InterDigital vs Lumentum

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KIRA’s take AI analyst

I put InterDigital and Lumentum side by side, using each one’s latest annual report. Here is what stands out:

Lumentum is the larger business, with $3.0B of revenue in fiscal 2026 against $834M for InterDigital, about 3.6 times as much.
Lumentum grew revenue faster (83.2%, against −4.0%).
InterDigital kept more of each dollar of sales as operating profit (55.3% operating margin, against 17.4%).
InterDigital turned more of its sales into free cash flow (63.4% FCF margin, against 10.0%).
InterDigital earned a higher return on the capital invested in it (113.5%, against 10.4%).

Who comes out ahead

Of the 10 measures where higher (or lower) is clearly better, how many each company leads.

InterDigital

IDCC

8/10

5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA

Lumentum

LITE

2/10

Revenue growthShare count change

Side by side

Best in the row

Latest fiscal year	IDCC FY25	LITE FY26
Size
Market cap	$11.2B	$61.0B
Revenue	$834M	$3.0B
Free cash flow	$529M	$300M
Net income	$407M	−$6.9B
Growth
Revenue growth	−4.0%	83.2%
5-year growth	18.4%	11.6%
Share count change	16.0%	7.2%
Profitability
Gross margin	—	41.7%
Operating margin	55.3%	17.4%
Net margin	48.8%	−230.1%
FCF margin	63.4%	10.0%
Return on capital	113.5%	10.4%
Return on equity	41.5%	−240.0%
Balance sheet
Net debt	−$769M	$496M
Net debt / EBITDA	−1.4x	0.6x
Dividends and buybacks	$163M	$0.0M
Valuation & quality
P/E	38.1x	—
Piotroski F-score	6	5

Ten years

Revenue

FY17

IDCC $533M

LITE $1.0B

FY18

IDCC $307M

LITE $1.2B

FY19

IDCC $319M

LITE $1.6B

FY20

IDCC $359M

LITE $1.7B

FY21

IDCC $425M

LITE $1.7B

FY22

IDCC $458M

LITE $1.7B

FY23

IDCC $550M

LITE $1.8B

FY24

IDCC $869M

LITE $1.4B

FY25

IDCC $834M

LITE $1.6B

FY26

IDCC —

LITE $3.0B

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

IDCC LITE

Operating margin

FY17

IDCC 56.6%

LITE 4.8%

FY18

IDCC 20.4%

LITE 11.2%

FY19

IDCC 11.9%

LITE −1.4%

FY20

IDCC 15.4%

LITE 12.2%

FY21

IDCC 16.7%

LITE 30.2%

FY22

IDCC 32.9%

LITE 17.7%

FY23

IDCC 40.3%

LITE −6.6%

FY24

IDCC 50.6%

LITE −31.9%

FY25

IDCC 55.3%

LITE −11.0%

FY26

IDCC —

LITE 17.4%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

IDCC LITE

Free cash flow

FY17

IDCC $314M

LITE −$53.1M

FY18

IDCC $144M

LITE $154M

FY19

IDCC $84.9M

LITE $164M

FY20

IDCC $152M

LITE $438M

FY21

IDCC $128M

LITE $654M

FY22

IDCC $283M

LITE $368M

FY23

IDCC $209M

LITE $51.3M

FY24

IDCC $266M

LITE −$108M

FY25

IDCC $529M

LITE −$105M

FY26

IDCC —

LITE $300M

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

IDCC LITE

Return on capital

FY17

IDCC —

LITE 8.7%

FY18

IDCC —

LITE 23.5%

FY19

IDCC 7.1%

LITE −2.0%

FY20

IDCC 20.3%

LITE 11.3%

FY21

IDCC 22.1%

LITE 27.5%

FY22

IDCC 63.7%

LITE 15.6%

FY23

IDCC —

LITE −4.7%

FY24

IDCC 132.6%

LITE −14.5%

FY25

IDCC 113.5%

LITE −5.3%

FY26

IDCC —

LITE 10.4%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

IDCC LITE

Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.