On February 13, 2026, Neo Ivy Capital Management disclosed a new position in Dolby Laboratories (NYSE:DLB), acquiring 117,964 shares in a trade estimated at $7.58 million. What happened Neo Ivy Capital Management reported in a February 13, 2026, SEC filing that it established a new stake in Dolby Laboratories, acquiring 117,964 shares. The estimated transaction value was $7.58 million. What else to know This new position in DLB represents 1.2% of Neo Ivy’s reportable U.S. equity AUM after the fourth q ...

Core Insights - The integration of Source-Connect with Dolby Atmos enhances remote audio collaboration, allowing producers and engineers to work seamlessly without the need for re-renders or limited channel counts, making it suitable for various Dolby Atmos speaker configurations [1][4]. Group 1: Source-Connect Features - Source-Connect is a professional remote audio recording and collaboration software that provides high-quality, low-latency audio streaming, along with features like DAW timeline synchronization [2]. - The new Dolby Atmos integration allows for streaming audio and metadata between multiple Dolby Atmos rendering environments, ensuring perfect synchronization and compliance with Dolby specifications [4]. - Source-Connect's proprietary Remote Transport Sync protocol enables full synchronization between a studio and up to five reviewers and their DAWs [5]. Group 2: Industry Impact - The integration has transformed remote session workflows, allowing for high-quality audio mixing without the need for physical presence, as demonstrated by a successful remote mix for a major streaming title [3][6]. - The solution is currently available for macOS and requires the standalone Dolby Atmos Renderer, which is available for purchase [7]. - Source Elements, the company behind Source-Connect, has been facilitating real-time collaboration in media production since 2005, enhancing the quality and efficiency of multimedia workflows [8]. Group 3: Company Background - Dolby Laboratories is a leader in immersive entertainment, providing innovative technologies like Dolby Atmos, which enhance the audio-visual experience for consumers worldwide [9].

Core Insights - Dolby Laboratories, Inc. (DLB) reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $1.06, exceeding the Zacks Consensus Estimate of 90 cents, but down from $1.14 in the prior-year quarter [1][9] - Total revenues were $346.7 million, a decrease from $357 million in the year-ago quarter, yet surpassing the Zacks Consensus Estimate by 4.2% [2][9] Financial Performance - Licensing revenues were $319.8 million, down 3.2% year over year, but within the company's guidance of $290 million to $320 million [5] - Products and Services revenues increased by 1.6% year over year to $26.9 million [5] - Gross profit for the fiscal first quarter was $303.5 million, compared to $316.2 million in the year-ago quarter, while total operating expenses rose to $241.3 million from $236.3 million [7] Market Outlook - Management expressed optimism about the company's market position and growth opportunities, citing strong momentum in Dolby Atmos and Dolby Vision, as well as an expanding addressable market [3] - For the second quarter of fiscal 2026, the company estimates revenues between $375 million and $405 million, with licensing revenues projected to be between $350 million and $380 million [12] Shareholder Returns - The company repurchased approximately 1 million shares for about $70 million during the first quarter, with roughly $207 million remaining under its stock repurchase authorization [11] - A cash dividend of 36 cents per share was declared, payable on February 18, 2026 [11] Segment Performance - Broadcast Licensing contributed 31% to total licensing revenues, while Mobile Licensing, Consumer Electronics, PC Licensing, and Licensing from Other Markets accounted for 23%, 14%, 9%, and 23% respectively [6] Future Projections - For fiscal 2026, the company expects total revenues to be in the range of $1.4 billion to $1.45 billion, an increase from the prior estimate of $1.39 billion to $1.44 billion [13] - Licensing revenues are projected to range from $1.295 billion to $1.345 billion, up from the previous estimate of $1.285 billion to $1.335 billion [13]

