Accessibility StatementSkip Navigation During the Week of Football's Biggest Game, Dolby will Showcase the Future of Live Sports and Real-time Streaming Powered by Dolby Vision, Dolby Atmos and Dolby OptiView MOUNTAIN VIEW, Calif., Nov. 19, 2025 /PRNewswire/ -- The Bay Area Host Committee (BAHC) announced today a multi-faceted partnership with Dolby, a leader in immersive and real-time entertainment experiences, as an Official Signature Partner of the BAHC during Super Bowl LX and its weeklong festivities a ...

Key Takeaways DLB's Q4 EPS beat and slight revenue rise were driven by Products and Services growth.Atmos, Vision and new imaging initiatives helped broaden DLB's market reach in fiscal 2025.DLB's fiscal 2026 outlook implies higher revenues and improved operating margins.Dolby Laboratories, Inc. (DLB) reported fourth-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 99 cents, surpassing the Zacks Consensus Estimate of 70 cents. It reported 81 cents in the prior-year quarter.Total revenues were $307 m ...

Financial Data and Key Metrics Changes - Revenue for Q4 came in at $307 million, above the midpoint of guidance, with non-GAAP earnings per share of $0.99, exceeding high-end guidance due to a $0.28 discrete tax benefit [16] - For FY2025, total revenue was $1.35 billion, up 6% year over year, with non-GAAP earnings per share of $4.24, or $3.97 excluding the discrete tax benefit [17] - Operating cash flow generated was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue for Q4 was $282 million, while products and services revenue was $25 million [16] - Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in FY2025, representing 45% of licensing revenue [17] - Foundational audio technology revenue was just under negative 1%, aligning with expectations of roughly flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in mobile driven by the GE Licensing acquisition, while PC and broadcast grew mid-single digits, and consumer electronics (CE) was down, in line with expectations [17] - The automotive sector is identified as a fast-growing area, with Dolby Atmos music being integrated into more vehicle models [40] Company Strategy and Development Direction - The company aims to expand its total addressable market by delivering value to new customers through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [10][14] - Dolby Vision 2 is set to enhance picture quality and is receiving strong industry support, with major TV manufacturers announcing their commitment [5][6] - The focus on AI-powered innovations is part of the company's strategy to enhance current and future offerings [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have been able to grow Dolby Atmos, Dolby Vision, and imaging patents at about 20% a year [56] - The company does not anticipate significant impacts from tariffs and believes its device partners have shown resilience in dealing with supply chain issues [56] - For FY2026, revenue is expected to grow between 3%-7%, with Dolby Atmos, Dolby Vision, and Imaging Patents revenue projected to grow approximately 15% [19] Other Important Information - The company recorded a $6 million restructuring charge in Q4 as part of efforts to streamline operations [16] - The first revenue from the new imaging patent pool for content streamers is expected to be recognized in FY2026 [9] Q&A Session Summary Question: Expansion of Total Addressable Market with New Consumption Models - Management confirmed that the video distribution program combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [28] Question: Imaging Patents and Revenue Generation - The imaging patent licensing is driven by patent pools, with five licensees signed up in the second half of FY2025, expected to generate revenue in FY2026 [31] Question: Impact of Tariffs and Consumer State - Management indicated no identifiable impact from tariffs and noted that the device market is stabilizing after previous declines [56] Question: Progress in Automotive Sector - The automotive sector is expected to become a separate end market, with ongoing efforts to integrate Dolby Atmos into more vehicle models [40] Question: Capital Allocation and Share Repurchase - The company has over $270 million remaining for share repurchase authorization and continues to evaluate its capital allocation strategy [60]

