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]

Core Insights - Universal Display Corp. reported revenue of $166.28 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.6% and exceeding the Zacks Consensus Estimate of $154.85 million by 7.38% [1] - The company's EPS for the quarter was $1.35, up from $1.19 in the same quarter last year, representing a surprise of 26.17% compared to the consensus estimate of $1.07 [1] Revenue Breakdown - Material sales generated $86.16 million, which was below the three-analyst average estimate of $90.21 million, marking a year-over-year decline of 7.6% [4] - Contract research services revenue was reported at $6.55 million, significantly exceeding the average estimate of $3.61 million, and showing a substantial year-over-year increase of 76.8% [4] - Royalty and license fees amounted to $73.57 million, surpassing the average estimate of $61.45 million, with a year-over-year growth of 7.8% [4] Stock Performance - Over the past month, Universal Display's shares have declined by 9.6%, contrasting with a 0.7% decrease in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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]

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $166 million, operating profit was $70 million, and net income was $64 million or $1.35 per diluted share, showing a year-over-year increase in net income of over 13% from $57 million or $1.19 per diluted share in Q1 2024 [6][16] - Total material sales were $86 million in Q1 2025, down from $93 million in Q1 2024, while royalty and license fees increased to $74 million from $68 million in the prior year [13][14] - Operating income increased to $70 million with an operating margin of 42%, compared to $63 million and a margin of 38% in the previous year [15] Business Line Data and Key Metrics Changes - Green emitter sales were $64 million in Q1 2025, down from $71 million in Q1 2024, while red emitter sales were $21 million, unchanged from the previous year [13][14] - Adesis' revenue in Q1 2025 was $6.6 million, compared to $3.7 million in Q1 2024, indicating growth in this segment [14] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units, OLED IT units are expected to increase by 16% to 27 million units, and OLED TVs are projected to grow by 4.5% to 7.1 million units [10] - The overall OLED market is expected to grow in the mid-single digits in 2025, driven by diverse product roadmaps and new generation OLED capacity coming online in 2026 [9] Company Strategy and Development Direction - The company is focused on innovation, operational agility, and maintaining a strong balance sheet to navigate market volatility [8][19] - The long-term trajectory of the OLED market is viewed positively, with a commitment to advancing OLED technology and materials for various applications, including IT and automotive [9][10] - The company announced a $100 million share repurchase authorization and a quarterly dividend of $0.45, reflecting confidence in continued positive cash flow generation [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in orders in April, attributed to ongoing tariff developments, but emphasized that the business remains largely unaffected by these uncertainties [7] - The company is committed to being a leader in the OLED ecosystem and achieving superior long-term growth while delivering cutting-edge technologies [19] Other Important Information - The company ended the quarter with approximately $918 million in cash, cash equivalents, and investments [16] - The SID Display Week event is scheduled to start on May 11, 2025, where the company will showcase its innovations [18] Q&A Session Summary Question: Update on Blue OLED commercialization - The company is pleased with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, but specific timelines for product introduction are dependent on customers and OEMs [22][23] Question: Impact of LG's announcement on other customers - The company has been working with multiple customers on blue OLED technology, and each customer has their own development timelines [25] Question: Stability of blue fluorescence materials - Blue fluorescence has been established in the market for decades, which contributes to its stability compared to new phosphorescent materials [32] Question: Market development and adoption of blue materials - The announcement from LG is seen as a positive step, but the ultimate adoption will depend on customer decisions and market dynamics [38] Question: Gross margin expectations - The company maintains a total gross margin guidance of 76% to 77% for the year, with variations based on customer mix and contracts [40] Question: Revenue impact from tariff-related orders - There was a heightened level of orders in April, but the company did not quantify the impact; full-year revenue guidance remains at $640 million to $700 million [74] Question: Development revenue for blue materials - Blue development revenues in Q1 were approximately $1.1 million, encompassing both host and emitter sales [75] Question: Operating expenses outlook - The company expects operating expenses to be flat compared to 2024, despite a decrease in Q1 due to various factors [76]

