Revenue decelerated sharply (down 11.4% YoY in 2026Q2) yet gross margin expanded to 79.6%, though operating leverage drove a 21.8% decline in operating income.
Universal Display Corporation (OLED) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 606.91M | 650.61M | 647.68M | 576.43M | 616.62M | 553.52M | 428.87M | 405.18M | 247.41M | 335.63M | 198.89M | 191.05M | 191.03M | 146.64M | 83.24M | 61.29M | 30.54M | 15.79M | 11.08M | 11.31M | 11.92M | 10.15M | 7.01M | 6.59M | 2.45M | 1.25M | 492.76K | 519.54K | 400K | 100K | 100K |
| Revenue Growth % | -8.32% | 0.45% | 12.36% | -6.52% | 11.4% | 29.07% | 5.85% | 63.76% | -26.28% | 68.75% | 4.1% | 0.01% | 30.27% | 76.16% | 35.82% | 100.65% | 93.48% | 42.54% | -2.04% | -5.16% | 17.47% | 44.83% | 6.28% | 169.63% | 95.17% | 154.26% | -5.15% | 29.88% | 300% | 0% | 0% |
| Cost of Goods Sold | 159.08M | 172.83M | 148.46M | 135.38M | 127.9M | 114.99M | 85.48M | 75.37M | 53.54M | 54.7M | 26.29M | 63M | 41.31M | 28.89M | 4.53M | 3.73M | 888K | 374.32K | 912.09K | 1.2M | 1.04M | 109.78K | 155.28K | 110.5K | 0 | 0 | -1.05M | -56.37K | -27.88K | -27.4K | 0 |
| COGS % of Revenue | - | 26.56% | 22.92% | 23.49% | 20.74% | 20.77% | 19.93% | 18.6% | 21.64% | 16.3% | 13.22% | 32.97% | 21.63% | 19.7% | 5.44% | 6.09% | 2.91% | 2.37% | 8.24% | 10.61% | 8.76% | 1.08% | 2.22% | 1.68% | - | - | -213.31% | -10.85% | -6.97% | -27.4% | - |
| Gross Profit | 447.83M | 477.78M | 499.22M | 441.05M | 488.72M | 438.53M | 343.39M | 329.8M | 193.87M | 280.93M | 172.6M | 128.05M | 149.72M | 117.75M | 78.72M | 57.56M | 29.66M | 15.41M | 10.16M | 10.11M | 10.88M | 10.04M | 6.85M | 6.48M | 0 | 0 | 1.54M | 575.9K | 396.67K | 121K | 0 |
| Gross Margin % | 73.79% | 73.44% | 77.08% | 76.51% | 79.26% | 79.23% | 80.07% | 81.4% | 78.36% | 83.7% | 86.78% | 67.03% | 78.37% | 80.3% | 94.56% | 93.91% | 97.09% | 97.63% | 91.76% | 89.39% | 91.24% | 98.92% | 97.78% | 98.32% | - | - | 313.31% | 110.85% | 99.17% | 121% | - |
| Gross Profit Growth % | - | -4.29% | 13.19% | -9.75% | 11.44% | 27.71% | 4.12% | 70.11% | -30.99% | 62.77% | 34.79% | -14.47% | 27.15% | 49.59% | 36.76% | 94.08% | 92.42% | 51.65% | 0.56% | -7.08% | 8.36% | 46.51% | 5.69% | - | - | -100% | 168.07% | 45.18% | 227.82% | - | - |
| Operating Expenses | 225.59M | 227M | 260.42M | 223.86M | 221.61M | 210.89M | 185.86M | 171.46M | 137.14M | 134.68M | 104.19M | 95.77M | 91.1M | 79.51M | 65.04M | 51.87M | 39.88M | 35.68M | 32.83M | 30.48M | 28.77M | 27.5M | 24.05M | 24.01M | 20.85M | 16.3M | 11.42M | 5.96M | 3.38M | 6.22M | 1.8M |
| OpEx % of Revenue | - | 34.89% | 40.21% | 38.84% | 35.94% | 38.1% | 43.34% | 42.32% | 55.43% | 40.13% | 52.38% | 50.13% | 47.69% | 54.22% | 78.13% | 84.63% | 130.57% | 226.01% | 296.39% | 269.58% | 241.31% | 270.97% | 343.28% | 364.23% | 852.62% | 1301.05% | 2317.86% | 1146.35% | 845.31% | 6221.92% | 1800% |
