[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) This section provides an introduction to Universal Display Corporation, highlighting its record Q2 2025 financial performance, revised revenue guidance, and its leadership in OLED technology [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Universal Display Corporation announced record financial performance for the second quarter of 2025, leading to an upward revision of the low end of its 2025 revenue guidance. The company anticipates significant growth driven by the expanding OLED IT market and broader adoption across consumer electronics and automotive sectors - Universal Display Corporation reported **record financial performance** in the second quarter of 2025[3](index=3&type=chunk) - The low end of the 2025 revenue guidance range has been raised, now projected to be **$650 million to $700 million**[3](index=3&type=chunk) - The OLED industry is believed to be entering a dynamic new phase of expansion, driven by increasing demand in the nascent OLED IT market (tablets, laptops, monitors) and broader adoption in consumer electronics and automotive applications[3](index=3&type=chunk) [About Universal Display Corporation](index=7&type=section&id=About%20Universal%20Display%20Corporation) Universal Display Corporation is a global leader in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials. The company holds over 6,500 patents and licenses its proprietary UniversalPHOLED® technology, which enables energy-efficient and eco-friendly displays and lighting solutions - Universal Display Corporation is a leader in the research, development, and commercialization of OLED technologies and materials for display and solid-state lighting applications[13](index=13&type=chunk) - The company owns, exclusively licenses, or has the sole right to sublicense more than **6,500 patents** issued and pending worldwide[13](index=13&type=chunk) - UniversalPHOLED® phosphorescent OLED technology enables the development of energy-efficient and eco-friendly displays and solid-state lighting[13](index=13&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note, indicating that statements regarding future adoption, development of technologies, expected results, and OLED market growth are forward-looking. These statements are subject to various risks and uncertainties that could cause actual results to differ materially, as detailed in the company's SEC filings, particularly the 'Risk Factors' section of its Form 10-K - Statements in the document relating to projected adoption, development of technologies, expected results, and OLED market growth are **forward-looking financial statements**[16](index=16&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, as they are subject to risks and uncertainties that could cause actual results to differ materially[16](index=16&type=chunk) - 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 SEC[16](index=16&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) This section details Universal Display Corporation's financial performance for the second quarter of 2025, including revenue, cost of materials, and key profitability metrics [Q2 2025 Financial Highlights](index=2&type=section&id=Q2%202025%20Financial%20Highlights) Universal Display Corporation reported an **8.4% increase in total revenue** for Q2 2025, reaching **$171.8 million**, primarily driven by a significant **27.0% rise in royalty and license fees**, leading to a diluted EPS of **$1.41** | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :------------- | | Total Revenue | 171.8 | 158.5 | 8.4% | | Material Sales | 88.7 | 95.4 | -7.1% | | Royalty & License Fees | 75.7 | 59.6 | 27.0% | | Cost of Material Sales | 34.2 | 35.5 | -3.7% | | Total Gross Margin | 77% | 76% | 1 p.p. | | Operating Income | 68.5 | 56.4 | 21.5% | | Effective Income Tax Rate | 19.8% | 19.3% | 0.5 p.p. | | Net Income | 67.3 | 52.3 | 28.7% | | Diluted EPS | 1.41 | 1.10 | 28.2% | - The decrease in material sales was primarily due to changes in customer mix and lower unit material volume for emitter materials[4](index=4&type=chunk) - The increase in royalty and license fees was primarily the result of changes in customer mix, partially offset by lower unit material volume[4](index=4&type=chunk) [Q2 2025 Revenue Comparison](index=3&type=section&id=Q2%202025%20Revenue%20Comparison) Total revenue for Q2 2025 increased to **$171,794 thousand**, driven by a **27.1% increase in royalty and license fees**, offsetting a **7.1% decline in material sales** | Revenue Type | Q2 2025 ($ thousand) | Q2 2024 ($ thousand) | YoY Change | | :---------------------- | :----------------------- | :----------------------- | :--------- | | Material sales | $88,650 | $95,442 | -7.1% | | Royalty and license fees | $75,667 | $59,551 | 27.1% | | Contract research services | $7,477 | $3,512 | 112.9% | | **Total revenue** | **$171,794** | **$158,505** | **8.4%** | [Q2 2025 Cost of Materials Comparison](index=3&type=section&id=Q2%202025%20Cost%20of%20Materials%20Comparison) Gross margin on material sales for Q2 2025 decreased to **61%** from **63%**, reflecting a **7.1% decline in material sales revenue** despite a **3.8% reduction in cost of material sales** | Metric | Q2 2025 ($ thousand) | Q2 2024 ($ thousand) | YoY Change | | :---------------------------------- | :----------------------- | :----------------------- | :--------- | | Material sales | $88,650 | $95,442 | -7.1% | | Cost of material sales | $34,154 | $35,491 | -3.8% | | Gross margin on material sales | $54,496 | $59,951 | -9.1% | | Gross margin as a % of material sales | 61% | 63% | -2 p.p. | [First Half 2025 Financial Results](index=4&type=section&id=First%20Half%202025%20Financial%20Results) This section presents Universal Display Corporation's financial performance for the first half of 2025, covering revenue, cost of materials, and overall profitability [H1 2025 Financial Highlights](index=4&type=section&id=H1%202025%20Financial%20Highlights) For H1 2025, total revenue increased by **4.4% to $338.1 million**, driven by a **16.7% increase in royalty and license fees**, resulting in a diluted EPS of **$2.76** | Metric | H1 2025 ($ million) | H1 2024 ($ million) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :------------- | | Total Revenue | 338.1 | 323.8 | 4.4% | | Material Sales | 174.8 | 188.7 | -7.4% | | Royalty & License Fees | 149.2 | 127.8 | 16.7% | | Cost of Material Sales | 68.1 | 69.6 | -2.2% | | Total Gross Margin | 77% | 77% | 0 p.p. | | Operating Income | 138.2 | 119.3 | 15.8% | | Effective Income Tax Rate | 19.7% | 19.3% | 0.4 p.p. | | Net Income | 131.7 | 109.2 | 20.6% | | Diluted EPS | 2.76 | 2.29 | 20.5% | - The decrease in material sales was primarily due to lower unit material volume for emitter materials and changes in customer mix[7](index=7&type=chunk) - The increase in royalty and license fees was primarily the result of changes