Financial Data and Key Metrics Changes - First quarter 2025 revenue was $166 million, slightly up from $165 million in the first quarter of 2024 [13] - Operating profit for the first quarter was $70 million, with a net income of $64 million or $1.35 per diluted share, compared to $57 million or $1.19 per diluted share in the same period last year [6][16] - Total gross margins were 77% in the first quarter of 2025, down from 78% in the prior year [14] - Operating expenses decreased to $58 million from $65 million year-over-year, primarily due to reorganization and reduced stock compensation [15] Business Line Data and Key Metrics Changes - Total material sales in Q1 2025 were $86 million, down from $93 million in Q1 2024 [13] - Green emitter sales were $64 million, compared to $71 million in the previous year [13] - Red emitter sales were $21 million, consistent with the previous year [14] - Royalty and license fees increased to $74 million from $68 million year-over-year [14] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units [10] - OLED IT units, including tablets and laptops, are expected to increase by 16% year-over-year to 27 million units [10] - OLED TV units are projected to grow by 4.5% year-over-year to 7.1 million units [10] Company Strategy and Development Direction - The company is focused on innovation and operational agility to navigate market volatility [8] - Plans to continue diversifying the supply chain and expanding global manufacturing capabilities [8] - The long-term trajectory of the OLED market is positive, driven by diverse product roadmaps and applications [9] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in orders in April, attributed to ongoing tariff developments, but stated that the business remains largely unaffected [7] - The company expects revenue for 2025 to be in the range of $640 million to $700 million [13] - Management emphasized the importance of energy efficiency and advanced features in OLED technology [10] Other Important Information - The company ended the quarter with approximately $918 million in cash and investments [16] - A quarterly dividend of $0.45 was approved, to be paid on June 30, 2025 [17] - A $100 million share repurchase authorization was announced [18] Q&A Session Summary Question: Update on blue phosphorescent OLED commercialization - Management expressed satisfaction with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, indicating it as a positive step forward [22][23] Question: Impact of LG's announcement on other customers - Management noted that multiple customers are working on blue development, and the announcement may accelerate progress [25] Question: Stability of blue fluorescence materials - Management explained that blue fluorescence has been established in the market for decades, contributing to its stability [32] Question: Expectations for gross margin improvement - Management maintained guidance for total gross margin at 76% to 77% for the year, indicating variability based on customer mix [40] Question: Revenue impact from tariff-related orders - Management confirmed heightened orders in April but did not quantify the impact, maintaining revenue guidance for the year [48][75] Question: Development revenue for blue materials - Blue development revenues in Q1 were approximately $1.1 million, covering both host and emitter sales [76] Question: Overall communication strategy for customer announcements - Management stated that future announcements regarding customer progress will likely come from the customers themselves [70]

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $166 million, operating profit was $70 million, and net income was $64 million or $1.35 per diluted share, showing a year-over-year increase in net income of over 13% from $57 million or $1.19 per diluted share in Q1 2024 [5][14] - Total material sales were $86 million in Q1 2025, down from $93 million in Q1 2024, while royalty and license fees increased to $74 million from $68 million in the prior year [11][12] - Operating income increased to $70 million with an operating margin of 42%, compared to $63 million and 38% in the prior year [13] Business Line Data and Key Metrics Changes - Green emitter sales were $64 million in Q1 2025, down from $71 million in Q1 2024, while red emitter sales remained at $21 million [11][12] - Adesis' revenue in Q1 2025 was $6.6 million, compared to $3.7 million in Q1 2024, indicating growth in this segment [12] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units, OLED IT units are expected to increase by 16% to 27 million units, and OLED TVs are projected to grow by 4.5% to 7.1 million units [8] - The overall OLED market is expected to see mid-single-digit growth in 2025, driven by diverse product roadmaps and applications [7] Company Strategy and Development Direction - The company is focused on innovation and operational agility, with a commitment to advancing OLED technology and materials [7][16] - The long-term trajectory of the OLED market is viewed positively, with expectations for new generation OLED capacity to come online in 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management noted a solid start to 2025, with an uptick in orders in April attributed to ongoing tariff developments, although the business remains largely unaffected by these uncertainties [6][5] - The company maintains a revenue guidance range of $640 million to $700 million for the year, despite ongoing uncertainties [11][45] Other Important Information - The company ended the quarter with approximately $918 million in cash and investments and announced a $0.45 quarterly dividend [14][15] - A $100 million share repurchase authorization was also announced, reflecting confidence in continued positive cash flow generation [15] Q&A Session Summary Question: Update on blue phosphorescent OLED commercialization - Management expressed satisfaction with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, indicating that specific timelines for product introduction are up to customers and OEMs [19][20] Question: Impact of LG's announcement on other customers - Management noted that multiple customers have been working on blue materials for years, and the announcement may accelerate development but specifics depend on each customer's program [22] Question: Stability of blue fluorescence materials - Management explained that blue fluorescence has been established in the market for decades, which contributes to its stability compared to new phosphorescent materials [28] Question: Expectations for gross margin improvement - The guidance for total gross margin remains at 76% to 77%, with variations based on customer mix and new contracts [38] Question: Revenue from blue development - Blue development revenues in Q1 were approximately $1.1 million, encompassing both host and emitter sales [74] Question: OpEx expectations for the year - Management expects total operating expenses to be flat compared to 2024, despite a lower level in Q1 due to various factors [76] Question: Shift towards tandem architectures - Management indicated that tandem structures are primarily used in IT applications for their benefits, but the majority of smartphones are expected to remain single-layer [83]

