Thank you for standing by. At this time, I would like to welcome everyone to InterDigital second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question- and- answer session. If you would like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. I would now like to turn the conference over to Raiford Garrabrant, Head of Investor Relations. Thank you, Demi, and good morning, everyone. Welcome to InterDigital's second quarter 2025 earnings conference call. I am Raiford Garrabrant, Head 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 that 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 section of our 2024 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 and the Financial Metrics Tracker 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. Thanks for joining us today. This week we announced the conclusion of our arbitration with Samsung, which finalized the largest agreement we have signed in our company history. Under the term of an eight-year license lasting through 2030, Samsung will pay us more than $1 billion, which equals $131 million per year, and it's an increase of 67% compared to our previous agreement. This excellent result demonstrates once again the value of foundational research, the strength of our IP portfolio, and the momentum we have built in our licensing programs. It also increased our annualized recurring revenue to an all-time record of $553 million, an increase of 44% year-over-year. Our new long-term Samsung agreement helped us deliver revenue, adjusted EBITDA, and non-GAAP EPS far exceeding the top end of our guidance. Building on the strength of our second quarter result, the increased business momentum, and the opportunity to make more progress over the balance of this year, we have raised the full year 2025 guidance to between $790 million and $850 million, up $110 million at midpoint. Rich will cover the numbers in more detail in his section. We are delighted with the result of this arbitration. It's another validation of how foundational our innovation is to our connected world. Samsung is the world's largest smartphone manufacturer and one of our longest licensees dating back almost 30 years. We look forward to continuing our collaboration with Samsung as we keep on driving innovation forward and sharing our technology through the standard process and through our licensing programs. It's worth noting that the new agreement does not cover Samsung's digital TV and display monitors, which are part of a separate license that we announced early last year. Our new license means that the world's two leading device manufacturers, Apple and Samsung, are now licensed to our portfolio through the end of this decade. Following the recent agreement with major Chinese OEMs including Oppo and Vivo, we have clear momentum in our smartphone program where we have almost 80% of the global market under license and ARR from smartphone program of $465 million, which is another all-time record. Staying with our smartphone program, we continue to make progress in our arbitration with Lenovo, which is processing in a timely fashion and according to plan, our consumer electronic and IoT program. The new license agreement with HP, which we signed at the start of the second quarter, is another good example of the progress we are making in growing revenue outside the smartphone licensing program. The agreement licensed HP personal computers to our Wi-Fi and video decoding technology, and we now have more than 50% of the PC market under license. With the HP contract, revenue from our consumer electronics and IoT program increased 175% in the second quarter to about $65 million. Counting the HP and Samsung agreement, the total contract value of licenses that we have signed since 2021 is now more than $4 billion, demonstrating the accelerating momentum of our IP as a service business model. On the research front, the development of 6G is picking up steam, and our engineers are at the forefront of developing the foundational technology for the next generation of mobile. Our engineers are also leading the development of 6G standards with multiple working group chair positions for 3GPP. The wider integration of AI into cellular networks and the development of new technology such as integrated sensing and communication offers what could be an exciting new monetization opportunity for service providers and device manufacturers and make our patent portfolio even more valuable. We believe 6G will also further the penetration of cellular wireless in new verticals such as industrial IoT, smart city, healthcare, and automobile, where connectivity is increasingly important and will create a new licensing opportunity for us. We excel not only in converting our innovation into a broad patent portfolio but also into one of the highest quality portfolios in the world. Recently, we were ranked number two among all the global leaders in telecoms in terms of both quality and quantity of our IP portfolio by an IEEE report. With our research leadership and the breadth and depth our portfolio reflects, we are in a strong position to deliver value for our customers well into the next decade. Our long-term success is also underpinned by our ability to acquire, retain, and enhance our people. We