UNIVERSAL DISPLAY CORP \PA\

Previous wording

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 of June 30, 2026, Adesis employed a team of 134 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. We continue to utilize a significant portion of its technology research capacity for the benefit of our OLED technology development, and Adesis uses the remaining capacity to operate as a CDMO by providing contract research services for non-OLED applications to third-party customers in the above-mentioned industries. 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.

Current wording

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 of September 30, 2026, Adesis employed a team of 136 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. We continue to utilize a significant portion of its technology research capacity for the benefit of our OLED technology development, and Adesis uses the remaining capacity to operate as a CDMO by providing contract research services for non-OLED applications to third-party customers in the above-mentioned industries. 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.

Previous wording

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). 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. 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.

Current wording

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). In December 2024, we announced the closure of the OVJP Corp facility in California and the relocation of UVJP operations. UVJP operations are now conducted through our Singapore subsidiary, Universal Vapor Jet Corporation Pte. Ltd. (UVJC), and at our Tech and Innovation Center in New Jersey. 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, and in October 2026 UVJC launched NovaJet, the first commercial system built on the UVJP platform.

Previous wording

Our total material sales were $149.9 million for the six months ended June 30, 2026, as compared to $174.8 million for the six months ended June 30, 2025, a decrease of 14% with a decrease in unit material volume of 7%. The decrease in material sales was primarily due to lower unit material volume and changes in customer mix.

Current wording

Our total material sales were $79.7 million for the three months ended September 30, 2026, as compared to $82.6 million for the three months ended September 30, 2025, a decrease of 4% with an increase in unit material volume of 9%. The decrease in material sales was primarily due to changes in customer mix and a $4.8 million unfavorable period-over-period change in the cumulative catch-up adjustment, primarily attributable to material fees as described below, partially offset by higher unit material volume.

Previous wording

Green emitter sales for the three months ended June 30, 2026, which include our yellow-green emitters, were $50.9 million as compared to $63.6 million for the three months ended June 30, 2025, with unit material volumes decreasing by 5%.

Current wording

Green emitter sales for the three months ended September 30, 2026, which include our yellow-green emitters, were $60.9 million as compared to $64.6 million for the three months ended September 30, 2025, with unit material volumes increasing by 5%.

Previous wording

Red emitter sales for the three months ended June 30, 2026 were $15.1 million as compared to $23.9 million for the three months ended June 30, 2025, with unit material volumes decreasing by 21%.

Current wording

Red emitter sales for the three months ended September 30, 2026 were $18.9 million as compared to $16.8 million for the three months ended September 30, 2025, with unit material volumes increasing by 25%.

Previous wording

The total cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was an increase of $10.0 million for the six months ended June 30, 2026 as compared to a net increase of $2.6 million for the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, the adjustment resulted from an increase in the average price per gram, primarily due to lower anticipated demand from certain customers over the respective remaining lives of their contracts.

Current wording

The total cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was a reduction of $3.5 million for the three months ended September 30, 2026 as compared to a net increase of $1.3 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, the adjustment resulted from a decrease in the average price per gram, primarily due to product mix changes and higher anticipated demand forecasted over the respective remaining lives of certain customer contracts. For the three months ended September 30, 2025, the adjustment resulted from an increase in the average price per gram, primarily due to lower anticipated demand from certain customers over the respective remaining lives of their contracts.

Previous wording

Revenue from contract research services consists of revenue earned by Adesis, which provides support services on a contractual basis to third-party customers in the pharma, biotech, catalysis and other industries. Contract research services revenue was $4.8 million for the three months ended June 30, 2026 as compared to $7.5 million for the three months ended June 30, 2025, a decrease of 36%. The decrease in contract research services revenue was primarily due to decreased specialty manufacturing customer demand at Adesis during the three months ended June 30, 2026.

Current wording

Revenue from contract research services consists of revenue earned by Adesis, which provides support services on a contractual basis to third-party customers in the pharma, biotech, catalysis and other industries. Contract research services revenue was $5.2 million for the three months ended September 30, 2026 as compared to $3.7 million for the three months ended September 30, 2025, an increase of 43%. The increase in contract research services revenue was primarily due to increased specialty manufacturing customer demand at Adesis during the three months ended September 30, 2026.