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $166.3 million, a slight increase of 0.6% compared to $165.3 million for the same period in 2024[173]. - Material sales decreased by 8% to $86.2 million for the three months ended March 31, 2025, down from $93.3 million in 2024, with a corresponding 8% decrease in unit material volume[174]. - Revenue from royalty and license fees increased by 8% to $73.6 million for the three months ended March 31, 2025, compared to $68.3 million in 2024, primarily due to changes in customer mix[177]. - Contract research services revenue rose by 77% to $6.6 million for the three months ended March 31, 2025, up from $3.7 million in 2024, driven by increased demand at Adesis[179]. Expenses - Gross margin for the three months ended March 31, 2025, decreased to 77% from 78% in 2024, with a gross margin amount of $128.1 million compared to $128.3 million[180]. - Research and development expenses decreased to $34.9 million for the three months ended March 31, 2025, down from $38.0 million in 2024, mainly due to the closure of the OVJP Corp facility[181]. - Selling, general and administrative expenses decreased to $17.0 million for the three months ended March 31, 2025, compared to $19.3 million in 2024, primarily due to lower performance-based stock compensation expenses[182]. - The closure of the OVJP Corp facility in California resulted in $602,000 of restructuring costs for the three months ended March 31, 2025[170]. - Amortization of acquired technology and other intangible assets was $4.5 million for both Q1 2025 and Q1 2024[183]. - Patent costs decreased to $1.9 million in Q1 2025 from $2.0 million in Q1 2024, reflecting lower internal prosecution costs[184]. - Royalty and license expense decreased significantly to $114,000 in Q1 2025 from $1.7 million in Q1 2024, due to a one-time expense in the prior year[185]. Income and Cash Flow - Interest income increased to $10.1 million in Q1 2025 from $9.6 million in Q1 2024, attributed to higher average investment balances[186]. - Cash provided by operating activities was $30.6 million in Q1 2025, down from $72.2 million in Q1 2024, primarily due to changes in operating assets and liabilities[190][191]. - Cash provided by investing activities was $58.2 million in Q1 2025, compared to cash used of $64.2 million in Q1 2024, driven by net proceeds from investments[192]. - Cash used in financing activities increased to $30.2 million in Q1 2025 from $25.9 million in Q1 2024, due to higher tax payments and dividend payouts[193]. Working Capital and Tax - Working capital increased to $905.3 million as of March 31, 2025, from $774.4 million as of December 31, 2024, mainly due to increases in cash and short-term investments[194]. - The effective income tax rate was 19.6% for Q1 2025, slightly up from 19.4% in Q1 2024, with tax expenses recorded at $15.7 million and $13.6 million respectively[188]. Future Outlook - Company anticipates sufficient cash and short-term investments to meet obligations for at least the next twelve months based on internal forecasts[195]. - The company entered into a new commercial patent license agreement with Samsung Display Co., Ltd. effective January 1, 2023, lasting through the end of 2027, with an additional two-year extension option[160]. - The new manufacturing site in Shannon, Ireland, is expected to double production capacity for phosphorescent emitters when fully operational[171].

Exhibit 99.1 Press Release Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123 Universal Display Corporation Announces First Quarter 2025 Financial Results EWING, N.J. – 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 confid ...

Core Viewpoint - Universal Display Corp. (OLED) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Company Performance and Outlook - The upgrade for Universal Display suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - Analysts project that Universal Display will earn $4.73 per share for the fiscal year ending December 2025, reflecting a year-over-year decline of 3.9%. However, the Zacks Consensus Estimate has increased by 0.5% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Universal Display in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - Universal Display Corp. (OLED) shares increased by 17.4% to close at $125.17, following a period of 28.8% loss over the past four weeks, indicating notable trading volume [1] - The company has a strong patent portfolio, attracting large customers and generating significant licensing revenues, driven by the growth of small-area OLEDs in smartphones and wearables, and large-area OLEDs in televisions [2] - The automotive industry presents new opportunities, with major automakers like Audi, Lotus, and Zeekr introducing car models featuring OLED screens [2] Group 2 - Universal Display generates most of its revenues from international markets, with operations in South Korea, Ireland, China, Japan, and others, making it susceptible to geopolitical risks [3] - The U.S. Government's recent decision to pause higher tariffs for 90 days for most countries, except China, is seen as a positive development for the company [3] - The company is expected to report quarterly earnings of $1.03 per share, reflecting a year-over-year decline of 13.5%, with revenues projected at $154.85 million, down 6.3% from the previous year [4] Group 3 - The consensus EPS estimate for Universal Display has been revised 1.3% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [5] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [5] - Littelfuse, another company in the same industry, closed 11.3% higher at $166.62, but has seen a return of -28.5% in the past month [5][6]