continue to advance our talent strategy, placing an emphasis on mentorship, ongoing training, and leadership development. We believe that the long-term stability of our business and the continuous success put us in an excellent position as a destination for premier talents in our industry. You can find more information in our 2025 Corporate Sustainability Report on our website, and with that, I'll hand you over to Rich. Thanks, Leon. Q2 was an exceptional quarter for InterDigital as we delivered all-time record levels of annualized recurring revenue and non-GAAP EPS. The results for the quarter far exceeded the top end of our guidance range, with the upside driven by the favorable conclusion of our arbitration with Samsung, which we just received this week. This conclusion also resulted in a significant step up in ARR catch-up revenue and full-year guidance for 2025. I'll provide more detail on each of these items in a moment. Revenue for the quarter was $300 million, which far exceeded the top end of our guidance of $170 million and was driven by the Samsung arbitration award and HP license agreement. This compares to revenue of $224 million in Q2 of last year, when favorable court rulings and our enforcement against Lenovo helped generate $128 million in catch-up revenue. Let me take a second to discuss the impact of the Samsung arbitration award. Since entering into the agreement, we have been accruing revenue at the level of the prior agreement, which was $78 million per year. We received the arbitration decision just a few days ago in Q3, but since we had not yet closed the books on Q2, GAAP requires us to update our Q2 estimate based on the final decision. As a result, the award contributed $152 million of revenue to Q2. The $152 million of revenue was comprised of $33 million of recurring revenue and $119 million of catch-up revenue to true up the prior nine quarters from January 1st, 2023 to March 31st, 2025. Turning to annualized recurring revenue, our ARR increased 44% year-over-year to an all-time high of $553 million in Q2. This was driven primarily by momentum in our smartphone licensing program, where recent patent license agreements with Oppo, Vivo, and Lenovo increased our share of the smartphone market under license from about 50% to roughly 80%. These agreements, together with our excellent Samsung arbitration result, increased our smartphone ARR 58% year-over-year from $294 million in Q2 last year to $465 million in Q2 this year. With smartphone ARR at $465 million, we are now drawing near our smartphone ARR goal of $500 million by 2027 in consumer electronics and IoT. The HP agreement is just the latest example of the significant growth opportunities that exist beyond the smartphone market, and we believe we can more than double the ARR from consumer electronics and IoT by 2030. Through the growth in smartphone and consumer electronics IoT, together with our massive opportunity in video services, we are making good progress toward our goal of $1+ billion in ARR across all programs by 2030. It's important to remember that while ARR is a great metric to track the growth in our business, there is economic value above ARR alone. Over the last 10 years, we have recognized $1.5 billion of catch up revenue. This has been tremendously valuable because we used the majority of that money to fund share repurchases over that time period. Today, we continue to have a lot of catch up opportunity remaining, which tends to be 100% gross margin as we pursue our goal of $1 billion of ARR by 2030. Our adjusted EBITDA for the quarter was $237 million and equates to an adjusted EBITDA margin of 79%, up from 71% in Q2 last year. Non-GAAP EPS also came in at an all-time high of $6.52 for Q2, well above the high end of our guidance range of $2.67- $2.90 and powered by the strength of our financial model where a high percentage of incremental revenue falls to the bottom line. Cash from operations was a robust $105 million in Q2, resulting in free cash flow of $92 million. Consistent with our capital allocation priorities, we continue to maintain a fortress balance sheet, invest for growth, and return excess capital to shareholders. In Q2, we returned $42 million to shareholders through $26 million in buybacks and $16 million through our recently increased dividend. In July, we bought back another $15 million of stock and made another $16 million dividend payment, bringing total return of capital to almost $90 million year-to-date. In just the last 3.5 years, we have repurchased more than $0.5 billion of stock, and we expect to continue to buy back shares over the remainder of this year. Looking forward to Q3, we expect recurring revenue will include $136 million- $140 million of revenue from existing contracts, including the new run rate related to Samsung. Any revenue from any new agreements we may sign over the balance of the quarter would be additive to these amounts. Based only on existing contracts, we expect adjusted EBITDA margin of about 52% and non-GAAP diluted earnings per share of $1.52- $1.72. As Liren noted, we are increasing our full year 2025 guidance based not only on our excellent results, but also on the opportunity to continue our progress. We now expect revenue in the