UNIVERSAL DISPLAY CORP \PA\ SEC 10-Q Report

Universal Display Corp, a leading player in the OLED technology industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial growth and operational advancements, underscoring the company's robust performance and strategic initiatives in the OLED market.

Financial Highlights

• Total Revenue: $171.8 million, reflecting an increase from the previous year's $158.5 million for the three months ended June 30, 2025, driven by higher royalty and license fees.
• Gross Margin: $132.6 million, up from $120.2 million in the prior year, indicating improved cost management and efficiency.
• Operating Income: $68.5 million, compared to $56.4 million in the previous year, showcasing effective control over operating expenses.
• Net Income: $67.3 million, an increase from $52.3 million in the prior year, highlighting strong overall financial performance.
• Basic Net Income Per Common Share: $1.41, up from $1.10, reflecting the company's improved profitability.
• Diluted Net Income Per Common Share: $1.41, consistent with the basic EPS, indicating minimal dilution impact.

Business Highlights

• Revenue Segments: The company reported revenue from three main sources: material sales, royalty and license fees, and contract research services. Material sales were the largest contributor, followed by royalty and license fees, and contract research services.
• Geographical Performance: The majority of the company's revenue was generated outside of North America, with South Korea and China being the largest markets. South Korea accounted for a significant portion of the revenue, although there was a noted decrease compared to the previous year. China showed a substantial increase in revenue contribution.
• Customer Segments: The company had significant revenue concentration from a few key customers, with the top four customers accounting for a large percentage of total revenue. Customer A was the largest, followed by Customers B, C, and D.
• New Production Launches: The company completed facility improvements at its manufacturing site in Shannon, Ireland, which commenced operations in June 2022. This expansion is expected to enhance production capabilities.
• Future Outlook: The company anticipates continued growth in the OLED market, driven by increasing adoption in various applications such as mobile phones, televisions, and automotive displays. The company plans to leverage its strong patent portfolio and strategic partnerships to maintain its competitive edge.

SEC Filing: UNIVERSAL DISPLAY CORP \PA\ [ OLED ] - 10-Q - Jul. 31, 2025