Universal Display (OLED) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of $651 million, with operating income of $249 million and net income of $242 million ($5.08 per diluted share), reflecting strong OLED adoption and execution.

• OLED industry entering a new phase with broader applications, higher performance expectations, and increased architectural diversity, including tandem and hybrid OLED structures.

• Expanded R&D, intellectual property, and global infrastructure to support next-phase OLED growth and innovation across diverse device architectures.

• Maintains confidence in long-term OLED potential despite near-term consumer electronics uncertainty.

Financial highlights

• 2025 revenue reached $651 million, with material sales at $353 million, royalty and license revenues at $275 million, and Adesis revenues at $23 million.

• Gross margin for 2025 was 76%, slightly down from 77% in 2024; operating margin was 38%.

• Net income for 2025 was $242 million ($5.08 per diluted share), up from $222 million ($4.65 per share) in 2024.

• Fourth quarter 2025 revenue was $173 million, up 7% year-over-year; net income for Q4 was $66 million ($1.39 per share).

• Ended 2025 with $955 million in cash, cash equivalents, and investments.

Outlook and guidance

• 2026 revenue expected in the range of $650 million–$700 million, with gross margins of 74%–76% due to higher raw material costs.

• Operating margins projected at 34%–37%; effective tax rate expected to be approximately 19%.

• R&D and SG&A expenses to grow mid- to high-single digits year-over-year.

• Second half of 2026 expected to be stronger due to new fab capacity and product cycles.