Universal Display Corporation Announces Second Quarter 2026 Financial Results

About this update from Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED), a global leader in energy-efficient OLED technologies and materials, today reported financial results for the second quarter ended June 30, 2026. “We see OLED's next growth phase beginning to take shape,” said Brian Millard, Chief Financial Officer of Universal Display. “While portions of the consumer electronics market face near-term challenges, we continue to see significant investment across the OLED ecosystem, including new Gen 6 and Gen 8.6 capacity, expanding adoption in IT, automotive and emerging form factors, and continued advances in OLED technologies. Through our leadership in OLED materials and innovation, we remain focused on helping customers unlock the next generation of OLED performance and adoption.” Financial Highlights for the Second Quarter of 2026 Total revenue in the second quarter of 2026 was $152.2 million as compared to $171.8 million in the second quarter of 2025. Revenue from material sales was $66.2 million in the second quarter of 2026 as compared to $88.7 million in the second quarter of 2025. The decrease was primarily due to lower unit material volume, changes in customer mix, and a $6.9 million unfavorable period-over-period change in the cumulative catch-up adjustment for material sales. This catch-up adjustment was primarily driven by forecasted product mix changes over the remaining lives of certain customer contracts. Revenue from royalty and license fees was $81.2 million in the second quarter of 2026 as compared to $75.7 million in the second quarter of 2025. The increase was primarily driven by a $16.3 million favorable period-over-period change in the cumulative catch-up adjustment for royalty and license fees, partially offset by lower unit material volume and changes in customer mix. The favorable adjustment mainly reflected an increase in the average royalty and license fees price per gram, due to lower anticipated demand from certain customers over the remaining lives of their contracts. Cost of material sales was $33.4 million in the second quarter of 2026 as compared to $34.2 million in the second quarter of 2025. Total gross margin was 76% in the second quarter of 2026 as compared to 77% in the second quarter of 2025. Operating income was $53.6 million in the second quarter of 2026 as compared to $68.5 million in the second quarter of 2025. The effective income tax rate was 19.0% in the second quarter of 2026 as compared to 19.8% in the second quarter of 2025. Net income was $49.4 million or $1.06 per diluted share in the second quarter of 2026 as compared to $67.3 million or $1.41 per diluted share in the second quarter of 2025. Revenue Comparison ($ in thousands)   Three Months Ended June 30,       2026     2025   Material sales   $ 66,191     $ 88,650   Royalty and license fees     81,212       75,667   Contract research services     4,754       7,477   Total revenue   $ 152,157     $ 171,794   Cost of Materials Comparison ($ in thousands)   Three Months Ended June 30,       2026     2025   Material sales   $ 66,191     $ 88,650   Cost of material sales     33,391       34,154   Gross margin on material sales     32,800       54,496   Gross margin as a % of material sales     50 %     61 % Financial Highlights for the First Half of 2026 Total revenue in the first half of 2026 was $294.4 million as compared to $338.1 million in the first half of 2025. Revenue from material sales was $149.9 million in the first half of 2026 as compared to $174.8 million in the first half of 2025. The decrease was primarily due to lower unit material volume and changes in customer mix. Revenue from royalty and license fees was $135.4 million in the first half of 2026 as compared to $149.2 million in the first half of 2025. The decrease was primarily the result of lower unit material volume and changes in customer mix, partially offset by the impact of a $7.4 million favorable period-over-period change in the cumulative catch-up adjustment, which was primarily attributable to royalty and license fees. Cost of material sales was $66.4 million in the first half of 2026 as compared to $68.1 million in the first half of 2025. Total gross margin was 75% in the first half of 2026 as compared to 77% in the first half of 2025. Operating income was $96.4 million in the first half of 2026 as compared to $138.2 million in the first half of 2025. The