Dolby Laboratories Reports Third Quarter 2025 Financial Results
Dolby Laboratories (NYSE:DLB) reported strong Q3 2025 financial results with total revenue of $316 million, up from $289 million in Q3 2024. The company achieved GAAP net income of $46 million ($0.48 per diluted share) and non-GAAP net income of $76 million ($0.78 per diluted share).
Key business highlights include major sporting events broadcast in Dolby technology, expansion in automotive with Audi implementing Dolby Atmos in multiple models, and new device launches featuring Dolby Vision and Atmos. The company announced a quarterly dividend of $0.33 per share and projects FY2025 revenue between $1.33-1.36 billion with non-GAAP operating margins of approximately 33%.
[ "Revenue increased 9.3% YoY to $316 million in Q3 2025", "Non-GAAP net income grew to $76 million from $69 million YoY", "Expanded automotive presence with Dolby Atmos integration in premium Audi models", "Strong adoption across major sporting events and streaming platforms", "Maintained healthy gross margins of ~88% GAAP and ~90% non-GAAP for FY2025", "Continued stock buyback program with $312 million authorization remaining" ]Dolby Laboratories (NYSE:DLB) ha riportato solidi risultati finanziari nel terzo trimestre 2025 con un ricavo totale di 316 milioni di dollari, in aumento rispetto ai 289 milioni di dollari del terzo trimestre 2024. La societ脿 ha registrato un utile netto GAAP di 46 milioni di dollari (0,48 dollari per azione diluita) e un utile netto non-GAAP di 76 milioni di dollari (0,78 dollari per azione diluita).
I principali eventi aziendali includono la trasmissione di importanti eventi sportivi con tecnologia Dolby, l'espansione nel settore automobilistico con Audi che integra Dolby Atmos in diversi modelli, e il lancio di nuovi dispositivi con Dolby Vision e Atmos. La societ脿 ha annunciato un dividendo trimestrale di 0,33 dollari per azione e prevede ricavi per l'anno fiscale 2025 tra 1,33 e 1,36 miliardi di dollari con margini operativi non-GAAP intorno al 33%.
- I ricavi sono aumentati del 9,3% su base annua, raggiungendo 316 milioni di dollari nel terzo trimestre 2025
- L'utile netto non-GAAP 猫 cresciuto a 76 milioni di dollari dai 69 milioni dell'anno precedente
- Espansione della presenza nel settore automobilistico con l'integrazione di Dolby Atmos nei modelli premium Audi
- Forte adozione della tecnologia nei principali eventi sportivi e sulle piattaforme di streaming
- Mantenimento di margini lordi sani, circa l'88% GAAP e il 90% non-GAAP per l'anno fiscale 2025
- Prosecuzione del programma di riacquisto azionario con un'autorizzazione residua di 312 milioni di dollari
Dolby Laboratories (NYSE:DLB) report贸 s贸lidos resultados financieros en el tercer trimestre de 2025 con un ingreso total de 316 millones de d贸lares, superior a los 289 millones de d贸lares del tercer trimestre de 2024. La compa帽铆a logr贸 un ingreso neto GAAP de 46 millones de d贸lares (0,48 d贸lares por acci贸n diluida) y un ingreso neto no-GAAP de 76 millones de d贸lares (0,78 d贸lares por acci贸n diluida).
Los aspectos destacados del negocio incluyen la transmisi贸n de importantes eventos deportivos con tecnolog铆a Dolby, la expansi贸n en el sector automotriz con Audi implementando Dolby Atmos en varios modelos, y el lanzamiento de nuevos dispositivos con Dolby Vision y Atmos. La compa帽铆a anunci贸 un dividendo trimestral de 0,33 d贸lares por acci贸n y proyecta ingresos para el a帽o fiscal 2025 entre 1,33 y 1,36 mil millones de d贸lares con m谩rgenes operativos no-GAAP de aproximadamente el 33%.
