InterDigital, Inc.

Good morning and welcome to InterDigital's third quarter 2025 earnings conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised, today's conference is being recorded. I would now like to hand the conference over to Rayford Garabrant, Head of Investor Relations. Please go ahead.

Thank you, Haley, and good morning. Welcome to InterDigital's third quarter 2025 earnings conference call. I am Rayford Garabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO, and Rich Breske, our CFO. Consistent with prior calls, we will offer some highlights about the quarter and the company, and then open the call up for questions. For additional details, you can actually... In this call, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the risk factors sections of our 2024 annual report on Form 10-K and other presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the investor relations section of our website. With that taken care of, I will turn the call over to Lear.

Thank you, Reefer. Good morning, everyone. Thanks for joining us today. This was another outstanding quarter for InterDigital. We completed Samsung's smartphone arbitration and signed four new license agreements. We increased our annualized recurring revenue by 49% year-over-year to an all-time high of almost $590 million. We appointed a new chief licensing officer. One of our senior wireless engineers was re-elected to a chair position to lead the development of next-generation wireless standards, including 6G. And this morning, we announced that we completed the acquisition of an AI startup to add significant expertise to our research teams and accelerate our AI native video research. Our business success was also recognized in recent high profile rankings from Newsweek, Fortune, and Time Magazine. Revenue for the third quarter was up 28% year-over-year to $165 million. Adjusted EBITDA and non-GAAP EPS were up 62% and 50-60% respectively year over year. In the quarter, we also increased our dividend by 17% to 70 cents per share. And over the course of the year, we have returned more than $130 million in capital to shareholders. As with previous calls, Rich will dig deeper into the numbers while I recap our recent business highlights and how we are executing our long-term growth strategy. Last month, we announced the appointment of Julia Mattis as our Chief Licensing Officer. Over the last 15 years at InterDigital, Julia has served in a series of leadership roles within the licensing team, including Chief Licensing Counsel, Head of Smartphone Licensing, and most recently, as our Interim Chief Licensing Officer. She has played a critical role in negotiating many of our largest licenses, including Apple and Samsung. I'm thrilled about this appointment, and I'm confident she has the right skill set and experience to thrive in her new role. At the beginning of Q3, we announced that we have completed the Samsung smartphone arbitration, valued at more than a billion dollars over eight years. Together with Apple, we have two largest smartphone manufacturer licenses through the end of this decade. As a reminder, after announcement of Samsung license, we raised our annual guidance by $110 million to $820 million at the midpoint. Also in the third quarter, we signed a new license with Honor, a top 10 smartphone vendor based in China. The agreement follows our recent agreement with OPPO and Weibo. We now have eight of the top 10 smartphone vendors and around 85% of the total market under license. The license also increased our annualized recurring revenue by $26 million to a record setting of $588 million. Of the $588 million in ARR, our smartphone program now accounts for over $490 million, putting us very close to our midterm goal of $500 million in recurring revenue from smartphone by 2027. Following the conclusion on our agreement, we are taking active step to license the two remaining top 10 smartphone vendors. These include initiating enforcement proceeding against Tencent in court in UPC, India, and Brazil. As I have said before, while we always prefer to complete licensing deal through bilateral negotiation, we will take all necessary steps to ensure we receive fair value for our foundational innovation. In third quarter, we also close renewal with Sharp and SQL in our smartphone program and with an EV charging company in our consumer electronic and IoT program. The agreement with the EV charging company is another example of how our horizontal technology has broad applicability across different industry verticals. Overall, the total contract value for licenses that we have signed since 2021 is now well over $4 billion. In our video service program, we are making more progress in enforcing efforts with Disney. Last month, a court in Brazil granted us a preliminary injunction against Disney. After a court appointment, independent experts found that Disney infringed on two patent issues related to video encoding technology. The independent expert report contained a detailed analysis of our innovation and the role it plays in enabling DSMI's various streaming platforms, validating our belief that our portfolio is a critical enabler for the video service sector. The preliminary injunction in Brazil is an important early step in our multi-traditional enforcement campaign with DSMI. As I mentioned before, we always prefer bilateral negotiation to get deals done and only use enforcement as a last resort. High-value delegation like this can be lengthy, but when we choose to enforce our rights, we have a very strong track record of ultimately signing a long-term agreement with the prospective licensee. So as we drive our growth strategy across devices and services on the video side, we continue to strengthen our research and innovation team. Earlier today, we announced our acquisition of AI startup DeepRender, which specializes in the application of AI to make video compression more efficient. Let me explain why we believe the deal is such a great thing. This acquisition added our existing AI talent pool in our research and innovation team. It accelerates our AI-native video research. It strengthens our position in foundational research as the next video compression standard started to take shape and build on our current leadership in HEVC and VVC codec. And it adds depth in our IP position with DeepRender's AI and video patent portfolio. I will also add this is a great cultural match. Much like InterDigital, DeepRender is a company of researchers and inventors who are dedicated to solve some of the most complex technical challenges in video and AI. With the consumption of video booming across smartphones, consumer electronics, and video services, such as streaming, we believe that video innovation will become an even more significant driver of our growth strategy. Staying with our research teams, in the third quarter, one of our senior wireless engineers was re-elected to lead a key engineering group within 3GPP, the organization which set cellular wireless standards. This shows not only how we lead 5G, but also means that we are ideally positioned to lead the development of 6G ahead of the expected rollout of next-gen mobile network devices and services in 2020-30. Shortly after the end of the quarter, we also announced that we have been awarded a contract by National Spectrum Consortium in partnership with the U.S. government. to lead research and conduct demonstrations on how to better manage the use of spectrum in the United States by both civil and military applications. This project reflects one of InterDigital's unique strengths in solving complex technical challenges to improve connectivity for consumers and enterprise and enhancing national security across communication ecosystem. There are very few companies worldwide that can take on this sort of challenge, and I'm delighted that the United States has turned to our engineering team for help. As we continue to execute on our growth strategy, our progress are recognized by third parties. Newsweek recently named us as one of America's greatest companies, Fortune recognized as one of America's fastest-growing companies, and Time Magazine listed us among America's growth leader of 2025. This award reflects the dedication and strong contributions from our employees and why BDR platform has never been stronger to deliver more growth and even more shareholder value. And with that, I'll hand you over to Rich.