Dolby's Q3 2025 Earnings: Navigating Contradictions in Trade Impacts, Growth Forecasts, and Revenue Expectations

Impact of trade agreements on Dolby's adoption, expected growth rates for Dolby's business, foundational audio technology revenue expectations, and outsized true-up in Q1 and Q3 are the key contradictions discussed in Dolby's latest 2025Q3 earnings call.



Revenue Growth and Licensing Performance:
- Dolby Laboratories reported Q3 revenue at $316 million, up 9% year-over-year. Licensing revenue was $290 million, also up 9% year-over-year.
- Growth was driven by strong engagement with content creators, distributors, and device OEMs, particularly in the automotive, mobile, and other devices sectors.

Automotive Momentum:
- Dolby Atmos is now available in several new vehicles, including Audi models and Indian cars like the Tata Harrier EV and Mahindra Thar ROXX.
- The growth in automotive partnerships reflects the industry's focus on enhancing in-car entertainment quality.

Growth in Mobile and Social Media Adoption:
- Dolby Vision features were added to smartphones from Motorola and Xiaomi, and social media platforms in China started supporting Dolby Vision.
- The increased adoption in mobile and social media highlights the demand for high-quality content creation and sharing experiences.

Broadcast and PC Segment Performance:
- Broadcast revenue grew 17% year-over-year, while PC revenue showed mid-single-digit growth.
- The growth in these segments can be attributed to strong demand for Dolby's audio and visual technologies in these areas, despite macroeconomic uncertainties.