| Selling, General & Admin | 75.46M | 74.32M | 74.29M | 67.39M | 77.89M | 80.37M | 61.35M | 59.61M | 47M | 46.81M | 32.88M | 29.05M | 28.14M | 24.75M | 19.55M | 26.38M | 18.19M | 14.56M | 10.17M | 9.57M | 8.9M | 8.32M | 7.4M | 6.12M | 4.75M | 3.92M | 3.26M | 2.73M | 1.9M | 2M | 900K |
| SG&A % of Revenue | - | 11.42% | 11.47% | 11.69% | 12.63% | 14.52% | 14.3% | 14.71% | 19% | 13.95% | 16.53% | 15.2% | 14.73% | 16.87% | 23.49% | 43.05% | 59.55% | 92.21% | 91.83% | 84.64% | 74.68% | 81.94% | 105.64% | 92.77% | 194.45% | 312.54% | 661.81% | 525.06% | 475% | 2000% | 900% |
| Research & Development | 143.46M | 143.9M | 157.19M | 130.48M | 117.06M | 99.67M | 83.89M | 71.28M | 53.72M | 49.14M | 42.74M | 44.64M | 41.15M | 34.22M | 30.03M | 24.13M | 21.7M | 20.02M | 22.26M | 20.91M | 19.86M | 19.18M | 16.65M | 17.9M | 15.8M | 12.39M | 7.11M | 3.17M | 1.4M | 4.2M | 900K |
| R&D % of Revenue | - | 22.12% | 24.27% | 22.64% | 18.98% | 18.01% | 19.56% | 17.59% | 21.71% | 14.64% | 21.49% | 23.37% | 21.54% | 23.33% | 36.08% | 39.37% | 71.03% | 126.79% | 200.97% | 184.94% | 166.63% | 189.04% | 237.64% | 271.45% | 646.32% | 988.51% | 1442.74% | 610.45% | 350% | 4200% | 900% |
| Other Operating Expenses | 3M | 8.79M | 28.95M | 26M | 26.66M | 30.84M | 40.62M | 40.57M | 36.42M | 38.73M | 28.57M | 22.09M | 21.81M | 20.55M | 15.46M | 8.8M | 5.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 289.68K | 0 | 1.05M | 56.37K | 27.88K | 27.4K | 0 |
| Operating Income | 208.79M | 250.78M | 238.8M | 217.19M | 267.11M | 227.64M | 157.53M | 158.34M | 56.73M | 146.25M | 68.41M | 32.28M | 58.62M | 38.24M | 13.68M | 5.69M | -10.23M | -20.27M | -22.66M | -20.37M | -17.89M | -17.46M | -17.2M | -17.53M | -18.36M | -15.05M | -9.88M | -5.38M | -2.9M | -6.1M | -1.7M |
| Operating Margin % | 34.4% | 38.55% | 36.87% | 37.68% | 43.32% | 41.13% | 36.73% | 39.08% | 22.93% | 43.57% | 34.4% | 16.89% | 30.69% | 26.08% | 16.43% | 9.28% | -33.48% | -128.38% | -204.63% | -180.19% | -150.07% | -172.06% | -245.5% | -265.9% | -750.99% | -1201.05% | -2004.55% | -1035.5% | -725% | -6100% | -1700% |
| Operating Income Growth % | - | 5.01% | 9.95% | -18.69% | 17.34% | 44.51% | -0.52% | 179.09% | -61.21% | 113.77% | 111.96% | -44.94% | 53.28% | 179.64% | 140.49% | 155.61% | 49.54% | 10.57% | -11.25% | -13.87% | -2.46% | -1.5% | 1.88% | 4.53% | -22.04% | -52.35% | -83.6% | -85.51% | 52.46% | -258.82% | 43.33% |
| EBITDA | 232.85M | 297.37M | 282.94M | 260.59M | 309.38M | 269.61M | 194.71M | 192.76M | 87.31M | 173.15M | 89.17M | 46.36M | 71.69M | 51.26M | 20.52M | 7.19M | -7.29M | -16.5M | -19.02M | -17.21M | -14.52M | -14.22M | -14.13M | -13.73M | -1.78M | -10.54M | -8.83M | -5.32M | -2.87M | -6.07M | -1.7M |
| EBITDA Margin % | 38.37% | 45.71% | 43.69% | 45.21% | 50.17% | 48.71% | 45.4% | 47.57% | 35.29% | 51.59% | 44.84% | 24.27% | 37.53% | 34.96% | 24.65% | 11.73% | -23.85% | -104.53% | -171.78% | -152.26% | -121.84% | -140.16% | -201.69% | -208.29% | -72.62% | -841.13% | -1791.25% | -1024.65% | -718.03% | -6072.6% | -1700% |
