Good morning and welcome to InterDigital 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 one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Raiford Garrabrant, 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 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, 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 filings. This 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. Thanks for joining us today. This was another outstanding quarter for InterDigital. We completed Samsung 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. 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 56% respectively, year over year in the quarter. We also increased our dividend by 17% to $0.70 per share. 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 recapping 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 $1 billion over eight years. Together with Apple, we have the two largest smartphone manufacturers licensed through the end of this decade. As a reminder, after the announcement of the 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 agreements with Oppo and Vivo. 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 $588 million. Of the $588 million in ARR, our smartphone program now accounts for over $419 million, putting us very close to our mid-term goal of $500 million in recurring revenue from smartphones by 2027. Following the conclusion of our Honor agreement, we are taking active steps to license the two remaining top 10 smartphone vendors. These include initiating enforcement proceedings against Transsion in court in UPC, India, and Brazil. As I have said before, while we always prefer to complete licensing deals through bilateral negotiation, we will take all necessary steps to ensure we receive fair value for our foundational innovation. In the third quarter, we also closed renewals with Sharp and Safehold in our smartphone program and with an EV charging company in our consumer electronics 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 enforcement efforts with Disney. Last month, a court in Brazil granted us a preliminary injunction against Disney. After a court-appointed independent expert found that Disney infringed our 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 Disney'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 a multi-jurisdictional enforcement campaign with Disney. As I mentioned before, we always prefer bilateral negotiation to get deals done and only use enforcement as a last resort. High-value litigation like this can be lengthy, but when we choose to enforce our rights, we have a very strong track record of ultimately signing long-term agreements with the prospective licensee 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 Deep Render, 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 adds to 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 for the next video compression standards starting to take shape, and builds on our current leadership in HEVC and AVC codec. It adds depth in our IP position with Deep Render's AI and video patent portfolio. I will also add this is a great culture match. Much like InterDigital, Deep Render is a company of researchers and inventors who are dedicated to solving some of the most complex technical challenges. In video and AI. With the consumption 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 sets 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 2030. Shortly after the end of the quarter, we also announced that we have been awarded a contract by the 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 the interdisciplinary unique strengths in solving complex technical challenges to improve connectivity for consumers and enterprise and enhancing national security across the 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 is recognized by third parties. Newsweek recently named us as one of America's greatest companies, Fortune recognized us as one of America's fastest growing companies, and Time Magazine listed us among America's Growth Leaders of 2025. This award reflects the dedication and strong contributions from our employees and why our platform has never been stronger to deliver more growth and even more shareholder value. With that, I'll hand you over to Rich. Thanks Liren. I'm pleased to report that our strong growth momentum continued in Q3 with revenue, adjusted EBITDA, and non-GAAP EPS all exceeding the high end of our guidance range. Our Q3 performance was powered by our Samsung arbitration result and new license agreements, including a license with Honor, a top smartphone manufacturer based in China. These new agreements helped drive total revenue of $165 million, an increase of 28% year over year. This exceeds both our initial top end guidance for Q3 total revenue of $140 million and our updated increased top end guidance of $159 million that we announced at the time we signed Honor. The upside we delivered compared to our increased guidance was driven by additional license agreements we signed. Since then, our annualized recurring revenue, or ARR, increased 49% year over year to another all-time high of $588 million in Q3. This year over year growth was driven primarily by new agreements signed over the intervening year in our smartphone program, including license agreements with Oppo, Vivo, Lenovo, and most recently Honor. In this time, we increased our share of the smartphone market under license from about 50% to roughly 85%. These agreements, together with our excellent Samsung arbitration result, increased our