Universal Display Corporation Announces First Quarter 2025 Financial Results

About this update from Universal Display Corporation

EWING, N.J. --(BUSINESS WIRE)-- Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2025 . “We began 2025 on a solid financial note and continue to remain confident in the long-term growth trajectory of the OLED market. At the same time, we recognize the increasing complexity and uncertainty of the global landscape. In this environment, we are committed to our long-term strategy of advancing our leadership through the continuous invention, development and delivery of state-of-the-art OLED technologies and materials. With a powerful innovation engine, strong balance sheet, resilient supply chain, and operational agility, we are well-positioned to adapt to change, respond swiftly and continue supporting our customers and partners,” said Brian Millard , Vice President and Chief Financial Officer of Universal Display Corporation . Financial Highlights for the First Quarter of 2025 Total revenue in the first quarter of 2025 was $166.3 million as compared to $165.3 million in the first quarter of 2024. Revenue from material sales was $86.2 million in the first quarter of 2025 as compared to $93.3 million in the first quarter of 2024. The decrease in material sales was primarily due to lower unit material volume for our emitter materials, partially offset by changes in customer mix. Revenue from royalty and license fees was $73.6 million in the first quarter of 2025 as compared to $68.3 million in the first quarter of 2024. The increase in royalty and license fees was primarily the result of changes in customer mix, partially offset by lower unit material volume. Cost of material sales was $33.9 million in the first quarter of 2025 as compared to $34.1 million in the first quarter of 2024 due to lower unit material volume, partially offset by changes in product mix. Total gross margin was 77% in the first quarter of 2025 as compared to 78% in the first quarter of 2024. Operating income was $69.7 million in the first quarter of 2025 as compared to $62.9 million in the first quarter of 2024. The effective income tax rate was 19.6% in the first quarter of 2025 as compared to 19.4% in the first quarter of 2024. Net income was $64.4 million or $1.35 per diluted share in the first quarter of 2025 as compared to $56.9 million or $1.19 per diluted share in the first quarter of 2024. Revenue Comparison ($ in thousands) Three Months Ended March 31 , 2025 2024 Material sales $ 86,155 $ 93,284 Royalty and license fees 73,569 68,268 Contract research services 6,553 3,707 Total revenue $ 166,277 $ 165,259 Cost of Materials Comparison ($ in thousands) Three Months Ended March 31 , 2025 2024 Material sales $ 86,155 $ 93,284 Cost of material sales 33,949 34,096 Gross margin on material sales 52,206 59,188 Gross margin as a % of material sales 61 % 63 % 2025 Guidance While the evolving macroeconomic environment this year creates greater uncertainty, the Company affirms its previous revenue guidance and believes that 2025 revenue will be the range of $640 million to $700 million . Dividend The Company also announced a second quarter cash dividend of $0.45 per share on the Company’s common stock. The dividend is payable on June 30, 2025 to all shareholders of record as of the close of business on June 16, 2025 . Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, May 1, 2025 at 5:00 p.m. Eastern Time . The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com . Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call. About Universal Display Corporation Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,500 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation , please visit https://oled.com/ . Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation . All other Company, brand or product names may be trademarks or registered trademarks. All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission , including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024 . Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document. Follow Universal Display Corporation X Facebook YouTube (OLED-C) UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data) March 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 157,473 $ 98,980 Short-term investments 413,805 393,690 Accounts receivable 139,563 113,648 Inventory 197,398 182,938 Other current assets 110,175 110,575 Total current assets 1,018,414 899,831 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $168,110 and $169,877 196,263 195,239 ACQUIRED TECHNOLOGY, net of accumulated amortization of $207,814 and $203,621 69,361 73,554 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $12,194 and $11,842 5,094 5,446 GOODWILL 15,535 15,535 INVESTMENTS 369,027 457,593 DEFERRED INCOME TAXES 81,410 78,320 OTHER ASSETS 109,383 106,815 TOTAL ASSETS $ 1,864,487 $ 1,832,333 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 28,294 $ 36,590 Accrued expenses 35,089 46,026 Deferred revenue 22,772 33,074 Other current liabilities 26,944 9,720 Total current liabilities 113,099 125,410 DEFERRED REVENUE 2,348 537 RETIREMENT PLAN BENEFIT LIABILITY 54,867 54,450 OTHER LIABILITIES 34,841 35,411 Total liabilities 205,155 215,808 SHAREHOLDERS’ EQUITY: Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500 ) 2 2 Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,937,424 and 48,834,541 shares issued, and 47,571,776 and 47,468,893 shares outstanding, at March 31, 2025 and December 31, 2024 , respectively 489 488 Additional paid-in capital 722,275 723,719 Retained earnings 977,556 934,655 Accumulated other comprehensive income (loss) 294 (1,055 ) Treasury stock, at cost (1,365,648 shares at March 31, 2025 and December 31, 2024 ) (41,284 ) (41,284 ) Total shareholders’ equity 1,659,332 1,616,525 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,864,487 $ 1,832,333 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except share and per share data) Three Months Ended March 31 , 2025 2024 REVENUE: Material sales $ 86,155 $ 93,284 Royalty and license fees 73,569 68,268 Contract research services 6,553 3,707 Total revenue 166,277 165,259 COST OF SALES 38,134 36,969 Gross margin 128,143 128,290 OPERATING EXPENSES: Research and development 34,900 37,985 Selling, general and administrative 17,014 19,252 Amortization of acquired technology and other intangible assets 4,545 4,548 Patent costs 1,906 1,982 Royalty and license expense 114 1,651 Total operating expenses 58,479 65,418 OPERATING INCOME 69,664 62,872 Interest income, net 10,074 9,568 Other income (loss), net 378 (1,943 ) Interest and other income (loss), net 10,452 7,625 INCOME BEFORE INCOME TAXES 80,116 70,497 INCOME TAX EXPENSE (15,672 ) (13,644 ) NET INCOME $ 64,444 $ 56,853 NET INCOME PER COMMON SHARE: BASIC $ 1.35 $ 1.19 DILUTED $ 1.35 $ 1.19 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,567,295 47,557,959 DILUTED 47,689,657 47,628,492 CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.45 $ 0.40 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended March 31 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 64,444 $ 56,853 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 6,548 6,616 Amortization of intangibles 4,545 4,548 Amortization of premium and discount on investments, net (1,471 ) (2,236 ) Stock-based compensation 7,076 9,174 Deferred income tax benefit (3,091 ) (3,936 ) Retirement plan expense, net of benefit payments 423 330 Decrease (increase) in assets: Accounts receivable (25,915 ) 20,266 Inventory (14,460 ) 2,890 Other current assets 400 (2,113 ) Other assets (2,568 ) 2,907 Increase (decrease) in liabilities: Accounts payable and accrued expenses (13,408 ) (7,977 ) Other current liabilities 16,867 12,786 Deferred revenue (8,491 ) (27,270 ) Other liabilities (337 ) (682 ) Net cash provided by operating activities 30,562 72,156 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (13,059 ) (7,206 ) Purchases of investments (38,772 ) (99,947 ) Proceeds from sale and maturity of investments 110,000 42,970 Net cash provided by (used in) investing activities 58,169 (64,183 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 579 639 Payment of withholding taxes related to stock-based compensation to employees (9,398 ) (7,058 ) Cash dividends paid (21,419 ) (19,527 ) Net cash used in financing activities (30,238 ) (25,946 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 58,493 (17,973 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 98,980 91,985 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 157,473 $ 74,012 SUPPLEMENTAL DISCLOSURES: Unrealized gain (loss) on available-for-sale securities $ 1,320 $ (2,666 ) Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period 300 300 Net change in accounts payable and accrued expenses related to purchases of property and equipment 5,487 (156 ) Cash paid for income taxes, net of refunds 2,266 5,085 View source version on businesswire.com : https://www.businesswire.com/news/home/20250501471288/en/ Universal Display Contact: Darice Liu [email protected] [email protected] +1 609-964-5123 Source: Universal Display Corporation

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