Universal Display Corporation Announces Third 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 third quarter ended September 30, 2025 . “We continue to be energized by the opportunities ahead for the OLED industry and the unfolding IT and automotive capex cycle. Third-quarter results reflect timing shifts, including customer pull-ins earlier in the year and a one-time out-of-period adjustment. We are confident that our technology leadership, strong business model and deep customer partnerships continue to position us to capture growth across this expanding market,” said Brian Millard , Chief Financial Officer and Treasurer of Universal Display Corporation . “From pioneering research to high-volume commercialization, we continue to push the boundaries of OLED technologies and materials. Looking forward, we are focused on accelerating innovation, broadening our solutions and services and supporting OLED adoption across an ever-widening range of applications.” Financial Highlights for the Third Quarter of 2025 Total revenue in the third quarter of 2025 was $139.6 million as compared to $161.6 million in the third quarter of 2024. Revenue from material sales was $82.6 million in the third quarter of 2025 as compared to $83.4 million in the third quarter of 2024. Revenue from royalty and license fees was $53.3 million in the third quarter of 2025 as compared to $74.6 million in the third quarter of 2024. The decrease in royalty and license fees was primarily the result of changes in customer mix and an out-of-period adjustment of $9.5 million . Cost of material sales was $32.8 million in the third quarter of 2025 as compared to $33.2 million in the third quarter of 2024. Total gross margin was 75% in the third quarter of 2025 as compared to 78% in the third quarter of 2024. Operating income was $43.1 million in the third quarter of 2025 as compared to $67.0 million in the third quarter of 2024. The effective income tax rate was 18.7% in the third quarter of 2025 as compared to 17.9% in the third quarter of 2024. Net income was $44.0 million or $0.92 per diluted share in the third quarter of 2025 as compared to $66.9 million or $1.40 per diluted share in the third quarter of 2024. Revenue Comparison ($ in thousands) Three Months Ended September 30 , 2025 2024 Material sales $ 82,634 $ 83,428 Royalty and license fees 53,317 74,590 Contract research services 3,662 3,609 Total revenue $ 139,613 $ 161,627 Cost of Materials Comparison ($ in thousands) Three Months Ended September 30 , 2025 2024 Material sales $ 82,634 $ 83,428 Cost of material sales 32,817 33,172 Gross margin on material sales 49,817 50,256 Gross margin as a % of material sales 60 % 60 % Financial Highlights for the First Nine Months of 2025 Total revenue in the first nine months of 2025 was $477.7 million as compared to $485.4 million in the first nine months of 2024. Revenue from material sales was $257.4 million in the first nine months of 2025 as compared to $272.2 million in the first nine months of 2024. The decrease in material sales was primarily due to lower unit material volume and changes in customer mix. Revenue from royalty and license fees was $202.6 million in the first nine months of 2025 as compared to $202.4 million in the first nine months of 2024. The increase was due to changes in customer mix, partially offset by the out-of-period adjustment of $7.1 million reflected in the third quarter of 2025. Cost of material sales was $100.9 million in the first nine months of 2025 as compared to $102.8 million in the first nine months of 2024. Total gross margin was 76% in the first nine months of 2025 as compared to 77% in the first nine months of 2024. Operating income was $181.3 million in the first nine months of 2025 as compared to $186.3 million in the first nine months of 2024. The effective income tax rate was 19.4% in the first nine months of 2025 as compared to 18.8% in the first nine months of 2024. Net income was $175.7 million or $3.68 per diluted share in the first nine months of 2025 as compared to $176.1 million or $3.69 per diluted share in the first nine months of 2024. Revenue Comparison ($ in thousands) Nine Months Ended September 30 , 2025 2024 Material sales $ 257,439 $ 272,154 Royalty and license fees 202,553 202,409 Contract research services 17,692 10,828 Total revenue $ 477,684 $ 485,391 Cost of Materials Comparison ($ in thousands) Nine Months Ended September 30 , 2025 2024 Material sales $ 257,439 $ 272,154 Cost of material sales 100,920 102,759 Gross margin on material sales 156,519 169,395 Gross margin as a % of material sales 61 % 62 % Revised 2025 Guidance The Company now believes that 2025 revenue will be around the lower end of its previous guidance range of $650 million to $700 million . Dividend The Company also announced a fourth quarter cash dividend of $0.45 per share on the Company’s common stock. The dividend is payable on December 31, 2025 to all shareholders of record as of the close of business on December 17, 2025 . Conference Call Information In conjunction with this release, Universal Display will host a conference call on Thursday, November 6, 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) September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 