Universal Display Corporation Announces Fourth Quarter and Full Year 2025 Financial Results

Key Terms

universalpholed technical

A universal phosphorescent OLED (PHOLED) is a type of organic light-emitting diode that uses special phosphorescent materials and a broadly compatible ‘host’ layer to produce bright, energy-efficient light across multiple colors. Think of it as a single light bulb socket that accepts many bulb types while using much less power and lasting longer than older bulbs. For investors, advances in universal PHOLED materials can lower manufacturing costs, improve device efficiency and lifetime, and thus affect makers of displays and lighting products.

gross margin financial

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

operating income financial

Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.

effective income tax rate financial

The effective income tax rate is the share of a company’s pre-tax profit that it actually pays in income taxes, calculated by dividing total tax expense by pre-tax income. For investors, it shows how much tax reduces a company’s earnings — like knowing the difference between a car’s sticker price and what you actually pay after fees and discounts — and helps compare profitability and cash available for growth or dividends.

deferred revenue financial

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

goodwill financial

Goodwill is the extra value a buyer pays for a company above the measurable worth of its buildings, inventory and other tangible items, reflecting things like brand reputation, customer loyalty and expected future profits. Think of paying more for a café because of its famous name and regulars rather than its furniture alone. It matters to investors because changes in goodwill — for example a write-down if expected benefits don’t materialize — can reduce reported earnings and signal that past acquisitions aren’t delivering as hoped.

available-for-sale securities financial

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

forward-looking statements regulatory

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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

 

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Universal Display Contact:

Darice Liu

investor@oled.com

media@oled.com

+1 609-964-5123

Source: Universal Display Corporation