in customer mix, partially offset by lower unit material volume[7](index=7&type=chunk) [H1 2025 Revenue Comparison](index=5&type=section&id=H1%202025%20Revenue%20Comparison) Total revenue for H1 2025 increased to **$338,071 thousand**, primarily due to a **16.8% increase in royalty and license fees** and a **94.4% surge in contract research services** | Revenue Type | H1 2025 ($ thousand) | H1 2024 ($ thousand) | YoY Change | | :---------------------- | :----------------------- | :----------------------- | :--------- | | Material sales | $174,805 | $188,726 | -7.4% | | Royalty and license fees | $149,236 | $127,819 | 16.8% | | Contract research services | $14,030 | $7,219 | 94.4% | | **Total revenue** | **$338,071** | **$323,764** | **4.4%** | [H1 2025 Cost of Materials Comparison](index=5&type=section&id=H1%202025%20Cost%20of%20Materials%20Comparison) Gross margin on material sales for H1 2025 was **61%**, a **2 percentage point decrease** from the prior year, driven by a **7.4% decline in material sales revenue** | Metric | H1 2025 ($ thousand) | H1 2024 ($ thousand) | YoY Change | | :---------------------------------- | :----------------------- | :----------------------- | :--------- | | Material sales | $174,805 | $188,726 | -7.4% | | Cost of material sales | $68,103 | $69,587 | -2.1% | | Gross margin on material sales | $106,702 | $119,139 | -10.4% | | Gross margin as a % of material sales | 61% | 63% | -2 p.p. | [Business Outlook and Shareholder Information](index=6&type=section&id=Business%20Outlook%20and%20Shareholder%20Information) This section outlines Universal Display Corporation's updated 2025 revenue guidance, dividend declaration, and details for the upcoming financial results conference call [Revised 2025 Revenue Guidance](index=6&type=section&id=Revised%202025%20Revenue%20Guidance) Universal Display Corporation revised its 2025 revenue guidance to a range of **$650 million to $700 million**, reflecting an increase in the lower end of the previous projection - The Company has increased the lower end of its previous revenue guidance for 2025[10](index=10&type=chunk) | Metric | 2025 Guidance ($ million) | | :------------- | :-------------- | | Revenue Range | $650 million to $700 million | [Dividend Announcement](index=6&type=section&id=Dividend%20Announcement) Universal Display Corporation announced a third-quarter cash dividend of **$0.45 per share** on its common stock. The dividend is scheduled for payment on September 30, 2025, to shareholders of record as of September 16, 2025 | Metric | Value | | :-------------------- | :------ | | Cash Dividend per Share | $0.45 | | Payable Date | September 30, 2025 | | Record Date | September 16, 2025 | [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Universal Display will host a conference call on Thursday, July 31, 2025, at 5:00 p.m. Eastern Time to discuss the financial results. A live webcast will be available on the company's Investor Relations website, with dial-in options provided for participants - A conference call will be hosted on **Thursday, July 31, 2025, at 5:00 p.m. Eastern Time**[12](index=12&type=chunk) - The live webcast can be accessed under the events page of the Company's Investor Relations website at ir.oled.com[12](index=12&type=chunk) - Participants can dial **1-877-524-8416 (toll-free)** or **1-412-902-1028** to join the live call[12](index=12&type=chunk) [Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides the unaudited consolidated balance sheets, statements of income, and statements of cash flows for Universal Display Corporation [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased by **5.4% to $1,931,698 thousand**, driven by a **12.3% rise in current assets**, leading to a **6.1% increase in shareholders' equity** | Metric | June 30, 2025 ($ thousand) | December 31, 2024 ($ thousand) | Change | | :-------------------------------- | :------------------------------- | :--------------------------------- | :------- | | Total Current Assets | $1,010,802 | $899,831 | +12.3% | | Total Assets | $1,931,698 | $1,832,333 | +5.4% | | Total Current Liabilities | $125,555 | $125,410 | +0.1% | | Total Liabilities | $217,086 | $215,808 | +0.6% | | Total Shareholders' Equity | $1,714,612 | $1,616,525 | +6.1% | - Short-term investments increased from **$393,690 thousand to $429,404 thousand**, and accounts receivable increased from **$113,648 thousand to $147,043 thousand**[19](index=19&type=chunk) - Retained earnings significantly increased from **$934,655 thousand to $1,023,184 thousand**[19](index=19&type=chunk) [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) For the six months ended June 30, 2025, net income increased by **20.6% to $131,708 thousand**, driven by a **4.4% increase in total revenue** and a **15.8% rise in operating income** | Metric | Q2 2025 ($ thousand) | Q2 2024 ($ thousand) | H1 2025 ($ thousand) | H1 2024 ($ thousand) | | :---------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Total Revenue | $171,794 | $158,505 | $338,071 | $323,764 | | Cost of Sales | $39,203 | $38,328 | $77,337 | $75,297 | | Gross Margin | $132,591 | $120,177 | $260,734 | $248,467 | | Total Operating Expenses | $64,051 | $63,740 | $122,530 | $129,158 | | Operating Income | $68,540 | $56,437 | $138,204 | $119,309 | | Income Before Income Taxes | $83,878 | $64,890 | $163,994 | $135,387 | | Net Income | $67,264 | $52,337 | $131,708 | $109,190 | | Diluted EPS | $1.41 | $1.10 | $2.76 | $2.29 | | Cash Dividends Declared Per Share | $0.45 | $0.40 | $0.90 | $0.80 | - Research and development expenses decreased from **$74,811 thousand in H1 2024 to $71,258 thousand in H1 2025**[21](index=21&type=chunk) - Royalty and license expense significantly decreased from **$1,774 thousand in H1 2024 to $231 thousand in H1 2025**[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased by **40.8% to $82,498 thousand** in H1 2025, primarily due to increases in accounts receivable and inventory | Metric | H1 2025 ($ thousand) | H1 2024 ($ thousand) | Change | | :------------------------------------ | :----------------------- | :----------------------- | :------- | | Net cash provided by operating activities | $82,498 | $139,169 | -40.8% | | Net cash used in investing activities | $(34,487) | $(93,471) | +63.1% | | Net cash used in financing activities | $(51,187) | $(44,827) | -14.2% | | (Decrease) Increase in Cash & Equivalents | $(3,176) | $871 | -464.6% | | Cash & Equivalents, End of Period | $95,804 | $92,856 | +3.2% | - The decrease in net cash from operating activities was significantly impacted by a **$33,395 thousand increase in accounts receivable** and a **$25,261 thousand increase in inventory**[23](index=23&type=chunk) - Net cash used in investing activities decreased due to higher proceeds from the sale and maturity of investments (**$185,000 thousand in H1 2025 vs. $97,620 thousand in H1 2024**)[23](index=23&type=chunk)

