Company: IDCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001405495-25-000063
Chunk: 84

Company: InterDigital, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 excluding sales and purchases of short-term investments. Refer to the sections below for further discussion of these items.

Cash flows provided by operating activities

Cash flows provided by operating activities in the first nine months 2025 and 2024 (in thousands) were as follows:

Nine Months Ended September 30,20252024ChangeNet cash provided by operating activities$481,059 $79,494 $401,565 

24

Our cash flows provided by operating activities are principally derived from cash receipts from patent license agreements, offset by cash operating expenses and income tax payments. The $401.6 million change in cash provided by operating activities was primarily driven by higher cash receipts from timing of cash receipts on existing agreements and new agreements, and was partially offset by higher foreign withholding tax payments on those cash receipts. Additionally, cash operating expenses were lower primarily due to lower revenue share and litigation costs. The table below sets forth the significant items comprising our cash flows provided by operating activities during the nine months ended September 30, 2025 and 2024 (in thousands):

Nine Months Ended September 30, 20252024ChangeTotal Cash Receipts$718,573 $420,265 $298,308 Cash Outflows:Cash operating expenses a(174,518)(258,441)83,923 Income taxes paid b(92,711)(37,269)(55,442)Total cash outflows(267,229)(295,710)28,481 Other working capital adjustments29,715 (45,061)74,776 Cash flows provided by operating activities$481,059 $79,494 $401,565 

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(a) Cash operating expenses include operating expenses less depreciation and disposals of fixed assets, amortization of patents, and non-cash compensation. Amount includes revenue share costs of $7.6 million and $78.7 million in first nine months 2025 and 2024, respectively.

(b) Income taxes paid include foreign withholding taxes.

Cash flows from investing and financing activities

Net cash used in investing activities for first nine months 2025 was $36.9 million, a $176.3 million change from $139.4 million provided by investing activities in first nine months 2024. During first nine months 2025, we sold $18.3 million of short-term marketable securities, net of purchases, and capitalized $55.3 million of patent costs and property and equipment purchases. During