Universal Display Corporation Announces Third Quarter 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 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
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
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.
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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