effective income tax rate was 19.7% for both six months ended June 30, 2026 and 2025. Net income was $85.3 million or $1.82 per diluted share in the first half of 2026 as compared to $131.7 million or $2.76 per diluted share in the first half of 2025. Revenue Comparison ($ in thousands)   Six Months Ended June 30,       2026     2025   Material sales   $ 149,940     $ 174,805   Royalty and license fees     135,422       149,236   Contract research services     9,006       14,030   Total revenue   $ 294,368     $ 338,071   Cost of Materials Comparison ($ in thousands)   Six Months Ended June 30,       2026     2025   Material sales   $ 149,940     $ 174,805   Cost of material sales     66,408       68,103   Gross margin on material sales     83,532       106,702   Gross margin as a % of material sales     56 %     61 % Revised 2026 Guidance The Company now believes that its 2026 revenue will be around the lower end of its previous guidance range of $630 million to $670 million. Dividend The Company also announced a third quarter 2026 cash dividend of $0.50 per share on the Company’s common stock. The cash dividend is payable on September 30, 2026 to all shareholders of record as of the close of business on September 16, 2026. Share Repurchases The Company repurchased 531,211 shares of its common stock for $48.2 million during the three months ended June 30, 2026, and 1,163,884 shares of its common stock for $114.2 million during the six months ended June 30, 2026. These repurchases included the completion of the $100 million program that commenced in April 2025, as well as purchases under the additional $400 million program authorized by the Board of Directors in April 2026. Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, July 30, 2026 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 7,000 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, 2025. 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, 2026     December 31, 2025   ASSETS             CURRENT ASSETS:             Cash and cash equivalents   $ 120,563     $ 138,353   Short-term investments     350,749       464,004   Accounts receivable     126,204       119,953   Inventory     249,646       240,912   Other current assets     94,597       123,836   Total current assets     941,759       1,087,058   PROPERTY AND EQUIPMENT, net of accumulated depreciation of $204,594 and $189,326     209,653       214,947   ACQUIRED TECHNOLOGY, net of accumulated amortization of $230,990 and $220,392     96,185       56,783   OTHER INTANGIBLE ASSETS, net of accumulated amortization of $13,979 and $13,269     3,309       4,019   GOODWILL     15,535       15,535   INVESTMENTS     411,120       377,034   DEFERRED INCOME TAXES     79,793       79,454   OTHER ASSETS     130,377       128,932   TOTAL ASSETS   $ 1,887,731     $ 1,963,762   LIABILITIES AND SHAREHOLDERS’ EQUITY             CURRENT LIABILITIES:             Accounts payable   $ 18,604     $ 23,344   Accrued expenses     39,817       52,564   Deferred revenue     40,823       21,011   Other current liabilities     11,576       11,094   Total current liabilities     110,820       108,013   DEFERRED REVENUE     2,023       1,943   RETIREMENT PLAN BENEFIT LIABILITY     57,166       56,541   OTHER LIABILITIES     33,757       36,246   Total liabilities     203,766       202,743   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, 49,051,750 and 48,916,606 shares issued, and 46,231,008 and 47,259,748 shares outstanding, at June 30, 2026 and December 31, 2025, respectively     491       489   Additional paid-in capital     750,717       744,692   Retained earnings     1,128,497       1,090,479   Accumulated other comprehensive (loss) income     (5,200 )     781   Treasury stock, at cost (2,820,742 and 1,656,858 shares at June 30, 2026 and December 31, 2025)     (190,542 )     (75,424 ) Total shareholders’ equity     1,683,965       1,761,019   TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 1,887,731     $ 1,963,762   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,       2026     2025     2026     2025   REVENUE:                         Material sales   $ 66,191     $ 88,650     $ 149,940     $ 174,805   Royalty and license fees     81,212       75,667       135,422       149,236   Contract research services     4,754       7,477       9,006       14,030   Total revenue     152,157       171,794       294,368       338,071   COST OF SALES     36,790       39,203       72,911       77,337   Gross margin     