InterDigital (IDCC) risk factors, 2025 10-K

Risks Related to Our Business

1. 01Our plans to expand our revenue opportunities may not be successful
2. 02Challenges relating to our ability to enter into new license agreements and renew existing license agreements could cause our revenue and cash flow to decline
3. 03Royalties or other terms under our patent license agreements could be subject to determination through arbitration or other third-party adjudications or regulatory or court proceedings, and arbitrators, judges or other third-party adjudicators or regulators could make unfavorable determinations
4. 04We could continue to be involved in a number of costly litigation, arbitration and administrative proceedings to enforce or defend our intellectual property rights and to defend our licensing practices
5. 05Our ability to license device manufacturers and service providers in China may be adversely affected by a deterioration in United States-China trade and geopolitical relations, our customers facing economic uncertainty there or our failure to establish a positive reputation in China
6. 06We may face setbacks in defending our patent licensing practices
7. 07We face competition from companies developing other or similar technologies
8. 08Royalties could decrease for future license agreements due to downward product pricing pressures and competition over patent royalties
9. 09Our technologies may not become patented, adopted by wireless or video standards or widely deployed
10. 10Setbacks in defending and enforcing our patent rights could cause our revenue and cash flow to decline
11. 11Macroeconomic conditions may harm our business
12. 12Scrutiny by antitrust authorities may affect our strategies for patent prosecution, licensing and enforcement and may increase our costs of doing business and/or lead to monetary fines, penalties or other remedies or sanctions
13. 13We are subject to risks resulting from customer concentration
14. 14We may not be successful in growing our business inorganically, and any acquisitions or strategic reactions could create risk and/or fail to yield the anticipated benefits
15. 15Our revenue may be affected by the deployment of future-generation wireless standards in place of 3G, 4G and 5G technologies or future-generation video standards, by the timing of such deployment, or by the need to extend or modify certain existing license agreements to cover subsequently issued patents
16. 16We may not be able to attract and retain qualified employees
17. 17Our business and operations could suffer in the event of security breaches
18. 18We face risks from doing business and maintaining offices in international markets
19. 19Our business is subject to evolving corporate governance and public disclosure regulations and expectations that could expose us to reputational risks and legal liability
20. 20Our industry is subject to rapid technological change, uncertainty and shifting market opportunities
21. 21Our commercialization, licensing and/or M&A activities could lead to patent exhaustion or implied license issues that could materially adversely affect our business
22. 22Our use of open source software could materially adversely affect our business, financial condition, operating results and cash flow
23. 23We may have exposure to additional tax liabilities
24. 24Market projections and data are forward-looking in nature
25. 25Our strategic decisions about our patent portfolio involve risks, and the anticipated benefits of such actions may not be realized
26. 26Our technology development activities may experience delays
27. 27Our business is subject to a variety of domestic and international laws, rules and policies and other obligations regarding data protection

Risks Relating to Our Common Stock and our Convertible Notes

1. 28Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations
2. 29Our stock repurchase program may not result in a positive return of capital to shareholders
3. 30Our shareholders may not receive the level of dividends provided for in our dividend policy or any dividend at all, and any decrease in or suspension of the dividend could cause our stock price to decline
4. 31Securities analyst coverage or lack of coverage may have a negative impact on our common stock’s market price
5. 32Our indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under such indebtedness
6. 33The convertible note hedge transactions and warrant transactions that we entered into in connection with the offering of the 2027 Notes may affect the value of the such notes, and the market price of our common stock
7. 34We are subject to counterparty risk with respect to the convertible note hedge transactions
8. 35Provisions of the 2027 Notes could discourage an acquisition of us by a third party