Dolby Laboratories Reports Third Quarter 2025 Financial Results

Core Viewpoint - Dolby Laboratories reported solid financial results for Q3 of fiscal 2025, highlighting strong engagement with creators and distributors across various platforms and devices [2][6]. Financial Highlights - Total revenue for Q3 fiscal 2025 was $316 million, an increase from $289 million in Q3 fiscal 2024 [6]. - GAAP net income was $46 million, or $0.48 per diluted share, compared to $38 million, or $0.40 per diluted share in the same quarter last year [6][21]. - Non-GAAP net income for Q3 was $76 million, or $0.78 per diluted share, up from $69 million, or $0.71 per diluted share in Q3 fiscal 2024 [6][25]. Dividend Announcement - Dolby announced a cash dividend of $0.33 per share for Class A and Class B common stock, payable on August 20, 2025 [4]. Recent Business Developments - Dolby technologies, including Dolby Atmos and Dolby Vision, are increasingly adopted in various sectors such as music, sports, and user-generated content [2]. - Significant partnerships and product launches include Audi supporting Dolby Atmos in several vehicle models and Motorola launching its first smartphone with Dolby Vision Capture [6]. Financial Outlook - For Q4 fiscal 2025, Dolby estimates total revenue to range from $288 million to $318 million, with licensing revenue expected between $263 million and $293 million [7]. - For the full fiscal year 2025, total revenue is projected to be between $1.33 billion and $1.36 billion, with licensing revenue estimated at $1.23 billion to $1.26 billion [7]. Operating Metrics - Gross margins are anticipated to be approximately 86% on a GAAP basis and 88% on a non-GAAP basis for Q4 [7]. - Operating expenses are expected to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis [7]. Earnings Per Share - Diluted earnings per share for Q4 are anticipated to range from $0.28 to $0.43 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis [7][8].