Dolphin Entertainment(DLPN) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights Dolphin reported strong Q2 2025 financial results, with revenue growth, improved profitability, and strategic investments highlighted by the CEO CEO Commentary & Strategic Focus Dolphin's CEO highlighted strong Q2 performance, strategic investments in future growth, and anticipated profit margin expansion - Dolphin's Q2 revenue grew by 23% year-over-year, reaching $14.1 million, exceeding expectations and demonstrating strong financial performance[2][3] - The company strategically invested in future growth engines like women's sports and affiliate marketing, anticipating long-term returns after initial investment phases[3] - CEO Bill O'Dowd purchased approximately 1% of outstanding shares since April 2025, demonstrating confidence in the company's value[2][5] - Adjusted operating margins are expected to grow as Always Alpha and affiliate marketing investments decrease, real estate commitments expire, and bank loans are repaid[4] Q2 2025 Financial Performance Overview Dolphin's Q2 2025 saw revenue grow 23%, operating loss significantly narrow, and adjusted operating income turn profitable Q2 2025 Key Financial Metrics (Compared to Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------- | :--------------- | :--------------- | :--------------------- | | Total Revenue | $14.1 million | $11.4 million | +23% | | Operating Loss | $(57,000) | $(1.1) million | Significantly narrowed | | Adjusted Operating Income (Loss) | $0.6 million | $(0.1) million | Shifted to profit | | Net Loss | $(1.4) million | $(1.6) million | Reduced | | Net Loss Per Share (Basic) | $(0.13) | $(0.17) | Improved | | Net Loss Per Share (Diluted) | $(0.13) | $(0.17) | Improved | - Q2 2025 operating expenses were $14.1 million, including $0.6 million in depreciation and amortization and approximately $0.1 million in non-recurring or non-cash expenses, an increase from $12.6 million in Q2 2024[7] Operational Highlights & Business Updates Dolphin's subsidiaries achieved significant Q2 2025 milestones, including new partnerships, industry awards, platform launches, and expanded marketing Subsidiary & Division Achievements Dolphin's subsidiaries achieved Q2 2025 milestones, including new partnerships, Emmy nominations, platform launches, and diverse marketing support - Dolphin established a company-wide partnership with The Lumistella Company, leveraging its agency alliance for integrated marketing, media, and brand strategy for Elf on the Shelf® Santaverse™ and new IP extensions[13] - Dolphin demonstrated leadership in fan public relations at San Diego Comic-Con 2025, executing campaigns for top talent and brands like Amazon Studios, Funko, and Crunchyroll[13] - Dolphin's clients received 15 nominations for the 77th Primetime Emmy Awards[13] - The Door and The Digital Dept. jointly launched Dolphin Tastemakers, combining talent management and media outreach to build impactful multi-dimensional brands for top talent like Rachael Ray, Josh Scherer, and Jeanine Donofrio[13] 42West 42West clients garnered significant industry recognition, including multiple Emmy nominations and high-profile fashion collaborations - 42West clients received 15 nominations for the 77th Primetime Emmy Awards[13] - At the Met Gala, 42West client Christian Siriano designed custom looks for Lizzo, Bebe Rexha, and Alex Newell[13] The Door / The Digital Dept. / DISRPT Agency These agencies launched Dolphin Tastemakers, secured major client partnerships, and expanded influencer marketing, solidifying cultural influence - The Door and The Digital Dept. jointly launched Dolphin Tastemakers, empowering top talent and digital-native creators by combining talent management and media outreach[13][17] - DISRPT Agency announced its 2025 client roster, including CultureCon and Edison Chen x Bad Bunny for adidas Originals, reinforcing its leadership in cultural influence[13] - The Digital Dept. debuted the BRANDEdit experience at CMA Fest 2025 and hosted its highest-grossing BRANDEdit influencer experience in Los Angeles to date[17] Shore Fire Media Shore Fire Media secured PR for the Miles Davis Estate and supported high-profile music festivals and artists - Shore Fire Media was appointed as the public relations agency for the Miles Davis Estate ahead of its 2026 centennial celebration[17] - Shore Fire Media was selected to support several high-profile music festivals and concert series, including Summerfest and Montreux Jazz Festival Miami[17] - Long-term client Cyndi Lauper was inducted into the Rock & Roll Hall of Fame[17] Special Projects Special Projects curated star-studded lineups for major events like the Academy Museum Gala and Peabody Awards ceremony - Special Projects secured a star-studded lineup for the 2025 Academy Museum Gala, featuring Bruce Springsteen, Penélope Cruz, Walter Salles, and Bowen Yang[21] - Special Projects managed bookings for the 2025 Peabody Awards ceremony, successfully securing host Roy Wood, Jr. and several