What is the market's earnings forecast for Dolby Laboratories next quarter?

What is Dolby Laboratories's gross profit margin?

What does Dolby Laboratories do and what are its main business segments?

Did Dolby Laboratories beat or miss consensus estimates last quarter?

What were the key takeaways from Dolby Laboratories’s earnings call?

What is the revenue and EPS growth rate for Dolby Laboratories year over year?

What is Dolby Laboratories's latest dividend and current dividend yield?

What guidance did Dolby Laboratories's management provide for the next earnings period?

- **DAV/IP Growth**: 14% FY '25, targeting 15-20% annual growth over 3-5 years. New mobile partnerships (Instagram, Douyin) and auto signings (Maruti Suzuki, VinFast) drive expansion.
- **New Revenue Models**: Dolby OptiView (sports streaming SaaS) and Video Distribution Program (content streamers) launched, with FY '26 revenue contribution expected.
- **Financial Performance**: FY '25 revenue $1.35B (+6%), non-GAAP EPS $4.24. FY '26 guidance: Revenue $1.39B-$1.44B, EPS $4.19-$4.34. Q1 '26 down 8% YoY due to timing, but even H1/H2 distribution.
- **Cash Flow & Dividends**: Generated $123M cash flow, repurchased $35M shares. Dividend increased 9% to $0.36.

**【CEO Summary Section】**
- FY '25 revenue grew 6% to $1.35B, driven by the acquisition of GE Licensing and expansion of Dolby Atmos, Dolby Vision, and Imaging Patents (DAV/IP). DAV/IP revenue grew 14%, representing 45% of Licensing revenue.
- Introduced Dolby Vision 2, which Hisense and TCL plan to support, and expanded mobile partnerships with Instagram (iOS) and Douyin (China). Automotive signings include Maruti Suzuki, VinFast, and Li Auto, with in-car gaming content launching on Meta Quest and Samsung XR.
- Launched Dolby OptiView (SaaS for live sports streaming) and the Video Distribution Program (VDP) for content streamers, targeting 15-20% annual growth for DAV/IP over 3-5 years.

**【CFO Financial Commentary】**
- Q4 '25 revenue: $300M (vs. $285M midpoint guidance), non-GAAP EPS: $0.99 (vs. $0.71 midpoint guidance). FY '25 non-GAAP EPS: $4.24 (excluding $0.28 tax benefit), with 180bp margin expansion.
- FY '26 guidance: Revenue $1.39B-$1.44B (+3-7% YoY), non-GAAP EPS $4.19-$4.34. Q1 '26 revenue expected down 8% YoY due to true-ups and MCV timing, with more even H1/H2 distribution.
- Generated $123M operating cash flow, repurchased $35M shares, and ended with $783M cash. Declared 9% dividend increase to $0.36.

**【Q&A Highlights】**
- Imaging Patents: VDP signed 5 licensees in FY '25, starting to recognize revenue in FY '26. DAV/IP growth will come from mobile (Instagram, Douyin), auto (Dolby Atmos Music), and VDP.
- Automotive: Dolby Atmos Music in over 40 car models, targeting 15-20% DAV/IP growth. No plans to break out Auto as a separate segment yet.
- Macro environment: No direct tariff impact, but device market sluggish. Focused on DAV/IP growth and new consumption models.
- Capital allocation: $277M remaining on $300M buyback authorization. Prioritize dividend growth and offsetting dilution.


Dolby Laboratories, Inc. (DLB) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DLB

DLB fundamentals

You can ask Aime