Universal Display Corporation Announces Fourth Quarter and Full Year 2025 Financial Results
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 fourth quarter and full year ended December 31, 2025.
“We ended 2025 with record fourth quarter and annual revenues that were in line with our expectations,” said Brian Millard, Chief Financial Officer and Treasurer of Universal Display Corporation. “As we look ahead, we see meaningful long‑term opportunities, even as the near‑term environment remains dynamic. Several industry shifts continue to support the evolution of the OLED market, including growing interest in IT applications as performance and power‑efficiency requirements increase across laptops, tablets, and monitors. We’re also encouraged by the steady progress in foldable devices, which are moving beyond a niche category and becoming an increasingly important area of innovation for OEMs. While uncertainty persists across parts of the broader consumer electronics landscape, our focus remains on staying agile and closely aligned with our customers. Taken together, these trends reinforce our confidence in the long‑term potential of OLED and our position within the ecosystem.”
Financial Highlights for the Fourth Quarter of 2025
Revenue Comparison
($ in thousands)
Three Months Ended December 31,
2025
2024
Material sales
$
95,535
$
93,265
Royalty and license fees
72,581
64,411
Contract research services
4,811
4,617
Total revenue
$
172,927
$
162,293
Cost of Materials Comparison
($ in thousands)
Three Months Ended December 31,
2025
2024
Material sales
$
95,535
$
93,265
Cost of material sales
38,917
34,248
Gross margin on material sales
56,618
59,017
Gross margin as a % of material sales
59
%
63
%
Financial Highlights for the Full Year of 2025
Revenue Comparison
($ in thousands)
Year Ended December 31,
2025
2024
Material sales
$
352,974
$
365,419
Royalty and license fees
275,134
266,820
Contract research services
22,503
15,445
Total revenue
$
650,611
$
647,684
Cost of Materials Comparison
($ in thousands)
Year Ended December 31,
2025
2024
Material sales
$
352,974
$
365,419
Cost of material sales
139,837
137,006
Gross margin on material sales
213,137
228,413
Gross margin as a % of material sales
60
%
63
%
2026 Guidance
The Company believes that its 2026 revenue will be in the range of $650 million to $700 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly.
Dividend
The Company also announced a first quarter 2026 cash dividend of $0.50 per share on the Company’s common stock. The cash dividend is payable on March 31, 2026 to all shareholders of record as of the close of business on March 17, 2026.
Share Repurchases
The Company repurchased 291,210 shares of common stock for $34.1 million during the three and twelve months ended December 31, 2025. Year to date through February 17, 2026, the Company has repurchased 163,203 shares of common stock for $19.2 million.
Conference Call Information
In conjunction with this release, Universal Display will host a conference call on Thursday, February 19, 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.
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, 2025
December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
138,353
$
98,980
Short-term investments
464,004
393,690
Accounts receivable
119,953
113,648
Inventory
240,912
182,938
Other current assets
123,836
110,575
Total current assets
1,087,058
899,831
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $189,326 and $169,877
214,947
195,239
ACQUIRED TECHNOLOGY, net of accumulated amortization of $220,392 and $203,621
56,783
73,554
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $13,269 and $11,842
4,019
5,446
GOODWILL
15,535
15,535
INVESTMENTS
377,034
457,593
DEFERRED INCOME TAXES
79,454
78,320
OTHER ASSETS
128,932
106,815
TOTAL ASSETS
$
1,963,762
$
1,832,333
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
23,344
$
36,590
Accrued expenses
52,564
46,026
Deferred revenue
21,011
33,074
Other current liabilities
11,094
9,720
Total current liabilities
108,013
125,410
DEFERRED REVENUE
1,943
537
RETIREMENT PLAN BENEFIT LIABILITY
56,541
