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What changed in UNIVERSAL DISPLAY CORP \PA\'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of UNIVERSAL DISPLAY CORP \PA\'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+169 added−171 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in UNIVERSAL DISPLAY CORP \PA\'s 2025 10-K

169 paragraphs added · 171 removed · 151 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

64 edited+7 added−8 removed150 unchanged
Biggest changeWe believe, however, that collaborative relationships such as these are important for ensuring success of the OLED industry and broader adoption of our PHOLED and other OLED technologies. Research and Development Our research and development activities are focused on the advancement of our OLED technologies and materials for displays, lighting and other applications.
Biggest changeAs a result, we do not believe these collaboration efforts will generate significant revenue for us as compared to our dopant and licensing businesses. We believe, however, that collaborative relationships such as these are important for ensuring success of the OLED industry and broader adoption of our PHOLED and other OLED technologies.
We make available through our Internet website, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we file such material with the U.S.
We make available through our Internet website, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended as soon as reasonably practicable after we file such material with the U.S.
Many of our key technologies relate primarily to phosphorescent materials that efficiently harvest energy for the direct and indirect emission of light, which we believe enable more energy efficient utilization of energy 7 conversion to light relative to the use of fluorescent emitter materials that can also be used to generate light within the emissive layer of the OLED device without the assistance of a phosphorescent material.
Many of our key technologies relate primarily to phosphorescent materials that efficiently harvest energy for the direct and indirect emission of light, which we believe enable more energy efficient utilization of energy conversion to light relative to the use of fluorescent emitter materials that can also be used to generate light within the emissive layer of the OLED device without the assistance of a phosphorescent material.
We have also formed or acquired other wholly-owned subsidiaries, including Universal Display Corporation Hong Kong, Limited (2008), Universal Display Corporation Korea, Y.H. (2010), Universal Display Corporation Japan GK (2011), UDC Ireland Limited (2012), Universal Display Corporation China, Ltd. (2016), Adesis, Inc. (2016), UDC Ventures LLC (2019), OLED Material Manufacturing Limited (2020), OVJP Corporation (2020), and Universal Vapor Jet Corporation Pte.
We have also formed or acquired other wholly-owned subsidiaries, including Universal Display Corporation Hong Kong, Limited (2008), Universal Display Corporation Korea, Y.H. (2010), Universal Display Corporation Japan GK (2011), UDC Ireland Limited (2012), Universal Display Corporation China, Ltd. (2016), Adesis, Inc. (2016), UDC Ventures LLC (2019), OLED Material Manufacturing Limited (2020), OVJP Corporation (2020), Universal Vapor Jet Corporation Pte. Ltd.
Under these agreements, we have granted BOE non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. We also supply phosphorescent OLED materials to BOE for use in its licensed products. In 2019, we entered into an evaluation and commercial supply relationship with CSOT.
Under these agreements, we have granted BOE non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. We also supply phosphorescent OLED materials to BOE for use in its licensed products. 9 In 2019, we entered into an evaluation and commercial supply relationship with CSOT.
Our strong patent and non-patented know-how portfolios in the areas of PHOLED emitter materials, complementary PHOLED materials, OLED device designs, and OLED manufacturing technologies are reflective of our continued commitment to 4 innovate and invest. We believe that our extensive portfolio of patents and non-patented know-how provides us with a competitive advantage in the OLED industry.
Our strong patent and non-patented know-how portfolios in the areas of PHOLED emitter materials, complementary PHOLED materials, OLED device designs, and OLED manufacturing technologies are reflective of our continued commitment to innovate and invest. We believe that our extensive portfolio of patents and non-patented know-how provides us with a competitive advantage in the OLED industry.
Under this agreement, Merck KGaA sold to UDC Ireland all of its rights, title and interest to over 550 of its owned and licensed OLED-related patents and patent applications in exchange for a cash payment of $66.0 million. The Patent Sale and License Agreement contains customary representations, warranties and covenants of the parties.
Under this agreement, Merck KGaA sold to UDC Ireland all of its rights, title and interest to over 550 of its owned and licensed OLED-related patents and patent applications in exchange for a cash payment of $66 million. The Patent Sale and License Agreement contains customary representations, warranties and covenants of the parties.
As part of these programs, we may provide compensation in the form of support for research program-related 13 activities, reimbursement for patent related costs, as well as providing for some forms of licensing and/or sublicensing fees for licensed technology that is commercialized by us or our customers.
As part of these programs, we may provide compensation in the form of support for research program-related activities, reimbursement for patent related costs, as well as providing for some forms of licensing and/or sublicensing fees for licensed technology that is commercialized by us or our customers.
However, other companies may succeed in continuing to improve these competing display 14 technologies, or in developing new display technologies, that are superior to OLED display technologies in various respects. We cannot predict the timing or extent to which such improvements or developments may occur.
However, other companies may succeed in continuing to improve these competing display technologies, or in developing new display technologies, that are superior to OLED display technologies in various respects. We cannot predict the timing or extent to which such improvements or developments may occur.
We cannot be sure of the extent to which product manufacturers will adopt and continue to utilize our OLED technologies and materials for the production of commercial displays and lighting products. 15 Our Venture Capital Business: UDC Ventures LLC Our wholly-owned subsidiary, UDC Ventures LLC, is a corporate venture capital entity that funds companies we believe are developing innovative products and technologies that may be synergistic or complementary to our business and/or business strategies or which may otherwise provide favorable investment opportunities.
We cannot be sure of the extent to which product manufacturers will adopt and continue to utilize our OLED technologies and materials for the production of commercial displays and lighting products. 14 Our Venture Capital Business: UDC Ventures LLC Our wholly-owned subsidiary, UDC Ventures LLC, is a corporate venture capital entity that funds companies we believe are developing innovative products and technologies that may be synergistic or complementary to our business and/or business strategies or which may otherwise provide favorable investment opportunities.
We believe that our unparalleled manufacturing partners, namely PPG, our well-established supply chain, our multi-tier quality testing, and our product assurance protocols make us a preferred partner for our customers and for any large-scale OLED display manufacturer that wants to deliver to high-quality international end-customers. In 2024, our largest customers for our PHOLED materials included Samsung Display Co., Ltd.
We believe that our unparalleled manufacturing partners, namely PPG, our well-established supply chain, our multi-tier quality testing, and our product assurance protocols make us a preferred partner for our customers and for any large-scale OLED display manufacturer that wants to deliver to high-quality international end-customers. In 2025, our largest customers for our PHOLED materials included Samsung Display Co., Ltd.
These centers, which include state-of-the-art OLED laboratories, better assist our Asia-based customers in their timely evaluation and adoption of our proprietary PHOLED materials, know-how and technologies in their respective PHOLED designs. We purchased the real estate housing our Application Center in Pangyo, South Korea in May 2023. 12 Our Contract Development and Manufacturing Organization: Adesis, Inc.
These centers, which include state-of-the-art OLED laboratories, better assist our Asia-based customers in their timely evaluation and adoption of our proprietary PHOLED materials, know-how and technologies in their respective PHOLED designs. We purchased the real estate housing our Application Center in Pangyo, South Korea in May 2023. 11 Our Contract Development and Manufacturing Organization: Adesis, Inc.
In 2024, we received a majority of our revenue from three customers domiciled in the Asia-Pacific region, BOE, LG Display and SDC, from each of which we had revenue in excess of 10% of our consolidated revenue. Our business is heavily dependent on our relationships with these customers. Substantially all revenue derived from our customers is denominated in U.S. dollars.
In 2025, we received a majority of our revenue from three customers domiciled in the Asia-Pacific region, BOE, LG Display and SDC, from each of which we had revenue in excess of 10% of our consolidated revenue. Our business is heavily dependent on our relationships with these customers. Substantially all revenue derived from our customers is denominated in U.S. dollars.
We believe the successful implementation of OVJP technology has the potential to grow the market for our proprietary PHOLED materials and technologies. Our Strategic Relationships with Product Manufacturers We have established early-stage evaluation programs, development and pre-commercial programs, and commercial arrangements with a substantial number of manufacturers or potential manufacturers of OLED display and lighting products.
We believe the successful implementation of UVJP technology has the potential to grow the market for our proprietary PHOLED materials and technologies. Our Strategic Relationships with Product Manufacturers We have established early-stage evaluation programs, development and pre-commercial programs, and commercial arrangements with a substantial number of manufacturers or potential manufacturers of OLED display and lighting products.
Our manufacturing partner of over 20 years, PPG, continues to manufacture our materials for us, using proprietary manufacturing processes and know-how, which materials we then qualify to our exacting product specifications and resell on a just-in-time basis to OLED device manufacturers. We record revenues based on our sales of these materials to OLED device manufacturers.
Our manufacturing partner of over 25 years, PPG, continues to manufacture our materials for us, using proprietary manufacturing processes and know-how, which materials we then qualify to our exacting product specifications and resell on a just-in-time basis to OLED device manufacturers. We record revenues based on our sales of these materials to OLED device manufacturers.
(SDC), LG Display Co., Ltd. (LG Display), BOE Technology Group Co., Ltd. (BOE), Tianma Micro-electronics Co., Ltd. (Tianma), Visionox Technology, Inc. (Visionox), Wuhan China Star Optoelectronics Semiconductor Display Technology Co., Ltd. (CSOT), and Japan Display, Inc.
(SDC), LG Display Co., Ltd. (LG Display), BOE Technology Group Co., Ltd. (BOE), Tianma Micro-electronics Co., Ltd. (Tianma), Visionox Technology, Inc. (Visionox) and Wuhan China Star Optoelectronics Semiconductor Display Technology Co., Ltd. (CSOT).
There are currently two basic types of solid-state lighting devices: inorganic light emitting diodes, or LEDs, and OLEDs. Current commercial LED offerings are gnerally characterized by high operating temperatures and intense brightness which may make them less desirable for many lighting applications.
There are currently two basic types of solid-state lighting devices: inorganic light emitting diodes, or LEDs, and OLEDs. Current commercial LED offerings are generally characterized by high operating temperatures and intense brightness which may make them less desirable for many lighting applications.
As a direct printing technique, OVJP technology has the potential to offer high deposition rates for large-area OLEDs. In addition, OVJP technology reduces OLED material waste associated with use of a shadow mask (i.e., the waste of material that deposits on the shadow mask itself when fabricating an OLED).
As a direct printing technique, UVJP technology has the potential to offer high deposition rates for large-area OLEDs. In addition, UVJP technology reduces OLED material waste associated with use of a shadow mask (i.e., the waste of material that deposits on the shadow mask itself when fabricating an OLED).
In 2011, we entered into an agreement with PPG, the term of which, by amendment in February 2021, continues through December 31, 2025, and thereafter is automatically renewed for additional one-year terms, unless terminated by us with prior notice of one year or terminated by PPG with prior notice of two years.