Previous wording

Cost of sales for the six months ended June 30, 2026 decreased by $4.4 million as compared to the six months ended June 30, 2025, primarily due to lower sales volume and Adesis' cost of sales, partially offset by product mix. As a result of the decrease in revenue material sales and royalty and license fees, gross margin for the six months ended June 30, 2026 decreased by $39.3 million as compared to the six months ended June 30, 2025, with gross margin as a percentage of revenue decreasing to 75% from 77%.

Current wording

Cost of sales for the three months ended September 30, 2026 increased by $7.6 million as compared to the three months ended September 30, 2025, primarily due to higher sales volume, Adesis' cost of sales, and a $1.1 million increase in inventory reserve expense. As a result of the increase in revenue from royalty and license fees, partially offset by the increase in the cost of sales, gross margin for the three months ended September 30, 2026 increased by $13.2 million as compared to the three months ended September 30, 2025, with gross margin as a percentage of revenue decreasing to 73% from 75%.

Previous wording

Selling, general and administrative expenses decreased to $18.6 million for the three months ended June 30, 2026, as compared to $20.4 million for the three months ended June 30, 2025. The decrease in selling, general and administrative expenses was primarily due to a decrease in stock-based compensation, partially offset by an increase in consulting expenses.

Current wording

Selling, general and administrative expenses increased to $20.9 million for the three months ended September 30, 2026, as compared to $18.0 million for the three months ended September 30, 2025. The increase in selling, general and administrative expenses was primarily due to an increase in employee-related costs and consulting expenses.

Previous wording

Amortization of acquired technology and other intangible assets increased to $5.7 million for the three months ended June 30, 2026 as compared to $4.5 million for the three months ended June 30, 2025. The increase in amortization of acquired technology and other intangible assets was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026. See Note 7 in Notes to Consolidated Financial Statements for further discussion.

Current wording

Amortization of acquired technology and other intangible assets decreased to $3.4 million for the three months ended September 30, 2026 as compared to $4.6 million for the three months ended September 30, 2025. The decrease in amortization of acquired technology and other intangible assets was primarily due to the completion of amortization of the BASF patent portfolio in June 2026, partially offset by the acquisition of the Merck KGaA patent portfolio in January 2026. See Note 7 in Notes to Consolidated Financial Statements for further discussion.

Previous wording

Patent costs increased to $4.7 million for the six months ended June 30, 2026, as compared to $4.5 million for the six months ended June 30, 2025.

Current wording

Patent costs increased to $2.8 million for the three months ended September 30, 2026, as compared to $1.9 million for the three months ended September 30, 2025. The results in the current quarter reflected higher internal prosecution related costs.

Previous wording

Interest income, net was $8.5 million for the three months ended June 30, 2026, as compared to $9.8 million for the three months ended June 30, 2025. The decrease in interest income, net was primarily attributable to lower bond yields and reduced average investment balances on available-for-sale investments compared with the same period in 2025. Other (loss) income, net primarily consisted of net exchange gains and losses on foreign currency transactions, net investment gains and losses, and rental income. We recorded other loss, net of $1.1 million for the three months ended June 30, 2026 as compared to other income, net of $5.6 million for the three months ended June 30, 2025. The decrease in other (loss) income, net was due to a $730,000 investment loss on our marketable equity securities portfolio and a $476,000 foreign exchange loss during the three months ended June 30, 2026 as compared to a $4.5 million foreign exchange gain during the three months ended June 30, 2025, which 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.

Current wording

Other income, net primarily consisted of net investment gains and losses, net exchange gains and losses on foreign currency transactions and rental income. We recorded other income, net of $37.3 million for the three months ended September 30, 2026 as compared to other income, net of $952,000 for the three months ended September 30, 2025. The increase in other income, net was due to a $28.9 million increase in the carrying value of our minority equity investment portfolio and a $7.2 million foreign exchange gain during the three months ended September 30, 2026 as compared to a $3.0 million investment gain on our marketable equity securities portfolio, partially offset by a $1.9 million foreign exchange loss during the three months ended September 30, 2025. 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.

