Company: IDCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001405495-25-000051
Chunk: 86

Company: InterDigital, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 quarter 2025, compared to a $0.9 million net loss in second quarter 2024. 

Income taxes

In second 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 14.4% and 18.2%, 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.

26

First Half 2025 Compared to First Half 2024

Revenue

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

Six Months Ended June 30, 20252024Increase/(Decrease)Smartphone$419,075 $279,505 $139,570 50 %CE, IoT/Auto91,598 206,272 (114,674)(56)%Other430 1,258 (828)(66)%Total Revenue$511,103 $487,035 $24,068 5 %Catch-up revenue(a), included above$247,113 $294,229 $(47,116)(16)%

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

Total revenue of $511.1 million increased $24.1 million from first half 2024 primarily due to revenue recognized from the Samsung arbitration decision and the first half 2025 agreements with vivo Mobile and HP. Additionally, eight other new patent license agreements signed in the last fifteen months contributed to the increase, including the previously announced OPPO agreement and the Lenovo arbitration agreement. This increase was partially offset by catch-up revenue related to the Samsung TV agreement and the Lenovo UK proceedings recognized in first half 2024.

In first half 2025 and 2024, 69% and 82% of our total revenue, respectively, was attributable to companies that individually accounted for 10% or more of our total revenue. In first half 2025 and 2024, the following companies accounted for 10% or more of our total revenue:

Six Months Ended June 30, 20252024Customer A36%43%Customer E20%—%Customer C13%