Financial Data and Key Metrics Changes - In Q1 2025, revenue was $166 million, operating profit was $70 million, and net income was $64 million or $1.35 per diluted share, showing a year-over-year increase in net income of over 13% from $57 million or $1.19 per diluted share in Q1 2024 [5][14] - Total material sales were $86 million in Q1 2025, down from $93 million in Q1 2024, while royalty and license fees increased to $74 million from $68 million in the prior year [11][12] - Operating income increased to $70 million with an operating margin of 42%, compared to $63 million and 38% in the prior year [13] Business Line Data and Key Metrics Changes - Green emitter sales were $64 million in Q1 2025, down from $71 million in Q1 2024, while red emitter sales remained at $21 million [11][12] - Adesis' revenue in Q1 2025 was $6.6 million, compared to $3.7 million in Q1 2024, indicating growth in this segment [12] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units, OLED IT units are expected to increase by 16% to 27 million units, and OLED TVs are projected to grow by 4.5% to 7.1 million units [8] - The overall OLED market is expected to see mid-single-digit growth in 2025, driven by diverse product roadmaps and applications [7] Company Strategy and Development Direction - The company is focused on innovation and operational agility, with a commitment to advancing OLED technology and materials [7][16] - The long-term trajectory of the OLED market is viewed positively, with expectations for new generation OLED capacity to come online in 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management noted a solid start to 2025, with an uptick in orders in April attributed to ongoing tariff developments, although the business remains largely unaffected by these uncertainties [6][5] - The company maintains a revenue guidance range of $640 million to $700 million for the year, despite ongoing uncertainties [11][45] Other Important Information - The company ended the quarter with approximately $918 million in cash and investments and announced a $0.45 quarterly dividend [14][15] - A $100 million share repurchase authorization was also announced, reflecting confidence in continued positive cash flow generation [15] Q&A Session Summary Question: Update on blue phosphorescent OLED commercialization - Management expressed satisfaction with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, indicating that specific timelines for product introduction are up to customers and OEMs [19][20] Question: Impact of LG's announcement on other customers - Management noted that multiple customers have been working on blue materials for years, and the announcement may accelerate development but specifics depend on each customer's program [22] Question: Stability of blue fluorescence materials - Management explained that blue fluorescence has been established in the market for decades, which contributes to its stability compared to new phosphorescent materials [28] Question: Expectations for gross margin improvement - The guidance for total gross margin remains at 76% to 77%, with variations based on customer mix and new contracts [38] Question: Revenue from blue development - Blue development revenues in Q1 were approximately $1.1 million, encompassing both host and emitter sales [74] Question: OpEx expectations for the year - Management expects total operating expenses to be flat compared to 2024, despite a lower level in Q1 due to various factors [76] Question: Shift towards tandem architectures - Management indicated that tandem structures are primarily used in IT applications for their benefits, but the majority of smartphones are expected to remain single-layer [83]