| EBITDA Growth % | -23.1% | 5.1% | 8.58% | -15.77% | 14.75% | 38.46% | 1.01% | 120.78% | -49.58% | 94.17% | 92.35% | -35.33% | 39.86% | 149.77% | 185.57% | 198.65% | 55.85% | 13.26% | -10.52% | -18.52% | -2.12% | -0.64% | -2.91% | -673.34% | 83.15% | -19.4% | -65.8% | -85.35% | 52.7% | -257.21% | 43.33% |
| D&A (Non-Cash Add-back) | 24.06M | 46.59M | 44.14M | 43.4M | 42.27M | 41.96M | 37.19M | 34.42M | 30.57M | 26.9M | 20.76M | 14.09M | 13.07M | 13.02M | 6.85M | 1.5M | 2.94M | 3.76M | 3.64M | 3.16M | 3.37M | 3.24M | 3.07M | 3.8M | 16.59M | 4.51M | 1.05M | 56.37K | 27.88K | 27.4K | 0 |
| EBIT | 176.09M | 294.8M | 272.13M | 245.17M | 268.23M | 228.25M | 157.53M | 158.34M | 56.73M | 146.25M | 68.41M | 32.28M | 58.62M | 39.05M | 14.92M | 2.49M | -20.02M | -20.63M | -20.06M | -20.37M | -17.89M | -17.46M | -17.2M | -17.53M | -18.36M | -15.05M | -9.88M | -5.38M | -2.98M | -6.1M | -1.7M |
| Net Interest Income | 28.59M | 39.71M | 40.68M | 28.17M | 7.81M | 505K | 5.14M | 10.79M | 7.66M | 3.29M | 2.11M | 783K | 707K | 764K | 1.19M | 944K | 252K | 662.61K | 2.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 19.87M | 39.71M | 40.68M | 28.17M | 7.81M | 505K | 5.14M | 10.79M | 7.66M | 3.29M | 2.11M | 783K | 707K | 811K | 1.24M | 994K | 279K | 669.63K | 2.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47K | 48K | 49.58K | 27.87K | 7.02K | 47.2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 28.31M | 44.02M | 33.33M | 27.98M | 1.12M | 603K | 6M | 11.56M | 7.58M | 3.29M | 185K | 783K | 707K | 764K | 1.19M | -3.25M | -9.83M | -368.44K | 2.56M | 3.59M | 2.16M | 1.23M | 812.21K | 16.03K | -10.04M | -1.31M | 0 | 0 | 284.58K | 200.92K | 100K |
| Pretax Income | 237.1M | 294.8M | 272.13M | 245.17M | 268.23M | 228.25M | 163.53M | 169.91M | 64.31M | 149.54M | 68.6M | 33.06M | 59.33M | 39.01M | 14.87M | 2.44M | -20.05M | -20.64M | -20.1M | -16.78M | -15.73M | -16.23M | -16.39M | -17.52M | -28.4M | -16.36M | 0 | 0 | -2.7M | -5.9M | -1.6M |
| Pretax Margin % | 39.07% | 45.31% | 42.02% | 42.53% | 43.5% | 41.24% | 38.13% | 41.93% | 25.99% | 44.55% | 34.49% | 17.3% | 31.06% | 26.6% | 17.86% | 3.98% | -65.65% | -130.71% | -181.51% | -148.43% | -131.96% | -159.89% | -233.91% | -265.66% | -1161.42% | -1305.46% | - | - | -675% | -5900% | -1600% |
| Income Tax | 18.25M | 52.72M | 50.05M | 42.16M | 58.17M | 44.03M | 30.16M | 31.6M | 5.47M | 45.65M | 20.53M | 18.38M | 17.47M | -35.04M | 5.21M | -714.05K | -134.35K | -129.91K | -962.48K | -804.98K | -544.57K | -424.21K | -612.97K | -178.39K | 12.66M | 0 | -348.52K | -254.81K | 100K | 0 | 200K |
| Effective Tax Rate % | 7.7% | 17.88% | 18.39% | 17.2% | 21.69% | 19.29% | 18.44% | 18.6% | 8.51% | 30.53% | 29.93% | 55.6% | 29.45% | -89.84% | 35.03% | -29.25% | 0.67% | 0.63% | 4.79% | 4.8% | 3.46% | 2.61% | 3.74% | 1.02% | -44.56% | 0% | - | - | -3.7% | 0% | -12.5% |