115,367       132,591       221,457       260,734   OPERATING EXPENSES:                         Research and development     34,974       36,358       70,220       71,258   Selling, general and administrative     18,565       20,440       38,597       37,454   Amortization of acquired technology and other intangible assets     5,719       4,548       11,307       9,093   Patent costs     2,356       2,588       4,725       4,494   Royalty and license expense     105       117       209       231   Total operating expenses     61,719       64,051       125,058       122,530   OPERATING INCOME     53,648       68,540       96,399       138,204   Interest income, net     8,477       9,763       17,192       19,837   Other (loss) income, net     (1,121 )     5,575       (7,294 )     5,953   Interest and other income, net     7,356       15,338       9,898       25,790   INCOME BEFORE INCOME TAXES     61,004       83,878       106,297       163,994   INCOME TAX EXPENSE     (11,583 )     (16,614 )     (20,980 )     (32,286 ) NET INCOME   $ 49,421     $ 67,264     $ 85,317     $ 131,708   NET INCOME PER COMMON SHARE:                         BASIC   $ 1.06     $ 1.41     $ 1.82     $ 2.77   DILUTED   $ 1.06     $ 1.41     $ 1.82     $ 2.76   WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:                         BASIC     46,653,464       47,593,660       46,822,359       47,580,549   DILUTED     46,682,123       47,674,886       46,900,488       47,684,351   CASH DIVIDENDS DECLARED PER COMMON SHARE   $ 0.50     $ 0.45     $ 1.00     $ 0.90   UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)       Six Months Ended June 30,       2026     2025   CASH FLOWS FROM OPERATING ACTIVITIES:             Net income   $ 85,317     $ 131,708   Adjustments to reconcile net income to net cash provided by operating activities:             Depreciation     15,366       13,402   Amortization of intangibles     11,307       9,093   Investment losses (gains), net     2,588       (2,496 ) Impairment of minority investments     415       —   Stock-based compensation     12,464       16,419   Deferred income tax benefit     (342 )     (4,592 ) Retirement plan expense, net of benefit payments     637       847   Decrease (increase) in assets:             Accounts receivable     (6,251 )     (33,395 ) Inventory     (8,734 )     (25,261 ) Other current assets     19,239       (19,777 ) Other assets     (1,445 )     (8,232 ) Increase (decrease) in liabilities:             Accounts payable and accrued expenses     (14,031 )     4,632   Other current liabilities     (147 )     (3,153 ) Deferred revenue     19,892       4,618   Other liabilities     (2,420 )     (1,315 ) Net cash provided by operating activities     133,855       82,498   CASH FLOWS FROM INVESTING ACTIVITIES:             Purchases of property and equipment     (13,237 )     (27,536 ) Purchase of intangibles     (40,000 )     —   Purchases of investments     (194,296 )     (191,951 ) Proceeds from sale and maturity of investments     264,483       185,000   Net cash provided by (used in) investing activities     16,950       (34,487 ) CASH FLOWS FROM FINANCING ACTIVITIES:             Proceeds from issuance of common stock     1,041       1,074   Repurchases of common stock, inclusive of excise tax     (115,218 )     —   Payment of withholding taxes related to stock-based compensation to employees     (7,779 )     (9,442 ) Cash dividends paid     (46,639 )     (42,819 ) Net cash used in financing activities     (168,595 )     (51,187 ) DECREASE IN CASH AND CASH EQUIVALENTS     (17,790 )     (3,176 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     138,353       98,980   CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 120,563     $ 95,804   SUPPLEMENTAL DISCLOSURES:             Unrealized (loss) gain on available-for-sale securities   $ (5,979 )   $ 1,001   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 accrued dividends included in other current liabilities and other liabilities     660       360   Net change in repurchases of common stock, inclusive of excise tax, included in other current liabilities     (100 )     —   Net change in accounts payable and accrued expenses related to purchases of property and equipment     3,165       4,242   Cash refunded (paid) for income taxes, net     8,649       (45,616 )   View source version on businesswire.com: https://www.businesswire.com/news/home/20260730415108/en/

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