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $166.3 million, a slight increase of 0.6% compared to $165.3 million for the same period in 2024[173]. - Material sales decreased by 8% to $86.2 million for the three months ended March 31, 2025, down from $93.3 million in 2024, with a corresponding 8% decrease in unit material volume[174]. - Revenue from royalty and license fees increased by 8% to $73.6 million for the three months ended March 31, 2025, compared to $68.3 million in 2024, primarily due to changes in customer mix[177]. - Contract research services revenue rose by 77% to $6.6 million for the three months ended March 31, 2025, up from $3.7 million in 2024, driven by increased demand at Adesis[179]. Expenses - Gross margin for the three months ended March 31, 2025, decreased to 77% from 78% in 2024, with a gross margin amount of $128.1 million compared to $128.3 million[180]. - Research and development expenses decreased to $34.9 million for the three months ended March 31, 2025, down from $38.0 million in 2024, mainly due to the closure of the OVJP Corp facility[181]. - Selling, general and administrative expenses decreased to $17.0 million for the three months ended March 31, 2025, compared to $19.3 million in 2024, primarily due to lower performance-based stock compensation expenses[182]. - The closure of the OVJP Corp facility in California resulted in $602,000 of restructuring costs for the three months ended March 31, 2025[170]. - Amortization of acquired technology and other intangible assets was $4.5 million for both Q1 2025 and Q1 2024[183]. - Patent costs decreased to $1.9 million in Q1 2025 from $2.0 million in Q1 2024, reflecting lower internal prosecution costs[184]. - Royalty and license expense decreased significantly to $114,000 in Q1 2025 from $1.7 million in Q1 2024, due to a one-time expense in the prior year[185]. Income and Cash Flow - Interest income increased to $10.1 million in Q1 2025 from $9.6 million in Q1 2024, attributed to higher average investment balances[186]. - Cash provided by operating activities was $30.6 million in Q1 2025, down from $72.2 million in Q1 2024, primarily due to changes in operating assets and liabilities[190][191]. - Cash provided by investing activities was $58.2 million in Q1 2025, compared to cash used of $64.2 million in Q1 2024, driven by net proceeds from investments[192]. - Cash used in financing activities increased to $30.2 million in Q1 2025 from $25.9 million in Q1 2024, due to higher tax payments and dividend payouts[193]. Working Capital and Tax - Working capital increased to $905.3 million as of March 31, 2025, from $774.4 million as of December 31, 2024, mainly due to increases in cash and short-term investments[194]. - The effective income tax rate was 19.6% for Q1 2025, slightly up from 19.4% in Q1 2024, with tax expenses recorded at $15.7 million and $13.6 million respectively[188]. Future Outlook - Company anticipates sufficient cash and short-term investments to meet obligations for at least the next twelve months based on internal forecasts[195]. - The company entered into a new commercial patent license agreement with Samsung Display Co., Ltd. effective January 1, 2023, lasting through the end of 2027, with an additional two-year extension option[160]. - The new manufacturing site in Shannon, Ireland, is expected to double production capacity for phosphorescent emitters when fully operational[171].

Exhibit 99.1 Press Release Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123 Universal Display Corporation Announces First Quarter 2025 Financial Results EWING, N.J. – May 1, 2025 – Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2025. "We began 2025 on a solid financial note and continue to remain confid ...

Core Viewpoint - Universal Display Corp. (OLED) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Company Performance and Outlook - The upgrade for Universal Display suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - Analysts project that Universal Display will earn $4.73 per share for the fiscal year ending December 2025, reflecting a year-over-year decline of 3.9%. However, the Zacks Consensus Estimate has increased by 0.5% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Universal Display in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - Universal Display Corp. (OLED) shares increased by 17.4% to close at $125.17, following a period of 28.8% loss over the past four weeks, indicating notable trading volume [1] - The company has a strong patent portfolio, attracting large customers and generating significant licensing revenues, driven by the growth of small-area OLEDs in smartphones and wearables, and large-area OLEDs in televisions [2] - The automotive industry presents new opportunities, with major automakers like Audi, Lotus, and Zeekr introducing car models featuring OLED screens [2] Group 2 - Universal Display generates most of its revenues from international markets, with operations in South Korea, Ireland, China, Japan, and others, making it susceptible to geopolitical risks [3] - The U.S. Government's recent decision to pause higher tariffs for 90 days for most countries, except China, is seen as a positive development for the company [3] - The company is expected to report quarterly earnings of $1.03 per share, reflecting a year-over-year decline of 13.5%, with revenues projected at $154.85 million, down 6.3% from the previous year [4] Group 3 - The consensus EPS estimate for Universal Display has been revised 1.3% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [5] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [5] - Littelfuse, another company in the same industry, closed 11.3% higher at $166.62, but has seen a return of -28.5% in the past month [5][6]