Core Insights - Dolby Laboratories, Inc. is a key player in the audio, video, and voice technology industry, known for innovations like Dolby Atmos and Dolby Vision, and is expanding its market reach [1] Financial Performance - Earnings per share (EPS) reported at $1.06, surpassing the estimated $0.99, representing a 17.78% earnings surprise compared to the Zacks Consensus Estimate of $0.90 [2] - Revenue reported at approximately $346.7 million, exceeding the estimated $341.3 million, marking a 4.19% revenue surprise [3] - EPS shows a slight decrease from $1.14 reported in the same quarter last year, but Dolby has consistently outperformed consensus EPS estimates over the past four quarters [2] - Revenue decreased from $357 million in the previous year, yet Dolby has exceeded consensus revenue estimates in three of the last four quarters [3] Financial Health - The company has a low debt-to-equity ratio of 0.015, indicating minimal reliance on debt financing [4] - Current ratio of approximately 3.17 reflects the ability to cover short-term liabilities with assets, ensuring good financial stability [4] - A cash dividend of $0.36 per share for both Class A and Class B common stock has been announced, payable on February 18, 2026 [4] Market Valuation - Price-to-earnings (P/E) ratio is approximately 23.64, and price-to-sales ratio is about 4.48 [5] - Enterprise value to sales ratio stands at around 3.99, while the enterprise value to operating cash flow ratio is approximately 11.39, indicating strong financial position [5]

Core Insights - Dolby Laboratories reported a strong start to fiscal 2026, with first-quarter revenue of $347 million and non-GAAP earnings per share of $1.06, both exceeding the high end of the company's prior guidance [4][7] - The outperformance was attributed to earlier-than-expected deal timing and a favorable $7 million true-up for Q4 shipments [3][4] - The company raised its fiscal 2026 guidance to $1.4–1.45 billion in revenue and $4.30–4.45 in non-GAAP EPS, reflecting a positive outlook for its licensing revenue and operating margins [6][19] Financial Performance - Licensing revenue totaled $320 million, while product and services revenue was $27 million [2] - The company generated approximately $55 million in operating cash flow and repurchased $70 million of common stock [2][7] - Dolby declared a dividend of $0.36, which is a 9% increase from the previous year, and ended the quarter with approximately $730 million in cash and investments [2][7] Growth Initiatives - Dolby highlighted progress in automotive and television initiatives, showcasing partnerships with over 35 OEMs and new integrations with Qualcomm's Snapdragon automotive platform [5][10] - The company is focusing on expanding its addressable market through mobile and streaming initiatives, with notable support from platforms like Meta and Douyin for Dolby Vision [13][15] - The Atmos/Vision/Imaging portfolio is expected to grow roughly 15% and comprise nearly half of licensing revenue [6][20] Market Trends - Mobile revenue grew over 20% year-over-year, while broadcast revenue saw a mid-teens decline, primarily due to timing and deal factors [16] - Management noted that quarterly results can fluctuate based on recoveries and true-ups, but they expect both mobile and broadcast to show mid-single-digit growth for the full year [16][19] - The company remains confident in its ability to grow Dolby Atmos, Dolby Vision, and Imaging Patents at 15% to 20% per year over the next few years [22]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [14][17] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [14][17] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [15][16] Business Line Data and Key Metrics Changes - Licensing revenue was $320 million, while product and services revenue was $27 million [14] - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year [16] Market Data and Key Metrics Changes - The automotive sector is a major focus, with partnerships increasing from 20 OEMs last year to over 35 this year [7][12] - Dolby Vision 2 received positive feedback at CES, with support from content providers like Peacock and TP Vision [9][54] Company Strategy and Development Direction - The company is focused on expanding its presence in automotive entertainment and enhancing the in-car experience with Dolby Atmos and Dolby Vision [5][6] - Dolby Vision 2 aims to meet evolving viewer expectations and unlock the potential of modern televisions [8][9] - The company is confident in growing Dolby Atmos, Dolby Vision, and Imaging Patents at 15%-20% per year over the next few years [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while some deals came in earlier than expected, it does not indicate a broader change in the macro environment [21] - The company raised its full-year revenue guidance to $1.4 billion-$1.45 billion, reflecting strong Q1 performance and true-up adjustments [17][19] - Management remains optimistic about growth opportunities despite potential impacts from memory pricing and macroeconomic factors [60][61] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [16] - The company ended the quarter with cash and investments of approximately $730 million [16] Q&A Session Summary Question: Impact of deal timing on revenue - Management indicated that earlier deal closures de-risk the outlook for the year but do not suggest a general change in the macro environment [21] Question: Details on the $7 million true-up - The true-up was primarily in gaming and broadcast sectors [23] Question: Growth in mobile revenue - Mobile growth is influenced by the timing of new deals and renewals, with expectations for slight growth for the full year [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with Roku as a significant new licensee [32] Question: Guidance for Q1 performance - The guidance was positively influenced by the $7 million true-up and earlier-than-expected deals [35][44] Question: Feedback from CES - The event showcased strong interest in automotive experiences and Dolby Vision 2, with positive responses from partners and customers [50][52]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [14][17] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [14][17] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [15][16] Business Line Data and Key Metrics Changes - Licensing revenue reached $320 million, while product and services revenue was $27 million [14] - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year [16] Market Data and Key Metrics Changes - The automotive sector is a major focus, with partnerships increasing from 20 OEMs to over 35 OEMs year-over-year [7] - Dolby Vision 2 received positive feedback at CES, with support from content providers like Peacock and TP Vision [9][53] Company Strategy and Development Direction - The company is raising its full-year fiscal 2026 revenue guidance to $1.4 billion-$1.45 billion, reflecting strong Q1 performance and earlier deal closures [17] - Dolby aims to grow Dolby Atmos, Dolby Vision, and imaging patents at 15%-20% per year, which now comprise nearly half of licensing revenue [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities despite macroeconomic uncertainties, noting that the timing of deals has improved [21][58] - The company is optimistic about the adoption of Dolby Vision 2 and the expansion of its addressable market through new partnerships and technologies [26][32] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [16] - The company ended the quarter with cash and investments of approximately $730 million [16] Q&A Session Summary Question: Impact of deal timing on the environment - Management noted that while some deals came in earlier than expected, it should not be generalized to indicate a broader change in the macro environment [21] Question: Details on the large true-up - The $7 million true-up was primarily in gaming and broadcast sectors [23] Question: Growth in mobile revenue - Mobile growth was attributed to a combination of new deals and renewals, with expectations for slight full-year growth [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with Roku as a significant new licensee [32] Question: Guidance for the quarter - The guidance was influenced by a combination of favorable true-up and strong deal timing, with overall performance aligning closely with expectations [44][46] Question: Feedback from CES - Positive feedback was received regarding the automotive experience and Dolby Vision 2, with significant interest from partners and customers [50][51]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $347 million, exceeding the high end of guidance, driven by earlier-than-expected deal closures and a $7 million favorable true-up for Q4 shipments [11][12] - Non-GAAP earnings per share was $1.06, also above guidance, attributed to higher revenue and lower operating expenses [11] - Licensing revenue reached $320 million, while product and services revenue was $27 million [11] - Operating cash flow generated was approximately $55 million, with $70 million of common stock repurchased [11][12] Business Line Data and Key Metrics Changes - Mobile revenue grew over 20% year-over-year, while broadcast revenue declined in the mid-teens year-over-year, primarily due to timing of deals [12] - The automotive sector is a major focus, with partnerships increasing from 20 OEMs last year to over 35 this year [6][10] - Dolby Vision 2 was well-received at CES, with support from partners like Peacock and TP Vision, enhancing revenue opportunities from TVs [7][8] Market Data and Key Metrics Changes - The mobile market is expected to see mid-single-digit growth for the full year, despite quarterly fluctuations [12] - The automotive market remains the highest growth area, with diversification geographically, including partnerships with major manufacturers like Mercedes and Audi [60][62] Company Strategy and Development Direction - The company is focused on expanding its addressable market through new growth initiatives, including Dolby OptiView and video distribution programs [10][29] - Dolby Vision 2 aims to enhance viewer experience across various content types, with plans to launch new TVs by the end of the fiscal year [7][10] - The company is optimistic about growth in Dolby Atmos, Dolby Vision, and imaging patents, projecting a growth