Company: IDCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001405495-25-000063
Chunk: 92

Company: InterDigital, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 92
---
 internal infrastructure and a $2.5 million increase in share-based compensation due to higher accrual rates driven by licensing successes. 

Research and portfolio development expense: Research and portfolio development expense increased slightly compared to first nine months 2024 primarily due to the above noted increase in depreciation and amortization.

Licensing expense: Licensing expense decreased by $87.9 million compared to first nine months 2024 primarily driven by the above-noted decreased revenue share costs and intellectual property enforcement costs, partially offset by the one-time net litigation fee reimbursement.

General and administrative expense: General and administrative expense increased compared to first nine months 2024 primarily due to the above noted increases in share-based compensation and depreciation of internal infrastructure investments.

Non-Operating Income (expense), net

The following table compares first nine months 2025 non-operating income, net to first nine months 2024 non-operating expense, net (in thousands):

Nine Months Ended September 30,20252024Increase/(Decrease)Interest expense$(29,427)$(34,086)$4,659 14%Interest and investment income27,576 31,078 (3,502)(11)%Other non-operating income, net8,014 2,405 5,609 233%Total non-operating income (expense), net$6,163 $(603)$6,766 1,122%

The change in non-operating income (expense), net was primarily due to a foreign currency translation net gain arising from translation of our foreign subsidiaries of $5.9 million in first nine months 2025, compared to a $0.5 million net loss in first nine months 2024. 

Income Taxes

In first nine months 2025 and 2024, we had an effective tax rate of 13.3% and 18.4%, 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.

31

STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 — FORWARD-LOOKING STATEMENTS 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements