Universal Display Corp Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Ricchiuti - Needham & Company LLC - Analyst : Hi, thanks. Good afternoon. Maybe I'll start with a question on some of the discussion around the new form factors potentially for smartphones since I think you alluded to it, Steve, in your introductory remarks. How much benefit do you see, does the company see from a foldable phone, assuming we're going to see more of these hit the market versus traditional smartphones? I assume there's more content, but I wonder if you can give us some additional color on that.

Question: James Ricchiuti - Needham & Company LLC - Analyst : It will be interesting to see how this market develops. Quick question on blue. Usually, you guys give some revenue numbers for the blue development emitter revenue. What was it in the quarter, can you say? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 9:00PM, OLED.OQ - Q2 2025 Universal Display Corp Earnings Call

Question: James Ricchiuti - Needham & Company LLC - Analyst : Okay. Thank you. I'll jump back in the queue.

Question: Martin Yang - Oppenheimer & Co., Inc - Analyst : Thank you for taking my question. First question on contract research services revenue. This quarter is a little higher than normal. Can you talk about why?

Question: Martin Yang - Oppenheimer & Co., Inc - Analyst : So that's a factor of their own customers doing better, which is not related to your core business. Is that right?

Question: Martin Yang - Oppenheimer & Co., Inc - Analyst : Got it. A second question on the topic of AI and ML, you highlighted your long history of using those tools and techniques. Maybe can you give us a more concrete example of how using AI/ML have helped you to advance material research and benefit your customers? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 9:00PM, OLED.OQ - Q2 2025 Universal Display Corp Earnings Call

Question: Martin Yang - Oppenheimer & Co., Inc - Analyst : Thanks, Steve. That's it for me.

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Hey, everyone, good afternoon, thanks for taking the questions. I jumped on a little bit late, so apologies in advance if some of this has been covered. But the revenue guidance for the year, I mean, you've had a really strong first half. So if you kind of back into the midpoint, it's implying kind of a flattish revenue line for the second half at the midpoint. I know last year, you had a pretty abnormal seasonal pattern of revenue given the product cycle in the first half of the year that was new. This year, could you maybe kind of walk us through what you're seeing out there in the marketplace as to why seasonality, again, is less pronounced, less second-half improvement than what you've historically seen? Or if there's any kind of conservatism being baked into just trying to understand what the seasonality is looking like?

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Yeah. No, that's super helpful, Brian. I guess that was going to be my second question. I mean, China, seasonally for multiple years in a row has always kind of been down for you in Q2 versus Q1. And China was outstanding in terms of revenue contribution for Q2. I presume they're the ones that were the bulk, if not all, of the pull-in in April. But even if you think about the pull-in coming from May and June, it's just a lot of abnormal seasonality for that region. So what are your thoughts on like inventory? Do you have visibility into the channel there? Could they have pulled forward from -- you said maybe a little bit of Q3. But just given the volume of revenue that they contributed in Q2, just wondering if you have any thoughts on kind of inventory as well as maybe it being more pull forward than you anticipated at the time when you gave that color.

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Okay, fair enough. I'll pass it on. Thanks, everyone.

Question: Scott Searle - Roth MKM - Analyst : Hey, good afternoon. Thanks for taking the questions. First, just wondering what you're seeing in design activity from a tandem architecture standpoint and what end markets you're seeing the most interest in activity? And second, in terms of overall capacity, I'm wondering if you could give us some updated thoughts in terms of where current industry utilization is at. And then in terms of some of the new capacity coming online in 2026, we've got 8.6 Gen fabs from both BOE and Samsung coming on board. I'm wondering what that does to your overall industry capacity model and what other big projects are coming behind that in '27? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2025 / 9:00PM, OLED.OQ - Q2 2025 Universal Display Corp Earnings Call

Question: Scott Searle - Roth MKM - Analyst : Brian, if I could follow up quickly on the tandem architecture front in IT. Are most customers and most OLED designs implying a tandem architecture? Thanks.

Question: Scott Searle - Roth MKM - Analyst : Great, thanks. We'll get back in the queue.