In 2011, we entered into an agreement with PPG, the term of which, by amendment in February 2021, continues through December 31, 2026, and thereafter is automatically renewed for additional one-year terms, unless terminated by us with prior notice of one year or terminated by PPG with prior notice of two years.
There are OLED design structures that propose combining phosphorescent and fluorescent materials in a common stack, such as device structures that utilize phosphorescent material to harvest energy and then transfer the energy to another material to emit the light, such as thorough a system referred to as phosphorescent sensitized fluorescence (“PSF”).
There are OLED design structures that propose combining phosphorescent and fluorescent materials in a common stack, such as device structures that utilize phosphorescent material to harvest energy and then transfer the energy to another material to emit the light, such as through a system referred to as phosphorescent sensitized fluorescence (“PSF”).
As of December 31, 2024, the patent rights we exclusively license from all our university research partners included more than 600 issued patents and pending patent applications in jurisdictions around the world.
As of December 31, 2025, the patent rights we exclusively license from all our university research partners included more than 600 issued patents and pending patent applications in jurisdictions around the world.
Other licensed customers of our technology in 2024 included Sharp Corporation, AU Optronics Corporation (AU Optronics), Kaneka Corporation, Pioneer Corporation, and OLEDWorks L.L.C. 5 Complementary UniversalPHOLED ® Host Material Business In addition to our proprietary UniversalPHOLED® emitter materials, we continue to develop, supply and offer for sale certain of our proprietary phosphorescent host materials to OLED device manufacturers.
Other licensed customers of our technology in 2025 included AU Optronics Corporation (AU Optronics), Kaneka Corporation, Pioneer Corporation, and OLEDWorks L.L.C. 5 Complementary UniversalPHOLED ® Host Material Business In addition to our proprietary UniversalPHOLED® emitter materials, we continue to develop, supply and offer for sale certain of our proprietary phosphorescent host materials to OLED device manufacturers.
In 2024, we continued our commercial supply relationships with companies such as BOE, CSOT, LG Display, SDC, Tianma, and Visionox to use our PHOLED materials to manufacture OLED displays.
In 2025, we continued our commercial supply relationships with companies such as BOE, CSOT, LG Display, SDC, Tianma, and Visionox to use our PHOLED materials to manufacture OLED displays.
Premutico received a J.D. from Boston University School of Law, an M.B.A. from Yale University, and a B.S.E.E. from Worcester Polytechnic Institute. 17
Premutico received a J.D. from Boston University School of Law, an M.B.A. from Yale University, and a B.S.E.E. from Worcester Polytechnic Institute. 16
This includes more than 6,500 U.S. and foreign patents and patent applications that we own, exclusively license or have the sole right to sublicense. It also includes a substantial body of non-patented technical know-how that we have accumulated over time.
This includes more than 7,000 U.S. and foreign patents and patent applications that we own, exclusively license or have the sole right to sublicense. It also includes a substantial body of non-patented technical know-how that we have accumulated over time.
By comparison to inkjet printing, an OVJP process does not use liquid solvents and therefore the OLED materials utilized are not limited by their viscosity or solvent solubility. OVJP also avoids generation of solvent wastes and eliminates the additional step of removing residual solvent from the OLED device.
By comparison to inkjet printing, a UVJP process does not use liquid solvents and therefore the OLED materials utilized are not limited by their viscosity or solvent solubility. UVJP also avoids generation of solvent wastes and eliminates the additional step of removing residual solvent from the OLED device.
Forrest’s transfer, we entered into a new sponsored research agreement with USC under which we are funding organic electronics research being conducted by Drs. Forrest and Thompson (the 2006 Research Agreement). Work by Professor Forrest is being funded through a subcontract between USC and Michigan.
Forrest’s transfer, we entered into a new sponsored research agreement with USC under which we are funding organic electronics research being conducted by Drs. Forrest and Thompson (the 2006 Research Agreement). Work by Professor Forrest is being funded through a subcontract between USC and Michigan. The 2006 Research Agreement currently extends through April 2028.
Through our internal development efforts, acquisitions, and long-standing relationships with academic partners, research institutions and product manufacturers, we own, exclusively license or have the sole right to sublicense more than 6,500 patents issued and pending worldwide.
Through our internal development efforts, acquisitions, and long-standing relationships with academic partners, research institutions and product manufacturers, we own, exclusively license or have the sole right to sublicense more than 7,000 patents issued and pending worldwide.
We currently own, exclusively license or have the sole right to sublicense more than 6,500 patents issued and pending worldwide. We manufacture and sell our proprietary OLED materials to customers for evaluation and use in commercial OLED products.
We currently own, exclusively license or have the sole right to sublicense more than 7,000 patents issued and pending worldwide. We manufacture and sell our proprietary OLED materials to customers for evaluation and use in commercial OLED products.
We are committed to diverse representation across all levels of our workforce to reflect the vibrant and thriving diversity of the communities in which we live and work. Women represent 40% of our executive management team, 16% of our leadership (Director level and above) and 22% of our total workforce, as well as 40% of our Board of Directors.
We are committed to diverse representation across all levels of our workforce to reflect the vibrant and thriving diversity of the communities in which we live and work. Women represent 40% of our executive management team, 14% of our leadership (Director level and above) and 23% of our total workforce, as well as 50% of our Board of Directors.
Human Capital As of December 31, 2024, we had 468 active employees, none of whom are unionized. Of these employees, 345 are research scientists, engineers and laboratory technicians at our domestic and international facilities. This team includes chemists, physicists, engineers and technicians with physics, electrical engineering, mechanical engineering and organic/inorganic chemistry backgrounds, and highly-trained theoreticians and experimentalists.
Human Capital As of December 31, 2025, we had 469 active employees, none of whom are unionized. Of these employees, 340 are research scientists, engineers and laboratory technicians at our domestic and international facilities. This team includes chemists, physicists, engineers and technicians with physics, electrical engineering, mechanical engineering and organic/inorganic chemistry backgrounds, and highly-trained theoreticians and experimentalists.
Mahon 67 Senior Vice President of Technology Commercialization and General Manager, Commercial Sales Business Brian Millard 42 Vice President, Chief Financial Officer and Treasurer Mauro Premutico 59 Senior Vice President, Planning, Chief Legal Officer and Secretary Our Board of Directors has appointed these executive officers to hold office until their successors are duly appointed. Steven V.
Mahon 68 Senior Vice President of Technology Commercialization and General Manager, Commercial Sales Business Brian Millard 43 Vice President, Chief Financial Officer and Treasurer Mauro Premutico 60 Senior Vice President, Planning, Chief Legal Officer and Secretary Our Board of Directors has appointed these executive officers to hold office until their successors are duly appointed. Steven V.
Ltd. (2024), and we established a representative office in Taiwan (2011). Our Compliance with Environmental Protection Laws We are not aware of any material effects that compliance with Federal, state or local environmental protection laws or regulations will have on our business.
(2024), and UDC Chengdu OLED Technology, Ltd. (2025), and we established a representative office in Taiwan (2011). Our Compliance with Environmental Protection Laws We are not aware of any material effects that compliance with Federal, state or local environmental protection laws or regulations will have on our business.
Adesis currently operates in its headquarters facility, which it purchased in 2017 and consists of over 47,500 square feet in New Castle, Delaware, and in another, leased, over 40,000 square foot facility in Wilmington, Delaware. As of December 31, 2024, Adesis employed a team of 139 research scientists, chemists, engineers and laboratory technicians.
Adesis currently operates in its headquarters facility, which it purchased in 2017 and consists of over 47,500 square feet in New Castle, Delaware, and in another, leased, over 49,000 square foot facility in Wilmington, Delaware. As of December 31, 2025, Adesis employed a team of 137 research scientists, chemists, engineers and laboratory technicians.
In 2024, we 10 completed successful Recertification Audits on our ISO 9001:2015 Quality Management Systems, our ISO 14001:2015 Environmental Management Systems, and our ISO 45001:2018 Occupational Health and Safety Management Systems. 11 PPG We have maintained a close working relationship with PPG since 2000.
In 2025, we completed successful Surveillance Audits on our ISO 9001:2015 Quality Management Systems, our ISO 14001:2015 Environmental Management Systems, and our ISO 45001:2018 Occupational Health and Safety Management Systems. 10 PPG We have maintained a close working relationship with PPG since 2000.
OLED devices are typically referred to as incorporating an “OLED stack.” OLED stacks vary in specific structure but those commonly used today may include a cathode, an electron injection layer, an electron transport layer, an emissive layer, a hole transport layer, a hole injection layer and an anode, all of which are placed on a substrate which may be made of a number of different materials, including glass, plastic and metal.
OLED devices are typically referred to as incorporating an “OLED stack.” OLED stacks vary in specific structure but those commonly used today may include a cathode, an electron injection layer, an electron transport layer, an emissive layer, a hole transport layer, a hole injection layer and an anode, all of which are placed on a substrate which may be made of a number of different materials, including glass, plastic and metal. 7 Our technology and materials are most commonly utilized in the emissive layer; the materials in the emissive layer are the light-generating component of the OLED stack.
Brown 63 Executive Vice President and Chief Technical Officer Janice K.
Brown 64 Executive Vice President and Chief Technical Officer Janice K.
These royalties amount to 3% of the net sales price for licensed products sold by us and 3% of the revenues we receive for licensed patents used by our sublicensees. We owed royalties under the 1997 Amended License Agreement of $2.0 million for the year ended December 31, 2024.
These royalties amount to 3% of the net sales price for licensed products sold by us and 3% of the revenues we receive for licensed patents used by our sublicensees. We owed royalties under the 1997 Amended License Agreement of $450,000 for the year ended December 31, 2025.
The information on our Internet website is not part of this report. 16 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following table sets forth certain information with respect to our executive officers as of February 20, 2025: Name Age Position Steven V. Abramson 73 President, Chief Executive Officer and Director Julia J.
The information on our Internet website is not part of this report. 15 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following table sets forth certain information with respect to our executive officers as of February 19, 2026: Name Age Position Steven V. Abramson 74 President, Chief Executive Officer and Director Julia J.
We have employees from over 25 countries in our workforce, and we believe that a diverse workforce made up of people with different ideas, strengths, interests and cultural backgrounds drives employee and business success. In 2024 our voluntary turnover rate was 6%, and we had an overall employee growth rate of 3%.
We have employees from over 25 countries in our workforce, and we believe that a diverse workforce made up of people with different ideas, strengths, interests and cultural backgrounds drives employee and business success. In 2025 our voluntary turnover rate was 5% and our overall employee growth rate remained flat.
LG Display is currently the largest manufacturer of AMOLED displays for large-area televisions and produces display panels for a number of different television manufacturers. 9 In 2023, we entered into new long-term, multi-year agreements with BOE.
The OLED commercial supply agreement provides for the sale of dopant and host materials for use by LG Display. LG Display is currently the largest manufacturer of AMOLED displays for large-area televisions and produces display panels for a number of different television manufacturers. In 2023, we entered into new long-term, multi-year agreements with BOE.
OLED Technologies and Materials Competitors Eastman Kodak Company (Kodak) developed and patented the original fluorescent OLED technology in 1987. Cambridge Display Technology, Ltd. (CDT), which was acquired by Sumitomo Chemical Company in 2007, developed and patented polymer OLED technology in 1989.
Again, we cannot predict whether or when this might occur. OLED Technologies and Materials Competitors Eastman Kodak Company (Kodak) developed and patented the original fluorescent OLED technology in 1987. Cambridge Display Technology, Ltd. (CDT), which was acquired by Sumitomo Chemical Company in 2007, developed and patented polymer OLED technology in 1989.
Our wholly-owned subsidiary formed under the laws of the Republic of Ireland, UDC Ireland Ltd. (UDC Ireland), is responsible for all material sales worldwide (excluding the United States) and for licensing and managing intellectual property and undertaking certain other business transactions in all non-U.S. territories.
(UDC Ireland), is responsible for all material sales worldwide (excluding the United States) and for licensing and managing intellectual property and undertaking certain other business transactions in all non-U.S. territories.
Broad Portfolio of Intellectual Property Generally, each of our commercial offerings is protected by multiple patents which can help us either to prevent or combat the introduction of counterfeit and/or knock-off products that could potentially impact the market demand for our OLED materials and technologies.
These Application Centers have provided us and our customers with the ability to more quickly evaluate, develop and bring to market our newest OLED materials and technologies. 4 Broad Portfolio of Intellectual Property Generally, each of our commercial offerings is protected by multiple patents which can help us either to prevent or combat the introduction of counterfeit and/or knock-off products that could potentially impact the market demand for our OLED materials and technologies.
Display Panel Industry Competitors Numerous domestic and foreign companies have developed or are developing and improving LCD, which includes quantum dot LCDs (which are sometimes referred to as QLEDs), and other early-stage display technologies, including microLED technologies, that are attempting to compete with our OLED display technologies.
We also compete in the lighting market against technologies, such as fluorescent bulbs, and inorganic LEDs, and against emerging technologies, such as other OLED technologies. 13 Display Panel Industry Competitors Numerous domestic and foreign companies have developed or are developing and improving LCD, which includes quantum dot LCDs (which are sometimes referred to as QLEDs), and other early-stage display technologies, including microLED technologies, that are attempting to compete with our OLED display technologies.
In 2016, we entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma. Under the license agreement, we have granted Tianma non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on Tianma’s sales of licensed products.
In 2025, we entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma. Under the agreements, we have granted Tianma non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. Additionally, we supply phosphorescent OLED materials to Tianma for use in its licensed products.
Lighting Industry Competitors Although there has been a movement to phase out traditional incandescent bulbs throughout many countries, traditional incandescent bulbs and fluorescent lamps remain entrenched products in the lighting industry. In addition, compact fluorescent lamps and solid-state LEDs have been introduced into the market and would compete with OLED lighting products.
Lighting Industry Competitors Although there has been a movement to phase out traditional incandescent bulbs throughout many countries, traditional incandescent bulbs and fluorescent lamps remain entrenched products in the lighting industry. The primary competition for OLED lighting products is compact fluorescent lamps and solid-state LEDs, which have realized significant market adoption in the general lighting market.
Collaborations with Other OLED Material Manufacturers We continued our non-exclusive collaborative relationships with OLED material manufacturing customers during 2024. Most of these relationships are focused on combining our proprietary PHOLED emitting dopants with hosts and other OLED materials of these companies in an effort to optimize our PHOLED emitting dopant products and deliver a high-performance system to the end customer.
Most of these relationships are focused on combining our proprietary PHOLED emitting dopants with hosts and other OLED materials of these companies in an effort to optimize our PHOLED emitting dopant products and deliver a high-performance system to the end customer. Our product manufacturing customers are not required to purchase host materials from us.
However, others, such as those working to develop thermally activated delayed fluorescence (TADF) and phosphorescent sensitized fluorescence, may succeed in developing new OLED technologies, materials and alternative solutions that may supplement or be utilized in place of ours.
However, others, such as those working to develop thermally activated delayed fluorescence (TADF) and phosphorescent sensitized fluorescence, may succeed in developing new OLED technologies, materials and alternative solutions that may supplement, replace or reduce the quantity of our PHOLED material used in commercial devices.
Our facility also includes state-of-the-art synthetic and analytical chemistry laboratories in which we conduct OLED materials research and make small quantities of new materials that we then test in OLED devices. Application Centers In addition to our laboratory facilities in Ewing, New Jersey, we have Application Centers in Hong Kong and Pangyo, South Korea.
Our facility also includes state-of-the-art synthetic and analytical chemistry laboratories in which we conduct OLED materials research and make small quantities of new materials that we then test in OLED devices.
Manufacturers also may be able to produce FOLEDs using more efficient continuous, or roll-to-roll, processing methods in the future. Our internal research and development efforts are expected to enhance and promote the future adoption of consumer and industrial FOLED devices. OVJP® Organic Vapor Jet Printing 8 OLEDs could be manufactured using other processes as well, including OVJP.
Our internal research and development efforts are expected to enhance and promote the future adoption of consumer and industrial FOLED devices. 8 Universal Vapor Jet Printing (UVJP) OLEDs could be manufactured using other processes as well, including UVJP, which was previously referred to as Organic Vapor Jet Printing, or OVJP.
As of December 31, 2024, we owned more than 6,500 unexpired issued patents and pending patent applications around the world in addition to the hundreds of patents and patent applications we exclusively license from our research partners, as discussed below. Patents We License from Research Partners We exclusively license patent rights from a number of university research partners.
As of December 31, 2025, our portfolio included more than 7,000 unexpired issued patents and pending patent applications around the world. 12 Patents We License from Research Partners We exclusively license patent rights from a number of university research partners.
We purchased the site in September 2023 and amended and restated the February 2021 amendment to the PPG agreement to reflect our ownership and PPG SCM’s updated operation and maintenance services after such purchase. When fully operational, the facility is expected to double our production capacity and allow for the diversification of our manufacturing base for phosphorescent emitters.
The Shannon manufacturing facility became operational in June 2022. We purchased the site in September 2023 and amended and restated the February 2021 amendment to the PPG agreement to reflect our ownership and PPG SCM’s updated operation and maintenance services after such purchase.
However, manufacturers of LEDs and compact fluorescent lamps may succeed in more broadly adapting their products to various lighting applications, or others may develop competing solid-state lighting technologies that are superior to OLEDs. Again, we cannot predict whether or when this might occur.
Having attributes different from fluorescent lamps and LEDs, OLEDs may compete directly with these products for certain lighting applications. However, manufacturers of LEDs and compact fluorescent lamps may succeed in more broadly adapting their products to various lighting applications, or others may develop competing solid-state lighting technologies that are superior to OLEDs.
As of December 31, 2024, we were obligated to pay USC up to $1.7 million for work to be performed during the remaining extended term. Other Academic Relationships Over the years, we have also entered into research agreements with various universities and research institutions that have been able to provide tailored research capabilities and insights relating to our PHOLED technology.
Other Academic Relationships Over the years, we have also entered into research agreements with various universities and research institutions that have been able to provide tailored research capabilities and insights relating to our PHOLED technology.
To this end, we operate two state-of-the-art laboratories, or Application Centers, near our larger customers in the Asia-Pacific region. These Application Centers have provided us and our customers with the ability to more quickly evaluate, develop and bring to market our newest OLED materials and technologies.
To this end, we operate two state-of-the-art laboratories, or Application Centers, near our larger customers in the Asia-Pacific region.
In 2015, we entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display. The terms of these agreements have been extended through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under our patent portfolio.
In 2015, we entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display. In 2021, we and LG Display entered into new agreements that extended the terms of these agreements at least through the end of 2025.
Internal Development Efforts Ewing, New Jersey Facility We conduct a substantial portion of our OLED development activities at our state-of-the-art development and testing facility in Ewing, New Jersey.
Our venture capital company, UDC Ventures LLC, continues to seek to invest in companies that we believe are developing synergistic or complementary technologies to ours. Internal Development Efforts Ewing, New Jersey Facility We conduct a substantial portion of our OLED development activities at our state-of-the-art development and testing facility in Ewing, New Jersey.
UDC Ireland recorded the payment of $66.0 million as acquired technology, which is being amortized over a period of 10 years. The transactions contemplated by the Merck KGaA Agreement were consummated on April 28, 2023. Non-patented Technical Know-How We have accumulated, and continue to accumulate, a substantial amount of non-patented technical know-how relating to OLED technologies and materials.
UDC Ireland recorded the payment of $66 million as acquired technology, which is being amortized over a period of 10 years. The transactions contemplated by the Merck KGaA Agreement were consummated on April 28, 2023. In October 2025, UDC Ireland entered into an Intellectual Property Sales Agreement with Merck KGaA.
The first phase of facility improvements has been completed and operations commenced in June 2022. As with our initial agreement with PPG, under our amended and restated 2021 amendment we compensate PPG on a cost-plus basis for the services provided at the Shannon manufacturing facility.
As with our initial agreement with PPG, under our amended and restated 2021 amendment we compensate PPG on a cost-plus basis for the services provided at the Shannon manufacturing facility. Collaborations with Other OLED Material Manufacturers We continued our non-exclusive collaborative relationships with OLED material manufacturing customers during 2025.
While we continue to focus on the long-term opportunity in the large-area display market for OVJP, the industry’s current focus is on the growing demand for IT capacity. Our UVJC subsidiary plans to assess additional market opportunities where this technology may be transformative.
In December 2024, we relocated the research and development for UVJP to our newly formed subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC) in Singapore. While we continue to focus on the long-term opportunity in the large-area display market for UVJP, our UVJC subsidiary continues to assess additional market opportunities where this technology may be transformative.
We compete against alternative display technologies, in particular LCDs, as well as other OLED technologies. We also compete in the lighting market against incumbent technologies, such as incandescent and fluorescent bulbs, and inorganic LEDs, and against emerging technologies, such as other OLED technologies.
We compete against alternative display technologies, in particular LCDs, as well as other OLED technologies.
The 2006 Research Agreement currently extends through April 2025, at which time the parties expect to extend the agreement. We make payments under the 2006 Research Agreement to USC on a quarterly basis as actual expenses are incurred.
We make payments under the 2006 Research Agreement to USC on a quarterly basis as actual expenses are incurred. As of December 31, 2025, we were obligated to pay USC up to $6.3 million for work to be performed during the remaining extended term.
We conduct this research and development primarily internally and also through various relationships with commercial business partners, academic partners, and research institutions. Our venture capital company, UDC Ventures LLC, continues to seek to invest in companies that we believe are developing synergistic or complementary technologies to ours.
Research and Development Our research and development activities are focused on the advancement of our OLED technologies and materials for displays, lighting and other applications. We conduct this research and development primarily internally and also through various relationships with commercial business partners, academic partners, and research institutions.
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Our technology and materials are most commonly utilized in the emissive layer; the materials in the emissive layer are the light-generating component of the OLED stack.
Added
We are in the process of opening a new Application Center in Chengdu, China which we expect to be operational during the second quarter of 2026. Our wholly-owned subsidiary formed under the laws of the Republic of Ireland, UDC Ireland Ltd.
Removed
In 2019, we installed a red-green-blue OVJP pilot tool at our Ewing, New Jersey facility, and we continue to collaborate on OVJP technology development with Professor Forrest of Michigan. In June 2020, we formed a wholly-owned subsidiary, OVJP Corporation (OVJP Corp) in California, as a Delaware corporation, which was founded to advance the commercialization of our proprietary OVJP technology.
Added
Manufacturers also may be able to produce FOLEDs using more efficient continuous, or roll-to-roll, processing methods in the future.
Removed
In December 2024, we announced that the OVJP Corp facility in California would be closing and OVJP operations would be relocated to our newly formed subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC) in Singapore, as well as continued operations in our Tech and Innovation Center in New Jersey.
Added
The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under their patent portfolio. The patent license calls for minimum annual license fees and additional incremental license fees based on LG Display’s volume of sale of licensed products.
Removed
The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The OLED commercial supply agreement provides for the sales of materials for use by LG Display, which may include phosphorescent emitters and host materials.
Added
The Shannon manufacturing facility provides incremental manufacturing capacity to meet our expanding production needs, and allows for the geographical diversification of our manufacturing base for the world-wide distribution of our materials.
Removed
The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the life of the agreements as well as minimum royalty revenue.
Added
Application Centers In addition to our laboratory facilities in Ewing, New Jersey, we have Application Centers in Hong Kong and Pangyo, South Korea and are in the process of opening a center in Chengdu, China.
Removed
Additionally, we supply phosphorescent OLED materials to Tianma for use in its licensed products. In 2021, we mutually agreed to extend the terms of both the patent license and material purchase agreements for an additional multi-year term.
Added
Under this agreement, UDC Ireland agreed to acquire from Merck KGaA all of its rights, title and interest to more than 300 of its OLED-related patents and patent applications in exchange for cash payments totaling $50 million. The Intellectual Property Sale Agreement contains customary representations, warranties and covenants of the parties.
Removed
Our product manufacturing customers are not required to purchase host materials from us. As a result, we do not believe these collaboration efforts will generate significant revenue for us as compared to our dopant and licensing businesses.
Added
The transaction closed during January 2026 and the acquired assets will be amortized over a period of 10 years. Non-patented Technical Know-How We have accumulated, and continue to accumulate, a substantial amount of non-patented technical know-how relating to OLED technologies and materials.
Removed
LEDs have realized significant market adoption in the general lighting market. Having attributes different from fluorescent lamps and LEDs, OLEDs may compete directly with these products for certain lighting applications.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf we cannot complete research and development of our OLED technologies and materials successfully, or if we experience delays in completing research and development of our OLED technologies and materials for use in potential commercial applications, particularly after incurring significant expenditures, our business may fail.
Biggest changeIf we cannot complete research and development of our OLED technologies and materials successfully, or if we experience delays in completing research and development of our OLED technologies and materials for use in potential commercial applications, particularly after incurring significant expenditures, our business may fail. 19 Conflicts or other problems may arise with our customers or joint development partners, resulting in renegotiation, breach or termination of, or litigation related to, our agreements with them.
Risks associated with our doing business outside of the United States include, without limitation: • compliance with a wide variety of U.S. and foreign laws and regulations, including foreign anti-corruption and export laws, and certain registration and licensing requirements for the OLED materials we sell; • legal uncertainties on doing business in certain countries or with certain parties regarding taxes, tariffs, quotas, export controls, export licenses and other trade barriers; • economic instability in the countries of our customers, causing delays or reductions in orders for their products and therefore our royalties; • political instability in the countries in which we and/or our customers operate, particularly in South Korea with respect to South Korea's disputes with and proximity to North Korea, in Hong Kong relating to anti-government protests and in Taiwan relating to its disputes with China; • third party theft or compromise of our products, technology, data or intellectual property, including by means of counterfeiting or reverse-engineering; • difficulties in collecting accounts receivable and longer accounts receivable payment cycles; 24 • fluctuations in foreign currency exchange rates for any revenues or expenses not denominated in U.S. dollars; • potentially adverse tax and tariff consequences • potential mandatory regulatory requirements in some jurisdictions that domestic manufacturers source at least a portion of their critical OLED materials from domestic manufacturers; and • trade conflicts between and among various geopolitical factions that could result in trade restrictions being placed on our business and sale of OLED materials.
Risks associated with our doing business outside of the United States include, without limitation: • compliance with a wide variety of U.S. and foreign laws and regulations, including foreign anti-corruption and export laws, and certain registration and licensing requirements for the OLED materials we sell; • legal uncertainties on doing business in certain countries or with certain parties regarding taxes, tariffs, quotas, export controls, export licenses and other trade barriers; • economic instability in the countries of our customers, causing delays or reductions in orders for their products and therefore our royalties; 23 • political instability in the countries in which we and/or our customers operate, particularly in South Korea with respect to South Korea's disputes with and proximity to North Korea, in Hong Kong relating to anti-government protests and in Taiwan relating to its disputes with China; • third party theft or compromise of our products, technology, data or intellectual property, including by means of counterfeiting or reverse-engineering; • difficulties in collecting accounts receivable and longer accounts receivable payment cycles; • fluctuations in foreign currency exchange rates for any revenues or expenses not denominated in U.S. dollars; • potentially adverse tax and tariff consequences • potential mandatory regulatory requirements in some jurisdictions that domestic manufacturers source at least a portion of their critical OLED materials from domestic manufacturers; and • trade conflicts between and among various geopolitical factions that could result in trade restrictions being placed on our business and sale of OLED materials.
In addition to the other factors described above relating to our customers’ sales opportunities, our quarter-to-quarter sales may be 26 materially impacted by our customers’ inventory management plans, which may vary substantially based on financial management considerations, changes in their product mix plans, modified material processing techniques and manufacturing line modifications.
In addition to the other factors described above relating to our customers’ sales opportunities, our quarter-to-quarter sales may be materially impacted by our customers’ inventory management plans, which may vary substantially based on financial management considerations, changes in their product mix plans, modified material processing techniques and manufacturing line modifications.
An increase or decrease in our effective tax rate could have a material adverse impact on our financial condition and results of operations. 25 In addition, at any time, U.S. federal tax laws or the administrative interpretations of those laws may be changed.
An increase or decrease in our effective tax rate could have a material adverse impact on our financial condition and results of operations. In addition, at any time, U.S. federal tax laws or the administrative interpretations of those laws may be changed.
This would adversely affect our revenues. 20 Conflicts or other problems could arise between us and our customers or joint development partners, some of which we have made strategic investments in, as to royalty rates, milestone payments or other commercial terms.
This would adversely affect our revenues. Conflicts or other problems could arise between us and our customers or joint development partners, some of which we have made strategic investments in, as to royalty rates, milestone payments or other commercial terms.
In addition, any increase in the cost or reduced availability of critical materials for our OLED materials could lead to higher production costs. Further, uncertain supply of such materials could disrupt our or our suppliers’ ability to 23 obtain such materials in a timely manner and/or could lead to increased costs.
In addition, any increase in the cost or reduced availability of critical materials for our OLED materials could lead to higher production costs. Further, uncertain supply of such materials could disrupt our or our suppliers’ ability to obtain such materials in a timely manner and/or could lead to increased costs.
While we hold a wide range of additional patents and patent applications relating to our commercial OLED materials and technologies whose expiration dates extend (and in the case of patent applications, will extend) beyond 2024, many of which are also of importance in the OLED industry, none may be of an equally essential nature as our original fundamental patents, and therefore our competitive position may be less certain as a result of the expiration of these patents.
While we hold a wide range of additional patents and patent applications relating to our commercial OLED materials and technologies whose expiration dates extend (and in the case of patent applications, will extend) beyond 2025, many of which are also of importance in the OLED industry, none may be of an equally essential nature as our original fundamental patents, and therefore our competitive position may be less certain as a result of the expiration of these patents.
The costs associated with these actions or the loss of rights critical to our or our customers’ businesses could negatively impact our revenues or cause our business to fail. 19 Recent court decisions in various patent cases may make it more difficult for us to obtain future patents, enforce our patents against third parties or obtain favorable judgments in cases where the patents are enforced.
The costs associated with these actions or the loss of rights critical to our or our customers’ businesses could negatively impact our revenues or cause our business to fail. 18 Recent court decisions in various patent cases may make it more difficult for us to obtain future patents, enforce our patents against third parties or obtain favorable judgments in cases where the patents are enforced.
The extent of such impact would depend on factors such as the duration and severity of the event, which would likely be difficult to predict. 22 Any downturn in U.S. or global economic conditions may have a significant adverse effect on our business. There have been significant and sustained economic downturns in the U.S. and globally in the past.
The extent of such impact would depend on factors such as the duration and severity of the event, which would likely be difficult to predict. 21 Any downturn in U.S. or global economic conditions may have a significant adverse effect on our business. There have been significant and sustained economic downturns in the U.S. and globally in the past.
If we are unable to protect the proprietary nature of our intellectual property and proprietary information, it will harm our business. 18 We or our customers may incur substantial costs or lose important rights as a result of litigation or other proceedings relating to our patent and other intellectual property rights or with respect to our OLED materials business.
If we are unable to protect the proprietary nature of our intellectual property and proprietary information, it will harm our business. 17 We or our customers may incur substantial costs or lose important rights as a result of litigation or other proceedings relating to our patent and other intellectual property rights or with respect to our OLED materials business.
Thus, even if our OLED technologies are a viable alternative to competing approaches, if product manufacturers are unable to obtain access to this equipment and these components, materials and other technologies, they may not utilize our OLED technologies. 21 There are numerous potential alternatives to OLEDs, which may limit our ability to commercialize our OLED technologies and materials.
Thus, even if our OLED technologies are a viable alternative to competing approaches, if product manufacturers are unable to obtain access to this equipment and these components, materials and other technologies, they may not utilize our OLED technologies. 20 There are numerous potential alternatives to OLEDs, which may limit our ability to commercialize our OLED technologies and materials.
Our agreement with PPG currently runs through the end of 2025 and shall be automatically renewed for additional one-year terms, unless terminated by us with prior notice of one year or terminated by PPG with prior notice of two years.
Our agreement with PPG currently runs through the end of 2026 and shall be automatically renewed for additional one-year terms, unless terminated by us with prior notice of one year or terminated by PPG with prior notice of two years.
If inflation remains at current levels for an extended period, or increases, and we are unable to successfully mitigate the impact, our costs are likely to increase, resulting in pressure on our profits, margins and cash flows, particularly for existing fixed-price contracts.
If inflation on critical raw materials and labor remains at current levels for an extended period, or increases, and we are unable to successfully mitigate the impact, our costs are likely to increase, resulting in pressure on our profits, margins and cash flows, particularly for existing fixed-price contracts.
As of February 20, 2025, we have issued and outstanding 200,000 shares of Series A Nonconvertible Preferred Stock, all of which are held by an entity controlled by members of the family of Sherwin I. Seligsohn, our late founder and former Chairman of the Board of Directors.
As of February 19, 2026, we have issued and outstanding 200,000 shares of Series A Nonconvertible Preferred Stock, all of which are held by an entity controlled by members of the family of Sherwin I. Seligsohn, our late founder and former Chairman of the Board of Directors.
Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are subject to audit by tax authorities where we do business.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are subject to audit by tax authorities where we do business.
Heightened levels of inflation and the potential worsening of macro-economic conditions, including slower growth or recession, changes to fiscal and monetary policy, tighter credit, higher interest rates and currency fluctuations, present a risk for us, our suppliers and the display and lighting industries in general.
Heightened levels of inflation on critical raw material and labor costs and the potential worsening of macro-economic conditions, including slower growth or recession, changes to fiscal and monetary policy, tighter credit, higher interest rates and currency fluctuations, present a risk for us, our suppliers and the display and lighting industries in general.
Due to the current stage of commercialization of our OLED technologies and materials, current geopolitical risks, the limited number of commercially successful consumer products utilizing our OLED technologies that customers have introduced in the marketplace, the relatively short product lifetimes of these consumer products, and the significant development and manufacturing objectives that we and our customers must achieve for the widespread inclusion of our OLED technologies in consumer products such as mobile phones, tablets, television displays and lighting products, our quarterly operating results are difficult to predict and may vary significantly from quarter to quarter.
Due to the current stage of commercialization of our OLED technologies and materials, current geopolitical risks, the limited number of commercially successful consumer products utilizing our OLED technologies that customers have introduced in the marketplace, the relatively short product lifetimes of these consumer products, and the significant development and manufacturing objectives that we and our customers must achieve for the widespread inclusion of our OLED technologies in consumer products such as mobile phones, tablets, television displays and lighting products, our quarterly operating results are difficult to predict and may vary significantly from quarter to quarter. 25 We believe that period-to-period comparisons of our operating results are not a reliable indicator of our future performance at this time.
Our research and development efforts remain subject to all of the risks associated with the development of new products based on emerging and innovative technologies, including, without limitation, unanticipated technical or other problems and the possible insufficiency of funds for completing development of these products.
Our research and development efforts remain subject to all of the risks associated with the development of new products based on emerging and innovative technologies, including, without limitation, unanticipated technical or other problems and the possible insufficiency of funds for completing development of these products. Technical problems may result in delays and cause us to incur additional expenses.
If environmental and/or export laws or regulations are either changed or adopted and impose additional operational restrictions and compliance requirements upon us or our products, they could negatively impact our business, capital expenditures, results of operations and financial condition. Our effective tax rate may increase or decrease. We are subject to income taxes in the U.S. and numerous foreign jurisdictions.
If environmental and/or export laws or regulations are either changed or adopted and impose additional operational restrictions and compliance requirements upon us or our products, they could negatively impact our business, capital expenditures, results of operations and financial condition. 24 Our effective tax rate may increase or decrease.
We believe that period-to-period comparisons of our operating results are not a reliable indicator of our future performance at this time. Among other factors affecting our period-to-period results, our license and technology development fees often consist of large one-time, annual, semi-annual or quarterly payments, which may result in significant fluctuations in our revenues.
Among other factors affecting our period-to-period results, our license and technology development fees often consist of large one-time, annual, semi-annual or quarterly payments, which may result in significant fluctuations in our revenues.
In addition, our business could be adversely impacted if our customers experience budget, inflationary or other pressures, such as increases in the cost of borrowing from rising interest rates.
In addition, our business could be adversely impacted if our customers experience budget, inflationary or other pressures, such as increases in the cost of borrowing from rising interest rates. Increases in interest rates may have a particularly pronounced impact on highly leveraged customers located in the Asia-Pacific region.
Additionally, PPG manufactures our materials at facilities based in the United States and Ireland, which materials we then predominantly export to our customers that have manufacturing locations in countries in the Asia-Pacific region. As a result, such materials may be subject to tariffs, export restrictions or other barriers from or to these countries and/or customers.
Additionally, PPG manufactures our materials at facilities based in the United States and Ireland, which materials we then predominantly export to our customers that have manufacturing locations in countries in the Asia-Pacific region.
The display market remains dominated by displays based on LCD technology. Numerous companies are making substantial investments in, and conducting research to improve characteristics of, LCDs; additionally, other competing display technologies have been, or are being, developed, like microLED. A similar situation exists in the solid-state lighting market, which is currently dominated by LED products.
The display market remains dominated by displays based on LCD technology. Numerous companies are making investments in competing display technologies, such as LCD and microLED. A similar situation exists in the solid-state lighting market, which is currently dominated by LED products.
Inflationary pressures and persistently high prices and uncertain availability of raw materials or other inputs used by us and our suppliers, or instability in logistics and related costs, could negatively impact our profitability.
As a result, such materials may be subject to tariffs, export restrictions or other barriers from or to these countries and/or customers. 22 Inflationary pressures and persistently high prices and uncertain availability of raw materials or other inputs used by us and our suppliers, or instability in logistics and related costs, could negatively impact our profitability.
We have more than 6,500 issued and pending patents relating to our OLED technologies.
Our patent portfolio includes more than 7,000 issued and pending patents relating to our OLED technologies.
Removed
Technical problems may result in delays and cause us to incur additional expenses that would increase our losses.
Added
These customers may face greater challenges in servicing debt and maintaining liquidity in a rising rate environment, which could negatively affect their ability to invest in and commercialize products that utilize our OLED technologies and materials. As a result, financial strain on these key customers could reduce demand for our products and adversely affect our business and operating results.
Removed
Conflicts or other problems may arise with our customers or joint development partners, resulting in renegotiation, breach or termination of, or litigation related to, our agreements with them.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur Vice President, Head of Global Information Technology, who has decades of information technology leadership experience, and our Chief Financial Officer maintain their expertise through participating in events such as continuing education and training, and information-sharing collaborations. We also retain a third-party Information Security consulting firm to advise on and assess our cybersecurity processes on an ongoing basis.
Biggest changeOur Vice President, Head of Global Information Technology, who has decades of information technology leadership experience, and our Chief Financial Officer maintain their expertise through participating in events such as continuing education and training, and information-sharing collaborations .
Other members of our full Board of Directors, which also receives periodic briefings on cybersecurity matters, also have received professional education and training related to cybersecurity . Despite our efforts to manage the risk from cybersecurity threats, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us.
Other members of our full Board of Directors, which also receives periodic briefings on cybersecurity matters, also have received professional education and training related to cybersecurity. Despite our efforts to manage the risk from cybersecurity threats, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. See Item 1A.
The Audit Committee of our Board of Directors has oversight responsibility for our cybersecurity program. Our Chief Financial Officer and Information Technology leadership provide periodic updates regarding our cybersecurity risk management strategy and related activities to the Audit Committee, and provide other information as needed or requested to facilitate the committee’s oversight of our cybersecurity risk.
Our Chief Financial Officer and Information Technology leadership provide periodic updates regarding our cybersecurity risk management strategy and related activities to the Audit Committee, and provide other information as needed or requested to facilitate the committee’s oversight of our cybersecurity risk.
See Item 1A. “Risk Factors” for a further discussion of our cybersecurity risks.
“Risk Factors” for a further discussion of our cybersecurity risks.
Added
We have added personnel to our Information Technology team who are dedicated to cybersecurity matters and also retain a third-party Information Security consulting firm to advise on and assess our cybersecurity processes on an ongoing basis. The Audit Committee of our Board of Directors has oversight responsibility for our cybersecurity program .

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. P ROPERTIES As of December 31, 2024, our principal operating facilities were located at the following locations: Location Description of Use Country 375 Phillips Blvd. Ewing, New Jersey Corporate Offices and Research & Development Laboratories United States 250 Phillips Blvd. Ewing, New Jersey (1) Corporate Offices and Manufacturing Logistics United States 300 Phillips Blvd.
Biggest changeITEM 2. P ROPERTIES As of December 31, 2025, our principal operating facilities were located at the following locations: Location Description of Use Country 375 Phillips Blvd. Ewing, New Jersey Corporate Offices and Research & Development Laboratories United States 250 Phillips Blvd. Ewing, New Jersey (1) Corporate Offices and Manufacturing Logistics United States 300 Phillips Blvd.
(3) Leased beginning in 2017 and purchased in May 2023. 28
(3) Leased beginning in 2017 and purchased in May 2023. 27

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeDepending on the jurisdiction, the outcome of these proceedings could include affirmation, denial or modification of some or all of the originally issued claims. We believe that as OLED technology becomes more established and its patent portfolio increases in size, so will the number of these proceedings. ITEM 4. MINE SAF ETY DISCLOSURES Not applicable. 29 PART II
Biggest changeDepending on the jurisdiction, the outcome of these proceedings could include affirmation, denial or modification of some or all of the originally issued claims. We believe that as OLED technology becomes more established and its patent portfolio increases in size, so will the number of these proceedings. ITEM 4. MINE SAF ETY DISCLOSURES Not applicable. 28 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+3 added−0 removed2 unchanged
Biggest changeAs such, we may modify, suspend or cancel our cash dividend policy in any manner and at any time. 30 Performance Graph The performance graph below compares the change in the cumulative shareholder return of our common stock from December 31, 2019 to December 31, 2024, with the percentage change in the cumulative total return over the same period on (i) the Russell 2000 Index, and (ii) the S&P 500 Electronics Components Index.
Biggest changeShare repurchase activity during the three months ended December 31, 2025, was as follows (in thousands, except share and per share data): Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan October 2025 — $ — — $ 100,000 November 2025 146,729 115.77 146,729 83,013 December 2025 144,481 118.17 144,481 65,939 Total 291,210 $ 116.96 291,210 $ 65,939 29 Performance Graph The performance graph below compares the change in the cumulative shareholder return of our common stock from December 31, 2020 to December 31, 2025, with the percentage change in the cumulative total return over the same period on (i) the Russell 2000 Index, and (ii) the S&P 500 Electronics Components Index.
During 2022, 2023 and 2024, we declared and paid cash dividends on our common stock.
During 2023, 2024 and 2025, we declared and paid cash dividends on our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock Our common stock is quoted on the Nasdaq Global Select Market website under the symbol “OLED.” As of February 20, 2025, there were approximately 239 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock Our common stock is quoted on the Nasdaq Global Select Market website under the symbol “OLED.” As of February 19, 2026, there were approximately 228 holders of record of our common stock.
Cumulative Total Return 12/19 12/20 12/21 12/22 12/23 12/24 Universal Display Corp. $ 100.00 $ 111.93 $ 80.71 $ 53.38 $ 95.35 $ 73.54 Russell 2000 100.00 119.96 137.74 109.59 128.14 142.93 S&P 500 Electronic Components 100.00 124.37 152.97 134.97 162.17 237.86 Securities Authorized for Issuance under Equity Compensation Plans The information required by this item with respect to our equity compensation plans will be set forth in our definitive Proxy Statement for the 2025 Annual Meeting of Shareholders, and herein by reference.
Cumulative Total Return 12/20 12/21 12/22 12/23 12/24 12/25 Universal Display Corp. $ 100.00 $ 72.11 $ 47.69 $ 85.18 $ 65.70 $ 53.16 Russell 2000 100.00 114.82 91.35 106.82 119.14 134.40 S&P 500 Electronic Components 100.00 122.99 108.52 130.39 191.24 370.16 Securities Authorized for Issuance under Equity Compensation Plans The information required by this item with respect to our equity compensation plans will be set forth in our definitive Proxy Statement for the 2026 Annual Meeting of Shareholders, and herein by reference.
Added
As such, we may modify, suspend or cancel our cash dividend policy in any manner and at any time. Purchases of Equity Securities by the Issuer and Affiliated Purchasers On April 29, 2025, our Board of Directors approved a share repurchase program, authorizing us to purchase up to $100.0 million of our common stock.
Added
The repurchase authorization was effective immediately and permits shares of our common stock to be repurchased from time to time at management's discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions, or transactions otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.
Added
The repurchase program has no time limit, does not obligate us to acquire a specified number of shares and may be modified, suspended or discontinued at any time at our discretion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

51 edited+6 added−10 removed29 unchanged
Biggest changeComparison of the Years Ended December 31, 2024 and 2023 Year Ended December 31, 2024 2023 (Decrease) Increase REVENUE: Material sales $ 365,419 $ 322,029 $ 43,390 Royalty and license fees 266,820 238,389 28,431 Contract research services 15,445 16,011 (566 ) Total revenue 647,684 576,429 71,255 COST OF SALES 148,461 135,376 13,085 Gross margin 499,223 441,053 58,170 OPERATING EXPENSES: Research and development 157,187 130,481 26,706 Selling, general and administrative 74,286 67,387 6,899 Amortization of acquired technology and other intangible assets 18,200 15,993 2,207 Patent costs 8,699 9,356 (657 ) Royalty and license expense 2,048 647 1,401 Total operating expenses 260,420 223,864 36,556 OPERATING INCOME 238,803 217,189 21,614 Interest income, net 40,682 28,166 12,516 Other loss, net (7,357 ) (184 ) (7,173 ) Interest and other loss, net 33,325 27,982 5,343 INCOME BEFORE INCOME TAXES 272,128 245,171 26,957 INCOME TAX EXPENSE (50,049 ) (42,160 ) (7,889 ) NET INCOME $ 222,079 $ 203,011 $ 19,068 Revenue Our total material sales were $365.4 million for the year ended December 31, 2024, as compared to $322.0 million for the year ended December 31, 2023, an increase of 13% with an increase in unit material volume of 15%.
Biggest changeComparison of the Years Ended December 31, 2025 and 2024 (in thousands) Year Ended December 31, 2025 2024 (Decrease) Increase REVENUE: Material sales $ 352,974 $ 365,419 $ (12,445 ) Royalty and license fees 275,134 266,820 8,314 Contract research services 22,503 15,445 7,058 Total revenue 650,611 647,684 2,927 COST OF SALES 154,126 148,461 5,665 Gross margin 496,485 499,223 (2,738 ) OPERATING EXPENSES: Research and development 146,097 157,187 (11,090 ) Selling, general and administrative 74,318 74,286 32 Amortization of acquired technology and other intangible assets 18,198 18,200 (2 ) Patent costs 8,790 8,699 91 Royalty and license expense 504 2,048 (1,544 ) Total operating expenses 247,907 260,420 (12,513 ) OPERATING INCOME 248,578 238,803 9,775 Interest income, net 39,708 40,682 (974 ) Other income (loss), net 6,510 (7,357 ) 13,867 Interest and other income, net 46,218 33,325 12,893 INCOME BEFORE INCOME TAXES 294,796 272,128 22,668 INCOME TAX EXPENSE (52,721 ) (50,049 ) (2,672 ) NET INCOME $ 242,075 $ 222,079 $ 19,996 Revenue Our total material sales were $353.0 million for the year ended December 31, 2025, as compared to $365.4 million for the year ended December 31, 2024, a decrease of 3% with a commensurate decrease in unit material volume of 1%.
In December 2024, we announced that the OVJP Corp facility in California would be closing and OVJP operations would be relocated to our newly formed subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC) in Singapore, as well as continued operations in our Tech and Innovation Center in New Jersey.
In December 2024, we announced that the OVJP Corp facility in California would be closing and UVJP operations would be relocated to our newly formed Singapore subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC), as well as continued operations in our Tech and Innovation Center in New Jersey.
We anticipate fluctuations in our annual and quarterly results of operations due to uncertainty regarding, among other factors: • the timing, cost and volume of sales of our OLED materials; • the timing of our receipt of license fees and royalties, as well as fees for future technology development and evaluation; • the timing and magnitude of expenditures we may incur in connection with our ongoing research and development and patent-related activities; and • the timing and financial consequences of our formation of new business relationships and alliances. 33 Critical Accounting Policies and Estimates The discussion and analysis of our financial condition and results of operations is based on our Consolidated Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles.
We anticipate fluctuations in our annual and quarterly results of operations due to uncertainty regarding, among other factors: • the timing, cost and volume of sales of our OLED materials; • the timing of our receipt of license fees and royalties, as well as fees for future technology development and evaluation; • the timing and magnitude of expenditures we may incur in connection with our ongoing research and development and patent-related activities; and • the timing and financial consequences of our formation of new business relationships and alliances. 32 Critical Accounting Policies and Estimates The discussion and analysis of our financial condition and results of operations is based on our Consolidated Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles.
Our actual results could differ materially from those indicated in these forward-looking statements as a result of certain factors, as more fully discussed in Item 1A of this report, entitled “Risk Factors.” OVERVIEW We are a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display applications, such as mobile phones, televisions, monitors, wearables, tablets, portable media devices, notebook computers, personal computers and automotive applications, as well as specialty and general lighting products.
Our actual results could differ materially from those indicated in these forward-looking statements as a result of certain factors, as more fully discussed in Item 1A of this report, entitled “Risk Factors.” OVERVIEW We are a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display applications, such as mobile phones, televisions, monitors, wearables, tablets, portable media devices, notebook computers, personal computers, automotive applications and specialty lighting products.
None of the revenue recognized during the years ended December 31, 2024, 2023 or 2022 resulted solely from royalty or license fee arrangements as to which there were not associated material sales. The rights and benefits to our OLED technologies are conveyed to the customer through technology license agreements and material supply agreements.
None of the revenue recognized during the years ended December 31, 2025, 2024 or 2023 resulted solely from royalty or license fee arrangements as to which there were not associated material sales. The rights and benefits to our OLED technologies are conveyed to the customer through technology license agreements and material supply agreements.
For the years ended December 31, 2024 and 2023, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of our customers over the remaining lives of their contracts.
For each of the years ended December 31, 2025 and 2024, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of our customers over the remaining lives of their contracts.
Several significant contractual obligations are anticipated to be incurred in future periods and include payments for retirement benefit plan obligations, lease obligations and PPG inventory commitments. Payments towards the retirement plan obligations commenced during fiscal year 2023 and are expected to total $79.6 million over the remaining life of the plan.
Several significant contractual obligations are anticipated to be incurred in future periods and include payments for retirement benefit plan obligations, lease obligations and PPG inventory commitments. Payments towards the retirement plan obligations commenced during fiscal year 2023 and are expected to total $77.2 million over the remaining life of the plan.
While we continue to focus on the long-term opportunity in the large-area display market for OVJP, the industry’s current focus is on the growing demand for IT capacity. Our UVJC subsidiary plans to assess additional market opportunities where this technology may be transformative.
While we continue to focus on the long-term opportunity in the large-area display market for UVJP, the industry’s current focus is on the growing demand for IT capacity. Our UVJC subsidiary continues to assess additional market opportunities where this technology may be transformative.
During the year ended December 31, 2024, based on our previous earnings history, a current evaluation of expected future taxable income and other evidence, we determined to retain the valuation allowance that relates to New Jersey research and development credits and unrealized loss on investments.
During the year ended December 31, 2025, based on our previous earnings history, a current evaluation of expected future taxable income and other evidence, we determined to retain the valuation allowance that relates to New Jersey research and development credits.
In February 2021, we announced the establishment of a new manufacturing site in Shannon, Ireland and an agreement between UDC Ireland Limited and PPG for the production of our OLED materials. We purchased the site during September 2023.
In February 2021, we announced the establishment of a new manufacturing site in Shannon, Ireland and an agreement between UDC Ireland Limited and PPG for the production of our OLED materials. The Shannon manufacturing facility became operational in June 2022 and we purchased the site during September 2023.
This increase was due to a one-time expense of $1.5 million in connection with an amendment to our existing amended license agreement, effective as of October 9, 1997, with Princeton University and the University of Southern California.
This decrease was due to a one-time expense of $1.5 million in the year ended December 31, 2024 in connection with an amendment to our existing amended license agreement, effective as of October 9, 1997, with Princeton University and the University of Southern California.
In 2016, we entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma Micro-electronics Co., Ltd. (Tianma). Under the license agreement, we have granted Tianma non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products.
In 2025, we entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma Micro-electronics Co., Ltd. (Tianma). Under the agreements, we have granted Tianma non-exclusive license rights under various patents owned or controlled by us to manufacture and sell OLED display products. Additionally, we supply phosphorescent OLED materials to Tianma for use in its licensed products.
Cash used in investing activities was $164.4 million for the year ended December 31, 2024, as compared to $83.3 million for the year ended December 31, 2023.
Cash used in investing activities was $45.5 million for the year ended December 31, 2025, as compared to $164.4 million for the year ended December 31, 2024.
Cash used in financing activities was $82.3 million for the year ended December 31, 2024, as compared to $72.9 million for the year ended December 31, 2023.
Cash used in financing activities was $126.0 million for the year ended December 31, 2025, as compared to $82.3 million for the year ended December 31, 2024.
Cash provided by operating activities for the year ended December 31, 2023 was $154.8 million resulting from $203.0 million of net income and an increase of $55.3 million due to non-cash items including depreciation, stock-based compensation, and amortization of intangibles, partially offset by a $103.5 million reduction due to changes in our operating assets and liabilities.
Cash provided by operating activities for the year ended December 31, 2025 was $210.8 million resulting from $242.1 million of net income and an increase of $68.3 million due to non-cash items including depreciation, stock-based compensation and amortization of intangibles, partially offset by a $99.6 million reduction due to changes in our operating assets and liabilities.
Royalty and license expense Royalty and license expense increased to $2.0 million for the year ended December 31, 2024, as compared to $647,000 for the year ended December 31, 2023.
Royalty and license expense Royalty and license expense decreased to $504,000 for the year ended December 31, 2025, as compared to $2.0 million for the year ended December 31, 2024.
The increase was due to the timing of maturities and purchases of investments resulting in net purchases of $121.8 million for the year ended December 31, 2024, as compared to net sales and maturities of $43.1 million for the year ended December 31, 2023, partially offset by a decrease in purchases of intangibles and property and equipment of $83.7 million.
The decrease was due to the timing of maturities and purchases of investments resulting in net sales and maturities of $20.9 million for the year ended December 31, 2025, as compared to net purchases of $121.8 million for the year ended December 31, 2024, partially offset by an increase in purchases of intangibles and property and equipment of $23.8 million.
Revenue from royalty and license fees was $266.8 million for the year ended December 31, 2024 as compared to $238.4 million for the year ended December 31, 2023, an increase of 12%.
Revenue from royalty and license fees was $275.1 million for the year ended December 31, 2025 as compared to $266.8 million for the year ended December 31, 2024, an increase of 3%.
The increase was due to an increase in the cash payment of dividends in the current year of $9.4 million and an increase in the payment of withholding taxes related to stock-based compensation to employees of $180,000, partially offset by an increase in the proceeds from issuance of common stock of $208,000.
The increase was due to an increase in repurchases of common stock of $32.9 million, an increase in the cash payment of dividends in the current year of $9.4 million and an increase in the payment of withholding taxes related to stock-based compensation to employees of $1.2 million and a decrease in the proceeds from issuance of common stock of $200,000.
We 36 recorded other loss, net of $7.4 million for the year ended December 31, 2024 as compared to $184,000 for the year ended December 31, 2023.
We recorded other income, net of $6.5 million for the year ended December 31, 2025 as compared to other loss, net of $7.4 million for the year ended December 31, 2024.
Changes in our operating assets and liabilities related to an increase in accounts receivable of $47.2 million, an increase in other assets of $37.1 million, a decrease in other liabilities of $26.5 million and a decrease in deferred revenue of $4.2 million, partially offset by a decrease in inventory of $7.4 million and an increase in accounts payable and accrued expenses of $4.1 million.
Changes in our operating assets and liabilities related to an increase in inventory of $58.0 million, an increase in other assets of $27.0 million, a decrease in deferred revenue of $10.7 million and an increase accounts receivable of $6.3 million, partially offset by an increase in accounts payable and accrued expenses of $2.1 million and an increase in other liabilities of $248,000.
In 2015, we entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display). The terms of these agreements have been extended through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under our patent portfolio.
In 2021, we and LG Display entered into new agreements that extended the terms of these agreements at least through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under their patent portfolio.
As a result of the planned closure of the OVJP Corp location in California, we determined to record $8.9 million of restructuring costs for the year ended December 31, 2024.
As a result of the closure of the OVJP Corp location in California, we recorded $2.2 million and $8.9 million of restructuring costs for the years ended December 31, 2025 and 2024, respectively.
(Adesis) which has operations in New Castle and Wilmington, Delaware. Adesis is a contract development and manufacturing organization (CDMO) that provides support services on a contractual basis to third-party customers in the OLED, pharma, biotech, catalysis and other industries. As of December 31, 2024, Adesis employed a team of 139 research scientists, chemists, engineers and laboratory technicians.
In 2016, we acquired Adesis, Inc. (Adesis) which has operations in New Castle and Wilmington, Delaware. Adesis is a contract development and manufacturing organization (CDMO) that provides support services on a contractual basis to third-party customers in the OLED, pharma, biotech, catalysis and other industries.
As a result of the increase in revenue from material sales and royalty and license fees, gross margin for the year ended December 31, 2024 increased by $58.2 million as compared to the year ended December 31, 2023, with gross margin as a percentage of revenue remaining consistent at 77%.
As a result of the decrease in revenue from material sales, partially offset by the increases in revenue from royalty and license fees and contract research, gross margin for the year ended December 31, 2025 decreased by $2.7 million as compared to the year ended December 31, 2024, with gross margin as a percentage of revenue decreasing to 76% from 77%.
The increase in material sales was primarily due to strengthened demand for our emitter materials, partially offset by changes in customer mix. • Green emitter sales for the year ended December 31, 2024, which include our yellow-green emitters, were $272.4 million as compared to $243.2 million for the year ended December 31, 2023, with unit material volumes increasing by 12%. • Red emitter sales for the year ended December 31, 2024 were $88.5 million as compared to $73.2 million for the year ended December 31, 2023, with unit material volumes increasing by 25%.
The decrease in material sales was primarily due to changes in customer mix and lower unit material volume. • Green emitter sales for the year ended December 31, 2025, which include our yellow-green emitters, were $265.8 million as compared to $272.4 million for the year ended December 31, 2024, with unit material volumes increasing by less than 1%. • Red emitter sales for the year ended December 31, 2025 were $82.9 million as compared to $88.5 million for the year ended December 31, 2024, with unit material volumes decreasing by 4%.
Existing PPG inventory commitments are $46.5 million and will fluctuate based on PPG production needs to fulfill our demand for commercial emitter material. 37 We anticipate, based on our internal forecasts and assumptions relating to our operations (including, among others, assumptions regarding our working capital requirements, the progress of our research and development efforts, the availability of sources of funding for our research and development work, and the timing and costs associated with the preparation, filing, prosecution, maintenance, defense and enforcement of our patents and patent applications), that we have sufficient cash, cash equivalents and short-term investments to meet our obligations for at least the next twelve months.
We anticipate, based on our internal forecasts and assumptions relating to our operations (including, among others, assumptions regarding our working capital requirements, the progress of our research and development efforts, the availability of sources of funding for our research and development work, and the timing and costs associated with the preparation, filing, prosecution, maintenance, defense and enforcement of our patents and patent applications), that we have sufficient cash, cash equivalents and short-term investments to meet our obligations for at least the next twelve months. 36 Additional funding may be required in the future for research, development and commercialization of our OLED technologies and materials, to obtain, maintain and enforce patents respecting these technologies and materials, and for working capital and other purposes, the timing and amount of which are difficult to ascertain.
The increase in interest income, net was primarily due to an increase in bond yields on available-for-sale investments held during the year ended December 31, 2024 compared to the prior year as well as higher available-for-sale investment balances. Other loss, net primarily consisted of net exchange gains and losses on foreign currency transactions and rental income.
Interest and other income, net Interest income, net was $39.7 million for the year ended December 31, 2025, as compared to $40.7 million for the year ended December 31, 2024. Other income (loss), net primarily consisted of net exchange gains and losses on foreign currency transactions, net investment gains and losses, and rental income.
Working capital was $774.4 million as of December 31, 2024, as compared to $798.3 million as of December 31, 2023. The decrease was primarily due to decreases in short-term investments and accounts receivable and an increase in accounts payable.
Working capital was $979.0 million as of December 31, 2025, as compared to $774.4 million as of December 31, 2024. The increase was primarily due to increases in short-term investments, inventory, and cash and cash equivalents.
Under the material purchase agreement, SDC agrees to purchase from us a minimum amount of red and green phosphorescent emitter materials for use in the manufacture of licensed products. This minimum commitment is subject to SDC’s requirements for phosphorescent emitter materials and our ability to meet these requirements over the term of the supplemental agreement.
This new material purchase agreement replaced a previous purchase agreement that had been in place since 2018. Under the material purchase agreement, SDC agrees to purchase from us a minimum amount of red and green phosphorescent emitter materials for use in the manufacture of licensed products.
Prior to our acquisition of Adesis, we utilized more than 50% of Adesis’ technology service and production output.
As of December 31, 2025, Adesis employed a team of 137 research scientists, chemists, engineers and laboratory technicians. Prior to our acquisition of Adesis, we utilized more than 50% of Adesis’ technology service and production output.
Cost of Sales Cost of sales for the year ended December 31, 2024 increased by $13.1 million as compared to the year ended December 31, 2023, primarily due to an increase in the level of material sales and product mix, partially offset by a $5.4 million decrease in inventory reserve expense.
Cost of Sales Cost of sales for the year ended December 31, 2025 increased by $5.7 million as compared to the year ended December 31, 2024, primarily due to Adesis' cost of sales and changes in product mix.
This compares to cash and cash equivalents of $92.0 million, short-term investments of $422.1 million, and long-term U.S. Government bond investments of $285.5 million for a total of $799.6 million as of December 31, 2023.
As of December 31, 2025, we had cash and cash equivalents of $138.4 million, short-term investments of $464.0 million, and long-term U.S. Government bond investments of $353.0 million for a total of $955.4 million. This compares to cash and cash equivalents of $99.0 million, short-term investments of $393.7 million, and long-term U.S.
Under this agreement, we are being paid a license fee, which includes quarterly and annual payments over the agreement term. The agreement conveys to SDC the non-exclusive right to use certain of our intellectual property assets for a limited period of time that is less than the estimated life of the assets.
The agreement conveys to SDC the non-exclusive right to use certain of our intellectual property assets for a limited period of time that is less than the estimated life of the assets At the same time that we entered into the current commercial license agreement with SDC, we also entered into a material purchase agreement with SDC, which lasts for the same term as the license agreement and is subject to the same extension option.
Amortization of acquired technology and other intangible assets Amortization of acquired technology and other intangible assets was $18.2 million for the year ended December 31, 2024, as compared to $16.0 million for the year ended December 31, 2023.
