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Universal Display Corp

Universal Display Corporation Announces First Quarter 2025 Financial Results

EWING, N.J.--(BUSINESS WIRE)--May 1, 2025-- Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2025.

“We began 2025 on a solid financial note and continue to remain confident in the long-term growth trajectory of the OLED market. At the same time, we recognize the increasing complexity and uncertainty of the global landscape. In this environment, we are committed to our long-term strategy of advancing our leadership through the continuous invention, development and delivery of state-of-the-art OLED technologies and materials. With a powerful innovation engine, strong balance sheet, resilient supply chain, and operational agility, we are well-positioned to adapt to change, respond swiftly and continue supporting our customers and partners,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation.

Financial Highlights for the First Quarter of 2025

  • Total revenue in the first quarter of 2025 was $166.3 million as compared to $165.3 million in the first quarter of 2024.
  • Revenue from material sales was $86.2 million in the first quarter of 2025 as compared to $93.3 million in the first quarter of 2024. The decrease in material sales was primarily due to lower unit material volume for our emitter materials, partially offset by changes in customer mix.
  • Revenue from royalty and license fees was $73.6 million in the first quarter of 2025 as compared to $68.3 million in the first 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 $33.9 million in the first quarter of 2025 as compared to $34.1 million in the first quarter of 2024 due to lower unit material volume, partially offset by changes in product mix.
  • Total gross margin was 77% in the first quarter of 2025 as compared to 78% in the first quarter of 2024.
  • Operating income was $69.7 million in the first quarter of 2025 as compared to $62.9 million in the first quarter of 2024.
  • The effective income tax rate was 19.6% in the first quarter of 2025 as compared to 19.4% in the first quarter of 2024.
  • Net income was $64.4 million or $1.35 per diluted share in the first quarter of 2025 as compared to $56.9 million or $1.19 per diluted share in the first quarter of 2024.

Revenue Comparison

 

($ in thousands)

 

Three Months Ended March 31,

 

 

 

 

2025

 

 

2024

 

 

Material sales

 

$

86,155

 

 

$

93,284

 

 

Royalty and license fees

 

 

73,569

 

 

 

68,268

 

 

Contract research services

 

 

6,553

 

 

 

3,707

 

 

Total revenue

 

$

166,277

 

 

$

165,259

 

Cost of Materials Comparison

 

($ in thousands)

 

Three Months Ended March 31,

 

 

 

 

2025

 

 

2024

 

 

Material sales

 

$

86,155

 

 

$

93,284

 

 

Cost of material sales

 

 

33,949

 

 

 

34,096

 

 

Gross margin on material sales

 

 

52,206

 

 

 

59,188

 

 

Gross margin as a % of material sales

 

 

61

%

 

 

63

%

2025 Guidance

While the evolving macroeconomic environment this year creates greater uncertainty, the Company affirms its previous revenue guidance and believes that 2025 revenue will be the range of $640 million to $700 million.

Dividend

The Company also announced a second quarter cash dividend of $0.45 per share on the Company’s common stock. The dividend is payable on June 30, 2025 to all shareholders of record as of the close of business on June 16, 2025.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on Thursday, May 1, 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)

 

 

 

March 31, 2025

 

 

December 31, 2024

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

157,473

 

 

$

98,980

 

Short-term investments

 

 

413,805

 

 

 

393,690

 

Accounts receivable

 

 

139,563

 

 

 

113,648

 

Inventory

 

 

197,398

 

 

 

182,938

 

Other current assets

 

 

110,175

 

 

 

110,575

 

Total current assets

 

 

1,018,414

 

 

 

899,831

 

PROPERTY AND EQUIPMENT, net of accumulated depreciation of $168,110 and $169,877

 

 

196,263

 

 

 

195,239

 

ACQUIRED TECHNOLOGY, net of accumulated amortization of $207,814 and $203,621

 

 

69,361

 

 

 

73,554

 

OTHER INTANGIBLE ASSETS, net of accumulated amortization of $12,194 and $11,842

 

 

5,094

 

 

 

5,446

 

GOODWILL

 

 

15,535

 

 

 

15,535

 

INVESTMENTS

 

 

369,027

 

 

 

457,593

 

DEFERRED INCOME TAXES

 

 

81,410

 

 

 

78,320

 

OTHER ASSETS

 

 

109,383

 

 

 

106,815

 

TOTAL ASSETS

 

$

1,864,487

 

 

$

1,832,333

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

28,294

 

 

$

36,590

 

Accrued expenses

 

 

35,089

 

 

 

46,026

 

Deferred revenue

 

 

22,772

 

 

 

33,074

 

Other current liabilities

 

 

26,944

 

 

 

9,720

 

Total current liabilities

 

 

113,099

 

 

 

125,410

 

DEFERRED REVENUE

 

 

2,348

 

 

 

537

 

RETIREMENT PLAN BENEFIT LIABILITY

 

 

54,867

 

 

 

54,450

 

OTHER LIABILITIES

 

