Company: IDCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001405495-25-000063
Chunk: 90

Company: InterDigital, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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,379 (2,675)(79)%Total non-operating income, net$169 $1,873 $(1,704)(91)%

The change in non-operating income, net was primarily due to a foreign currency translation net loss arising from translation of our foreign subsidiaries of $0.6 million in third quarter 2025, compared to a $2.8 million net gain in third quarter 2024. 

Income taxes

In third quarter 2025 and 2024, based on the statutory federal tax rate net of discrete federal and state taxes, we had an effective tax rate of 11.2% and 17.0%, respectively. The change in effective tax rate is due to an increase in the amount of Foreign Derived Intangible Income 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 revenue in certain foreign jurisdictions.

29

First Nine Months 2025 Compared to First Nine Months 2024

Revenue

The following table compares first nine months 2025 revenue to first nine months 2024 revenue (in thousands):

Nine Months Ended September 30, 20252024Increase/(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.

Total revenue of $675.8 million increased $60.1 million from first nine months 2024 primarily due to revenue from fifteen new patent license agreements signed in the last eighteen months, including the agreement signed with Honor in third quarter 2025 and the previously announced agreements with vivo Mobile, OPPO, Lenovo, and HP. Additionally, the Samsung arbitration ruling contributed to the increase. These increases were partially offset by catch-up revenue recognized in first nine months 2024 from the Samsung TV agreement, Lenovo UK ruling and arbitration agreement, and other new agreements signed during first nine months 2024.

In first nine months 2025