InterDigital is a pure-play patent licensing company focused on wireless and video technologies. InterDigital does not manufacture products — it invents foundational technologies, patents them, and then licenses those patents to device makers and service providers. Key licensees include Apple, Samsung, Xiaomi, Google, and Lenovo, among others. As of year-end 2025, InterDigital held over 38,000 patents and patent applications and had licensed roughly 85% of the global smartphone market. The business model is built on long-term fixed-fee license agreements, which account for over 90% of revenue. Revenue has two components: recurring revenue from active agreements, and catch-up revenue when new or renewed licenses require payment for prior unlicensed periods. The business has very high operating leverage — once R&D is incurred and patents are filed, incremental licensing costs are minimal. R&D, running roughly $211M in 2025, is the primary ongoing cost and continuously replenishes the patent portfolio. Smartphones are the largest and most mature licensing program, with CE and IoT a growing second vertical. Video services — targeting streaming platforms like Disney+ and Amazon Prime Video — is a nascent but targeted growth area, with InterDigital pursuing active enforcement actions to establish licensing norms. InterDigital's growth strategy centers on renewing smartphone agreements at higher rates, expanding CE and IoT coverage, and converting streaming platforms into paying licensees, with a long-term ARR target of $1B+ by 2030.