| Net Income | 195.68M | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M | 133.37M | 138.3M | 58.84M | 103.89M | 48.07M | 14.68M | 41.85M | 74.05M | 9.66M | 3.16M | -19.92M | -20.51M | -19.14M | -15.98M | -15.19M | -15.8M | -15.78M | -17.35M | -31.02M | -16.36M | -9.53M | -5.13M | -2.8M | -5.9M | -1.8M |
| Net Margin % | 32.24% | 37.21% | 34.29% | 35.22% | 34.07% | 33.28% | 31.1% | 34.13% | 23.78% | 30.95% | 24.17% | 7.68% | 21.91% | 50.5% | 11.6% | 5.15% | -65.21% | -129.89% | -172.82% | -141.31% | -127.39% | -155.71% | -225.16% | -263.2% | -1268.54% | -1305.46% | -1933.83% | -986.46% | -700% | -5900% | -1800% |
| Net Income Growth % | -19.97% | 9% | 9.39% | -3.36% | 14.03% | 38.12% | -3.57% | 135.05% | -43.36% | 116.11% | 227.5% | -64.93% | -43.48% | 666.58% | 206.17% | 115.84% | 2.87% | -7.13% | -19.8% | -5.2% | 3.89% | -0.16% | 9.09% | 44.06% | -89.65% | -71.64% | -85.93% | -83.04% | 52.54% | -227.78% | 41.94% |
| Net Income (Continuing) | 110.37M | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M | 133.37M | 138.3M | 58.84M | 103.89M | 48.07M | 14.68M | 41.85M | 74.05M | 9.66M | 3.16M | -19.92M | -20.51M | -19.14M | -15.98M | -15.19M | -15.8M | -15.78M | -17.35M | -31.02M | -16.36M | -9.53M | -5.13M | -2.79M | -5.93M | -1.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.17 | 5.08 | 4.65 | 4.24 | 4.40 | 3.87 | 2.80 | 2.92 | 1.25 | 2.18 | 1.02 | 0.31 | 0.90 | 1.59 | 0.21 | 0.07 | -0.53 | -0.56 | -0.53 | -0.47 | -0.49 | -0.56 | -0.59 | -0.77 | -1.61 | -0.96 | -0.62 | -0.42 | -0.27 | -0.63 | -0.21 |
| EPS Growth % | -19.49% | 9.25% | 9.67% | -3.64% | 13.7% | 38.21% | -4.11% | 133.6% | -42.66% | 113.73% | 229.03% | -65.56% | -43.4% | 657.14% | 200% | 113.21% | 5.36% | -5.66% | -12.77% | 4.08% | 12.5% | 5.08% | 23.38% | 52.17% | -67.71% | -54.84% | -47.62% | -55.56% | 57.14% | -200% | 46.15% |
| EPS (Basic) | - | 5.09 | 4.66 | 4.25 | 4.41 | 3.87 | 2.80 | 2.92 | 1.26 | 2.19 | 1.02 | 0.31 | 0.90 | 1.61 | 0.21 | 0.07 | -0.53 | -0.56 | -0.53 | -0.47 | -0.49 | -0.56 | -0.59 | -0.77 | -1.61 | -0.96 | -0.62 | -0.42 | -0.27 | -0.63 | -0.21 |
| Diluted Shares Outstanding | 46.9M | 47.66M | 47.65M | 47.62M | 47.47M | 47.37M | 47.24M | 47M | 46.9M | 46.81M | 46.54M | 47.49M | 46.69M | 46.54M | 46.88M | 45.14M | 37.57M | 36.48M | 35.93M | 33.76M | 30.86M | 28.46M | 26.79M | 22.43M | 19.23M | 16.99M | 15.26M | 12.27M | 10.31M | 9.33M | 8.57M |
| Basic Shares Outstanding | 46.82M | 47.55M | 47.55M | 47.56M | 47.39M | 47.3M | 47.2M | 46.96M | 46.85M | 46.73M | 46.41M | 46.82M | 46.25M | 45.9M | 45.95M | 43.74M | 37.57M | 36.48M | 35.93M | 33.76M | 30.86M | 28.46M | 26.79M | 22.43M | 19.23M | 16.99M | 15.26M | 12.27M | 10.31M | 9.33M | 8.57M |
| Dividend Payout Ratio | - | 35.34% | 34.3% | 32.87% | 27.13% | 20.59% | 21.33% | 13.63% | 19.23% | 5.44% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying OLED stock.