range of $790 million to $850 million, with adjusted EBITDA in a range of $551 million- $569 million and non-GAAP earnings per share of $14.17- $14.77. In addition, I'll note that we previously communicated that we expected double-digit growth in free cash flow for 2025 over the $212 million level we reported in 2024. Based on our updated expectations for strong free cash flow over the second half of the year, we now believe our free cash flow for full year 2025 could exceed $400 million, close to double 2024 levels. With that, I'll turn it back to Raiford. Thanks, Rich. Before we move to Q&A, I'd like to mention that we'll be attending a number of investor events in Q3, including the Jefferies Tech Conference, Evercore Tech Conference, and the Midwest IDEAS Conference, all in Chicago, as well as the Sidoti Conference, which is virtual. Please reach out to your representatives at those firms if you'd like to schedule a meeting at this point. We are ready to take questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. Again, press star one to join the queue. Your first question comes from the line of Anja Soderstrom with Sidoti. Your line is open. Hi, thank you for taking my question and congratulations on this strong quarter here in Outlook. I'm just curious, the tax rate was a little bit low. How should we think about that going forward given this new revenue contributions? Yeah, thanks Anja for your comment. Yeah, the tax rate was a little bit lower. We are still evaluating the impacts of the new tax legislation, but generally think that they're a net positive. We see our kind of long term tax rate still in the mid to high teens, but maybe a tick below what we might have thought otherwise. We continue to evaluate that. Okay, thank you. There was some noise earlier this week or last week about some potential legislation that there would be some sort of tariffs or something on the IP. Do you have any comments around that, or do you have anything built into your contract where you can pass that on? Yeah, Anja, hey, this is Liren. I believe you're referring to a Wall Street Journal article regarding a potential proposal. We actually don't know any details. We are not exactly certain where it will go. Without any details for the proposal for IP, we don't think it's appropriate for us to comment. We are watching the situation pretty carefully and we have a very healthy open dialogue with key policymakers in Washington D.C. Thank you. Your updated guidance for the full year assumes some more catch up payment potentially, r ight? Yeah, Anja. When we look at our guidance, the updated guidance is no different than what we've done in the past. We typically look at what we call a multi path approach. There are different combinations of different opportunities that we think we could bring across the line, and some of those opportunities would include catch up. That's right. Okay, thank you. That was all for me, thanks. Next question comes from the line of Scott Searle with ROTH Capital. Your line is open. Good morning. Thanks for taking my questions and congrats on getting Samsung across the finish line. Pete? Thanks, Scott. Looking at the wireless market now you've got 80% of the market under license. You're approaching your $500 million target. I'm wondering how you're thinking about the long term opportunity now with wireless. You're starting to talk a little bit about 6G, about some AI related to that as well. Are there other avenues to monetize within the traditional wireless market and/ or in adjacencies, whether it be Wi-Fi, Bluetooth, other connectivity protocols that you guys are thinking about to drive a figure higher than that $500 million ARR target? Yeah. Hey Scott, good morning. If you look at our smartphone program here, we are currently at about 80% market penetration. Our ARR as we just reported is about $465 million, and we still have three major accounts we are working on to try to get them signed. Regarding the top 10 customers, we feel very good about where we are. As Rich commented here, we feel we are very close to reaching our target on the smartphone side. Regarding the future of wireless, we are very optimistic about the strengths of our portfolio, but more important, about the way we are leading 6G development. As I commented in my remark, we believe 6G will open up not just enabling more smartphone, but also open up adjacent area for verticals in Smart City, industrial IoT, healthcare, and a bunch of other industries where connectivity clearly will drive a lot of more vertical adoptions here. We are optimistic this will open up new opportunities for us, but as of now we don't put a number to them yet. Liren, just to follow up on those comments, are you starting to invest pretty actively in some of those verticals and particularly Smart City, industrial IoT and healthcare, or should we be expecting some incremental dollars in R&D going in that direction, and then just the quick update on the streaming opportunity with the over-the-top players. Can you give us an update in terms of engagements that you're seeing at that level, level of ongoing dialogue, and maybe if there's any update as it r elates to the Disney litigation. Thanks. Yeah. Hey Scott, the beauty for our