Previous wording

We are subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 19.0% and 19.8% for the three months ended June 30, 2026 and 2025, respectively, and we recorded income tax expense of $11.6 million and $16.6 million, respectively, for those periods.

Current wording

We are subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 20.4% and 18.7% for the three months ended September 30, 2026 and 2025, respectively, and we recorded income tax expense of $20.2 million and $10.1 million, respectively, for those periods.

Previous wording

Our total material sales were $66.2 million for the three months ended June 30, 2026, as compared to $88.7 million for the three months ended June 30, 2025, a decrease of 25% with a decrease in unit material volume of 11%. The decrease in material sales was primarily due to lower unit material volume, changes in customer mix and a $6.9 million unfavorable period-over-period change in the cumulative catch-up adjustment for material sales, primarily attributable to product mix changes forecasted over the respective remaining lives of certain customer contracts.

Current wording

Our total material sales were $229.6 million for the nine months ended September 30, 2026, as compared to $257.4 million for the nine months ended September 30, 2025, a decrease of 11% with a decrease in unit material volume of 2%. The decrease in material sales was primarily due to changes in customer mix, an $8.5 million unfavorable period-over-period change in the cumulative catch-up adjustment for material sales and lower unit material volume. The $8.5 million unfavorable period-over-period change in the cumulative catch-up adjustment was primarily attributable to product mix changes forecasted over the respective remaining lives of certain customer contracts.

Previous wording

Green emitter sales for the six months ended June 30, 2026, which include our yellow-green emitters, were $114.9 million as compared to $127.1 million for the six months ended June 30, 2025, with unit material volumes decreasing by 4%.

Current wording

Green emitter sales for the nine months ended September 30, 2026, which include our yellow-green emitters, were $175.8 million as compared to $191.7 million for the nine months ended September 30, 2025, with unit material volumes decreasing by 1%.

Previous wording

Red emitter sales for the six months ended June 30, 2026 were $34.8 million as compared to $45.4 million for the six months ended June 30, 2025, with unit material volumes decreasing by 15%.

Current wording

Red emitter sales for the nine months ended September 30, 2026 were $53.6 million as compared to $62.2 million for the nine months ended September 30, 2025, with unit material volumes decreasing by 4%.

Previous wording

Revenue from royalty and license fees was $81.2 million for the three months ended June 30, 2026 as compared to $75.7 million for the three months ended June 30, 2025, an increase of 7%. The increase in royalty and license fees was primarily the result of a $16.3 million favorable period-over-period change in the cumulative catch-up adjustment for royalty and license fees, partially offset by lower unit material volume and changes in customer mix. The $16.3 million favorable period-over-period change in the cumulative catch-up adjustment was primarily attributable to an increase in the average royalty and license fees price per gram due to lower anticipated demand from certain customers over the respective remaining lives of their contracts.

Current wording

Revenue from royalty and license fees was $210.9 million for the nine months ended September 30, 2026 as compared to $202.6 million for the nine months ended September 30, 2025, an increase of 4%. The increase in royalty and license fees for the nine months ended September 30, 2026 was primarily the result of an $11.1 million favorable period-over-period change in the cumulative catch-up adjustment for royalty and license fees and a $7.1 million out-of-period adjustment that reduced royalty and license fees in the prior-year period, partially offset by lower unit material volume and changes in customer mix. The $11.1 million favorable period-over-period change in the cumulative catch-up adjustment was primarily attributable to an increase in the average royalty and license fees price per gram due to lower anticipated demand from certain customers over the respective remaining lives of their contracts.

Previous wording

The total cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was an increase of $10.1 million for the three months ended June 30, 2026 as compared to a net increase of $655,000 for the three months ended June 30, 2025.

Current wording

The total cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was an increase of $6.5 million for the nine months ended September 30, 2026 as compared to a net increase of $3.9 million for the nine months ended September 30, 2025.

