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 diverse device architectures, supported by increased demand in IT and innovation in foldables.

• Expanded R&D, strengthened IP, and broadened global infrastructure to support long-term OLED industry growth.

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

Financial highlights

• 2025 revenue reached $651 million, up from prior years; material sales were $353 million, royalty and license revenues $275 million, and Adesis revenues $23 million.

• Gross margin for 2025 was 76%, operating margin 38%, and net income $242 million ($5.08 per diluted share).

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

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

• Cumulative catch-up adjustment contributed $14 million to 2025 revenue, with $10 million in Q4.

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 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.