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 - 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]

Core Insights - Peacock will be the first streaming platform to integrate Dolby's full suite of advanced picture and sound innovations, including Dolby Vision 2 and Dolby AC-4, enhancing the streaming experience for users [1][2][4][5] Group 1: Dolby Innovations - Dolby Vision 2 is set to enhance picture quality, addressing viewer concerns about brightness and delivering a more cinematic experience without distracting effects [4] - Dolby AC-4 is the most advanced audio codec from Dolby, providing crystal-clear sound with up to 50% greater efficiency than traditional codecs, along with personalization and dialog enhancement features [5] Group 2: Streaming Experience - Peacock is committed to extending Dolby Vision and Dolby Atmos across live sports, with plans to onboard more events throughout 2026, including major sports like Sunday Night Football, NBA, and MLB [2][3] - The integration of Dolby technologies aims to create a more immersive experience for fans, making every moment feel vivid and thrilling, akin to being at the event [3][6] Group 3: Company Background - Dolby Laboratories is recognized as a leader in immersive entertainment, transforming the science of sight and sound into spectacular experiences for billions worldwide [8] - Peacock, as NBCUniversal's streaming service, offers a wide range of content, including live sports, original programming, and a vast library of films and TV shows, positioning itself as a premier entertainment destination [9]