance Obligation (Details)
$ in Thousands
Sep. 30, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 1,904,882
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 136,379
Revenue, remaining performance obligation, expected timing of satisfaction, period 3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 452,314
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 440,577
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 348,455
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 294,819
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 232,338
Revenue, remaining performance obligation, expected timing of satisfaction, period
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]        
Cash and cash equivalents $ 840,270 $ 527,360 $ 401,090  
Restricted cash included within prepaid and other current assets 8,360 24,187 9,690  
Total cash, cash equivalents, and restricted cash $ 848,630 $ 551,547 $ 410,780 $ 442,961
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Narrative (Details)
 9 Months Ended 12 Months Ended
Sep. 30, 2025
Dec. 31, 2024
Three Largest Licensees | Accounts Receivable | Licensee Concentration Risk    
Concentration Risk [Line Items]    
Accounts receivable percentage (as a percent) 65.00% 84.00%
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2023
Assets:        
Total $ 1,271,498 $ 982,395    
Amount included in cash and cash equivalents 848,630 551,547 $ 410,780 $ 442,961
Commercial paper        
Assets:        
Cash and cash equivalents 71,271 78,870    
U.S. government securities        
Assets:        
Securities 234,542 230,561    
Corporate bonds, asset backed and other securities        
Assets:        
Securities 129,107 137,219    
Money market and demand accounts        
Assets:        
Cash and cash equivalents 836,578 535,745    
Commercial paper        
Assets:        
Amount included in cash and cash equivalents 12,100 4,100    
Corporate bonds, asset backed and other securities        
Assets:        
Amount included in cash and cash equivalents   11,700    
Level 1        
Assets:        
Total 836,578 535,745    
Level 1 | Commercial paper        
Assets:        
Cash and cash equivalents 0 0    
Level 1 | U.S. government securities        
Assets:        
Securities 0 0    
Level 1 | Corporate bonds, asset backed and other securities        
Assets:        
Securities 0 0    
Level 1 | Money market and demand accounts        
Assets:        
Cash and cash equivalents 836,578 535,745    
Level 2        
Assets:        
Total 434,920 446,650    
Level 2 | Commercial paper        
Assets:        
Cash and cash equivalents 71,271 78,870    
Level 2 | U.S. government securities        
Assets:        
Securities 234,542 230,561    
Level 2 | Corporate bonds, asset backed and other securities        
Assets:        
Securities 129,107 137,219    
Level 2 | Money market and demand accounts        
Assets:        
Cash and cash equivalents 0 0    
Level 3        
Assets:        
Total 0 0    
Level 3 | Commercial paper        
Assets:        
Cash and cash equivalents 0 0    
Level 3 | U.S. government securities        
Assets:        
Securities 0 0    
Level 3 | Corporate bonds, asset backed and other securities        
Assets:        
Securities 0 0    
Level 3 | Money market and demand accounts        
Assets:        
Cash and cash equivalents $ 0 $ 0    
v3.25.3
Cash, Concentration of Credit Risk and Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Technicolor Patent Acquisition Long-Term Debt    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value $ 17,142 $ 17,033
Fair Value 15,613 17,102
Convertible Debt | 3.50% Senior Convertible Notes due 2027    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Principal Amount 459,986 460,000
Carrying Value 456,258 454,739
Fair Value $ 2,056,938 $ 1,166,155
v3.25.3
Other Assets and Liabilities - Prepaid and Other Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Tax receivables $ 24,964 $ 16,691  
Prepaid assets 18,885 38,952  
Restricted cash 8,360 24,187 $ 9,690
Other current assets 4,718 4,482  
Total Prepaid and other current assets $ 56,927 $ 84,312  
v3.25.3
Other Assets and Liabilities - Other Non-Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Tax receivables $ 96,502 $ 88,619
Goodwill 22,421 22,421
Contract assets, noncurrent 15,000 0
Right-of-use assets 14,050 15,218
Long-term investments 12,700 19,851
Other non-current assets 4,273 3,291
Total Other non-current assets, net $ 164,946 $ 149,400
v3.25.3
Other Assets and Liabilities - Other Accrued Expenses (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Accrued legal fees $ 16,443 $ 9,571
Other accrued expenses 13,141 15,563
