InterDigital (IDCC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

InterDigital

NasdaqGS•Technology•Software - Application

$328.19+0.91(<0.01%)Market open

Market Cap

$8.04B

P/E

25.5x

P/S

9.8x

P/B

6.4x

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies, and artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles, as well as patented technologies are used in various services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

How this company scores

AverageMetricSide Score: 59/100

Strongest: Balance Sheet & Red Flags (25/25); weakest: Growth (3/25).

Profitability16/25

Growth3/25

Balance Sheet & Red Flags25/25

Cash & Earnings Quality15/25

Strengths

Strong marginsHigh ROELow leverageInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 25.5x5y range 10.2x – 39.9x

Currently above its 20-quarter median.

P/S · 9.8x5y range 2.7x – 10.0x

Currently above its 20-quarter median.

P/B · 6.4x5y range 1.7x – 8.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 27.4% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $8.04B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $817.25M
Q. Revenue: $193.43M
TTM EBITDA: $447.05M
TTM Op. Income: $368.65M
Q. Op. Income: $99.36M
TTM Net Income: $314.90M
Q. Net Income: $80.23M
EPS: $3.11
Shares Out.: $25.80M

$817.25M in TTM revenue declined 12.0% YoY, reaching $193.43M last quarter. TTM EBITDA of $447.05M and TTM operating income of $368.65M show growth is flowing through to the bottom line. TTM net income of $314.90M means revenue is converting into profit. Over the past year, TTM revenue is down 12% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 61.5%
Op. Margin: 51.4%
Net Margin: 41.5%

Op. margin of 51.4% is up 5.3% YoY — cost efficiency is improving. Net margin at 41.5% Over the past year, operating margin is up 12% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 25.5x
P/S Ratio: 9.8x
P/B Ratio: 6.4x

At 25.5x P/E, the stock trades within typical market levels. P/S of 9.8x and P/B of 6.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.16B
Cash: $639.19M
Long-Term Debt: $11.24M
Book Value: $1.25B
D/E Ratio: 0.0
Debt/EBITDA: 0.1

With $2.16B in assets and $11.24M in long-term debt, D/E is 0.0and book value is $1.25B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $150.36M
TTM Free Cash Flow: $309.60M
FCF Margin: 37.9%
FCF / Net Income: 1.0

TTM FCF of $309.60M on $150.36M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.