smartphone ARR 65% year over year to $491 million in Q3, almost at the level of our smartphone midterm ARR goal of $500 million. CE and IoT ARR increased to $97 million in Q3, also an all-time high. Our new license with an EV charging company is another example of the growth opportunities that exist beyond the smartphone market, and we believe we can more than double ARR from CE and IoT by 2030. Our subscription-based IP as a service model offers a high level of visibility and provides a reliable source of cash flow even in the face of an uncertain economic environment. This enables us to continue to fuel our innovation engine and drive future revenue growth. Based on the strength of our intellectual property and the huge markets built upon it, we believe we are on track to grow ARR at a double-digit CAGR towards our 2030 target of $1 billion plus. It's important to remember that while ARR is a great metric to track the growth of 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 have 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 of $105 million increased 62% year over year and equates to an adjusted EBITDA margin of 64%, an increase of 14 points compared to 50% a year ago. The significant increase in adjusted EBITDA margin year over year demonstrates the leverage inherent in our model. You might remember that on our last earnings call I said strong free cash flow over the second half of the year would drive free cash flow for the full year of 2025 above $400 million or close to double 2024 levels. I am happy to report we did in fact collect large payments during the quarter, driving free cash flow to $381 million for the quarter and $425 million year to date. Finally, non-GAAP EPS rose 56% year over year to $2.55 and exceeded our increased guidance of $2.08- $2.27 per share. Consistent with our capital allocation priorities, we continue to maintain a fortress balance sheet, invest for growth, and return excess capital to shareholders. In Q3 we increased our dividend by 17% and returned $53 million to shareholders through $35 million in buybacks and $18 million through dividends. In October, we bought back another $15 million of stock, bringing total return of capital to more than $130 million year to date. In just the last three plus years, we have repurchased more than $0.5 billion dollars of stock and we expect to continue to buy back shares over the remainder of this year. Looking forward to Q4, we expect recurring revenue will include $144 million- $148 million of revenue from existing contracts. That means we expect full year revenue from existing contracts will be $820 million- $824 million. Before adding any potential contributions from new agreements we may sign over the next two months, we expect to meet or beat the midpoint of the increased full year guidance we issued last quarter. Of course, revenue from any new agreements we may sign over the balance of the quarter would be additive to these amounts based again only on existing contracts. In Q4, we expect an adjusted EBITDA margin of about 50% and non-GAAP diluted earnings per share of $1.38- $1.63 for the full year. Again, based only on existing contracts, we expect an adjusted EBITDA margin of 70% and non-GAAP diluted earnings per share of $14.57- $14.83 for the full year. 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 Q4, including the RBC Tech Conference and the ROTH Tech Conference, both in New York City, the Southwest Ideas Conference in Dallas, and the NASDAQ Investor Conference in London. Please reach out to your representatives at those firms if you'd like to schedule a meeting at this point. Hayley, we are ready to take questions. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q& A roster. Our first question comes from the line of Kevin Garrigan from Jefferies. Your line is now open. Yeah. Hey, good morning all and congratulations on the strong results. I just want to drill in on the consumer IoT side, so just wondering if you can walk us through your biggest prospects as we look to the rest of the year and into 2026 and your first agreement with an EV charging manufacturer. Do you guys see that? See the EV charging space being a significant contributor to ARR growth. Kevin, hey, this is Liren. Good morning. Regarding the consumer electronic IoT space, if you look at this, it is really a collection of multiple opportunities. Our largest single opportunity under the Consumer. Electronic is smart TVs where we continue to make progress. We have licensed the largest TV maker, Samsung. We are currently working with multiple of the next few players including LG, Hisense, and TCL, so that's our largest opportunity. Regarding our key opportunities here, we also have quite a different collections including automobile EV charging as we announced today, and a few other consumer driven IoT platforms. One more thing I also want to. Emphasis is in our consumer electronics, also include PCs and desktops. If you go to our supplemental deck on our IR website, we actually try to break it down, what the size of market where we are in each segment. Regarding your question for EV charging, we do think it's an interesting market for us. It's green because some of the charging. Market is consumer driven, some of them. Is commercial driven and they have different technology in there. Some of them is Wi-Fi enabled and some others actually have cellular connectivity, and we try to get a value that's fair to what the technology that's incorporating those devices or stations. Got it. Okay, that makes sense. As a