- Los ingresos aumentaron un 9,3% interanual a 316 millones de d贸lares en el tercer trimestre de 2025
- El ingreso neto no-GAAP creci贸 a 76 millones de d贸lares desde 69 millones interanuales
- Expansi贸n en el sector automotriz con la integraci贸n de Dolby Atmos en modelos premium de Audi
- Fuerte adopci贸n en eventos deportivos principales y plataformas de streaming
- Mantenimiento de m谩rgenes brutos saludables, aproximadamente 88% GAAP y 90% no-GAAP para el a帽o fiscal 2025
- Continuaci贸n del programa de recompra de acciones con una autorizaci贸n restante de 312 millones de d贸lares
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Dolby Laboratories (NYSE:DLB) a annonc茅 de solides r茅sultats financiers pour le troisi猫me trimestre 2025 avec un chiffre d'affaires total de 316 millions de dollars, en hausse par rapport 脿 289 millions de dollars au troisi猫me trimestre 2024. La soci茅t茅 a r茅alis茅 un b茅n茅fice net GAAP de 46 millions de dollars (0,48 dollar par action dilu茅e) et un b茅n茅fice net non-GAAP de 76 millions de dollars (0,78 dollar par action dilu茅e).
Les faits marquants comprennent la diffusion d'茅v茅nements sportifs majeurs en technologie Dolby, l'expansion dans l'automobile avec Audi int茅grant Dolby Atmos dans plusieurs mod猫les, et le lancement de nouveaux appareils 茅quip茅s de Dolby Vision et Atmos. La soci茅t茅 a annonc茅 un dividende trimestriel de 0,33 dollar par action et pr茅voit un chiffre d'affaires pour l'exercice 2025 compris entre 1,33 et 1,36 milliard de dollars avec des marges op茅rationnelles non-GAAP d'environ 33 %.
- Le chiffre d'affaires a augment茅 de 9,3 % en glissement annuel pour atteindre 316 millions de dollars au troisi猫me trimestre 2025
- Le b茅n茅fice net non-GAAP est pass茅 de 69 millions 脿 76 millions de dollars en un an
- Expansion dans le secteur automobile avec l'int茅gration de Dolby Atmos dans des mod猫les Audi haut de gamme
- Forte adoption lors des grands 茅v茅nements sportifs et sur les plateformes de streaming
- Maintien de marges brutes saines, environ 88 % GAAP et 90 % non-GAAP pour l'exercice 2025
- Poursuite du programme de rachat d'actions avec une autorisation restante de 312 millions de dollars
Dolby Laboratories (NYSE:DLB) meldete starke Finanzergebnisse f眉r das dritte Quartal 2025 mit einem Gesamtumsatz von 316 Millionen US-Dollar, gegen眉ber 289 Millionen US-Dollar im dritten Quartal 2024. Das Unternehmen erzielte einen GAAP-Nettogewinn von 46 Millionen US-Dollar (0,48 US-Dollar je verw盲sserter Aktie) und einen Non-GAAP-Nettogewinn von 76 Millionen US-Dollar (0,78 US-Dollar je verw盲sserter Aktie).
Wichtige Gesch盲ftshighlights umfassen die 脺bertragung gro脽er Sportveranstaltungen mit Dolby-Technologie, die Expansion im Automobilbereich mit Audi, das Dolby Atmos in mehreren Modellen implementiert, sowie neue Ger盲teeinf眉hrungen mit Dolby Vision und Atmos. Das Unternehmen k眉ndigte eine viertelj盲hrliche Dividende von 0,33 US-Dollar je Aktie an und prognostiziert f眉r das Gesch盲ftsjahr 2025 einen Umsatz zwischen 1,33 und 1,36 Milliarden US-Dollar mit Non-GAAP-Betriebsmargen von etwa 33 %.
- Der Umsatz stieg im Jahresvergleich um 9,3 % auf 316 Millionen US-Dollar im dritten Quartal 2025
- Der Non-GAAP-Nettogewinn wuchs von 69 Millionen auf 76 Millionen US-Dollar im Jahresvergleich
- Ausbau der Automobilpr盲senz mit Dolby Atmos Integration in Premium-Audi-Modellen
- Starke Akzeptanz bei gro脽en Sportveranstaltungen und Streaming-Plattformen
- Gesunde Bruttomargen von ca. 88 % GAAP und ca. 90 % Non-GAAP f眉r das Gesch盲ftsjahr 2025 beibehalten
- Fortsetzung des Aktienr眉ckkaufprogramms mit verbleibender Genehmigung von 312 Millionen US-Dollar
- None.