Selling, general and administrative Selling, general and administrative expenses was $74.3 million for each of the years ended December 31, 2025 and 2024. Amortization of acquired technology and other intangible assets Amortization of acquired technology and other intangible assets was $18.2 million for each of the years ended December 31, 2025 and 2024.
Income tax expense We are subject to income taxes in both the United States and foreign jurisdictions. The effective income tax rate was 18.4% and 17.2% for the years ended December 31, 2024 and 2023, respectively, and we recorded income tax expense of $50.0 million and $42.2 million, respectively, for those periods.
The effective income tax rate was 17.9% and 18.4% for the years ended December 31, 2025 and 2024, respectively, and we recorded income tax expense of $52.7 million and $50.0 million, respectively, for those periods. Liquidity and Capital Resources Our principal sources of liquidity are our cash and cash equivalents and short-term investments.
We believe that potential additional financing sources for us include long-term and short-term borrowings and public and private sales of our equity and debt securities.
We believe that potential additional financing sources for us include long-term and short-term borrowings and public and private sales of our equity and debt securities. There can be no assurance that additional funds will be available to us when needed, on commercially reasonable terms or at all, particularly in the current economic environment.
Contract research services revenue is earned by providing chemical materials synthesis research, development and commercialization for non-OLED applications on a contractual basis for those third-party customers. In June 2020, we formed a wholly-owned subsidiary, OVJP Corporation (OVJP Corp) in California, as a Delaware corporation, which was founded to advance the commercialization of our proprietary Organic Vapor Jet Printing (OVJP) technology.
Contract research services revenue is earned by providing chemical materials synthesis research, development and commercialization for non-OLED applications on a contractual basis for those third-party customers.
To the extent we establish a new valuation allowance or change a previously established valuation allowance in a future period, income tax expense will be impacted. 34 RESULTS OF OPERATIONS For a discussion of our results of operations comparison for the years ended December 31, 2023 and 2022, refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed on February 22, 2024.
There are no indicators against the realizability of the remaining net-deferred tax assets. 33 RESULTS OF OPERATIONS For a discussion of our results of operations comparison for the years ended December 31, 2024 and 2023, refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed on February 20, 2025.
The increase in property and equipment and intangibles during the year ended December 31, 2023 was primarily due to the Merck KGaA patent acquisition and the purchases of the Shannon facility and the South Korea application center.
The increase in property, plant and equipment purchases during the year ended December 31, 2025 was primarily due to the continued expansion of the manufacturing facility in Shannon, Ireland and improvements to our research and development facility in Ewing, New Jersey.
The increase in research and development expenses was primarily due to an increase in PPG development activity, including new product development and commencement of development activities in Shannon, Ireland, and OVJP Corp reorganization expenses. As a result of the planned closure of OVJP Corp's California location, we recorded $8.9 million of restructuring costs for the year ended December 31, 2024.
Research and development Research and development expenses decreased to $146.1 million for the year ended December 31, 2025, as compared to $157.2 million for the year ended December 31, 2024. The decrease in research and development expenses was primarily due to restructuring costs and closure of the OVJP Corp facility in California during December 2024.
Contract research services revenue was $15.4 million for the year ended December 31, 2024 as compared to $16.0 million for the year ended December 31, 2023, a decrease of 4%.
Contract research services revenue was $22.5 million for the year ended December 31, 2025 as compared to $15.4 million for the year ended December 31, 2024, an increase of 46%. The increase in contract research services revenue was primarily due to increased specialty manufacturing customer demand at our subsidiary, Adesis, during the year ended December 31, 2025.
When fully operational, the new facility is expected to double our production capacity and allow for the diversification of our manufacturing base for phosphorescent emitters. The first phase of facility improvements has been completed and operations commenced in June 2022. We also generate technology development and support revenue earned from development and technology evaluation agreements and commercialization assistance fees.
The Shannon manufacturing facility provides incremental manufacturing capacity to meet our expanding production needs, and allows for the geographical diversification of our manufacturing base for the world-wide distribution of our materials We also generate technology development and support revenue earned from development and technology evaluation agreements and commercialization assistance fees.
The increase in other loss, net during the year ended December 31, 2024 was due to a $7.2 million foreign exchange loss that was caused by the fluctuation in the Korean Won to the U.S. Dollar exchange rate and resulting remeasurement of a Korean Won-denominated withholding tax receivable.
Net exchange gains and losses on foreign currency are primarily caused by the fluctuation in the Korean Won to the U.S. Dollar exchange rate and resulting remeasurement of a Korean Won-denominated withholding tax receivable. 35 Income tax expense We are subject to income taxes in both the United States and foreign jurisdictions.
Patent costs Patent costs decreased to $8.7 million for the year ended December 31, 2024, as compared to $9.4 million for the year ended December 31, 2023. The results in the current year reflected lower internal prosecution related costs.
See Note 7 in Notes to Consolidated Financial Statements for further discussion. Patent costs Patent costs increased to $8.8 million for the year ended December 31, 2025, as compared to $8.7 million for the year ended December 31, 2024.
Liquidity and Capital Resources Our principal sources of liquidity are our cash and cash equivalents and short-term investments. As of December 31, 2024, we had cash and cash equivalents of $99.0 million, short-term investments of $393.7 million, and long-term U.S. Government bond investments of $435.5 million for a total of $928.2 million.
Government bond investments of $435.5 million for a total of $928.2 million as of December 31, 2024.
There can be no assurance that additional funds will be available to us when needed, on commercially reasonable terms or at all, particularly in the current economic environment. Recently Issued Accounting Pronouncements Recently issued accounting pronouncements are addressed in Note 2 in the Notes to the Consolidated Financial Statements included herein.
Recently Issued Accounting Pronouncements Recently issued accounting pronouncements are addressed in Note 2 in the Notes to the Consolidated Financial Statements included herein.
Interest and other loss, net Interest income, net was $40.7 million for the year ended December 31, 2024, as compared to $28.2 million for the year ended December 31, 2023.
The increase in other income (loss), net during the year ended December 31, 2025 was primarily due to a $3.9 million investment gain, net on our marketable equity securities portfolio and a $935,000 foreign exchange gain during the year ended December 31, 2025 as compared to a $7.2 million foreign exchange loss during the year ended December 31, 2024.
The increase in royalty and license fees was primarily the result of higher unit material volume and changes in customer mix. 35 The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was $10.8 million for the year ended December 31, 2024 as compared to $10.6 million for the year ended December 31, 2023.
We have evaluated the impacts of this error, both quantitatively and qualitatively, and have concluded that the error was not material to the Consolidated Financial Statements for any interim or annual period prior to the three months ended September 30, 2025, nor was it material to the full year ended December 31, 2025. 34 The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was $14.1 million for the year ended December 31, 2025 as compared to $10.8 million for the year ended December 31, 2024.
The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The OLED commercial supply agreement provides for the sales of materials for use by LG Display, which may include phosphorescent emitters and host materials.
The patent license calls for minimum annual license fees and additional incremental license fees based on LG Display’s volume of sale of licensed products. The OLED commercial supply agreement provides for the sale of dopant and host materials for use by LG Display. 31 In 2023, we entered into new long-term, multi-year agreements with BOE Technology Group Co., Ltd. (BOE).
The decrease in contract research services revenue was primarily due to the timing of completion of several contract research projects by our subsidiary, Adesis, during the year ended December 31, 2023.
The increase in inventory during the year ended December 31, 2025 was primarily due to purchases of certain strategic raw materials.
Removed
At the same time that we entered into the current commercial license agreement with SDC, we also entered into a material purchase agreement with SDC, which lasts for the same term as the license agreement and is subject to the same extension option. This new material purchase agreement replaced a previous purchase agreement that had been in place since 2018.
Added
Under this agreement, we are being paid a license fee, which includes quarterly and annual payments over the agreement term.
Removed
The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the life of the agreements as well as minimum royalty revenue. 32 In 2023, we entered into new long-term, multi-year agreements with BOE Technology Group Co., Ltd. (BOE).
Added
This minimum commitment is subject to SDC’s requirements for phosphorescent emitter materials and our ability to meet these requirements over the term of the supplemental agreement. In 2015, we entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display).
Removed
The license agreement calls for license fees and running royalties on Tianma’s sales of licensed products. Additionally, we supply phosphorescent OLED materials to Tianma for use in its licensed products. In 2021, we mutually agreed to extend the terms of both the patent license and material purchase agreements for an additional multi-year term. In 2016, we acquired Adesis, Inc.
Added
In June 2020, we formed a wholly-owned subsidiary, OVJP Corporation (OVJP Corp), operating in California, in order to advance the commercialization of our proprietary Organic Vapor Jet Printing (OVJP) technology, which we now refer to as Universal Vapor Jet Printing (UVJP).
Removed
In addition, a portion of the investment loss was realized resulting in a capital loss carryforward that is not more likely than not to be used within the carryforward period. As such, we provided a valuation allowance against the capital loss. There are no indicators against the realizability of the remaining net deferred tax assets.
Added
In addition, the Company has an unrealized gain on investments that if sold, could offset the capital loss carryforward within the carryforward period. As such the valuation allowance on the capital loss was reversed.
Removed
Actual results could differ from our assessments if adequate taxable income is generated in future periods.
Added
The increase in royalty and license fees was primarily the result of changes in customer mix, partially offset by a $7.1 million reduction in revenue due to an out of period adjustment. The out of period adjustment was due to a correction of an error that originated during the third quarter of 2023.
Removed
Research and development Research and development expenses increased to $157.2 million for the year ended December 31, 2024, as compared to $130.5 million for the year ended December 31, 2023.
Added
Existing lease obligations are $5.3 million for both fiscal years 2026 and 2027, $5.0 million for fiscal year 2028 and $10.3 million thereafter. Existing PPG inventory commitments are $40.7 million and will fluctuate based on PPG production needs to fulfill our demand for commercial emitter material.
Removed
Selling, general and administrative Selling, general and administrative expenses increased to $74.3 million for the year ended December 31, 2024, as compared to $67.4 million for the year ended December 31, 2023. The increase in selling, general and administrative expenses was primarily due to an increase in employee-related expenses, including higher salaries expenses and stock-based compensation.
Removed
The increase was due to the commencement of amortization expense associated with the Merck KGaA patent acquisition that was completed in April 2023. See Note 7 in Notes to Consolidated Financial Statements for further discussion.
Removed
Existing lease obligations are $4.3 million for fiscal year 2025, $4.4 million for fiscal year 2026, $4.3 million for fiscal year 2027 and $12.1 million thereafter.
Removed
It should be noted, however, that additional funding may be required in the future for research, development and commercialization of our OLED technologies and materials, to obtain, maintain and enforce patents respecting these technologies and materials, and for working capital and other purposes, the timing and amount of which are difficult to ascertain.

Other OLED 10-K year-over-year comparisons