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
- Total revenue in the fourth quarter of 2025 was $172.9 million as compared to $162.3 million in the fourth quarter of 2024.
- Revenue from material sales was $95.5 million in the fourth quarter of 2025 as compared to $93.3 million in the fourth quarter of 2024. The increase was primarily due to higher unit material volume and changes in customer mix.
- Revenue from royalty and license fees was $72.6 million in the fourth quarter of 2025 as compared to $64.4 million in the fourth quarter of 2024. The increase was primarily due to higher unit material volume and changes in customer mix.
- Cost of material sales was $38.9 million in the fourth quarter of 2025 as compared to $34.2 million in the fourth quarter of 2024 due to higher unit material volume.
- Total gross margin was 76% in the fourth quarter of 2025 as compared to 77% in the fourth quarter of 2024.
- Operating income was $67.2 million in the fourth quarter of 2025 as compared to $52.5 million in the fourth quarter of 2024. Fourth quarter 2024 results included $8.9 million of restructuring costs, recorded in research and development expenses, related to the closure of the OVJP California location and related reorganization.
- The effective income tax rate was 13.5% and 16.8% in the fourth quarter of 2025 and 2024, respectively.
- Net income was $66.3 million or $1.39 per diluted share in the fourth quarter of 2025 as compared to $46.0 million or $0.96 per diluted share in the fourth quarter of 2024.
Revenue Comparison
($ 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
- Total revenue in 2025 was $650.6 million as compared to $647.7 million in 2024.
- Revenue from material sales was $353.0 million in 2025 as compared to $365.4 million in 2024. The decrease was primarily due to changes in customer mix and lower unit material volume.
- Revenue from royalty and license fees was $275.1 million in 2025 as compared to $266.8 million in 2024. The increase was primarily the result of changes in customer mix, partially offset by an out-of-period adjustment recorded in the third quarter of 2025 which reduced 2025 revenues by $7.1 million.
- Cost of material sales was $139.8 million in 2025 as compared to $137.0 million in 2024.
- Total gross margin was 76% in 2025 as compared to 77% in 2024.
- Operating income was $248.6 million in 2025 as compared to $238.8 million in 2024.
- The effective income tax rate was 17.9% and 18.4% in 2025 and 2024, respectively.
- Net income was $242.1 million or $5.08 per diluted share in 2025 compared to $222.1 million or $4.65 per diluted share in 2024.
Revenue Comparison
($ 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 | |
Source: Universal Display Corporation