- Operating expenses expected to increase to $910-920 million GAAP for FY2025
- Facing uncertainty from macroeconomic conditions and geopolitical instability
- Supply chain constraints continue to impact business operations
- Q4 2025 revenue guidance suggests potential sequential decline
Insights
Dolby reports strong Q3 with 9.3% revenue growth, improved margins, and growing adoption of Atmos and Vision technologies.
Dolby Laboratories delivered solid Q3 2025 results with
Profitability metrics show encouraging trends. The company expects full-year non-GAAP operating margins of approximately
The Q4 guidance suggests some sequential softness with revenue projected between
What's particularly impressive is Dolby's expanding ecosystem penetration. The company reported significant adoption of its Dolby Atmos and Dolby Vision technologies across multiple verticals - from major sporting events (FIFA Club World Cup, Stanley Cup Finals) to automotive integrations (Audi, Tata, Mahindra) and consumer electronics (Motorola, Xiaomi, Samsung). This diversification across content types and device categories creates multiple growth vectors and reduces dependence on any single market segment.
The growing adoption in emerging markets, particularly India, and expansion of HBO Max streaming with Dolby technologies into new international markets suggests the company is successfully executing its global growth strategy. The first Chromebook supporting Dolby Atmos also represents entry into new product categories, further expanding the technology's reach.
While macroeconomic uncertainties remain, as acknowledged in their forward-looking statements, Dolby's technology ecosystem continues to strengthen its competitive moat through increased adoption across diverse content and device categories.
"We had solid results in Q3 and we continue to see strong engagement with creators, distributors and device manufacturers," said Kevin Yeaman, President and CEO, Dolby Laboratories. "The number of experiences in Dolby Atmos and Dolby Vision continues to grow across music, sports, podcasts, user-generated content, movies and TV in mobile devices, TVs, PCs, cars and soundbars."
Third Quarter Fiscal 2025 Financial Highlights
- Total revenue was
$316 million $289 million - GAAP net income was
$46 million $0.48 $38 million $0.40 $76 million $0.78 $69 million $0.71 - Dolby repurchased approximately 526,000 shares of its common stock for approximately
$40 million $312 million
A complete listing of Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
- The FIFA Club World Cup, Stanley Cup Finals, French Open, and Indian Premier League playoffs and finals were all broadcast in Dolby.
- Audi announced that it will be supporting Dolby Atmos in its Q7, Q8, A8, and E Tron GT vehicle models.
- In
India , Tata launched the Harrier EV and Mahindra launched the Thar ROXX AX7L SUV, both of which support Dolby Atmos. - Motorola launched its first smartphone featuring Dolby Vision Capture, and the Xiaomi 15S Pro and Xiaomi Civi 5 Pro launched with Dolby Vision and Dolby Atmos.
- New TVs and speakers featuring Dolby technology were launched by Samsung, Haier, TCL, LG, Marshall, and JBL.
- We partnered with Lenovo and Google to launch the first Chromebook to support Dolby Atmos.
- HBO Max, which streams most of its sports content in Dolby Atmos and Dolby Vision, is launching its streaming service in a dozen countries this summer as the platform approaches availability in 100 markets.
Dividend
Today, Dolby announced a cash dividend of
Financial Outlook
Dolby's financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby's future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see "Forward-Looking Statements" in this press release for a description of certain risks that Dolby faces, and the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2025, to be filed on or around the date hereof.