Dolby Laboratories (NYSE:DLB) Q4 2025 Earnings Call November 18, 2025 05:00 PM ET Company ParticipantsPatrick Sholl - VPPeter Goldmacher - VP of Investor RelationsRobert Park - CFOKevin Yeaman - CEOConference Call ParticipantsSteve Frankel - Director of Research and Senior Research AnalystVikram Kesavabhotla - Senior Research AnalystRalph Schackart - Research AnalystOperatorThank you for standing by. Welcome to the Dolby Laboratories conference call discussing fourth quarter fiscal year 2025 results. During ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $307 million, exceeding the midpoint of guidance, with non-GAAP earnings per share of $0.99, boosted by a $0.28 discrete tax benefit [16] - For FY2025, total revenue reached $1.35 billion, a 6% year-over-year increase, with non-GAAP earnings per share of $4.24 [17] - Operating cash flow was approximately $123 million, with a share repurchase of $35 million and a declared dividend of $0.36, up 9% from the previous year [16][17] Business Line Data and Key Metrics Changes - Licensing revenue was $282 million, while products and services revenue was $25 million for Q4 2025 [16] - Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in FY2025, representing 45% of licensing revenue [17] - Foundational audio technology revenue declined just under 1%, aligning with expectations of flat growth [17] Market Data and Key Metrics Changes - Strong growth was observed in the mobile segment, driven by the GE Licensing acquisition, while PC and broadcast grew in mid-single digits [17] - Consumer electronics (CE) revenue was down, consistent with expectations [17] - The automotive sector continues to grow rapidly, with new agreements signed with major brands like Maruti Suzuki and VinFast [7][8] Company Strategy and Development Direction - The company aims to expand its total addressable market through consumption-based revenue models, including the video distribution program for content streamers and Dolby OptiView [11][12] - Dolby is focusing on innovation and collaboration within the ecosystem to enhance the quality and efficiency of entertainment experiences [13][14] - The company is optimistic about growing Dolby Atmos, Dolby Vision, and Imaging Patents at a rate of 15%-20% per year over the next three to five years [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall device market is sluggish, they have not seen specific impacts from tariffs, and partners are resilient [48] - The company expects revenue for FY2026 to be between $1.39 billion and $1.44 billion, reflecting a 3%-7% year-over-year increase [19] - For Q1 FY2026, revenue is expected to be between $315 million and $345 million, with licensing revenue between $290 million and $320 million [20] Other Important Information - The company recorded a $6 million restructuring charge in Q4 2025 as part of operational streamlining [16] - The first licensees for the new imaging patent pool were signed in the second half of FY2025, with revenue recognition expected in FY2026 [10] Q&A Session Summary Question: Expansion of Total Addressable Market - Management confirmed that the video distribution program for streamers combines existing imaging patents with GE Licensing patents, significantly expanding the addressable market [24][26] Question: Imaging Patents and Revenue Generation - The imaging patent licensing is primarily driven through patent pools, with five licensees signed up in the second half of FY2025, expected to generate revenue in FY2026 [29] Question: Automotive Market Progress - Management anticipates that automotive will become a separate end market, with ongoing efforts to deepen partnerships with existing brands [35] Question: Macro Environment Observations - Management has not identified specific impacts from tariffs and noted that the device market is stabilizing after previous declines [48] Question: Capital Allocation Strategy - The company has over $270 million remaining in share repurchase authorization and continues to evaluate its capital allocation strategy regularly [52]