Core Insights - Universal Display Corp. (OLED) has shown a mixed performance in international markets, which is crucial for assessing its financial resilience and growth prospects [1][2][10] Group 1: Financial Performance - For the quarter ending December 2024, Universal Display reported total revenue of $162.29 million, reflecting a year-over-year increase of 2.5% [4] - South Korea generated $92.13 million, accounting for 56.77% of total revenue, but fell short of the $93.3 million expected by analysts, representing a surprise of -1.26% [5] - China contributed $65.37 million, or 40.28% of total revenue, exceeding expectations by 30.79% compared to the forecast of $49.98 million [6] - Japan's revenue was $0.6 million, making up 0.37% of total revenue, which was below the consensus estimate of $0.92 million, resulting in a surprise of -35.22% [7] Group 2: Revenue Forecasts - Analysts predict total revenue of $151.23 million for the current fiscal quarter, indicating an 8.5% decline from the previous year [8] - For the full year, total revenue is expected to reach $665.2 million, marking a 2.7% increase from the prior year, with South Korea, China, and Japan projected to contribute $399.89 million, $277.38 million, and $6.82 million respectively [9] Group 3: Market Dynamics - The company's reliance on international markets presents both opportunities and challenges, particularly in light of global economic interconnections and geopolitical uncertainties [3][10] - Monitoring trends in overseas revenues is essential for predicting future performance, especially for companies with significant international operations [10]

Core Viewpoint - Universal Display Corporation (OLED) has increased its quarterly dividend payout by approximately 12.5% to 45 cents per share, reflecting a commitment to providing attractive risk-adjusted returns to its shareholders [1][2]. Dividend and Financial Strategy - The new dividend results in a modest yield of 1.22% based on the closing price of $147.34 on February 20, 2025, and is part of the company's long-term strategy to ensure steady returns for stockholders [2]. - The company has a history of healthy dividend increases, which is considered one of its key strengths [2][7]. Growth Drivers - Universal Display is a leading developer in the OLED market, with applications in various industries such as smartphones, televisions, virtual reality devices, and automotive markets [3][4]. - The increasing demand for small-area OLEDs in smartphones and wearables, as well as large-area OLEDs in televisions, presents significant growth opportunities [4]. - OLED technology is noted for its efficiency and cost-effectiveness, particularly in high-volume manufacturing for solid-state lighting applications [4]. Competitive Advantage - The company holds a strong portfolio of around 6,000 patents, with its UniversalPHOLED technology being four times more efficient than fluorescent OLEDs and significantly more efficient than current LCDs [5]. - Collaborations with prestigious institutions like Princeton University and the University of Southern California are expected to enhance its patent portfolio and drive innovation in OLED applications [6]. Financial Performance and Outlook - Universal Display has a Zacks Rank of 3 (Hold) and a long-term earnings growth expectation of 19.5%, with an average earnings surprise of 9% over the last four quarters [7]. - The combination of favorable growth dynamics and sound financial management supports the recent dividend increase, making it an attractive option for investors seeking steady income [7].

