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DLB

Dolby Laboratories, Inc.

DLB

Dolby Laboratories, Inc. • NYSE
$67.45 ▲ 0.67% (+0.45)
Market Cap $6.46 B
52w High $89.66
52w Low $64.02
Dividend Yield 1.32%
P/E 25.74
Volume 284.68K
Outstanding Shares 95.84M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2025 $307.024M ▼ $237.828M ▲ $49.332M ▲ 16.068% ▲ $0.52 ▲ $60.38M ▼
Q3-2025 $315.546M ▼ $223.905M ▲ $46.071M ▼ 14.6% ▼ $0.48 ▼ $71.49M ▼
Q2-2025 $369.561M ▲ $221.751M ▼ $91.793M ▲ 24.838% ▲ $0.95 ▲ $144.677M ▲
Q1-2025 $356.999M ▲ $231.129M ▲ $67.822M ▲ 18.998% ▼ $0.71 ▲ $111.248M ▲
Q4-2024 $304.806M $225.746M $58.57M 19.216% $0.61 $84.117M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2025 $702.596M ▲ $3.228B ▲ $595.814M ▲ $2.623B ▲
Q3-2025 $699.329M ▼ $3.196B ▼ $581.75M ▼ $2.605B ▲
Q2-2025 $750.342M ▲ $3.229B ▲ $646.017M ▲ $2.574B ▲
Q1-2025 $611.657M ▲ $3.159B ▲ $641.574M ▼ $2.508B ▲
Q4-2024 $577.752M $3.131B $643.72M $2.477B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2025 $49.654M ▲ $122.831M ▲ $-21.912M ▼ $-64.055M ▼ $36.797M ▲ $100.994M ▲
Q3-2025 $46.542M ▼ $67.691M ▼ $-6.428M ▼ $-60.739M ▲ $6.222M ▼ $61.263M ▼
Q2-2025 $92.226M ▲ $174.897M ▲ $25.895M ▲ $-64.873M ▼ $138.685M ▲ $168M ▲
Q1-2025 $68.07M ▲ $106.779M ▼ $-8.141M ▲ $-57.571M ▲ $33.905M ▲ $100M ▼
Q4-2024 $58.866M $116.17M $-261.308M $-60.118M $-200.872M $108.791M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025Q4-2025
Licensing Brodcast Revenue
Licensing Brodcast Revenue
 $120.00M ▲$90.00M ▼$110.00M ▲$110.00M ▲
Licensing CE Revenue
Licensing CE Revenue
 $50.00M ▲$40.00M ▼$30.00M ▼$40.00M ▲
Licensing Mobile Revenue
Licensing Mobile Revenue
 $60.00M ▲$100.00M ▲$60.00M ▼$50.00M ▼
Licensing Other Revenue
Licensing Other Revenue
 $70.00M ▲$60.00M ▼$60.00M ▲$60.00M ▲
Licensing PC Revenue
Licensing PC Revenue
 $30.00M ▲$60.00M ▲$30.00M ▼$30.00M ▲
Products And Services
Products And Services
 $30.00M ▲$20.00M ▼$30.00M ▲$30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Dolby’s income statement shows a business with very high profitability but uneven growth. Revenue has bounced around rather than moving steadily upward, reflecting the timing of licensing deals, device cycles, and broader tech demand. Even so, the company keeps a very large portion of its revenue as gross profit, which is typical of a licensing-heavy model where costs to deliver each extra unit are low. Operating profit has stayed healthy, with a notable improvement in the most recent year as revenue recovered and expenses stayed under control. Net income and earnings per share dipped during the weaker period but have since rebounded strongly, suggesting that the underlying business remains sound and can recover when demand and licensing trends improve. The main takeaway: strong margins and earnings power, but revenue is more “lumpy” than smooth, and performance can vary year to year based on industry and licensing dynamics.