2024 Corporate Social Responsibility Report © 2025 Universal Display Corporation. All rights reserved. Issued on April 24, 2025. Table of Contents | 3 | Message from Our CEO | 39 | Our Carbon & Climate | | --- | --- | --- | --- | | 4 | Our Company | 43 | Our Environment, Health & Safety | | 13 | Our People | 51 | Our Performance | | 24 | Our Community | 57 GRI Index | | | 28 | Our Supply Chain | 71 SASB Index | | | 36 | Our Certified Management Systems | 75 | About Our Report | 2 A Message From Our CEO Stev ...

Financial Data and Key Metrics Changes - The meeting did not provide specific financial data or key metrics changes for FY 2025 [3][4][12] Business Line Data and Key Metrics Changes - No detailed information on individual business line performance or key metrics was shared during the meeting [3][4][12] Market Data and Key Metrics Changes - There was no discussion regarding market data or key metrics changes in the meeting [3][4][12] Company Strategy and Development Direction and Industry Competition - The meeting focused on formal business matters without a presentation on company strategy or industry competition [3][4][12] Management's Comments on Operating Environment and Future Outlook - Management did not provide comments on the operating environment or future outlook during the meeting [3][4][12] Other Important Information - The meeting included the election of 11 director nominees and an advisory vote on executive compensation, both of which were approved [6][8][11] - KPMG LLP was ratified as the independent auditor for the year ending December 31, 2025 [8][11] Q&A Session Summary - There were no questions submitted during the Q&A session, and thus no responses were provided [9][11]

