IDCC
TechnologyInterDigital, Inc. · Software - Application · $7B
What is InterDigital, Inc.?
InterDigital, Inc. is a technology research and licensing company focused on wireless communications. Rather than manufacturing devices, it generates revenue by licensing its extensive patent portfolio to device makers and network operators worldwide.
InterDigital develops and licenses patented technologies that underpin wireless standards from 2G through 5G and beyond. Its royalties come from manufacturers of smartphones, tablets, laptops, and connected devices that rely on its cellular and Wi-Fi innovations. The company also researches video coding, display technology, and artificial intelligence — expanding its portfolio into emerging connectivity areas like IoT, extended reality, and connected vehicles.
Incorporated in 1981 and headquartered in Wilmington, Delaware, InterDigital has spent decades building foundational wireless intellectual property.
- Cellular patent licensing across 2G, 3G, 4G, and 5G standards
- IEEE 802 and Wi-Fi related technology licensing
- Video coding and transmission technology patents
- IoT, wearable, and connected-device IP solutions
- Artificial intelligence and beyond-5G research programs
Is IDCC a Good Stock to Buy?
UQS Score rates IDCC as Good overall, reflecting a mixed but notable profile across its five evaluation pillars.
InterDigital's strongest dimensions are Quality and Risk. Its licensing-based business model generates recurring revenue with relatively low capital intensity, and its risk profile compares favorably within the technology sector — a combination that appeals to investors seeking stability.
The Moat and Growth pillars both register as Weak, signaling that competitive differentiation and near-term expansion may be limited. Patent licensing businesses face ongoing legal and renewal risks that can weigh on long-run growth visibility.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does IDCC pay dividends?
Yes — InterDigital, Inc. pays a dividend.
InterDigital pays a regular dividend, which is relatively uncommon among pure-play technology IP companies. The dividend reflects the company's cash-generative licensing model, where royalty streams can support consistent shareholder returns. Investors seeking income alongside technology exposure may find this cadence appealing, though dividend sustainability depends on licensing revenue trends.
When does IDCC report earnings?
InterDigital reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Licensing revenue can fluctuate quarter to quarter depending on agreement renewals, litigation outcomes, and the timing of new licensing deals. The company's cost structure is relatively lean given its IP-focused model, which can support margins even during periods of slower top-line growth.
For the most recent quarter's results and guidance, visit InterDigital's investor relations page directly.
IDCC Price History
+404.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in InterDigital, Inc.?
Based on InterDigital, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
IDCC Long-term Outlook
InterDigital's fundamental outlook is shaped by its Weak Growth pillar alongside a Strong Risk profile. The licensing model provides revenue predictability, but expanding the top line meaningfully depends on winning new licensees, renewing existing agreements, and successfully monetizing emerging technology areas like 5G NR and IoT. The balance between stable cash flows and limited near-term growth catalysts defines the core tension in IDCC's forward trajectory.
Growth drivers
- 5G and beyond-5G patent monetization as global device adoption accelerates
- Expansion into IoT, connected vehicles, and extended reality licensing markets
- Video coding and AI research converting into licensable IP over time
Key risks
- Patent licensing disputes and litigation outcomes creating revenue uncertainty
- Renewal risk if major licensees contest royalty rates or seek alternative IP
- Limited organic growth levers outside of licensing agreement volume and terms
IDCC vs Peers
InterDigital operates in a niche corner of the technology sector, and its listed peers span different business models worth understanding in context.
Full Truck Alliance operates a digital freight platform in China, representing a logistics-technology model entirely distinct from InterDigital's patent licensing focus.
Figma is a collaborative design software platform, competing in the SaaS productivity space rather than wireless IP licensing.
Bentley Systems provides infrastructure engineering software, serving construction and industrial sectors rather than wireless communications IP.
Frequently Asked Questions
What does InterDigital do?
InterDigital researches and licenses patented technologies that power wireless communications standards, including 2G through 5G. Device manufacturers — from smartphone makers to IoT hardware producers — pay royalties to use its intellectual property. The company does not manufacture products itself; its business is built entirely around developing and monetizing its patent portfolio.
Does IDCC pay dividends?
Yes, InterDigital pays a regular dividend. This is relatively uncommon for a pure-play technology IP company and reflects the recurring, cash-generative nature of its licensing revenue model. Investors should review the company's investor relations page for the current dividend rate and payment schedule.
When does IDCC report earnings?