54,450
OTHER LIABILITIES
36,246
35,411
Total liabilities
202,743
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, 48,916,606 and 48,834,541 shares issued, and 47,259,748 and 47,468,893 shares outstanding at December 31, 2025 and December 31, 2024, respectively
489
488
Additional paid-in capital
744,692
723,719
Retained earnings
1,090,479
934,655
Accumulated other comprehensive income (loss)
781
(1,055
)
Treasury stock, at cost (1,656,858 and 1,365,648 shares at December 31, 2025 and December 31, 2024, respectively)
(75,424
)
(41,284
)
Total shareholders’ equity
1,761,019
1,616,525
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
1,963,762
$
1,832,333
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
REVENUE:
(Unaudited)
Material sales
$
95,535
$
93,265
$
352,974
$
365,419
Royalty and license fees
72,581
64,411
275,134
266,820
Contract research services
4,811
4,617
22,503
15,445
Total revenue
172,927
162,293
650,611
647,684
COST OF SALES
41,298
37,352
154,126
148,461
Gross margin
131,629
124,941
496,485
499,223
OPERATING EXPENSES:
Research and development
38,503
46,287
146,097
157,187
Selling, general and administrative
18,825
19,529
74,318
74,286
Amortization of acquired technology and other intangible assets
4,552
4,552
18,198
18,200
Patent costs
2,410
1,964
8,790
8,699
Royalty and license expense
103
120
504
2,048
Total operating expenses
64,393
72,452
247,907
260,420
OPERATING INCOME
67,236
52,489
248,578
238,803
Interest income, net
9,825
10,609
39,708
40,682
Other (loss) income, net
(395
)
(7,773
)
6,510
(7,357
)
Interest and other income, net
9,430
2,836
46,218
33,325
INCOME BEFORE INCOME TAXES
76,666
55,325
294,796
272,128
INCOME TAX EXPENSE
(10,324
)
(9,306
)
(52,721
)
(50,049
)
NET INCOME
$
66,342
$
46,019
$
242,075
$
222,079
NET INCOME PER COMMON SHARE:
BASIC
$
1.40
$
0.97
$
5.09
$
4.66
DILUTED
$
1.39
$
0.96
$
5.08
$
4.65
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:
BASIC
47,563,077
47,545,820
47,548,046
47,548,931
DILUTED
47,689,349
47,671,374
47,658,295
47,652,662
CASH DIVIDEND DECLARED PER COMMON SHARE
$
0.45
$
0.40
$
1.80
$
1.60
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
242,075
222,079
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
28,389
25,940
Impairment of property and equipment and right-of-use asset due to OVJP restructuring
1,577
7,498
Amortization of intangibles
18,198
18,200
Investment gains, net
(8,765
)
(7,399
)
Stock-based compensation
28,227
30,032
Deferred income tax benefit
(1,036
)
(19,117
)
Retirement plan expense, net of benefit payments
1,694
1,808
Decrease (increase) in assets:
Accounts receivable
(6,305
)
26,202
Inventory
(57,974
)
(7,143
)
Other current assets
(3,261
)
(23,210
)
Other assets
(23,694
)
(2,968
)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
2,114
10,357
Other current liabilities
(441
)
1,269
Deferred revenue
(10,657
)
(26,108
)
Other liabilities
689
(3,700
)
Net cash provided by operating activities
210,830
253,740
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(56,470
)
(42,637
)
Purchase of intangibles
(10,000
)
—
Purchases of investments
(375,506
)
(594,848
)
Proceeds from sale and maturity of investments
396,500
473,075
Net cash used in investing activities
(45,476
)
(164,410
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock
2,020
2,220
Repurchases of common stock
(32,881
)
—
Payment of withholding taxes related to stock-based compensation to employees
(9,571
)
(8,386
)
Cash dividends paid
(85,549
)
(76,169
)
Net cash used in financing activities
(125,981
)
(82,335
)
INCREASE IN CASH AND CASH EQUIVALENTS
39,373
6,995
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
98,980
91,985
CASH AND CASH EQUIVALENTS, END OF YEAR
$
138,353
$
98,980
SUPPLEMENTAL DISCLOSURES:
Unrealized gain on available-for-sale securities
$
1,984
$
411
Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period
300
300
Repurchases of common stock included in other current liabilities
1,259
—
Net change in accounts payable and accrued expenses related to purchases of property and equipment
8,373
(9,448
)
Cash paid for income taxes, net of refunds
71,438
71,973