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and maximize their stock market investments Group 1: Zacks Style Scores - Zacks Style Scores rates stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles for a comprehensive evaluation [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Group 3: Universal Display Corporation (OLED) - Universal Display Corporation is a leading developer in the Organic Light Emitting Diodes (OLED) market, currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 0.8% over the past four weeks [11] - For fiscal 2025, the Zacks Consensus Estimate for OLED's earnings per share has risen by $0.32 to $5.05, with an average earnings surprise of 13.3% [12]

Summary of Universal Display Corporation (UDC) Conference Call Company Overview - **Company**: Universal Display Corporation (UDC) - **Industry**: OLED (Organic Light Emitting Diode) technology and materials - **Key Focus**: Development and supply of OLED materials and technologies for display manufacturers Key Points and Arguments Industry Trends and Growth Catalysts - The long-term growth catalyst for UDC is the increasing demand for energy-efficient displays driven by advancements in consumer electronics, including AI and 5G technologies [8][9] - UDC has a 51% penetration rate in the smartphone market as of the end of 2024, with lower penetration in IT (4%) and TVs (4%) [11][12] - A new multi-year capital expenditure cycle is emerging in the medium-sized market for IT and automotive displays, with significant investments from panel makers [14][15] Capacity and Production - New OLED production facilities are set to come online, including Samsung's Gen 8.6 facility in Q2 2026 and BOE's facility in Q4 2026, with total investments around $20 billion [13][14] - UDC has long-term agreements with major customers like Samsung and LG Display, which include both materials and licensing agreements [17][19] Revenue Streams - UDC's revenue is primarily generated from material sales and licensing agreements, with a projected material to royalty licensing ratio of 1.4 to 1 for the current year [19] - The introduction of blue phosphorescent materials is expected to significantly enhance revenue opportunities, with LG Display showcasing a 15% increase in energy efficiency for their blue panels [21][22] Competitive Landscape - UDC believes it holds a competitive edge in high-efficiency blue materials, asserting that "all roads to high efficiency blue go through us" [26][27] - The company does not foresee significant competition in the blue material space, emphasizing its proprietary technology and established relationships [26][27] Supply Chain and Tariff Management - UDC operates a fabless model, relying on PPG for manufacturing, with production sites in the US and Ireland [37][38] - The company has a diversified global supply chain, mitigating risks associated with tariffs and geopolitical tensions [42][43] Financial Performance - UDC expects gross margins of 76% to 77% and operating margins of 35% to 40% for the year, attributed to its strong licensing business and innovative materials [63][64] - The company has a history of returning cash to shareholders through dividends and a $100 million stock buyback program [68][69] Future Outlook - UDC anticipates continued growth in OLED adoption across various sectors, including automotive and IT, with a focus on next-generation materials and technologies [52][58] - The company is exploring both organic and inorganic growth opportunities through its venture arm, UDC Ventures [72][73] Additional Important Insights - The automotive industry presents a significant opportunity for OLED displays, with multiple displays per vehicle and a growing interest from EV manufacturers [56][58] - UDC's strong relationships with customers and continuous innovation are key to maintaining its leadership position in the OLED market [67]