Balance Sheet

Balance Sheet From the snapshot provided, Dolby appears to run with a very conservative balance sheet. It carries relatively little financial debt compared with its equity, and it holds a meaningful cash position. This points to a net cash stance rather than a leveraged one. That kind of structure gives Dolby room to invest in new technologies, weather downturns in device or content cycles, and return capital to shareholders without stretching its finances. There is limited information for all years, but the picture we do see is of a company that is financially solid, with a strong capital base and no obvious balance-sheet stress.

Cash Flow

Cash Flow Dolby’s cash flow profile is a clear strength. The company has repeatedly generated solid cash from its core operations, and this cash generation has been quite steady even when reported earnings moved around. After subtracting only modest spending on property and equipment, free cash flow has remained consistently positive. This confirms that the licensing model converts profit into cash efficiently and doesn’t require heavy ongoing investment in physical assets. In practical terms, strong and stable free cash flow gives Dolby flexibility: it can fund R&D, pursue acquisitions like IP portfolios, run buyback programs, and still keep a comfortable financial cushion.

Competitive Edge

Competitive Edge Dolby holds a powerful position at the heart of the entertainment and media ecosystem. Its audio and visual technologies are embedded from content creation (studios, mixers, game developers) all the way to playback (TVs, phones, theaters, cars, headsets). This deep integration creates high switching costs for partners and helps lock in its role as a standard-setter. The company’s vast patent portfolio in audio and imaging, reinforced by acquisitions like GE Licensing, forms a legal and technological moat that is difficult and time-consuming for rivals to replicate. The Dolby brand itself is widely recognized as a mark of premium quality, which helps device makers and content providers market their products. Risks to this position include the rise of alternative or royalty-free standards, technology companies building their own proprietary solutions, and the need to keep Dolby formats attractive versus competing offerings like other surround-sound or premium cinema systems. Still, the combination of brand, integration, and intellectual property gives Dolby a strong competitive foundation today.

Innovation and R&D

Innovation and R&D Dolby’s history and future are driven by R&D. The company has repeatedly introduced industry-shaping formats—from early noise reduction and Dolby Digital to today’s Dolby Atmos and Dolby Vision. These technologies are not just features; they often become de facto standards in cinemas, streaming, gaming, and consumer electronics. Current innovation is focused on extending Atmos and Vision into more places: cars, mobile devices, gaming, virtual and mixed reality, and premium cinema. Dolby Cinema blends its cutting-edge audio and visual formats into a full theatrical experience. Dolby.io, the developer platform, aims to open these capabilities to a broader set of applications beyond traditional media, including real-time interaction, sports, and communications. The company’s large patent base and ongoing investment in new formats like newer versions of Dolby Vision and new imaging patent pools show that it is trying to stay ahead of the curve. The key watchpoints are whether these new platforms gain broad adoption and whether Dolby can keep creating must-have technologies that partners are willing to pay for, rather than seeing the market drift toward lower-cost or open alternatives.

Summary

Overall, Dolby looks like a high-margin, asset-light technology licensor with a strong brand and deep roots in the global entertainment infrastructure. Its financials highlight three main characteristics: very high profitability, a clean and conservative balance sheet, and steady, reliable cash generation. The trade-off is that revenue and earnings growth have not been smooth, swinging with device cycles, licensing renewals, and content trends rather than steadily climbing each year. The business is also exposed to technological shifts and the choices of powerful partners in consumer electronics, streaming, and gaming. Strategically, Dolby’s edge comes from its innovations in immersive audio and high-dynamic-range video, its patent fortress, and the wide adoption of its standards. Its future performance will likely hinge on how successfully it pushes Atmos, Vision, and newer platforms like Dolby.io into new devices, form factors, and usage scenarios—while defending its licensing model against competitive and technology changes.

NEWS

November 19, 2025 · 11:00 AM UTC

BAY AREA HOST COMMITTEE AND DOLBY PARTNER TO DELIVER IMMERSIVE FAN EXPERIENCES

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November 18, 2025 · 4:15 PM UTC

Dolby Laboratories Reports Fourth Quarter and Fiscal Year 2025 Financial Results

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October 8, 2025 · 4:15 PM UTC

Dolby Laboratories Announces Conference Call and Webcast for Q4 Fiscal 2025 Financial Results

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