Oct 29, 2026 earnings call — License wins and enforcement progress
Q3 revenue $193.4 million, above guidance, driven by new license agreements.
Revenue $0.2B (est $0.2B) · EPS $3.11 (est $1.34) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"With this agreement, we now have 70% of the PC market under license, including four of the top five PC makers in the world."
"I am pleased to report that our strong momentum continued in Q3 with revenue, Adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted EPS, all exceeding the high end of our guidance range."
"Recently, Qualcomm and MediaTek announced that they have implemented VVC hardware decoding to their latest smartphone chipset."
Analyst Q&A 4
Q4 deals: smartphones, TVs, streaming
Q (Kevin Garrigan · Jefferies): He asked for a high-level view of the Q4 pipeline and whether any upside would come mainly from consumer electronics and IoT or from smartphone deals like Transsion. He also asked whether Disney's VP9 workaround affects settlement economics or timing and what happens if they keep using workarounds.
A: They are pursuing all opportunities in parallel, including two remaining smartphone vendors that haven't licensed, TV makers via enforcement, and streaming providers, but timing is hard to predict. On Disney and VP9, they say their foundational innovation applies to multiple codecs including VP9, they filed a new case based on patents already found valid against VP9, and that case is scheduled to be heard in December.
"As you also mentioned here, our foundational innovation apply to multiple codec, including VP9." — Liren Chen (CEO)
Streaming talks and PC vendor status
Q (Arjun Bhatia · William Blair): He asked whether the Amazon agreement has changed conversations with other streaming providers and if it makes progress easier with others. He also asked about the PC side: Lenovo's status and the remaining opportunity after the new agreement.
A: They say most negotiations are under NDA but the Amazon agreement was an important milestone and is being closely watched by industry players, accelerating monetization efforts. On PCs, they have signed four of the top 10 PC vendors representing about 70% of the world market, leaving about 30% to pursue; for Lenovo, they completed arbitration hearing and expect a result by H1 of next year, though timing is uncertain.
"With our latest deal here, we have signed four of the top 10 vendors, PC makers worldwide, which makes about 70% of the world market, which means we have 30% more that we are pursuing." — Liren Chen (CEO)
Q4 guidance, litigation, VVC, cloud
Q (Scott Searle · Roth Capital): He asked whether the PC OEM arbitration value is factored into Q4 guidance and about near-term litigation expenses. He also asked when VVC adoption will affect revenue and royalties, and how cloud monetization changes the market size.
A: They clarified the PC manufacturer's value is to be determined by arbitration but they began estimating the revenue, including catch-up and ARR, starting in Q3 and that recognition is factored into Q4 guidance. Litigation will remain a meaningful investment in the near term. On technology, VVC adoption is accelerating with leading chip vendors and Google building VVC into Android, but broad adoption will take multiple years and will add incrementally to existing multimedia licenses; cloud is related but separate, they have applicable assets from prior projects, are not putting a number on it yet, but believe the IP collection is sizable.
"But we did recognize that in Q3, and it is factored in the Q4 guidance." — Rich Brezski (CFO)
Capital allocation and M&A activity
Q (Anja Soderstrom · Sidoti): She asked how to think about capital allocation priorities given a dividend increase but less aggressive buybacks. She also asked how actively they are looking at M&A opportunities and what they see.
A: They say nothing has really changed: they have a lot of cash, increased the dividend 7% this quarter, repaid debt, and continued buybacks. On M&A, they are always looking, have a Chief Growth Officer team devoted to opportunities, acquired Deep Render last year for AI expertise, but their internal R&D (six new patents per day) keeps the bar high.
"As you mentioned, we increased the dividend 7% this quarter." — Rich Brezski (CFO)