Operating margins have contracted to 30.1% in 2026Q1 from historical peaks near 42%, reflecting the sensitivity of the company's fixed cost structure to recent revenue volatility.
| 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 | 626.54M | 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 % | -3.42% | 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 | 166.16M | 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 | 460.39M | 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 % | 73.48% | 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 | 229.06M | 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 | 77.34M | 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 | 144.84M | 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 | 223.26M | 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 % | 35.63% | 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 | 258.77M | 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 % | 41.3% | 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 % | -10.85% | 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) | 35.51M | 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 | 180.51M | 250.78M | 238.8M | 217.19M | 267.11M | 227.64M | 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 | 29.63M | 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 | 29.63M | 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 | 36.71M | 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 | 259.97M | 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 % | 41.49% | 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 | 27.65M | 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 % | 10.64% | 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 | 213.53M | 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 % | 34.08% | 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 % | -7% | 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) | 213.53M | 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) | 4.52 | 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 % | -7.05% | 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 | 47.21M | 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 | 47.08M | 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% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical consumer electronics exposure
As indicated by the most recent quarterly data, Universal Display's revenue growth has turned negative, with a 14.5% year-over-year decline in 2026Q1, highlighting the company's susceptibility to the inherent volatility of the global consumer electronics manufacturing cycle and shifting panel procurement patterns.
The top-line performance appears heavily tethered to the production schedules of a concentrated customer base, leading to erratic quarterly growth rates. Investors should monitor whether this deceleration reflects a structural shift in display technology adoption or merely a temporary inventory correction within the smartphone and television supply chains.
Based on financial statements, the company maintains a robust gross margin profile, consistently hovering around 73% to 77%, which underscores the significant pricing power derived from its proprietary phosphorescent emitter patent portfolio and the high-margin nature of its recurring licensing revenue streams.
The stability of these margins suggests that the company successfully extracts value regardless of underlying material volume fluctuations. However, any future shift toward a higher mix of physical material sales relative to pure licensing fees may exert downward pressure on these historically elevated gross margins.
According to reported income statement figures, operating margins have demonstrated significant sensitivity to revenue fluctuations, contracting to 30.1% in 2026Q1 from peaks near 42%, suggesting that the company's fixed cost base remains a primary determinant of profitability during periods of top-line contraction.
While the company benefits from a lean operating structure, the inability to fully insulate operating income from revenue declines warrants further investigation into the scalability of its R&D and SG&A expenses. The current data suggests that management maintains a disciplined cost structure, yet operating leverage remains inherently tied to the cyclicality of the display industry.
As evidenced by the 2026Q1 results, net income and EPS are subject to significant quarterly variance, with stock-based compensation expenses of $7.6M acting as a recurring drag on bottom-line performance, which complicates the assessment of normalized profitability for long-term investors.
The fluctuation in EPS, exemplified by the 43.7% decline in the most recent quarter, suggests that investors should look past headline volatility to understand the underlying cash-generating capability of the patent portfolio. The impact of non-operating items and periodic true-ups in licensing revenue appears to create noise that may mask the true operational trajectory.
Based on an analysis of the income statement, the primary risk remains the potential for margin compression if foundational patents expire or if alternative display technologies bypass the company's phosphorescent emitters, potentially undermining the long-term sustainability of its high-margin licensing revenue model.
Short-term observers might focus on the recent revenue deceleration as a sign that the company's moat is facing competitive pressure from emerging display architectures. The reliance on a narrow set of customers and the ongoing need for R&D intensity to maintain technological relevance suggest that the company's competitive position is not immune to industry-wide shifts.
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.