Previous wording

Revenue from contract research services consists of revenue earned by Adesis. Contract research services revenue was $9.0 million for the six months ended June 30, 2026 as compared to $14.0 million for the six months ended June 30, 2025, a decrease of 36%. The decrease in contract research services revenue was primarily due to decreased specialty manufacturing customer demand at Adesis during the six months ended June 30, 2026.

Current wording

Revenue from contract research services consists of revenue earned by Adesis. Contract research services revenue was $14.2 million for the nine months ended September 30, 2026 as compared to $17.7 million for the nine months ended September 30, 2025, a decrease of 20%. The decrease in contract research services revenue was primarily due to decreased specialty manufacturing customer demand at Adesis during the nine months ended September 30, 2026.

Previous wording

Cost of sales for the three months ended June 30, 2026 decreased by $2.4 million as compared to the three months ended June 30, 2025, primarily due to lower sales volume and Adesis' cost of sales, partially offset by product mix. As a result of the decrease in revenue from material sales, partially offset by the increase in revenue from royalty and license fees, gross margin for the three months ended June 30, 2026 decreased by $17.2 million as compared to the three months ended June 30, 2025, with gross margin as a percentage of revenue decreasing to 76% from 77%.

Current wording

Cost of sales for the nine months ended September 30, 2026 increased by $3.2 million as compared to the nine months ended September 30, 2025, primarily due to product mix changes and a $1.4 million increase in inventory reserve expense, partially offset by lower sales volume and Adesis' cost of sales. As a result of the decrease in revenue from material sales, partially offset by the increase in revenue from royalty and license fees, gross margin for the nine months ended September 30, 2026 decreased by $26.0 million as compared to the nine months ended September 30, 2025, with gross margin as a percentage of revenue decreasing to 74% from 76%.

Previous wording

Research and development expenses decreased to $70.2 million for the six months ended June 30, 2026, as compared to $71.3 million for the six months ended June 30, 2025. The decrease in research and development expenses was primarily due to a reduction in stock-based compensation and contract research costs, partially offset by an increase in PPG development expenses.

Current wording

Research and development expenses decreased to $106.6 million for the nine months ended September 30, 2026, as compared to $107.6 million for the nine months ended September 30, 2025. The decrease in research and development expenses was primarily due to a decrease in stock-based compensation and consulting expenses, partially offset by an increase in development activity.

Previous wording

Selling, general and administrative expenses increased to $38.6 million for the six months ended June 30, 2026, as compared to $37.5 million for the six months ended June 30, 2025. The increase in selling, general and administrative expenses was primarily due to an increase in consulting expenses, partially offset by a decrease in stock-based compensation.

Current wording

Selling, general and administrative expenses increased to $59.5 million for the nine months ended September 30, 2026, as compared to $55.5 million for the nine months ended September 30, 2025. The increase in selling, general and administrative expenses was primarily due to an increase in employee-related costs and consulting expenses, partially offset by a decrease in stock-based compensation.

Previous wording

Amortization of acquired technology and other intangible assets increased to $11.3 million for the six months ended June 30, 2026 as compared to $9.1 million for the six months ended June 30, 2025. The increase in amortization of acquired technology and other intangible assets was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026. See Note 7 in Notes to Consolidated Financial Statements for further discussion.

Current wording

Amortization of acquired technology and other intangible assets increased to $14.7 million for the nine months ended September 30, 2026 as compared to $13.6 million for the nine months ended September 30, 2025. The increase in amortization of acquired technology and other intangible assets was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026, partially offset by the completion of amortization of the BASF patent portfolio in June 2026. See Note 7 in Notes to Consolidated Financial Statements for further discussion.