follow up, can you just explain a little bit more on how you plan to integrate Deep Render with your own video codec technology? Not to give away any plan, but are there other companies out there that you're looking into to kind of complement your streaming business? Yeah. Hey, Kevin. Yeah, good question. This morning we announced the closing of Deep Render. Deep Render is a startup company, they. Are headquartered in London, and what they have been focusing on is this thing. Called Native AI for video codec end to end. It is really a more different way of solving the problem end to end. By incorporating the AI function from bottom up. We, InterDigital, has an AI team. We have been working on video space for frankly many, many years, and the Native AI function is one of the areas we have been working on. By acquiring this team, we added a lot of really strong expertise to speed up our AI capability for the Native AI video research. Interestingly enough, it's also critical. Juncture of time for next generation of video standard that's coming under discussion. We feel we have a strong chance of integrating some of the AI feature into the next video standard and when. Lastly, part of the acquisitions, we bought the Deep Render IP Patent Portfolio Team and patent portfolio. There are some AI patents and video patents and we are in the process integrating. It's a strategic acquisition and we feel very good about it. Regarding other opportunities, we frankly have a fairly robust pipeline. We look at all kinds of different opportunities. Opportunities and have a dedicated team passing through them. I don't have anything else to report at this time. Yep, got it. Okay, great. I appreciate the color, and congrats on the results. Thanks. Thank you. Our next question comes from the line of Scott Searle from ROTH Capital. Your line is now open. Hey, good morning. Thanks for taking my questions. I apologize, Liren, if this was covered earlier. Got on call a little bit late, but in terms of the Disney injunction, I'm wondering if you could give us an update in terms of what next steps there are that we should be looking for as you go forward and how this is impacting conversations and discussions with other streaming vendors. Yeah. Hey, good morning, Scott. Regarding the Disney injunction, in my prepared. Remark, we received the injunction by the court in Brazil. The injunction was supported by a third-party independent expert the court has appointed, which frankly is quite our position on all the important issues. The trial court issued the injunction, and Disney appealed the injunction, and the appeal court restated the injunction. The injunction is currently in effect, but the court has given Disney until the end of November to comply. November 30th, if I remember right. Needless to say, we are watching. Monitor the situation quite carefully, and I don't want to speculate on what Disney will do from there. It is also worth noting that the. Brazil PI injunction is just one step of a multi-jurisdictional enforcement we have been taking on. As we disclose in the 10-Q filing with a lot of details, we have multiple cases coming up for trial in Germany, in UPC, and in United States actually starting this month, starting October. There's over a dozen patent cases are going to trial between now and mid of next year. Needless to say we feel good about what position we are in, but in the meantime we are always open for negotiations. Gotcha. Just to follow up on that, has that actually improved the dialogue with Disney or impacted any other conversations you're having with other streaming vendors? Yeah, Scott, I can't get into the. Discussions with specific vendor because mostly under NDA. I can assure you that the industry is paying attention, and every progress we made with different enforcement, I do think it giving us an even stronger position in a lot of negotiations. Got you two more and then I'll get back in the queue. Just in terms of a deeper ender to dive down a little bit more, do you see this as helping with the existing streaming customers in terms of enhancing your product portfolio there and really being able to get monetization across the goal line, or is this going to predominantly open up some other opportunities? There's a lot of Edge AI that goes on, which sounds like some of the Deep Render patent portfolio would seem to cover. I'm wondering, is it for existing core opportunities, or does this really expand the product breadth that you've got now within the video codec and streaming market? Yeah. Hey Scott. For the Deep Render opportunity, they are. Currently in a stage of startup, so when we acquire them, they don't really have revenue or paying customers. However, we are super excited about the technology. The technology, as I explained earlier, was really based on this native AI end to end. We actually believe it's a new paradigm to solve the video delivery problem across Internet. As you are aware, video is super important for many use cases. About 80% of Internet traffic on every single day is driven by video. To be able to come up with a brand new way of solving that problem is super exciting for us. Regarding how we plan to monetize it, frankly, we believe we have multiple options. As of today, we are not really trying to determine exactly how we can make money other than solving the most difficult problems, making sure our technology is leading the industry, and obviously making sure we build a strong patent portfolio, which we already have. The deeper in the patent