Universal Display Corporation Announces Second Quarter 2025 Financial Results
EWING, N.J. – July 31, 2025 – 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.
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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