Dolby听is providing the following estimates for its fourth quarter of fiscal 2025:
- Total revenue is estimated to range from
$288 million $318 million - Licensing revenue is estimated to range from
$263 million $293 million - Gross margins are anticipated to be approximately
86% on a GAAP basis and approximately88% on a non-GAAP basis. - Operating expenses are anticipated to range from
$225 million $235 million $190 million $200 million - Effective tax rate is anticipated to be around
24.5% on a GAAP basis and around21.0% on a non-GAAP basis. - Diluted earnings per share is anticipated to range from
$0.28 $0.43 $0.61 $0.76
Dolby is providing the following estimates for the full year of fiscal 2025:
- Total revenue is expected to range from
$1.33 billion $1.36 billion - Licensing revenue is estimated to range from
$1.23 billion $1.26 billion - Gross margins are anticipated to be approximately
88% on a GAAP basis and approximately90% on a non-GAAP basis. - Operating expenses are anticipated to range from
$910 million $920 million $765 million $775 million - Dolby expects operating margins to be roughly
20% on a GAAP basis and to be roughly33% on a non-GAAP basis. - Effective tax rate is anticipated to be around
21.5% on a GAAP basis and around20.0% on a non-GAAP basis. - Diluted earnings per share is anticipated to range from
$2.40 $2.55 $3.88 $4.03
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2025 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July听31, 2025. Access to the teleconference will be available at 听or by dialing 1-888-210-2212 (+1-646-960-0390 for international callers) and entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Thursday, July听31, 2025, until 8:59 p.m. PT (11:59 p.m. ET) on听Thursday, August 7, 2025 by dialing 1-800-770-2030 (+1-647-362-9199 for international callers) and entering the confirmation code 5587811. An archived version of the teleconference will also be available on the Dolby website, .听
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby's management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits:听Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business, including as a means to evaluate period-to-period comparisons.听Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, .听
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2025 and full year fiscal 2025, Dolby's ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are "forward-looking statements" that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby's business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby's revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee途 pricing pressures途 risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage途 the timing of Dolby's receipt of royalty reports and payments from its licensees, including recoveries途 changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements途 Dolby's ability to develop, maintain, and strengthen relationships with industry participants途 Dolby's ability to develop and deliver innovative products and technologies in response to new and growing markets途 competitive risks途 risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights途 risks associated with the health of the motion picture and cinema industries generally途 Dolby's ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings途 risks associated with acquiring and successfully integrating businesses or technologies途 and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby听
Dolby Laboratories听(NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like , , , and .
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in
DOLBY LABORATORIES, INC. | ||||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(in thousands, except per share amounts; unaudited) | ||||||||||
Fiscal Quarter Ended | Fiscal Year-To-Date Ended | |||||||||
June 27, | June 28, | June 27, | June 28, | |||||||
Revenue: | ||||||||||
Licensing | $听听听听听听听听听听听听听听听 289,905 | $听听听听听听听听听听听听听听听 267,082 | $听听听听听听听听听听听听听听听 966,390 | $听听听听听听听听听听听听听听听 899,089 | ||||||