business model is we invest in foundational technology, and then we build a very strong and one of the most valuable IP portfolio in the industry. When we go license different verticals, we actually do not have to incur additional cost into these different verticals other than some licensing activity itself. That's sort of the 6G development here. Regarding the streaming side, we are in continuous dialogue with all the major players, and as of today we don't have any real concrete progress to report yet. Regarding the Disney litigation, w e have done a lot of work, as you are aware. It's a multi-jurisdictional enforcement activity, and we have done a lot of early stage progress and frankly have got multiple wins on the procedure side, and we have substance trial coming up later this year and early next year. You can actually see all the details in our 10-Q filing that's on our website. Hey, Liren, maybe just to quickly follow up on that, then I'll get back in the queue. Given the Disney litigation, is that slowing down dialogue with any of the other players out there? Are they waiting to see the outcome there before they more actively engage and continue in their process? Second, you know, the broad general timelines of when you would expect some sort of resolution, is 2026 the timeframe when we could expect an initial deal? You know, anything from a timeline perspective would be helpful. Thanks. Yeah. Hey Scott, for the first half of your question here, we do not see Disney litigation as impacting our dialogue with other potential customers here. Regarding the timeline for Disney, it's hard to predict exactly when a settlement may happen. We are always open for open dialogues, even though sometimes we are in middle enforcement activity. Sometimes certain litigation takes longer time and sometimes takes shorter. We have seen that on the smartphone side. As always when we started an enforcement here, we are prepared to go all the way through, but we are always open for business dialogue in the meantime. Great. Thanks so much. I'll get back in the queue. Thanks. Next question comes from the line of Arjun Bhatia with William Blair. Your line is open. Thank you. I'll add my congrats on the Samsung outcome. Obviously a big success there. Maybe if we can start there. Liren, I'm curious just if you reflect on the outcome, what it says about your tech, your patent portfolio, because the 67% uplift I think is well above kind of what we were expecting, a lot of investors were expecting. Obviously the implied kind of royalty rates in that agreement from an economic perspective are quite strong. What does it say about, I guess for your technology, how you're investing and then what might it mean for some of the other negotiations you're having with other smartphone OEMs or you might have in the future, like Xiaomi, Lenovo or even others that are not under contract yet. Thank you. Yeah. Hey Arjun, good morning. Regarding the Samsung arbitration result, as we have stated in our press release, as well as our earnings remarks here, we are quite pleased with the result. We believe it properly reflects the value of foundational research as well as our IP portfolio. I do think our team has done a very good job conveying all the value of the portfolio with the arbitrator, who in our opinion properly reached a conclusion. We also want to thank the Samsung team for their professionalism in this process regarding the 67% increase compared to the prior agreement. We think that's very, very appropriate. Consider the prior agreement with a 10-year agreement at the time didn't really factor in the value of our 5G portfolio as well as a lot of other innovations, video and AI research we continue to do. I do think this is a very valuable development for our program. As you know, Arjun, in our program here a major license agreement tends to be used as a comparable license for other customers when it's time for renewal or sometimes when it's time to sign up with the first customer for the first time. We believe it will have a positive impact for our overall program and we are really pleased about the outcome. Perfect, that's great to hear. Maybe, Rich, to follow up on that point a little bit, just as we're thinking about the changes to the model. I think the way you come up with guidance, obviously it's a bit unique, but I imagine there was some, whether directly or indirectly, some Samsung catch up revenue based into your prior guidance. Is it possible at all to quantify what that was and how we should kind of just reflect on the change in Q3, the Q3 guidance that you provided relative to what the pricing prior, what was prior, what was previously implied in the back half numbers? Yeah, I mean the way I discuss it or describe it, Arjun, is under that multi path approach. You know, we considered a range of potential outcomes for the Samsung result, and now that we've, you know, it's no longer a range, it's a point estimate, we have the result, r ight? That, along with the other progress that we've made, puts us in a position to update the guidance based on the new multi path that we see going forward. Okay, understood, very helpful. Sorry, one last one if I can. Just when you have a big win like this and a kind of a step