portfolio, they are merging with our portfolio as well as new IP. We continue to do that. Gotcha. Maybe I'll just throw in two quickly at the end. AI in general, you guys have been investing not just with Deep Render, but organically within the organization in terms of AI capabilities which have, I think from a 5G and 6G standpoint, kind of facilitated your core business there. Is there an explicit opportunity to license AI as it is as a standalone? Second, from an M&A standpoint, you guys have not been particularly acquisitive in recent history outside of Technicolor. Now you've added Deep Render to that. How aggressive are you thinking about the opportunities as you go forward over the next several years? It sounds like there's a pipeline of opportunities there. Is it really a stated goal to close some things as we look out over the next two to three years? Thanks. Yeah. Hey, thanks, Scott. Yeah, as you acknowledge, we have very deep. Depth in AI expertise. We have dedicated team, we work in AI field for multiple decades, and our CTO Rajesh Pankaj is actually an industry recognized AI leader, spans various AI and video space. Our current main sort of leverage. Of AI technology to apply AI to solve foundational problem in wireless and radio systems as you are upcoming 6G standard, the native AI built in wireless is a key research area that we are. Leading regarding monetization strategy here. Scott, I really think there will be. Multiple opportunities for us to monetize AI technology. We have a very robust existing technology-driven, standard-driven IP licensing model. I believe AI could give us new opportunity as we keep on driving the technology forward. Regarding the MIE pipeline here, as I referred a little bit earlier, we have a dedicated team internally actually led by. Our Chief Growth Officer Ken Kaskoun. We process a lot of opportunities. Some are bigger ones that may be driven by IP assets. Some others are driven by technology development as we have done through the Deep Render acquisition. Our bar is fairly high. With our recent business success, as Rich referred to here, we have a very strong balance sheet, and we believe give us different opportunity, we can pursue them. Great. Thanks so much. Thank you. Our next question comes from the line of Arjun Bhatia from William Blair. Your line is now open. Thanks for taking the question, Alinda Li here on for Arjun. I wanted to ask, just to piggyback on the prior question regarding the acquisition, what other areas within the existing focus points of technology IPs are you looking forward to in adding additional field through M&A? Yeah. Hi Linda, good morning. Regarding the M&A space here, we are frankly testing a fairly wide net. As you are aware, our three pillars of research are wireless, video, and artificial intelligence. We continue to look at it. Do we have the industry leading team, do we have the key research in those areas that's driving things forward? We frankly also look at the ages in the area. We are always sort of applying those opportunities, different criteria. We want to make sure we have critical mass that we can move the industry. We also like to see how we. Can build a competitive advantage over a long period of time. Frankly, with our increasing balance sheet and financial capability, we also try to look for bigger opportunities over time. That's helpful. In terms of the Transsion litigation, you announced today that you are officially going on a litigation. Can you just give us maybe any more color in terms of maybe timeline and additional kind of color in terms of that in general, yes. As I said in the prepared remark, we have frankly built a lot. Momentum in the smartphone licensing program. We currently licensed eight of the top. 10 smartphone vendors already that essentially make up roughly 85% of the market. Transsion is the largest online vendor as of today. They make roughly 100 million devices per year and those devices tend to be lower end and selling to emerging market. We have been negotiating with them for multiple years and we feel we have made them multiple really fair offers. They have refused to take our offer. We feel it's necessary for us to defend our position for IP and, frankly, equally important to set a level playing field with other customers who are paying us licensing fee. It's not fair that they got a free ride of our IP. We have launched a multi-jurisdictional patent litigation against them. That's in UPC, that's in India and Brazil. Those are significant market for them. It's hard to predict precisely timeline because some of the cases are, frankly, still being processed by a court. We don't have different dates yet. As always, during litigation we always try to negotiate a patent licensing deal with a party involved. Even though the timing precisely is hard to predict, given our history, we, frankly, have a very strong track record of, you know, if we have to enforce our right and we almost always end up with a bilateral agreement that's fair to both parties. All right, thank you. Thank you. At this time, I'm showing no further questions in the queue. I would now like to turn it back to Liren Chen for closing remarks. Thank you, Haley. Before we close, I really like to thank our employees for their dedication and contribution to InterDigital, as well as many partners and licensees for a very strong quarter. Thank you all for everyone who joined today's call, and we look forward to. Updating you on our progress next quarter. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.