Total Other accrued expenses $ 29,584 $ 25,134
v3.25.3
Other Assets and Liabilities - Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deferred compensation liabilities $ 25,604 $ 19,969
Operating lease liabilities 14,346 15,772
Other long-term liabilities 19,919 19,201
Total Other long-term liabilities $ 59,869 $ 54,942
v3.25.3
Obligations - 2027 Notes, and Related Note Hedge and Warrant Transactions Narrative (Details)
$ / shares in Units, shares in Millions
May 27, 2022
USD ($)
$ / shares
Sep. 30, 2025
$ / shares
May 25, 2022
shares
Jun. 03, 2019
$ / shares
Debt Instrument [Line Items]        
Number of securities (in shares) | shares     5.9  
Exercise price (in USD per share)       $ 109.43
3.50% Senior Convertible Notes due 2027 | 2024 Senior Convertible Long-Term Debt        
Debt Instrument [Line Items]        
Principal amount | $ $ 460,000,000.0      
Interest rate (as a percent) 3.50% 3.50%    
Proceeds from debt | $ $ 450,000,000      
Debt instrument convertible ratio 0.0129041      
Conversion price (in USD per share) $ 77.49      
Anti-dilution adjustments (in shares) | shares     5.9  
Exercise price (in USD per share)   $ 105.77    
v3.25.3
Obligations - 2024 Notes, and Related Note Hedge and Warrant Transactions Narrative (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 4 Months Ended
Jun. 01, 2024
Dec. 31, 2024
Jun. 30, 2022
May 25, 2022
Jun. 03, 2019
Debt Instrument [Line Items]          
Number of securities (in shares)       5.9  
Exercise price (in USD per share)         $ 109.43
2.00% Senior Convertible Notes due 2024 | 2024 Senior Convertible Long-Term Debt          
Debt Instrument [Line Items]          
Principal amount         $ 400.0
Interest rate (as a percent)         2.00%
Convertible note hedge (in shares)         4.9
Number of securities (in shares)         4.9
Repurchase amount     $ 273.8    
2024 Warrant Transactions | 2024 Senior Convertible Long-Term Debt          
Debt Instrument [Line Items]          
Anti-dilution adjustments (in shares)     3.3    
Issuance of common stock, net (in shares)   0.5      
2024 Note Hedge Transaction | 2024 Senior Convertible Long-Term Debt          
Debt Instrument [Line Items]          
Repayments of debt $ 126.2        
Stock Issued, settlement of convertible debt (in shares) 0.3        
Stock received, settlement of underlying derivative (in shares) 0.3        
v3.25.3
Obligations - Carrying Value of 2027 Notes and 2024 Notes (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
May 27, 2022
Debt Instrument [Line Items]      
Less: Current portion of long-term debt $ (456,258) $ (456,329)  
Long-term net carrying amount of the Convertible Notes 17,142 15,443  
Convertible Debt      
Debt Instrument [Line Items]      
Less: Deferred financing costs (3,728) (5,261)  
Net carrying amount of the Convertible Notes 456,258 454,739  
Less: Current portion of long-term debt (456,258) (454,739)  
Long-term net carrying amount of the Convertible Notes 0 0  
Convertible Debt | 3.50% Senior Convertible Notes due 2027      
Debt Instrument [Line Items]      
Long-term debt, gross $ 459,986 $ 460,000  
Interest rate (as a percent) 3.50%   3.50%
v3.25.3
Obligations - Accretion of Debt Discount and Amortization of Financing Costs (Details) - Convertible Debt - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Debt Instrument [Line Items]        
Contractual coupon interest   $ 4,025   $ 13,134
Amortization of deferred financing costs   483   1,671
Total   4,508   14,805
3.50% Senior Convertible Notes due 2027        
Debt Instrument [Line Items]        
Contractual coupon interest $ 4,025 4,025 $ 12,075 12,075
Amortization of deferred financing costs 522 483 1,533 1,419
Total $ 4,547 4,508 $ 13,608 13,494
2.00% Senior Convertible Notes due 2024        
Debt Instrument [Line Items]        
Contractual coupon interest   0   1,059
Amortization of deferred financing costs   0   252
Total   $ 0   $ 1,311
v3.25.3
Obligations - Technicolor Patent Acquisition Long-Term Debt and Contingent Consideration Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Jul. 30, 2018
Business Combination [Line Items]          
Payments on long-term debt     $ 1,298 $ 139,069  
Technicolor          
Business Combination [Line Items]          
Effective interest rate percentage (as a percent)         14.50%
Interest debt expense $ 600 $ 600 1,400 2,200  
Payments on long-term debt     $ 1,300 $ 12,900  
Receive future cash receipts percentage (as a percent) 42.50%   42.50%    
v3.25.3
Litigation and Legal Proceedings (Details)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended
Dec. 31, 2023
patent
Apr. 30, 2025
trial
Sep. 30, 2025
