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How Universal Display (OLED) makes money
Universal Display (OLED) made $160M of revenue in the third quarter 2026 (Q3 2026), +15% from a year earlier. Material Sales brought in $79.7M (50%); Royalty and License Fees brought in $75.5M (47%); Contract Research Services brought in $5.2M (3%). Of every dollar of revenue, 73¢ was left as gross profit, 33¢ was left as operating profit, 49¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Material Sales | $79.7M | 49.7% | +20% | -4% |
| Royalty and License Fees | $75.5M | 47.1% | -7% | +42% |
| Contract Research Services | $5.2M | 3.3% | +10% | +43% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $160M | 100.0% |
| Cost of revenue | $43.1M | 26.9% |
| Gross profit | $117M | 73.1% |
| Operating expenses | $63.6M | 39.7% |
| Operating profit | $53.7M | 33.5% |
| Income tax | $20.2M | 12.6% |
| Net earnings | $78.9M | 49.2% |
| Operating cash flow | $100M | 62.5% |
| Free cash flow | $95.9M | 59.8% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $160M | +15% |
| Q2 2026 | $152M | -11% |
| Q1 2026 | $142M | -14% |
| Q4 2025 | $173M | +7% |
| Q3 2025 | $140M | -14% |
| Q2 2025 | $172M | +8% |
| Q1 2025 | $166M | +0.6% |
From Universal Display's 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does Universal Display make money?
Universal Display (OLED) made $160M of revenue in the third quarter 2026 (Q3 2026), +15% from a year earlier. Material Sales brought in $79.7M (50%); Royalty and License Fees brought in $75.5M (47%); Contract Research Services brought in $5.2M (3%). Of every dollar of revenue, 73¢ was left as gross profit, 33¢ was left as operating profit, 49¢ was left as net earnings.
What is Universal Display's biggest business?
Material Sales: $79.7M in the third quarter 2026, 50% of revenue, -4% from a year earlier.
What is Universal Display's profit margin?
Net earnings were $78.9M, 49.2% of revenue, in the third quarter 2026; the operating margin was 33.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.