Previous wording

Interest income, net was $17.2 million for the six months ended June 30, 2026, as compared to $19.8 million for the six months ended June 30, 2025. The decrease in interest income, net was primarily attributable to lower bond yields and reduced average investment balances on available-for-sale investments compared with the same period in 2025. Other (loss) income, net primarily consisted of net exchange gains and losses on foreign currency transactions, net investment gains and losses, and rental income. We recorded other loss, net of $7.3 million for the six months ended June 30, 2026 as compared to other income, net of $6.0 million for the six months ended June 30, 2025. The decrease in other (loss) income, net was primarily due to a $3.5 million foreign exchange loss, a $3.4 million investment loss on our marketable equity securities portfolio and a $415,000 impairment loss on our minority equity investment portfolio during the six months ended June 30, 2026 as compared to a $4.5 million foreign exchange gain during the six months ended June 30, 2025. 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.

Current wording

Other income, net primarily consisted of net investment gains and losses, net exchange gains and losses on foreign currency transactions and rental income. We recorded other income, net of $30.0 million for the nine months ended September 30, 2026 as compared to other income, net of $6.9 million for the nine months ended September 30, 2025. The increase in other income, net was primarily due to a $28.5 million net increase in the carrying value of our minority equity investment portfolio and a $3.7 million foreign exchange gain, partially offset by a $3.4 million investment loss on our marketable equity securities portfolio during the nine months ended September 30, 2026 as compared to a $3.0 million investment gain on our marketable equity securities portfolio and a $2.6 million foreign exchange gain during the nine months ended September 30, 2025. 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.

Previous wording

We are subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 19.7% for both six months ended June 30, 2026 and 2025, and we recorded income tax expense of $21.0 million and $32.3 million, respectively, for those periods.

Current wording

We are subject to income taxes in the United States and foreign jurisdictions. The effective income tax rate was 20.1% and 19.4% for the nine months ended September 30, 2026 and 2025, respectively, and we recorded income tax expense of $41.2 million and $42.4 million, respectively, for those periods.

Previous wording

Our principal sources of liquidity are our cash and cash equivalents and short-term investments. As of June 30, 2026, we had cash and cash equivalents of $120.6 million, short-term investments of $350.7 million, and long-term U.S. Government bonds investments of $383.2 million for a total of $854.5 million. This compares to 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 as of December 31, 2025.

Current wording

Our principal sources of liquidity are our cash and cash equivalents and short-term investments. As of September 30, 2026, we had cash and cash equivalents of $93.4 million, short-term investments of $340.0 million, and long-term U.S. Government bonds investments of $394.6 million for a total of $828.0 million. This compares to 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 as of December 31, 2025.

Previous wording

Cash provided by operating activities for the six months ended June 30, 2026 was $133.9 million resulting from $85.3 million of net income, $42.5 million from non-cash items including depreciation, stock-based compensation and amortization of intangibles, and a $6.1 million increase due to changes in our operating assets and liabilities. Changes in our operating assets and liabilities related to an increase in deferred revenue of $19.9 million and a decrease in other assets of $17.8 million, partially offset by a decrease in accounts payable and accrued expenses of $14.0 million, an increase in inventory of $8.7 million, an increase in accounts receivable of $6.3 million and a decrease in other liabilities of $2.6 million.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2026 was $234.1 million resulting from $164.3 million of net income, $37.2 million from non-cash items including depreciation, stock-based compensation, amortization of intangibles and investment gains, net, and a $32.6 million increase due to changes in our operating assets and liabilities. Changes in our operating assets and liabilities related to a decrease in accounts receivable of $30.8 million, an increase in deferred revenue of $15.1 million and a decrease in inventory of $4.0 million, partially offset by an increase in other assets of $11.5 million, a decrease in other liabilities of $3.9 million and a decrease in accounts payable and accrued expenses of $1.9 million. The decrease in accounts receivable during the nine months ended September 30, 2026 was primarily due to the timing of material shipments as well as license fee payments from certain customers. The increase in deferred revenue during the nine months ended September 30, 2026 was primarily due to the timing of customer payments and revenue recognition.