Core Insights - Dolby Laboratories reported strong financial results for Q4 and fiscal year 2025, highlighting growth in Dolby Atmos, Dolby Vision, and imaging patents, along with an expanded addressable market [1][7]. Financial Highlights - Total revenue for Q4 2025 was $307 million, a slight increase from $305 million in Q4 2024 [7]. - GAAP net income for Q4 2025 was $49 million, or $0.51 per diluted share, compared to $59 million, or $0.61 per diluted share in Q4 2024 [7]. - Non-GAAP net income for Q4 2025 was $96 million, or $0.99 per diluted share, up from $78 million, or $0.81 per diluted share in Q4 2024 [7]. - Full year revenue for fiscal 2025 reached $1.35 billion, compared to $1.27 billion in fiscal 2024 [7]. - GAAP net income for the full year was $255 million, or $2.62 per diluted share, down from $262 million, or $2.69 per diluted share in fiscal 2024 [7]. - Non-GAAP net income for the full year was $414 million, or $4.24 per diluted share, compared to $369 million, or $3.79 per diluted share in fiscal 2024 [7]. Business Developments - Dolby announced a cash dividend of $0.36 per share, payable on December 10, 2025 [4]. - The company repurchased approximately 479,000 shares for about $35 million, with $277 million remaining in stock repurchase authorization [7]. - Dolby Vision 2 was introduced, enhancing the capabilities of modern displays and providing new tools for artists [7]. - Partnerships were established with automakers in India, China, and Vietnam, and new products featuring Dolby technologies were launched by major brands [7]. Financial Outlook - For Q1 2026, total revenue is estimated to range from $315 million to $345 million, with licensing revenue expected between $290 million and $320 million [8]. - Full year 2026 revenue is projected to be between $1.39 billion and $1.44 billion, with licensing revenue estimated between $1.285 billion and $1.335 billion [8]. - Gross margins are anticipated to be approximately 88% on a GAAP basis and 90% on a non-GAAP basis [8].

Core Insights - Dolby Laboratories, Inc. will release its financial results for Q4 and the full fiscal year 2025 on November 18, 2025, after market close [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] Financial Results Announcement - The financial results will cover the fourth quarter and the entire fiscal year 2025 [1] - Access to the teleconference will be available via a dedicated link or by phone, with a confirmation code required for entry [2] Teleconference Details - A replay of the conference call will be available from November 18, 2025, at 5:00 p.m. PT until November 25, 2025, at 8:59 p.m. PT [3] - The replay can be accessed by phone, and an archived version will also be available on the investor relations website [3] Company Overview - Dolby Laboratories is recognized as a leader in immersive entertainment, providing innovative experiences across various media including movies, TV, music, and gaming [4] - The company collaborates with artists and brands to enhance entertainment through technologies like Dolby Atmos and Dolby Vision [4]

Industry Overview - The Zacks Audio Video Production industry includes manufacturers of televisions, speakers, video players, camcorders, gaming consoles, drones, and high-end cameras, providing advanced audio, imaging, and voice technologies to enhance entertainment and communication experiences [3] - The industry is experiencing growth driven by technological advancements such as 4K, 8K, and immersive audio formats, alongside the rise of streaming platforms [4] Key Trends - Increasing demand for premium entertainment is noted, with strong performance despite changes in media consumption and distribution, benefiting from a direct-to-consumer, subscription-centric model [5] - Global macroeconomic uncertainty, including trade tensions and inflationary pressures, is expected to restrain consumer spending, particularly on discretionary items [6] - Intense competition from low-priced imports, especially from countries like China, Vietnam, and Mexico, is leading to price wars and margin contraction [7] Market Performance - The Zacks Audio Video Production industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500, with a growth of 50.8% over the past year compared to the S&P 500's 18.8% [11] - The industry has a forward 12-month P/E ratio of 24.36X, higher than the S&P 500's 23.59X and the sector's 20.17X [14] Company Highlights - **Sonos, Inc.**: The company is benefiting from strong sales of portable products and an expanded geographic footprint, with projected revenues for the fiscal fourth quarter between $260 million and $290 million, reflecting a year-over-year increase of 2-14% [21][19] - **Dolby Laboratories, Inc.**: Dolby is expanding its presence in the automotive market, with 30 leading car brands integrating Dolby Atmos sound, and targeting growth in the range of 15% to 25% [24][25] - **GoPro, Inc.**: GoPro is set to introduce a diversified range of products and expects to return to revenue growth and profitability by the fourth quarter of 2025, despite projecting lower unit sales and revenue growth for 2025 due to macroeconomic conditions [29][31]