notable presenters and performers[21] Always Alpha Always Alpha strengthened its women's sports management team with key hires and elevated women's sports profile at Cannes Lions - Malea Hotson and Tracy Hughes joined Always Alpha, bringing decades of expertise to the women's sports management team to drive innovation and growth in the sector[21] - Always Alpha elevated the profile of women's sports at the 2025 Cannes Lions International Festival of Creativity through high-profile events and panel discussions[21] Youngblood (Film Adaptation) Dolphin's film adaptation, Youngblood, is set to premiere at the 2025 Toronto International Film Festival - Dolphin announced its film adaptation, Youngblood, has been selected to premiere at the 2025 Toronto International Film Festival[20] Company Information Dolphin (NASDAQ:DLPN) provided a business overview, announced Q2 earnings call details, and included standard forward-looking statements About Dolphin & Business Divisions Founded in 1996, Dolphin (NASDAQ:DLPN) evolved into three dynamic divisions, with Dolphin Marketing recognized as a top agency - Dolphin, founded by Bill O'Dowd in 1996, began as an Emmy-nominated television, digital, and film content production company[23] - The company now comprises three core divisions: Dolphin Entertainment (content production), Dolphin Marketing (PR, influencer marketing, brand strategy), and Dolphin Ventures (accelerating innovative ideas and products)[23][24][25][26] - The Dolphin Marketing division was named a Top Agency of 2025 by Observer[25] Conference Call & Investor Relations Dolphin scheduled an August 13, 2025 webcast and conference call to discuss Q2 2025 results, with participation and replay details provided - The company will host a Q2 2025 earnings conference call and webcast on Wednesday, August 13, 2025, at 4:30 PM ET[22] - Toll-free, international dial-in numbers, participant access codes, webcast links, and replay information are provided[22] Forward-Looking Statements & Disclaimer This press release contains forward-looking statements on Dolphin's stock offerings and financial results, subject to risks and no update obligation - This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act, concerning stock offerings and anticipated financial and operational results[27] - Forward-looking statements involve unpredictable risks and uncertainties, where actual results may differ materially from those discussed[27][28] - Dolphin Entertainment assumes no obligation to update any forward-looking statements unless required by applicable law[28] Financial Statements Dolphin's Q2 2025 financial statements show revenue growth, narrowed operating losses, and a GAAP to non-GAAP adjusted operating income reconciliation Condensed Consolidated Balance Sheets As of June 30, 2025, Dolphin's total assets slightly increased to $58.61 million, with growing current assets but decreasing shareholder equity Condensed Consolidated Balance Sheets Key Data | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :--------------------- | :--------------- | :--------------- | | Cash and Cash Equivalents | 8,697,360 | 8,203,842 | | Total Current Assets | 22,156,949 | 20,067,099 | | Total Assets | 58,611,434 | 58,437,279 | | Total Current Liabilities | 29,131,730 | 26,514,137 | | Total Liabilities | 50,709,023 | 46,791,888 | | Total Stockholders' Equity | 7,902,411 | 11,645,391 | Condensed Consolidated Statements of Operations Dolphin's Q2 2025 revenue grew 23% to $14.09 million, with narrowed operating and net losses, despite increased year-to-date losses Condensed Consolidated Statements of Operations Key Data | Metric | Q2 2025 ($) | Q2 2024 ($) | H1 2025 ($) | H1 2024 ($) | | :--------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Revenue | 14,087,529 | 11,449,089 | 26,257,240 | 26,684,981 | | Total Expenses | 14,144,583 | 12,568,554 | 28,087,820 | 27,639,907 | | Operating Loss | (57,054) | (1,119,465) | (1,830,580) | (954,926) | | Net Loss | (1,413,918) | (1,624,458) | (3,742,980) | (1,951,226) | | Basic Loss Per Share | (0.13) | (0.17) | (0.33) | (0.20) | | Diluted Loss Per Share | (0.13) | (0.17) | (0.34) | (0.20) | Reconciliation of Non-GAAP Measures Dolphin's Q2 2025 GAAP operating loss of $57,000 adjusted to non-GAAP operating income of $627,905, reflecting core business profitability Reconciliation of GAAP Operating Loss to Non-GAAP Adjusted Operating Income (Loss) | Metric | Q2 2025 ($) | Q2 2024 ($) | H1 2025 ($) | H1 2024 ($) | | :--------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Operating Loss (GAAP) | (57,054) | (1,119,465) | (1,830,580) | (954,926) | | Adjustments: | | | | | | Depreciation and Amortization | 591,552 | 555,694 | 1,183,104 | 1,108,797 | | Bad Debt Expense | 93,407 | 82,959 | 149,161 | 286,980 | | Acquisition Costs | — | — | 416,171 | — | | Goodwill Impairment | — | 190,565 | — | 190,565 | | Stock-Based Compensation | — | 153,291 | — | 259,052 | | Adjusted Operating Income (Loss) (Non-GAAP) | 627,905 | (136,956) | (82,144) | 890,468 |