Core Viewpoint - Universal Display (NASDAQ: OLED) has been monitored for a considerable time, but its shares have consistently appeared overpriced, and the technology is not yet ready for mass adoption [1] Company Summary - Universal Display is involved in the development of display technologies, particularly organic light-emitting diodes (OLED) [1] - The company has a long position in its shares, indicating confidence in its future performance [1] Industry Summary - The OLED technology market is still in a phase where mass adoption has not been achieved, suggesting potential growth opportunities as technology matures [1]

Have you assessed how the international operations of Universal Display Corp. (OLED) performed in the quarter ended March 2025? For this organic light-emitting diode technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health an ...

Financial Performance - Universal Display Corporation (OLED) reported net income of $64.4 million or $1.35 per share in Q1 2025, an increase from $56.9 million or $1.19 in the same quarter last year, with a bottom line that beat the Zacks Consensus Estimate by $0.28 [3] - Revenues for the company reached $166.3 million, slightly up from $165.3 million year-over-year, surpassing the consensus estimate of $155 million [3] - Material sales contributed $86.2 million to revenues, down from $93.3 million in the prior-year quarter, while revenues from green emitter sales declined to $64 million from $71 million [4] - Revenues from royalties and license fees increased to $73.6 million from $68.3 million year-over-year, exceeding the estimate of $58.7 million [5] - Quarterly gross profit was $128.1 million, with a gross margin of 77%, down from 78% a year ago [6] Operational Insights - The company is focusing on improving operational and strategic infrastructure to maintain its leadership position in the OLED industry [2] - Cash generated from operating activities in Q1 was $30.6 million, a decrease from $72.2 million in the previous year [7] - As of March 31, 2025, OLED had $157.5 million in cash and cash equivalents [7] Future Outlook - For 2025, OLED expects revenues to be in the range of $640 million to $700 million, with a predicted gross margin of 76-77% [8] - Management remains optimistic about long-term growth potential despite near-term uncertainties, citing increasing OLED usage in various consumer electronics and IT applications as a key growth driver [9]

For the quarter ended March 2025, Universal Display Corp. (OLED) reported revenue of $166.28 million, up 0.6% over the same period last year. EPS came in at $1.35, compared to $1.19 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $154.85 million, representing a surprise of +7.38%. The company delivered an EPS surprise of +26.17%, with the consensus EPS estimate being $1.07.While investors scrutinize revenue and earnings changes year-over-year and how they compare wit ...

Group 1: Earnings Performance - Universal Display Corp. reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $1.19 per share a year ago [1] - The earnings surprise for this quarter was 26.17%, following a previous surprise of 14.02% when earnings were $1.22 per share against an expectation of $1.07 [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $166.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.38%, and slightly up from $165.26 million year-over-year [3] - Universal Display has topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Universal Display shares have declined approximately 14.1% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [4] - The company's current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $158.08 million, and for the current fiscal year, it is $4.69 on revenues of $667.29 million [8] Group 4: Industry Context - Universal Display operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the bottom 42% of over 250 Zacks industries [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]