For fiscal year 2025, Universal Display Corporation (OLED) reported total revenue of $650.6M. This represents a 650511.0% increase compared to $0.1M in 1996.
Universal Display Corporation (OLED) is profitable, generating $242.1M in net income for the fiscal year ending 2025 with a net profit margin of 37.2%.
Universal Display Corporation (OLED) reported an operating income of $250.8M, resulting in an operating profit margin of 38.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Universal Display Corporation (OLED) generated $477.8M in gross profit for the year, representing a gross profit margin of 73.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue concentration and cyclicality
Metrics are mathematically derived from official filings.
Revenue Momentum Fades After 2024 Peak
Universal Display's revenue contracted 11.4% year-over-year in 2026Q2, following a 14.5% decline in 2026Q1, indicating a clear deceleration from the 26.7% growth seen in 2024Q1.
The company's revenue growth has turned sharply negative in the most recent quarters, with 2026Q2 revenue of $152.2M down from $171.8M in the year-ago quarter. This suggests a cyclical downturn in OLED material demand, possibly tied to customer inventory adjustments or end-market softness. The earlier growth spurt in 2024Q1 (26.7%) appears to have been a peak, and the subsequent quarters show a consistent pattern of deceleration, with only intermittent positive quarters (2025Q2 and 2025Q4). Investors should monitor whether this is a temporary trough or the start of a prolonged slowdown.
Gross Margin Resilience Despite Revenue Decline
Gross margin expanded to 79.6% in 2026Q2, up from 74.5% a year earlier, reflecting a favorable product mix and cost discipline, even as revenue fell 11.4%.
Despite the revenue decline, gross margin improved significantly, reaching 79.6% in 2026Q2, the highest in the reported period. This suggests that the company's pricing power remains intact and that the cost of goods sold is not rising proportionally with revenue. The gross margin has been consistently above 70%, indicating a strong competitive position in the OLED materials market. However, the sustainability of this margin is questionable if revenue continues to decline, as fixed costs may become a larger burden.
Operating Leverage Amplifies Downturn
Operating income fell 21.8% year-over-year in 2026Q2 to $53.6M, while revenue declined 11.4%, demonstrating negative operating leverage as fixed costs remain constant.
The company's operating margin contracted from 39.9% in 2025Q2 to 35.3% in 2026Q2, as operating expenses (R&D and SG&A) did not decline proportionally with revenue. R&D spending remained relatively stable at around $35M per quarter, indicating a commitment to innovation but also creating a fixed cost burden. This negative operating leverage is a key risk if revenue continues to decline, as profitability could erode faster than top-line growth.
Earnings Quality Supported by Tax Benefits
Net income in 2026Q2 of $49.4M exceeded operating income of $53.6M, implying a tax benefit or other non-operating gains, which may inflate reported EPS.
The net income to operating income ratio is unusually high, with net income at 92% of operating income in 2026Q2, suggesting a low effective tax rate or one-time tax benefits. This is a positive for reported earnings but may not be sustainable. Additionally, stock-based compensation (SBC) has been volatile, ranging from $0 to $9.3M per quarter, which can distort EPS comparisons. Investors should adjust for SBC and tax anomalies to assess underlying profitability.
R&D Stability Signals Long-Term Focus
R&D expenses remained nearly flat at $35.0M in 2026Q2 versus $36.4M a year earlier, while SG&A declined 6.9%, indicating disciplined cost management.
The company has maintained R&D spending at around $35-36M per quarter, even as revenue declined, underscoring its commitment to innovation in OLED technology. SG&A expenses have been more variable, with a slight decline in 2026Q2, suggesting some cost control. However, the stability of R&D as a percentage of revenue (23% in 2026Q2) indicates that the company is prioritizing long-term growth over short-term profitability, which could pressure margins if revenue does not recover.
Cyclicality and Concentration Risks
Revenue declines of 11-14% in recent quarters highlight the cyclicality of OLED materials demand, with a heavy reliance on a few large customers posing a concentration risk.
The sharp revenue swings, from +26.7% growth in 2024Q1 to -14.5% in 2026Q1, suggest that the company's fortunes are tied to the capital expenditure cycles of display manufacturers. If the current downturn persists, the company's high fixed cost structure could lead to margin compression. Additionally, the company's customer base is likely concentrated in a few major panel makers, which could amplify volatility. Short-sellers might argue that the recent gross margin expansion is unsustainable as volume declines, and that the company's premium valuation (P/E not provided but likely high) does not justify the cyclical earnings risk.