Products and services | 25,641 | 21,736 | 75,716 | 69,826 | ||||||
Total revenue | 315,546 | 288,818 | 1,042,106 | 968,915 | ||||||
Cost of revenue: | ||||||||||
Cost of licensing | 21,713 | 17,386 | 62,508 | 48,440 | ||||||
Cost of products and services | 22,289 | 18,277 | 58,105 | 58,060 | ||||||
Total cost of revenue | 44,002 | 35,663 | 120,613 | 106,500 | ||||||
Gross profit | 271,544 | 253,155 | 921,493 | 862,415 | ||||||
Operating expenses: | ||||||||||
Research and development | 65,982 | 65,501 | 194,327 | 195,027 | ||||||
Sales and marketing | 86,163 | 77,518 | 270,191 | 246,559 | ||||||
General and administrative | 72,307 | 69,275 | 212,814 | 201,183 | ||||||
Restructuring charges/(credits) | (547) | 4,078 | 8,879 | 7,674 | ||||||
Total operating expenses | 223,905 | 216,372 | 686,211 | 650,443 | ||||||
Operating income | 47,639 | 36,783 | 235,282 | 211,972 | ||||||
Other income/(expense): | ||||||||||
Interest income/(expense), net | 4,111 | 9,439 | 10,316 | 27,223 | ||||||
Other income, net | 3,766 | 3,942 | 16,219 | 13,550 | ||||||
Total other income | 7,877 | 13,381 | 26,535 | 40,773 | ||||||
Income before income taxes | 55,516 | 50,164 | 261,817 | 252,745 | ||||||
Provision for income taxes | (8,974) | (10,509) | (54,979) | (47,295) | ||||||
Net income including noncontrolling interest | 46,542 | 39,655 | 206,838 | 205,450 | ||||||
Less: net income attributable to noncontrolling interest | (471) | (1,211) | (1,152) | (2,195) | ||||||
Net income attributable to Dolby Laboratories, Inc. | $听听听听听听听听听听听听听听听听听 46,071 | $听听听听听听听听听听听听听听听听听 38,444 | $听听听听听听听听听听听听听听听 205,686 | $听听听听听听听听听听听听听听听 203,255 | ||||||
Net income per share: | ||||||||||
Basic | $听听听听听听听听听听听听听听听听听听听听听 0.48 | $听听听听听听听听听听听听听听听听听听听听听 0.40 | $听听听听听听听听听听听听听听听听听听听听听 2.14 | $听听听听听听听听听听听听听听听听听听听听听 2.13 | ||||||
Diluted | $听听听听听听听听听听听听听听听听听听听听听 0.48 | $听听听听听听听听听听听听听听听听听听听听听 0.40 | $听听听听听听听听听听听听听听听听听听听听听 2.11 | $听听听听听听听听听听听听听听听听听听听听听 2.09 | ||||||
Weighted-average shares outstanding: | ||||||||||
Basic | 95,897 | 95,686 | 95,947 | 95,593 | ||||||
Diluted | 96,900 | 96,959 | 97,537 | 97,412 | ||||||
听
DOLBY LABORATORIES, INC. | ||||
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(in thousands; unaudited) | ||||
June 27, | September 27, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $听听听听听听听听听听听听听听听 698,566 | $听听听听听听听听听听听听听听听 482,047 | ||
Restricted cash | 57,998 | 95,705 | ||
Short-term investments | 763 | 鈥� | ||
Accounts receivable, net | 297,614 | 315,465 | ||
Contract assets, net | 204,381 | 197,478 | ||
Inventories, net | 32,415 | 33,728 | ||
Prepaid expenses and other current assets | 46,382 | 69,994 | ||
Total current assets | 1,338,119 | 1,194,417 | ||
Long-term investments | 78,017 | 89,267 | ||
Property, plant, and equipment, net | 478,481 | 479,109 | ||
Operating lease right-of-use assets | 32,948 | 39,046 | ||
Goodwill and intangible assets, net | 936,973 | 967,722 | ||
Deferred taxes | 228,639 | 219,758 | ||
Other non-current assets | 102,824 | 120,609 | ||
Total assets | $听听听听听听听听听听听听 3,196,001 | $听听听听听听听听听听听听 3,109,928 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $听听听听听听听听听听听听听听听听听 17,234 | $听听听听听听听听听听听听听听听听听 17,380 | ||
Accrued liabilities | 317,422 | 347,529 | ||
Income taxes payable | 7,148 | 9,045 | ||
Contract liabilities | 36,031 | 31,644 | ||
Operating lease liabilities | 10,950 | 12,238 | ||
Total current liabilities | 388,785 | 417,836 | ||
Non-current contract liabilities | 29,029 | 34,593 | ||
Non-current operating lease liabilities | 28,160 | 34,754 | ||
Other non-current liabilities | 135,776 | 135,852 | ||
Total liabilities | 581,750 | 623,035 | ||
Stockholders' equity: | ||||
Class听A common stock | 54 | 53 | ||
Class B common stock | 40 | 41 | ||
Retained earnings | 2,618,163 | 2,496,255 | ||
Accumulated other comprehensive loss | (13,524) | (19,187) | ||
Total stockholders' equity 鈥� Dolby Laboratories, Inc. | 2,604,733 | 2,477,162 | ||
Noncontrolling interest | 9,518 | 9,731 | ||