USD ($)
Tesla Proceedings      
Loss Contingencies [Line Items]      
Loss contingency, patents allegedly infringed, number | patent 3    
Patent Infringement, Video Coding And Video Streaming Technologies | GERMANY      
Loss Contingencies [Line Items]      
Gain contingency, patents allegedly infringed upon, number   4  
Mannheim Local Divisional Court And Dusseldorf Local Divisional Court Of The Unified Patent Court, Patent Infringement, Video Coding And Video Streaming Technologies | GERMANY      
Loss Contingencies [Line Items]      
Gain contingency, patents allegedly infringed upon, number   4  
Samsung Electronics Co. Ltd. | Loss Contingency, Nontrial Decision, Binding | Patents      
Loss Contingencies [Line Items]      
Royalties awarded by arbitration panel | $     $ 1,050
Term of payment of awarded royalties     8 years
v3.25.3
Income Taxes (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Income Tax Contingency [Line Items]    
Effective tax rate 13.30% 18.40%
Discrete tax benefit $ 9,300 $ 4,300
Income taxes paid, including foreign withholding taxes 92,711 37,269
Foreign Country    
Income Tax Contingency [Line Items]    
Income taxes paid, including foreign withholding taxes $ 78,600 $ 14,500
v3.25.3
Net Income Per Share - Numerator and Denominator of Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2025
Sep. 30, 2024
Numerator                
Net income $ 67,503 $ 180,568 $ 115,602 $ 34,190 $ 109,664 $ 81,652 $ 363,673 $ 225,506
Weighted-average shares outstanding:                
Basic (in shares) 25,797     25,149     25,818 25,286
Diluted (in shares) 34,925     30,034     34,051 28,759
Earnings per share:                
Basic (in USD per share) $ 2.62     $ 1.36     $ 14.09 $ 8.92
Diluted (in USD per share) $ 1.93     $ 1.14     $ 10.68 $ 7.84
Dilutive effect of stock options and RSUs                
Weighted-average shares outstanding:                
Dilutive effect (in shares) 1,207     1,067     1,172 917
Earnings per share:                
Dilutive effect (in USD per share) $ (0.10)     $ (0.05)     $ (0.49) $ (0.25)
Dilutive effect of warrants                
Weighted-average shares outstanding:                
Dilutive effect of warrants (in shares) 3,645     1,379     3,149 472
Earnings per share:                
Dilutive effect of warrants (in USD per share) $ (0.27)     $ (0.06)     $ (1.30) $ (0.15)
Dilutive effect of convertible securities                
Weighted-average shares outstanding:                
Dilutive effect of convertible securities (in shares) 4,276     2,439     3,912 2,084
Earnings per share:                
Dilutive effect of convertible securities (in USD per share) $ (0.32)     $ (0.11)     $ (1.62) $ (0.68)
v3.25.3
Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount (in shares) 2,324 6,056 2,813 7,002
v3.25.3
Segment Performance Measures and Expenses - Narrative (Details)
 9 Months Ended
Sep. 30, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.3
Segment Performance Measures and Expenses - Operations and the Significant Operating Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2025
Sep. 30, 2024
Segment Reporting Information [Line Items]                
Revenue $ 164,682     $ 128,679     $ 675,785 $ 615,714
Less:                
Share-based compensation             30,635 28,122
Other non-operating (income) expense, net (10,188)     (12,554)     (35,590) (33,483)
Income tax provision 8,474     7,025     55,557 50,877
Net income 67,503 $ 180,568 $ 115,602 34,190 $ 109,664 $ 81,652 363,673 225,506
Reporting Segment                
Segment Reporting Information [Line Items]                
Revenue 164,682     128,679     675,785 615,714
Less:                
Departmental expenses 46,839     42,811     137,531 131,762
Depreciation and amortization 19,804     17,549     57,482 52,165
Intellectual property enforcement 10,487     12,867     29,428 47,956
Share-based compensation 9,301     9,081     30,635 28,122
Revenue share costs 2,443     7,029     7,642 78,723
Other non-operating (income) expense, net (169)     (1,873)     (6,163) 603
Income tax provision 8,474     7,025     55,557 50,877
Net income $ 67,503     $ 34,190     $ 363,673 $ 225,506
v3.25.3
Other Income, Net - Other Income, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Other Income and Expenses [Abstract]        
Interest and investment income $ 9,484 $ 9,175 $ 27,576 $ 31,078
Other 704 3,379 8,014 2,405
Other income, net $ 10,188 $ 12,554 $ 35,590 $ 33,483
v3.25.3
Other Income, Net - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Other Income and Expenses [Abstract]        
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax $ (0.6) $ 2.8 $ 5.9 $ (0.5)