Universal Display Corporation Reports 8.4% Revenue Growth in Q2 2025

Universal Display Corporation (UDC) reported its financial results for the second quarter and first half of 2025, showcasing a total revenue of $171.8 million for the three months ended June 30, 2025, a 8.4% increase from $158.5 million in the same period last year. For the first half of 2025, revenue reached $338.1 million, up from $323.8 million in the prior year. The increase in revenue was primarily driven by a 27% rise in royalty and license fees, which totaled $75.7 million, compared to $59.6 million in the previous year. However, material sales decreased by 7% to $88.7 million, attributed to changes in customer mix and lower unit volumes.

The company's net income for the second quarter was $67.3 million, or $1.41 per diluted share, compared to $52.3 million, or $1.10 per diluted share, in the same quarter of 2024. For the first half of 2025, net income was $131.7 million, reflecting a 20.6% increase from $109.2 million in the prior year. The gross margin improved to 77% for both the second quarter and the first half of 2025, up from 76% in the same periods of 2024, primarily due to increased revenue from royalty and license fees.

In terms of operational developments, UDC's employee headcount increased to 138 at its subsidiary Adesis, which provides contract research services. The company also reported a significant increase in contract research services revenue, which rose to $7.5 million in the second quarter, up from $3.5 million in the previous year, driven by heightened demand for specialty manufacturing services. UDC continues to expand its geographic footprint, with a focus on enhancing its manufacturing capabilities in Shannon, Ireland, where a new facility is expected to double production capacity.

The company’s balance sheet remains strong, with total assets of $1.93 billion as of June 30, 2025, compared to $1.83 billion at the end of 2024. Cash and cash equivalents stood at $95.8 million, while short-term investments increased to $429.4 million. UDC's working capital improved to $885.2 million, reflecting increases in accounts receivable and inventory. The company declared cash dividends of $0.45 per share during the second quarter, totaling $21.6 million, and plans to maintain its dividend policy moving forward.

Looking ahead, UDC anticipates continued growth in its OLED materials and technologies, supported by ongoing research and development efforts and strategic partnerships. The company remains optimistic about its market position, particularly in light of the increasing adoption of OLED technology across various applications, including mobile devices and automotive displays. UDC's management believes that its current cash reserves and investment strategies will adequately support its operational needs and growth initiatives over the next twelve months.