function change in outcome, can you just talk a little bit about what it means for your cost structure? Is there like a one-time fee that you kind of recognize in expenses when you get an outcome like this, or are those costs relatively fixed? Yeah. Arjun, the thing that I love about our business is that we've made the investment that made this agreement possible over the last years or decades. Right. We've been investing for a long time in smartphone, in 4G, 5G, in the video acquisition and continued video research thereafter. That's what made that legacy investment as well as the ongoing investment we're already making and would be making anyway is what makes this agreement possible. There really isn't any incremental cost as a result of this agreement. We true up some performance accruals and things like that, but it's very, very small relative to the size of the agreement. As I typically say, a lot of times new agreements or incremental value from renewals are 100% gross margin. All right, perfect. Very helpful and congrats again to you and the team. Take care. Great, thanks. Next question comes from the line of Tal Liani with Bank of America. Your line is open. Hi guys. I'm trying to take the recurring revenue line and break it down just to understand. This quarter is $138 million. What was the contribution of Samsung to this, and what was the expectation? Going in, did you have any expectations of Samsung to be in recurring revenue? Yeah, we had been booking Samsung based on the prior agreement of $78 million. We basically been booking, you know, just shy of $20 million a quarter. Based on the new agreement, it's now $33 million of recurring revenue in the quarter. Got it. As we go into the following quarter, assuming nothing else, or can you just the recurring revenue line, what should we assume going forward in terms of the growth trajectory? I know the way you guide is you don't add any other agreements. Based on the current agreements, what are the expected trends for recurring revenues? That's based on the current agreements. That's really what our guide is limited to at $136 million- $140 million. That's based on our existing recurring revenue, and anything that we're able to sign or renew or whatever thereafter or above that would be additive. Right. No, sorry. This is for the following quarter, which is in line with the $138 million this quarter. I understand it. If I try to forecast for next year, and again based on the current agreements, how should recurring revenue trend if that's my baseline? I'm trying to understand my baseline and then do some assumptions about anything else. How is the recurring revenue line progressing if you don't get any other contract? Let me take this question, see if that makes sense. If you look at here we are, right, we end of Q2, we are projecting new deals will be done for the rest of the year. As Rich Brezski commented here, we don't really know exactly which combination will be. Therefore, as the year progresses, we will hopefully by Q4 have a very clear picture on where we are leading into next year. We also disclosed in our filings about a few contracts currently scheduled to expire, and you can see on our website, and if you take out those expiration contracts, that would be the starting point for next year assuming the current contract expires. As you know, we always try to get them renewed, and very often we are successful to get them renewed before they expire. That's sort of the stepping function for starting off next year. Normally, again, historically when contracts expire and you renew them, is there growth or is there contraction in the contract? Like this time with Samsung there was like 40%, no, more than 40%, 60% growth or whatever with the recurring revenue, quarterly recurring revenue at the renewal of Samsung. What happens normally with renewals? Yeah, it actually depends on the situation of certain customer. I'll give you a couple example here. As you mentioned here, Samsung, the last contract was very long term contract, didn't affect in 5G. This time, through arbitration, we are able to get a 67% increase compared t o the prior one. The other example is the Apple contract. As we have discussed before, the previous Apple contract was a longer term but not as long as Samsung. We renewed the Apple contract in September 2022, and that contract on average was 15% higher than the prior contract. It really depends on the situation depending on where the vendor is, how stable their business, have they increased volume, have they used more of our technology? It's a combination of different factors. Tough. Based on those two examples, here we do have success record in renewing at higher value if that's appropriate. Got it. Perfect. Thank you so much. That concludes the question- and- answer session. I will now turn the call back over to Liren Chen, CEO, for closing remarks. Thank you, Demi. Before we close, I'd like to thank our employees for their dedication and contribution to InterDigital, as well as our many partners and licensees for a strong quarter. Thank you all to everyone who joined today's call, and we look forward to updating you on our progress next quarter. For today's conference call, you may now please connect.