 

34,841

 

 

 

35,411

 

Total liabilities

 

 

205,155

 

 

 

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, 48,937,424 and 48,834,541 shares issued, and 47,571,776 and 47,468,893 shares outstanding, at March 31, 2025 and December 31, 2024, respectively

 

 

489

 

 

 

488

 

Additional paid-in capital

 

 

722,275

 

 

 

723,719

 

Retained earnings

 

 

977,556

 

 

 

934,655

 

Accumulated other comprehensive income (loss)

 

 

294

 

 

 

(1,055

)

Treasury stock, at cost (1,365,648 shares at March 31, 2025 and December 31, 2024)

 

 

(41,284

)

 

 

(41,284

)

Total shareholders’ equity

 

 

1,659,332

 

 

 

1,616,525

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,864,487

 

 

$

1,832,333

 

 

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in thousands, except share and per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

REVENUE:

 

 

 

 

 

 

Material sales

 

$

86,155

 

 

$

93,284

 

Royalty and license fees

 

 

73,569

 

 

 

68,268

 

Contract research services

 

 

6,553

 

 

 

3,707

 

Total revenue

 

 

166,277

 

 

 

165,259

 

COST OF SALES

 

 

38,134

 

 

 

36,969

 

Gross margin

 

 

128,143

 

 

 

128,290

 

OPERATING EXPENSES:

 

 

 

 

 

 

Research and development

 

 

34,900

 

 

 

37,985

 

Selling, general and administrative

 

 

17,014

 

 

 

19,252

 

Amortization of acquired technology and other intangible assets

 

 

4,545

 

 

 

4,548

 

Patent costs

 

 

1,906

 

 

 

1,982

 

Royalty and license expense

 

 

114

 

 

 

1,651

 

Total operating expenses

 

 

58,479

 

 

 

65,418

 

OPERATING INCOME

 

 

69,664

 

 

 

62,872

 

Interest income, net

 

 

10,074

 

 

 

9,568

 

Other income (loss), net

 

 

378

 

 

 

(1,943

)

Interest and other income (loss), net

 

 

10,452

 

 

 

7,625

 

INCOME BEFORE INCOME TAXES

 

 

80,116

 

 

 

70,497

 

INCOME TAX EXPENSE

 

 

(15,672

)

 

 

(13,644

)

NET INCOME

 

$

64,444

 

 

$

56,853

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

BASIC

 

$

1.35

 

 

$

1.19

 

DILUTED

 

$

1.35

 

 

$

1.19

 

WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

BASIC

 

 

47,567,295

 

 

 

47,557,959

 

DILUTED

 

 

47,689,657

 

 

 

47,628,492

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.45

 

 

$

0.40

 

 

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

 
 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

64,444

 

 

$

56,853

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

6,548

 

 

 

6,616

 

Amortization of intangibles

 

 

4,545

 

 

 

4,548

 

Amortization of premium and discount on investments, net

 

 

(1,471

)

 

 

(2,236

)

Stock-based compensation

 

 

7,076

 

 

 

9,174

 

Deferred income tax benefit

 

 

(3,091

)

 

 

(3,936

)

Retirement plan expense, net of benefit payments

 

 

423

 

 

 

330

 

Decrease (increase) in assets:

 

 

 

 

 

 

Accounts receivable

 

 

(25,915

)

 

 

20,266

 

Inventory

 

 

(14,460

)

 

 

2,890

 

Other current assets

 

 

400

 

 

 

(2,113

)

Other assets

 

 

(2,568

)

 

 

2,907

 

Increase (decrease) in liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

(13,408

)

 

 

(7,977

)

Other current liabilities

 

 

16,867

 

 

 

12,786

 

Deferred revenue

 

 

(8,491

)

 

 

(27,270

)

Other liabilities

 

 

(337

)

 

 

(682

)

Net cash provided by operating activities

 

 

30,562

 

 

 

72,156

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(13,059

)

 

 

(7,206

)

Purchases of investments

 

 

(38,772

)

 

 

(99,947

)

Proceeds from sale and maturity of investments

 

 

110,000

 

 

 

42,970

 

Net cash provided by (used in) investing activities

 

 

58,169

 

 

 

(64,183

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

579

 

 

 

639

 

Payment of withholding taxes related to stock-based compensation to employees

 

 

(9,398

)

 

 

(7,058

)

Cash dividends paid

 

 

(21,419

)

 

 

(19,527

)

Net cash used in financing activities

 

 

(30,238

)

 

 

(25,946

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

58,493

 

 

 

(17,973

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

98,980

 

 

 

91,985

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

157,473

 

 

$

74,012

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale securities

 

$

1,320

 

 

$

(2,666

)

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

 

 

5,487

 

 

 

(156

)

Cash paid for income taxes, net of refunds

 

 

2,266

 

 

 

5,085

 

 

Universal Display Contact:
Darice Liu
investor@oled.com
media@oled.com
+1 609-964-5123

Source: Universal Display Corporation