rate of 15%-20% per year [10][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the early closure of deals does not indicate a broader change in the macro environment but provides confidence in the outlook for the year [18] - The company remains cautious about potential impacts from memory pricing and geopolitical factors but has not seen significant adjustments in guidance [58][59] - The automotive sector continues to thrive, with no immediate impacts from U.S. policy changes observed [62] Other Important Information - A dividend of $0.36 was declared, representing a 9% increase from the previous year [12] - The company ended the quarter with cash and investments of approximately $730 million [12] Q&A Session Summary Question: Impact of deal timing on revenue - Management indicated that earlier deal closures do not suggest a macro trend but help de-risk the outlook for the year [18] Question: Details on the $7 million true-up - The true-up was primarily in gaming and broadcast sectors [19] Question: Growth in mobile revenue - Growth was attributed to new deals and renewals, with expectations for slight increases over the full year [21] Question: Potential market share gains from Sony's spin-off - Management expressed optimism about strong relationships with both TCL and Sony, focusing on increasing TV attach rates [22][23] Question: Cash flow generation comparison - Cash flow can fluctuate based on deal timing, but it typically tracks closely with non-GAAP net income [24] Question: Update on patent monetization strategy - The company aims for 10% of revenue from content service providers within three years, with progress in the video distribution program [29][30] Question: OEM responses to macro issues - Management noted that while there are adjustments, they are not material, and the mobile market is most affected [58][59] Question: Adoption of in-car offerings amid policy changes - No significant impact observed; the automotive sector remains a high-growth area [62]

Core Insights - Dolby Laboratories reported a total revenue of $347 million for the first quarter of fiscal 2026, a decrease from $357 million in the same quarter of fiscal 2025 [7] - GAAP net income was $53 million or $0.55 per diluted share, down from $68 million or $0.70 per diluted share year-over-year [7] - Non-GAAP net income for the first quarter was $103 million or $1.06 per diluted share, compared to $111 million or $1.14 per diluted share in the prior year [7] Financial Highlights - Total revenue decreased by approximately 2.8% year-over-year [7] - GAAP net income decreased by about 22.1% year-over-year [7] - Non-GAAP net income also saw a decline of around 7.2% year-over-year [7] - The company repurchased approximately one million shares for about $70 million, with $207 million remaining in stock repurchase authorization [7] Business Developments - Dolby continues to see strong momentum with Dolby Atmos and Dolby Vision, expanding its market through imaging patent programs and Dolby OptiView [2] - Over 35 automotive OEMs have adopted Dolby Atmos, with notable partnerships including Mercedes-Benz and Mahindra [7] - Peacock is the first streaming service to implement Dolby's full suite of advanced picture and sound technologies, including Dolby Vision 2 [7] Dividend Announcement - Dolby announced a cash dividend of $0.36 per share for Class A and Class B common stock, payable on February 18, 2026 [5] Financial Outlook - For the second quarter of fiscal 2026, total revenue is estimated to range from $375 million to $405 million, with licensing revenue expected between $350 million and $380 million [11] - For the full year of fiscal 2026, total revenue is projected to be between $1.4 billion and $1.45 billion [11] - Gross margins are anticipated to be approximately 90% on a GAAP basis and 91% on a non-GAAP basis [11]

Core Viewpoint - Dolby Laboratories, Inc. will announce its financial results for Q1 fiscal year 2026 on January 29, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results for Q1 fiscal year 2026 will be released after the close of regular trading on January 29, 2026 [1] - A conference call will be held at 2:00 p.m. PT (5:00 p.m. ET) on the same day to discuss the financial results [1] Group 2: Teleconference Access - Access to the teleconference can be obtained via the investor relations website or by dialing a specific phone number with a confirmation code [2] - A replay of the call will be available from 5:00 p.m. PT on January 29, 2026, until 8:59 p.m. PT on February 5, 2026 [3] Group 3: Company Overview - Dolby Laboratories is a leader in immersive entertainment, providing experiences across various media including movies, TV, music, and gaming [4] - The company is known for innovations such as Dolby Atmos, Dolby Vision, and Dolby Cinema, enhancing entertainment experiences for billions globally [4]