Company: IDCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001405495-25-000022
Chunk: 35

Company: InterDigital, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 flows (used in) provided by operating activities in the first quarter 2025 and 2024 (in thousands) were as follows:

Three Months Ended March 31,20252024ChangeNet cash (used in) provided by operating activities$(19,989)$50,773 $(70,762)

Our cash flows (used in) provided by operating activities are principally derived from cash receipts from patent license agreements, offset by cash operating expenses and income tax payments. The $70.8 million change in net cash (used in) provided by operating activities was driven by lower cash receipts primarily due to large cash receipts in first quarter 2024 related to catch-up revenues from agreements signed in first quarter 2024 and due to timing of cash receipts under existing agreements. This decrease was partially offset by lower cash operating expenses primarily due to lower revenue share and litigation costs recognized in first quarter 2025. The table below sets forth the significant items comprising our cash flows provided by operating activities during the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31, 20252024ChangeTotal Cash Receipts$46,830 $201,758 $(154,928)Cash Outflows:Cash operating expenses a(50,964)(133,178)82,214 Income taxes paid b(10,204)(9,335)(869)Total cash outflows(61,168)(142,513)81,345 Other working capital adjustments(5,651)(8,472)2,821 Cash flows (used in) provided by operating activities$(19,989)$50,773 $(70,762)

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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 $2.6 million and $69.0 million in first quarter 2025 and 2024, respectively.

(b) Income taxes paid include foreign withholding taxes.

Cash flows from investing and financing activities

Net cash provided by investing activities for first quarter 2025 was $59.5 million, a $42.7 million change from $16.8 million in first quarter 2024. During first quarter 2025, we sold $86.2 million of short-term marketable securities, net of purchases, and capitalized $26.7 million of patent costs and property and equipment purchases. During first quarter 2024,