121,609 $ 98,980 Short-term investments 481,366 393,690 Accounts receivable 74,214 113,648 Inventory 212,621 182,938 Other current assets 147,503 110,575 Total current assets 1,037,313 899,831 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $181,880 and $169,877 209,802 195,239 ACQUIRED TECHNOLOGY, net of accumulated amortization of $216,199 and $203,621 60,976 73,554 OTHER INTANGIBLE ASSETS, net of accumulated amortization of $12,910 and $11,842 4,378 5,446 GOODWILL 15,535 15,535 INVESTMENTS 422,929 457,593 DEFERRED INCOME TAXES 77,339 78,320 OTHER ASSETS 119,179 106,815 TOTAL ASSETS $ 1,947,451 $ 1,832,333 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 34,728 $ 36,590 Accrued expenses 42,834 46,026 Deferred revenue 23,264 33,074 Other current liabilities 7,814 9,720 Total current liabilities 108,640 125,410 DEFERRED REVENUE 1,584 537 RETIREMENT PLAN BENEFIT LIABILITY 55,703 54,450 OTHER LIABILITIES 36,718 35,411 Total liabilities 202,645 215,808 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, 48,907,893 and 48,834,541 shares issued, and 47,542,245 and 47,468,893 shares outstanding, at September 30, 2025 and December 31, 2024 , respectively 489 488 Additional paid-in capital 739,052 723,719 Retained earnings 1,045,628 934,655 Accumulated other comprehensive income (loss) 919 (1,055 ) Treasury stock, at cost (1,365,648 shares at September 30, 2025 and December 31, 2024 ) (41,284 ) (41,284 ) Total shareholders’ equity 1,744,806 1,616,525 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,947,451 $ 1,832,333 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except share and per share data) Three Months Ended September 30 , Nine Months Ended September 30 , 2025 2024 2025 2024 REVENUE: Material sales $ 82,634 $ 83,428 $ 257,439 $ 272,154 Royalty and license fees 53,317 74,590 202,553 202,409 Contract research services 3,662 3,609 17,692 10,828 Total revenue 139,613 161,627 477,684 485,391 COST OF SALES 35,491 35,812 112,828 111,109 Gross margin 104,122 125,815 364,856 374,282 OPERATING EXPENSES: Research and development 36,336 36,089 107,594 110,900 Selling, general and administrative 18,039 15,664 55,493 54,757 Amortization of acquired technology and other intangible assets 4,553 4,551 13,646 13,648 Patent costs 1,886 2,352 6,380 6,735 Royalty and license expense 170 154 401 1,928 Total operating expenses 60,984 58,810 183,514 187,968 OPERATING INCOME 43,138 67,005 181,342 186,314 Interest income, net 10,046 10,592 29,883 30,073 Other income, net 952 3,819 6,905 416 Interest and other income, net 10,998 14,411 36,788 30,489 INCOME BEFORE INCOME TAXES 54,136 81,416 218,130 216,803 INCOME TAX EXPENSE (10,111 ) (14,546 ) (42,397 ) (40,743 ) NET INCOME $ 44,025 $ 66,870 $ 175,733 $ 176,060 NET INCOME PER COMMON SHARE: BASIC $ 0.93 $ 1.40 $ 3.69 $ 3.69 DILUTED $ 0.92 $ 1.40 $ 3.68 $ 3.69 WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: BASIC 47,554,970 47,542,114 47,571,930 47,549,976 DILUTED 47,676,500 47,669,439 47,681,477 47,644,026 CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.45 $ 0.40 $ 1.35 $ 1.20 UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Nine Months Ended September 30 , 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 175,733 $ 176,060 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 20,932 19,488 Amortization of intangibles 13,646 13,648 Investment gains, net (6,630 ) (5,930 ) Stock-based compensation 22,888 23,812 Deferred income tax expense (benefit) 977 (12,878 ) Retirement plan expense, net of benefit payments 1,271 1,385 Decrease (increase) in assets: Accounts receivable 39,434 52,157 Inventory (29,683 ) (163 ) Other current assets (36,928 ) (39,278 ) Other assets (12,364 ) (4,397 ) Increase (decrease) in liabilities: Accounts payable and accrued expenses 304 9,405 Other current liabilities (2,406 ) (1,977 ) Deferred revenue (8,763 ) (9,950 ) Other liabilities 1,270 (2,355 ) Net cash provided by operating activities 179,681 219,027 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (40,383 ) (29,960 ) Purchases of investments (319,593 ) (337,949 ) Proceeds from sale and maturity of investments 275,000 200,768 Net cash used in investing activities (84,976 ) (167,141 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 1,617 1,776 Payment of withholding taxes related to stock-based compensation to employees (9,470 ) (8,251 ) Cash dividends paid (64,223 ) (57,837 ) Net cash used in financing activities (72,076 ) (64,312 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 22,629 (12,426 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 98,980 91,985 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 121,609 $ 79,559 SUPPLEMENTAL DISCLOSURES: Unrealized gain on available-for-sale securities $ 1,789 $ 4,117 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 4,888 (5,573 ) Cash paid for income taxes, net of refunds 53,995 60,772 View source version on businesswire.com : https://www.businesswire.com/news/home/20251106475487/en/ Universal Display Contact: Darice Liu [email protected] [email protected] +1 609-964-5123 Source: Universal Display Corporation

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