Universal Display Corporation Announces Second 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 second quarter ended June 30, 2025 . “We are pleased to report record financial performance in the second quarter. Reflecting our strong execution and current outlook for the year, we are raising the low end of our 2025 revenue guidance range, which we now project to be $650 million to $700 million ,” said Brian Millard , Chief Financial Officer and Treasurer of Universal Display Corporation . “We believe the OLED industry is entering a dynamic new phase of expansion, driven by increasing demand in the nascent OLED IT market—including tablets, laptops, and monitors. As OLED adoption broadens across consumer electronics and automotive applications, we believe we are well-positioned to be a key enabler in this next wave of growth.” Financial Highlights for the Second Quarter of 2025 Total revenue in the second quarter of 2025 was $171.8 million as compared to $158.5 million in the second quarter of 2024. Revenue from material sales was $88.7 million in the second quarter of 2025 as compared to $95.4 million in the second quarter of 2024. The decrease in material sales was primarily due to changes in customer mix and lower unit material volume for our emitter materials. Revenue from royalty and license fees was $75.7 million in the second quarter of 2025 as compared to $59.6 million in the second 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 $34.2 million in the second quarter of 2025 as compared to $35.5 million in the second quarter of 2024. Total gross margin was 77% in the second quarter of 2025 as compared to 76% in the second quarter of 2024. Operating income was $68.5 million in the second quarter of 2025 as compared to $56.4 million in the second quarter of 2024. The effective income tax rate was 19.8% in the second quarter of 2025 as compared to 19.3% in the second quarter of 2024. Net income was $67.3 million or $1.41 per diluted share in the second quarter of 2025 as compared to $52.3 million or $1.10 per diluted share in the second quarter of 2024. Revenue Comparison ($ in thousands) Three Months Ended June 30 , 2025 2024 Material sales $ 88,650 $ 95,442 Royalty and license fees 75,667 59,551 Contract research services 7,477 3,512 Total revenue $ 171,794 $ 158,505 Cost of Materials Comparison ($ in thousands) Three Months Ended June 30 , 2025 2024 Material sales $ 88,650 $ 95,442 Cost of material sales 34,154 35,491 Gross margin on material sales 54,496 59,951 Gross margin as a % of material sales 61 % 63 % Financial Highlights for the First Half of 2025 Total revenue in the first half of 2025 was $338.1 million as compared to $323.8 million in the first half of 2024. Revenue from material sales was $174.8 million in the first half of 2025 as compared to $188.7 million in the first half of 2024. The decrease in material sales was primarily due to lower unit material volume for our emitter materials and changes in customer mix. Revenue from royalty and license fees was $149.2 million in the first half of 2025 as compared to $127.8 million in the first half 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 $68.1 million in the first half of 2025 as compared to $69.6 million in the first half of 2024. Total gross margin was 77% in the first half of both 2025 and 2024. Operating income was $138.2 million in the first half of 2025 as compared to $119.3 million in the first half of 2024. The effective income tax rate was 19.7% in the first half of 2025 as compared to 19.3% in the first half of 2024. Net income was $131.7 million or $2.76 per diluted share in the first half of 2025 as compared to $109.2 million or $2.29 per diluted share in the first half of 2024. Revenue Comparison ($ in thousands) Six Months Ended June 30 , 2025 2024 Material sales $ 174,805 $ 188,726 Royalty and license fees 149,236 127,819 Contract research services 14,030 7,219 Total revenue $ 338,071 $ 323,764 Cost of Materials Comparison ($ in thousands) Six Months Ended June 30 , 2025 2024 Material sales $ 174,805 $ 188,726 Cost of material sales 68,103 69,587 Gross margin on material sales 106,702 119,139 Gross margin as a % of material sales 61 % 63 % Revised 2025 Guidance While the evolving macroeconomic environment this year creates continued uncertainty, the Company has increased the lower end of its previous revenue guidance and believes that 2025 revenue will be in the range of $650 million to $700 million . Dividend The Company also announced a third quarter cash dividend of $0.45 per share on the Company’s common stock. The dividend is payable on September 30, 2025 to all shareholders of record as of the close of business on September 16, 2025 . Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, July 31, 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) June 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 95,804 $ 98,980 Short-term investments 429,404 393,690 Accounts receivable 147,043 113,648 Inventory 208,199 182,938 Other current assets 130,352 110,575 Total current assets 1,010,802 899,831 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $174,863 and $169,877 205,131 195,239 ACQUIRED TECHNOLOGY, net of accumulated amortization of $212,007 and $203,621 65,168 73,554 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $12,550 and $11,842 4,738 5,446 GOODWILL 15,535 15,535 INVESTMENTS 432,368 457,593 DEFERRED INCOME TAXES 82,909 78,320 OTHER ASSETS 115,047 106,815 TOTAL ASSETS $ 1,931,698 $ 1,832,333 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 38,467 $ 36,590 Accrued expenses 44,082 46,026 Deferred revenue 36,005 33,074 Other current liabilities 7,001 9,720 Total current liabilities 125,555 125,410 DEFERRED REVENUE 2,224 537 RETIREMENT PLAN BENEFIT LIABILITY 55,285 54,450 OTHER LIABILITIES 34,022 35,411 Total liabilities 217,086 215,808 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, 48,899,719 and 48,834,541 shares issued, and 47,534,071 and 47,468,893 shares outstanding, at June 30, 2025 and December 31, 2024 , respectively 489 488 Additional paid-in capital 732,068 723,719 Retained earnings 1,023,184 934,655 Accumulated other comprehensive income (loss) 153 (1,055 ) Treasury stock, at cost (1,365,648 shares at June 30, 2025 and December 31, 2024 ) (41,284 ) (41,284 ) Total shareholders’ equity 1,714,612 1,616,525 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,931,698 $ 1,832,333 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except share and per share data) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 REVENUE: Material sales $ 88,650 $ 95,442 $ 174,805 $ 188,726 Royalty and license fees 75,667 59,551 149,236 127,819 Contract research services 7,477 3,512 14,030 7,219 Total revenue 171,794 158,505 338,071 323,764 COST OF SALES 39,203 38,328 77,337 75,297 Gross margin 132,591 120,177 260,734 248,467 OPERATING EXPENSES: Research and development 36,358 36,826 71,258 74,811 Selling, general and administrative 20,440 19,841 37,454 39,093 Amortization of acquired technology and other intangible assets 4,548 4,549 9,093 9,097 Patent costs 2,588 2,401 4,494 4,383 Royalty and license expense 117 123 231 1,774 Total operating expenses 64,051 63,740 122,530 129,158 OPERATING INCOME 68,540 56,437 138,204 119,309 Interest income, net 9,763 9,913 19,837 19,481 Other income (loss), net 5,575 (1,460 ) 5,953 (3,403 ) Interest and other income (loss), net 15,338 8,453 25,790 16,078 INCOME BEFORE INCOME TAXES 83,878 64,890 163,994 135,387 INCOME TAX EXPENSE (16,614 ) (12,553 ) (32,286 ) (26,197 ) NET INCOME $ 67,264 $ 52,337 $ 131,708 $ 109,190 NET INCOME PER COMMON SHARE: BASIC $ 1.41 $ 1.10 $ 2.77 $ 2.29 DILUTED $ 1.41 $ 1.10 $ 2.76 $ 2.29 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,593,660 47,549,843 47,580,549 47,553,969 DILUTED 47,674,886 47,628,113 47,684,351 47,628,470 CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.45 $ 0.40 $ 0.90 $ 0.80 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Six Months Ended June 30 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 131,708 $ 109,190 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 13,402 13,092 Amortization of intangibles 9,093 9,097 Amortization of premium and discount on investments, net (2,496 ) (4,276 ) Stock-based compensation 16,419 18,523 Deferred income tax benefit (4,592 ) (7,402 ) Retirement plan expense, net of benefit payments 847 962 Decrease (increase) in assets: Accounts receivable (33,395 ) 15,464 Inventory (25,261 ) 3,952 Other current assets (19,777 ) (45,364 ) Other assets (8,232 ) 6,444 Increase (decrease) in liabilities: Accounts payable and accrued expenses 4,632 12,367 Other current liabilities (3,153 ) (2,141 ) Deferred revenue 4,618 10,797 Other liabilities (1,315 ) (1,536 ) Net cash provided by operating activities 82,498 139,169 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (27,536 ) (16,334 ) Purchases of investments (191,951 ) (174,757 ) Proceeds from sale and maturity of investments 185,000 97,620 Net cash used in investing activities (34,487 ) (93,471 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 1,074 1,187 Payment of withholding taxes related to stock-based compensation to employees (9,442 ) (7,329 ) Cash dividends paid (42,819 ) (38,685 ) Net cash used in financing activities (51,187 ) (44,827 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (3,176 ) 871 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 98,980 91,985 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 95,804 $ 92,856 SUPPLEMENTAL DISCLOSURES: Unrealized gain (loss) on available-for-sale securities $ 1,001 $ (2,976 ) 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 4,242 (7,082 ) Cash paid for income taxes, net of refunds 45,616 47,263 View source version on businesswire.com : https://www.businesswire.com/news/home/20250731142253/en/ Darice Liu [email protected] [email protected] +1 609-964-5123 Source: Universal Display Corporation

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