Total stockholders' equity | 2,614,251 | 2,486,893 | ||
Total liabilities and stockholders' equity | $听听听听听听听听听听听听 3,196,001 | $听听听听听听听听听听听听 3,109,928 | ||
听
DOLBY LABORATORIES, INC. | ||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(in thousands; unaudited) | ||||
Fiscal Year-To-Date Ended | ||||
June 27, | June 28, | |||
Operating activities: | ||||
Net income including noncontrolling interest | $听听听听听听听听听听听听听听听 206,838 | $听听听听听听听听听听听听听听听 205,450 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 65,829 | 54,199 | ||
Stock-based compensation | 97,462 | 90,146 | ||
Amortization of operating lease right-of-use assets | 8,193 | 8,745 | ||
Amortization of premium on investments | 鈥� | (2,586) | ||
Provision for/(benefit from) credit losses | 2,582 | (2,382) | ||
Deferred income taxes | (9,146) | (18,009) | ||
Other non-cash items affecting net income | (17,553) | (6,181) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 15,234 | (21,319) | ||
Contract assets, net | (6,902) | (8,642) | ||
Inventories | 4,020 | (4,615) | ||
Operating lease right-of-use assets | (1,717) | (7,681) | ||
Prepaid expenses and other assets | 46,972 | 7,527 | ||
Accounts payable and accrued liabilities | (48,979) | (80,837) | ||
Income taxes, net | 1,895 | 15,265 | ||
Contract liabilities | (1,061) | (3,189) | ||
Operating lease liabilities | (8,237) | (2,577) | ||
Other non-current liabilities | (6,063) | (12,232) | ||
Net cash provided by operating activities | 349,367 | 211,082 | ||
Investing activities: | ||||
Purchases of marketable securities | 鈥� | (147,646) | ||
Proceeds from sales of marketable securities | 15,911 | 4,451 | ||
Proceeds from maturities of marketable securities | 鈥� | 140,839 | ||
Proceeds from sale of assets held for sale | 16,881 | 鈥� | ||
Purchases of property, plant, and equipment | (20,104) | (22,628) | ||
Business combinations, net of cash and restricted cash acquired, and other related payments | (1,362) | 鈥� | ||
Net cash provided by/(used in) investing activities | 11,326 | (24,984) | ||
Financing activities: | ||||
Proceeds from issuance of common stock | 38,681 | 39,487 | ||
Repurchase of common stock | (89,990) | (139,999) | ||
Payment of excise tax on repurchase of common stock | (261) | 鈥� | ||
Payment of cash dividend | (95,010) | (85,971) | ||
Distributions to noncontrolling interest | (1,449) | (4,507) | ||
Shares repurchased for tax withholdings on vesting of restricted stock | (35,154) | (37,428) | ||
Equity issued in connection with business combination | 鈥� | 722 | ||
Net cash used in financing activities | (183,183) | (227,696) | ||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 1,302 | 2,256 | ||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 178,812 | (39,342) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 577,752 | 817,966 | ||
Cash, cash equivalents, and restricted cash at end of period | $听听听听听听听听听听听听听听听 756,564 | $听听听听听听听听听听听听听听听 778,624 | ||
听
Licensing Revenue by Market | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts): | ||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Year-To-Date Ended | |||||||||||||||||||||
Market | June 27, 2025 | June 28, 2024 | June听27, 2025 | June听28, 2024 | ||||||||||||||||||
Broadcast | $听听听 111,286 | 38听% | $听听听听 95,430 | 36听% | $听听听 321,297 | 33听% | $听听听 313,326 | 35听% | ||||||||||||||
Mobile | 56,295 | 19听% | 63,096 | 24听% | 217,942 | 23听% | 187,073 | 21听% | ||||||||||||||
CE | 28,071 | 10听% | 28,352 | 11听% | 115,668 | 12听% | 123,793 | 14听% | ||||||||||||||
PC | 33,589 | 12听% | 27,606 | 10听% | 123,247 | 13听% | 107,223 | 12听% | ||||||||||||||
Other | 60,664 | 21听% | 52,598 | 19听% | 188,236 | 19听% | 167,674 | 18听% | ||||||||||||||
Total licensing revenue | $听听听 289,905 | 100听% | $听听听 267,082 | 100听% | $听听听 966,390 | 100听% | $听听听 899,089 | 100听% | ||||||||||||||
听
GAAP to Non-GAAP Reconciliations | |||||
(unaudited) | |||||
The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third quarters of fiscal 2025听and fiscal 2024: | |||||