Previous wording

Cash provided by operating activities for the six months ended June 30, 2025 was $82.5 million resulting from $131.7 million of net income and $32.7 million from non-cash items including stock-based compensation, depreciation and amortization of intangibles, partially offset by a $81.9 million reduction due to changes in our operating assets and liabilities. Changes in our operating assets and liabilities related to an increase in accounts receivable of $33.4 million, an increase in other assets of $28.0 million, an increase in inventory of $25.3 million and a decrease in other liabilities of $4.4 million, partially offset by an increase in accounts payable and accrued expenses of $4.6 million and an increase in deferred revenue of $4.6 million. The increase in accounts receivable during the six months ended June 30, 2025 was primarily due to the timing of material shipments as well as license fee billings for certain customers. The increase in inventory during the six months ended June 30, 2025 was primarily due to purchases of certain strategic raw materials.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2025 was $179.7 million resulting from $175.7 million of net income and $53.1 million from non-cash items including stock-based compensation, depreciation and amortization of intangibles, partially offset by a $49.1 million reduction due to changes in our operating assets and liabilities. Changes in our operating assets and liabilities related to an increase in other assets of $49.3 million, an increase in inventory of $29.7 million, a decrease in deferred revenue of $8.7 million and a decrease in other liabilities of $1.1 million, partially offset by a decrease in accounts receivable of $39.4 million and an increase in accounts payable of $304,000. The increase in other assets during the nine months ended September 30, 2025 was primarily due to an increase in unbilled receivables from certain customers. The decrease in accounts receivable during the nine months ended September 30, 2025 was primarily due to the timing of material shipments as well as license fee payments from certain customers. The increase in inventory during the nine months ended September 30, 2025 was primarily due to purchases of certain strategic raw materials.

Previous wording

Cash provided by investing activities was $17.0 million for the six months ended June 30, 2026, as compared to cash used in investing activities of $34.5 million for the six months ended June 30, 2025. The increase in cash provided by investing activities was due to timing of maturities and purchases of investments resulting in net sales and maturities of $70.2 million for the six months ended June 30, 2026, as compared to net purchases of $7.0 million for the six months ended June 30, 2025, partially offset by an increase in purchases of intangibles and property and equipment of $25.7 million. The increase in the purchases of intangibles during the six months ended June 30, 2026 was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026.

Current wording

Cash used in investing activities was $10.4 million for the nine months ended September 30, 2026, as compared to cash used in investing activities of $85.0 million for the nine months ended September 30, 2025. The decrease in cash used in investing activities was due to timing of maturities and purchases of investments resulting in net sales and maturities of $47.1 million for the nine months ended September 30, 2026, as compared to net purchases of $44.6 million for the nine months ended September 30, 2025, partially offset by an increase in purchases of intangibles and property and equipment of $17.1 million. The increase in the purchases of intangibles during the nine months ended September 30, 2026 was primarily due to the acquisition of the Merck KGaA patent portfolio in January 2026.

Previous wording

Cash used in financing activities was $168.6 million for the six months ended June 30, 2026, as compared to $51.2 million for the six months ended June 30, 2025. The increase was due to an increase in the repurchases of common stock, inclusive of excise tax, of $115.2 million, an increase in the cash payment of dividends in the current year of $3.8 million and a decrease in the proceeds from issuance of common stock of $33,000, partially offset by a decrease in the payment of withholding taxes related to stock-based compensation to employees of $1.6 million.

Current wording

Cash used in financing activities was $268.6 million for the nine months ended September 30, 2026, as compared to $72.1 million for the nine months ended September 30, 2025. The increase was due to an increase in the repurchases of common stock, inclusive of excise tax, of $193.0 million, an increase in the cash payment of dividends in the current year of $5.1 million and a decrease in the proceeds from issuance of common stock of $102,000, partially offset by a decrease in the payment of withholding taxes related to stock-based compensation to employees of $1.7 million.

Previous wording

Working capital was $830.9 million as of June 30, 2026, as compared to $979.0 million as of December 31, 2025. The decrease was primarily due to decreases in short-term investments and other current assets.

Current wording

Working capital was $781.2 million as of September 30, 2026, as compared to $979.0 million as of December 31, 2025. The decrease was primarily due to decreases in short-term investments, cash and cash equivalents and accounts receivable.