InterDigital follows a standard quarterly earnings cadence for US-listed companies. Specific dates vary each quarter. For the most accurate and up-to-date earnings schedule, check InterDigital's investor relations page or a financial calendar service.
Is IDCC a good stock to buy?
UQS Score rates IDCC as Good overall. Its Quality and Risk pillars are Strong, pointing to a stable, cash-generative licensing model with a manageable risk profile. However, the Moat and Growth pillars are Weak, which may concern investors seeking aggressive expansion. The full pillar breakdown is available to UQS Pro members.
Is IDCC overvalued?
IDCC's Valuation pillar is rated Neutral, suggesting the market is pricing the stock in line with its fundamental profile — neither deeply discounted nor significantly stretched. Valuation in patent licensing businesses can be complex given the lumpy nature of licensing revenue. Pro members can view the complete valuation metrics behind this rating.
How does IDCC compare to its competitors?
InterDigital occupies a specialized niche as a wireless IP licensor. Its listed peers — Full Truck Alliance, Figma, and Bentley Systems — operate in logistics technology, design software, and infrastructure engineering respectively. Direct business-model comparisons are limited, but UQS Score evaluates each on the same five-pillar framework for a consistent view.
What is IDCC's market cap bracket?
InterDigital is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-cap stocks while remaining more nimble than large-cap technology peers. Mid-cap IP companies can carry unique valuation dynamics tied to licensing pipeline visibility.
Who founded InterDigital?
InterDigital was incorporated in 1981. Detailed founding history, including key figures involved in its early development, is widely available through the company's official history and public filings on its investor relations site.
Is IDCC a long-term quality indicator?
From a long-term quality standpoint, IDCC's Strong Quality and Risk pillars suggest a business with durable cash generation and controlled financial risk. However, the Weak Moat and Growth ratings indicate that sustaining competitive advantage and expanding revenues over time may require continued investment in new IP areas like 5G and AI.
What is the main competitive advantage of InterDigital?
InterDigital's primary advantage is its deep portfolio of foundational wireless patents — approximately 27,500 patents and applications as of its last public disclosure. These patents are embedded in global wireless standards, making them difficult for device manufacturers to avoid. That said, the UQS Moat pillar rates this advantage as Weak, reflecting ongoing licensing disputes and renewal risks.
What sector does IDCC belong to?
InterDigital operates in the Technology sector, specifically within the intellectual property and patent licensing sub-segment. Unlike most technology companies, it does not sell hardware or software directly — its revenue comes entirely from royalties and licensing agreements tied to wireless and video coding standards.
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Pro Analysis
IDCC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 54.2 | 83.2 | 34.0 | 11.6 | 83.0 | 67.6 | +1.9 |
| May 7, 2026 | 52.3 | 82.0 | 34.0 | 11.6 | 81.6 | 58.1 | +0.2 |
| May 3, 2026 | 52.1 | 82.0 | 34.0 | 11.6 | 81.6 | 57.3 | +0.7 |
| Apr 26, 2026 | 51.4 | 82.0 | 34.0 | 11.6 | 81.6 | 52.3 | -0.1 |
| Apr 25, 2026 | 51.5 | 82.0 | 34.0 | 11.6 | 81.6 | 53.3 | -0.1 |
| Apr 23, 2026 | 51.6 | 82.0 | 34.0 | 11.6 | 81.6 | 53.4 | +0.1 |
| Apr 19, 2026 | 51.5 | 82.0 | 34.0 | 11.6 | 81.6 | 53.3 | -0.2 |
| Apr 18, 2026 | 51.7 | 82.0 | 34.0 | 11.6 | 81.6 | 54.5 | +0.2 |
| Apr 16, 2026 | 51.5 | 82.2 | 34.0 | 11.6 | 81.6 | 52.6 | -0.1 |
| Apr 12, 2026 | 51.6 | 82.5 | 34.0 | 11.6 | 81.6 | 52.6 | -0.5 |
IDCC — Pillar Breakdown
Quality
— 83.2/100 (25%)InterDigital, Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 11.6/100 (20%)InterDigital, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 83.0/100 (15%)InterDigital, Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 67.7/100 (15%)InterDigital, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 34/100 (25%)InterDigital, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for IDCC.
Score Composition
Financial Data
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How is the IDCC UQS Score Calculated?
The UQS (Unified Quality Score) for InterDigital, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses InterDigital, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether InterDigital, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.