Core Insights - Dolby Laboratories reported Q3 FY2025 earnings with GAAP revenue of $315.5 million, exceeding analyst expectations of $305.2 million and up from $288.8 million in Q3 FY2024, indicating a year-over-year growth of 9.3% [1][2] - Non-GAAP earnings per share reached $0.78, surpassing estimates of $0.71, reflecting a 9.9% increase from the previous year [1][2] - The company experienced higher GAAP operating income of $47.6 million, a 29.3% increase year-over-year, and net income of $46.1 million, up 20.1% from Q3 FY2024 [1][2] Financial Performance - Licensing revenue grew 8.5% year-over-year to $289.9 million, with broadcast licensing accounting for 38% and mobile licensing for 19% of total licensing revenue [5][6] - Gross margin was reported at 86.0%, slightly down from 87.6% in Q3 FY2024, while operating expenses rose 3.5% to $223.9 million [2][8] - The company maintained a strong net income growth of 19.8% year-over-year, alongside a share buyback of approximately $40 million and a quarterly dividend of $0.33 per share [8][12] Strategic Focus - Dolby Laboratories is recognized for its innovations in audio and visual technologies, such as Dolby Atmos and Dolby Vision, which are widely integrated across various devices and platforms [3][9] - The company relies heavily on licensing, which constituted 93% of total revenue in FY2024, and focuses on expanding its patent portfolio and relationships with manufacturers and content providers [4][10] - Recent partnerships in the automotive sector with companies like Audi and Tata, as well as new product launches in consumer electronics, highlight Dolby's expanding market presence [7][10] Future Outlook - Management projects Q4 FY2025 GAAP revenue between $288 million and $318 million, with full-year FY2025 revenue forecasted at $1.33 billion to $1.36 billion [11] - Operating expenses for FY2025 are expected to reach up to $920 million, with non-GAAP earnings per share projected in the range of $3.88 to $4.03 [11] - The company maintains a cautious outlook due to macroeconomic uncertainties, including trade restrictions and supply chain disruptions, which may impact near-term visibility [12]

Core Insights - Dolby Laboratories, Inc. (DLB) reported strong third-quarter fiscal 2025 results with non-GAAP earnings per share (EPS) of 78 cents, exceeding the Zacks Consensus Estimate by 8.3% and up from 71 cents in the prior-year quarter [1][8] - Total revenues reached $315.6 million, an increase from $288.8 million year-over-year, also surpassing the Zacks Consensus Estimate by 3.9% [1][8] - The growth was primarily driven by higher revenues in the Licensing segment and the Products and Services segment [1][8] Financial Performance - Licensing revenues were $289.9 million, reflecting an 8.5% year-over-year increase, reaching the upper end of the company's guidance due to earlier-than-expected activity [4][8] - Products and Services revenues increased by 18% year-over-year to $25.6 million [4] - Gross profit for the quarter was $271.5 million, compared to $253.2 million in the year-ago quarter, while total operating expenses rose to $223.9 million from $216.4 million [6] Cash Flow and Liquidity - For the fiscal year to date ending June 27, 2025, Dolby generated $349.4 million in net cash from operating activities [9] - As of June 27, 2025, the company had $698.6 million in cash and cash equivalents against total liabilities of $581.8 million [9] - During the quarter, Dolby repurchased approximately 526,000 shares for around $40 million and declared a cash dividend of 33 cents per share [10] Future Outlook - For the fourth quarter of fiscal 2025, Dolby estimates revenues between $288 million and $318 million, with GAAP EPS of 28-43 cents and non-GAAP EPS between 61 cents and 76 cents [11] - The company expects full fiscal 2025 revenues in the range of $1.33 billion to $1.36 billion, with licensing revenues projected between $1.23 billion and $1.26 billion [12][13] Market Engagement - Dolby continues to see robust engagement from creators, distributors, and device manufacturers, with Dolby Atmos and Dolby Vision expanding across various content types and devices [2] - Major sporting events have been broadcast in Dolby, and partnerships with companies like Audi and Motorola have enhanced Dolby's presence in the automotive and mobile sectors [14][15]