Company: IDCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001405495-25-000063
Chunk: 109

Company: InterDigital, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 109
---
 our growing patent portfolio and increased investment in the computer network that supports our research activities.

Licensing expense: Licensing expense decreased compared to third quarter 2024 primarily due to the above noted changes in revenue share and intellectual property enforcement costs, partially offset by the one-time net litigation fee reimbursement contra expense recognized in third quarter 2024.

General and administrative expense: General and administrative expense increased compared to third quarter 2024 primarily due to an increase in share-based  compensation costs.

Non-Operating Income, net

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

Three Months Ended September 30,20252024Increase/(Decrease)Interest expense$(10,019)$(10,681)$662 6%Interest and investment income9,484 9,175 309 3%Other income, net704 3,379 (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