Company: IDCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001405495-25-000051
Chunk: 50

Company: InterDigital, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 with the above noted one-time net litigation fee reimbursement contra expense recognized in second quarter 2024 and increased performance-based compensation being offset by the above-noted decreased intellectual property enforcement costs.

General and administrative expense: General and administrative expense increased compared to second quarter 2024 primarily due to the above noted increase in performance-based compensation.

Non-Operating Income, net

The following table compares second quarter 2025 non-operating income, net to second quarter 2024 (in thousands):

Three Months Ended June 30,20252024Increase/(Decrease)Interest expense$(9,537)$(11,483)$1,946 17 %Interest and investment income8,828 10,125 (1,297)(13)%Other income, net6,316 1,557 4,759 306 %Total non-operating income, net$5,607 $199 $5,408 2,718 %

The change in non-operating income, net was primarily due to a foreign currency translation net gain arising from translation of our foreign subsidiaries of $3.6 million in second 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.

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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