Net income: | Fiscal Quarter Ended | ||||
(in thousands) | June 27, | June 28, | |||
GAAP net income attributable to Dolby Laboratories, Inc. | $听听听听听听听听听听听听 46,071 | $听听听听听听听听听听听听 38,444 | |||
Stock-based compensation (1) | 30,728 | 29,337 | |||
Amortization of acquisition-related intangibles (2) | 10,016 | 3,101 | |||
Restructuring charges/(credits) | (547) | 4,078 | |||
Income tax adjustments | (10,606) | (6,210) | |||
Non-GAAP net income attributable to Dolby Laboratories, Inc. | $听听听听听听听听听听听听 75,662 | $听听听听听听听听听听听听 68,750 | |||
(1) Stock-based compensation included in above line items: | |||||
Cost of products and services | $听听听听听听听听听听听听听听听听听 420 | $听听听听听听听听听听听听听听听听听 373 | |||
Research and development | 9,188 | 9,456 | |||
Sales and marketing | 10,589 | 9,726 | |||
General and administrative | 10,531 | 9,782 | |||
(2) Amortization of acquisition-related intangibles included in above line items: | |||||
Cost of licensing | $听听听听听听听听听听听听听听 6,610 | $听听听听听听听听听听听听听听听听听听听 54 | |||
Cost of products and services | 753 | 524 | |||
Sales and marketing | 340 | 651 | |||
General and administrative | 1,872 | 1,872 | |||
Other income, net | 441 | 鈥� | |||
Diluted earnings per share: | Fiscal Quarter Ended | ||||
June 27, | June 28, | ||||
GAAP diluted earnings per share | $听听听听听听听听听听听听听听听听 0.48 | $听听听听听听听听听听听听听听听听 0.40 | |||
Stock-based compensation | 0.32 | 0.30 | |||
Amortization of acquisition-related intangibles | 0.10 | 0.03 | |||
Restructuring charges/(credits) | (0.01) | 0.04 | |||
Income tax adjustments | (0.11) | (0.06) | |||
Non-GAAP diluted earnings per share | $听听听听听听听听听听听听听听听听 0.78 | $听听听听听听听听听听听听听听听听 0.71 | |||
Weighted-average shares outstanding - diluted (in thousands) | 96,900 | 96,959 | |||
听
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of fiscal 2025 and full year fiscal 2025 included in this release: | ||||||
Gross margin: | Q4 2025 | Fiscal 2025 | ||||
GAAP gross margin | 86.0听% | 88.0听% | ||||
Stock-based compensation | 0.1听% | 0.1听% | ||||
Amortization of acquisition-related intangibles | 1.9听% | 1.9听% | ||||
Non-GAAP gross margin | 88.0听% | 90.0听% | ||||
Operating expenses (in millions): | Q4 2025 | Fiscal 2025 | ||||
GAAP operating expenses (low - high end of range) | ||||||
Stock-based compensation | (32) | (127) | ||||
Amortization of acquisition-related intangibles | (3) | (9) | ||||
Restructuring charges | 鈥� | (9) | ||||
Non-GAAP operating expenses (low - high end of range) | ||||||
Operating margin: | Fiscal 2025 | |||||
GAAP operating margin | ||||||
Stock-based compensation | 9听% | |||||
Amortization of acquisition-related intangibles | 3听% | |||||
Restructuring charges | 1听% | |||||
Non-GAAP operating margin | ||||||
Effective tax rate: | Q4 2025 | Fiscal 2025 | ||||
GAAP effective tax rate | 24.5听% | 21.5听% | ||||
Stock-based compensation (low - high end of range) | ( | ( | ||||
Amortization of acquisition-related intangibles (low - high end of range) | ( | ( | ||||
Non-GAAP effective tax rate | 21.0听% | 20.0听% | ||||
Diluted earnings per share: | Q4 2025 | Fiscal 2025 | ||||
Low | High | Low | High | |||
GAAP diluted earnings per share (low - high end of range) | $听听听听听听听听听听听听听听听听 0.28 | $听听听听听听听听听听听听听 0.43 | $听听听听听听听听听听听听听听听听 2.40 | $听听听听听听听听听听听听听 2.55 | ||
Stock-based compensation | 0.31 | 0.31 | 1.32 | 1.32 | ||
Amortization of acquisition-related intangibles | 0.11 | 0.11 | 0.42 | 0.42 | ||
Restructuring charges | 鈥� | 鈥� | 0.09 | 0.09 | ||
Income tax adjustments | (0.09) | (0.09) | (0.35) | (0.35) | ||
Non-GAAP diluted earnings per share (low - high end of range) | $听听听听听听听听听听听听听听听听 0.61 | $听听听听听听听听听听听听听 0.76 | $听听听听听听听听听听听听听听听听 3.88 | $听听听听听听听听听听听听听 4.03 | ||
Weighted-average shares outstanding - diluted (in thousands) | 96,600 | 96,600 | 97,200 | 97,200 | ||
Investor Contact:
Peter Goldmacher
415-254-7415
[email protected]听
Media Contact:
[email protected]听
听
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SOURCE Dolby Laboratories, Inc.
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