Core Insights - Universal Display Corp. reported revenue of $162.29 million for Q4 2024, a year-over-year increase of 2.5% [1] - The company's EPS for the same period was $1.22, down from $1.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $148.67 million by 9.17%, and the EPS surpassed the consensus estimate of $1.07 by 14.02% [1] Revenue Breakdown - Material sales reached $93.27 million, exceeding the average estimate of $78.92 million by analysts, representing a year-over-year increase of 13.4% [4] - Revenue from contract research services was $4.62 million, slightly above the average estimate of $4.29 million, reflecting a significant year-over-year increase of 43.6% [4] - Royalty and license fees totaled $64.41 million, which was below the average estimate of $65.14 million, indicating a year-over-year decline of 11.6% [4] Stock Performance - Over the past month, shares of Universal Display have returned -1%, while the Zacks S&P 500 composite has increased by 2.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Universal Display Corporation reported record revenues of $648 million for 2024, with operating income of $239 million and net income of $222 million, translating to $4.65 per diluted share [8][24] - The company achieved a 12% year-over-year revenue growth, with total gross margins remaining flat at 77% [24][25] - Operating expenses increased to $260 million in 2024 from $224 million in 2023, with a notable restructuring cost of $8.9 million impacting EPS by $0.15 [25][26] Business Line Data and Key Metrics Changes - Material sales reached $365 million, while royalty and license revenues were $267 million, and Adesis' revenues were $15 million for 2024 [24] - In Q4 2024, revenue was $162 million, up 3% from $158 million in Q4 2023, with material sales of $93 million compared to $82 million in the same quarter of the previous year [28][29] - Green emitter sales were $67 million in Q4 2024, up from $63 million in Q4 2023, while red emitter sales increased to $25 million from $18 million [28] Market Data and Key Metrics Changes - The OLED smartphone market is projected to grow from 784 million units in 2024 to 952 million units by 2029, with OLED IT displays expected to nearly quadruple from 20.2 million units in 2024 to 77.6 million units in 2029 [15][16] - The automotive OLED display market is anticipated to quadruple from 2.6 million units in 2024 to 10.6 million units in 2029, driven by demand for energy-efficient displays [17] - OLED TV units are forecasted to grow from 6.8 million in 2024 to 7.9 million in 2029, indicating a continued proliferation of OLED technology [18] Company Strategy and Development Direction - The company is focused on innovation and expanding its leadership position in the OLED ecosystem, with significant advancements in operational, strategic, and R&D roadmaps [9][10] - The introduction of phosphorescent blue technology is seen as a potential game changer, expected to increase energy efficiency by up to 25% once commercialized [13][14] - The company is also exploring new market verticals for its OVJP technology, with a focus on medium area IT markets in the near term [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic market landscape and emphasized the importance of innovation in meeting evolving consumer demands [9][10] - The outlook for 2025 anticipates revenues in the range of $640 million to $700 million, with operating margins expected to be between 35% and 40% [32][33] - The effective tax rate for 2025 is projected to be approximately 19%, and a quarterly cash dividend of $0.45 per share has been approved [34] Other Important Information - The company ended 2024 with $928 million in cash, cash equivalents, and investments [27] - A new investment cycle in OLED capacity is expected, with approximately $20 billion committed to building new Gen 8.6 OLED capacity [21] Q&A Session Summary Question: Update on blue emitter timeline - Management reiterated that the timeline for commercialization of the blue emitter is still "months, not years," with ongoing progress being made [40][43] Question: Revenue guidance for 2025 and seasonality - The company expects a stronger second half in 2025 compared to the first half, despite macro uncertainties [46] Question: Inventory status and impact on 2025 - Current inventory levels are normal, with no significant issues reported from customers [48][55] Question: Geopolitical impacts and tariffs - Management is monitoring macro factors, including tariffs, but has experience navigating global trade [56][57] Question: Factors influencing 2025 revenue guidance - Revenue guidance is influenced by consumer demand and development work at customer sites, with blue included but not expected to drive significant growth [58][59] Question: Competition in the blue emitter market - Management believes that all paths to high-efficiency blue go through their materials, asserting a competitive edge [111] Question: Local competition in the Chinese market - The company is closely monitoring local Chinese material suppliers but remains confident in its longstanding customer relationships and quality [114]

Company Performance - Universal Display Corp. reported quarterly earnings of $1.22 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, but down from $1.29 per share a year ago [1] - The earnings surprise for this quarter was 14.02%, following a previous quarter where the company reported earnings of $1.40 per share against an expectation of $1.20, resulting in a surprise of 16.67% [2] - The company achieved revenues of $162.29 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.17% and up from $158.32 million year-over-year [3] Market Performance - Universal Display shares have increased approximately 0.3% since the beginning of the year, while the S&P 500 has gained 4.5% [4] - The current Zacks Rank for Universal Display is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $151.23 million, and for the current fiscal year, it is $4.71 on revenues of $669.78 million [8] - The outlook for the industry, particularly the Electronics - Miscellaneous Components sector, is currently in the bottom 35% of Zacks industries, which may impact the stock's performance [9]