InterDigital, Inc.

Ladies and gentlemen, thank you for standing by. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the InterDigital Third Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you, and I would now like to turn the conference over to Raiford Garrabrant, Vice President of Investor Relations. Please go ahead.

Thank you, Abby, and good morning, everyone. Welcome to InterDigital's third quarter 2026 earnings conference call. I'm Raiford Garrabrant, VP of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO, and Rich Brezski, 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 access our earnings release and slide presentation that accompany this call on our investor relations website. Before we begin our remarks, I need to remind you are 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 section of our 2025 Annual Report on Form 10-K and in our other SEC filings. In addition, today's 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 Liren.

Thank you, Raiford. Good morning, everyone, and thanks for joining us today. This was another excellent quarter with strong execution across each part of our business. We reached an agreement on a new license with a top PC manufacturer, received favorable decisions from our enforcement campaign, made further progress in our video services program, and continued to drive leadership for the next generation of video and wireless technology and standard development. Driven by our license success, we have delivered financial results well above the top in our guidance. Revenue for third quarter was $193 million, up 17% year over year. Adjusted EBITDA was $131 million, up 25 million year-over-year, up 25% year-over-year. Our annualized recurring revenue reached our record $629 million. As you might recall, in Q2, we reached our full year guidance by $85 million at the midpoint. With our strong execution in Q3, we now have contracted revenue for the year that already exceeded the midpoint of our full year guidance. as we continue to drive business growth for the rest of the year. We also increase our quarterly dividend from $0.70 to $0.75 per share, continue our track record of returning capital, including more than doubling our dividend over the last four years, as we increase quarter, which will cover our financial performance in more detail. I'll start with license. During the quarter, we agreed to enter into a patent license agreement with a top PC manufacturer with a final term to be determined through arbitration. With this agreement, we now have 70% of the PC market under license, including four of the top five PC makers in the world. We also completed a new license with Kiba covering the company's EV charger. With this new license, Our revenue in our CE and IoT program nearly doubled year-over-year to almost $56 million. Staying with consumer electronics, we announced this week that we were awarded a preliminary injunction by a court in Brazil as part of our ongoing enforcement campaign against TCL. Based on an independent expert report, the court found that TCL infringed our two patent lawsuits that the patents are essential to the HEVC standard and the offers we made met friend obligations. The court noted TCL's offer was an order of magnitude too low. Further result, TCL must stop implementing the TCL standard and HEVC standard in devices in manufacture, import, or offer for sale in Brazil. As some of you already know, TCL is a top three global TV manufacturer, and we believe this core decision is an important step to reach a long-term license agreement with them. In streaming services, we continue to make progress towards our long-term goals. During the quarter, the Unified Titan Corp. in Europe awarded us two new injunctions against Disney. The first covers a pattern related to encoding for HEVC video, and the second covers technology for sharing video content between devices, such as casting from a smartphone to a TV. Both injunctions apply across multiple EU countries, and in both cases, the court confirms the validity of the pattern ensued. While the court found Interdigital has acted in a fair manner during the licensing negotiation, the court was critical of Disney's conduct and found Disney has acted as an unwitting licensee. Disney has made its streaming platform at the center for how consumers experience Disney's own IP. But this vision is only possible with advanced compression that supports content delivery with innovation that delivers highest picture quality, speed, and reliability that consumers have come to expect when they are enjoying their favorite movies and shows. These are the technologies that our video researcher has spent decades developing and perfecting. Each of the steps we take in protecting and enforcing our patent serves the purpose of reaching a long-term license with Disney on fair terms that reflect the value of technology and how much Disney has benefited from them. Our success in this campaign, with the court across multiple jurisdictions funding in our favor, in eight out of eight patent trials and awarded us 18 injunctions reflects the quality of our innovation and the depth and strength of our portfolio. It also highlights how our foundational research underpins the whole video streaming industry. As a reminder, in addition to our success against Disney, we have already made considerable progress in our streaming and cloud service program. with the announcement last quarter that we have entered into a new patent license agreement with Amazon covering its devices and services with the final term to be decided through binding arbitration. As I have said many times, while our preference is always to conclude license agreement through bilateral negotiation, binding arbitration is an effective approach to decide the final terms of a license agreement. Turning to research, a lot of momentum is building behind one of the most advanced video codec, VVC, which represents versatile video coding, which will lead to additional licensing opportunities. So VVC standard was finalized in 2020, and we are widely recognized as one of the foundational innovators behind the standard with one of the largest and highest quality patent portfolio. This leadership is particularly important because as we consume more video across devices, streaming services, and social media platforms, compression is the essential foundation that enables high-quality content to be efficiently distributed. Recently, Qualcomm and MediaTek announced that they have implemented VVC hardware decoding to their latest smartphone chipset. It follows an announcement from Google earlier this year that it was adding support for VVC in the latest version of Android. These are significant milestones that VVC is on the way to being widely deployed across hundreds of millions of devices and across a wide range of video services. We had a leading role in developing VVC and our research leadership continued to be recognized by the industry. Last month at IBC 2026, the leading trade show in the video industry, we received the best in-show award, along with our research partner NHK from Japan, for our demonstration of VVC multi-layer coding. This technology allows broadcast and streaming services to carry multiple versions of the same content in one VVC speech stream, which see bandwidth and storage and give you more options such as adding captions or sign languages. Staying on our research, this month one of our wireless engineers was re-elected to a senior leadership position within IEEE. the standard organizations that lead development of Wi-Fi. We believe strongly that standard leadership is a key part of helping to shift the next generation of wireless, video, and AI technologies. This is particularly important as these technologies continue to converge across network devices and services as we move towards a new era of AI-driven connectivity and immersive user experience. In summary, this quarter once again demonstrates the strength of our business model in delivering profitable growth. Our success continues to be recognized by third parties, including most recently by Newsweek, which named us among America's greatest companies, and ByteTime, which named us as America's growth leaders. I'm proud of our achievement and want to thank Newsweek and Time for the recognition on behalf of our colleagues at InterDigital. With that, I'll hand it over to Rich, who will walk you through the numbers in more detail.