Dolby Laboratories (DLB) Q4 2025 Financial Results Summary
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Dolby Laboratories (DLB) Q4 2025 Financial Results Summary
Release Date: November 18, 2025
Dolby Laboratories, Inc. (NYSE: DLB) has announced its financial results for the fourth quarter (Q4) and the full fiscal year 2025. The results indicate a mix of performance indicators, with some metrics showing growth compared to the same quarter last year, while others reflect a decline. Here is a summary of the findings:
Fourth Quarter Financial Highlights
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Total Revenue: $307 million, an increase of 0.7% from $305 million in Q4 2024.
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GAAP Net Income: $49 million, down 17% from $59 million in Q4 2024.
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GAAP Earnings Per Share (EPS):
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$0.51 per diluted share, a 16% decrease compared to $0.61 in the same quarter last year.
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Non-GAAP Net Income: $96 million, increased by 23% from $78 million in Q4 2024.
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Non-GAAP EPS: $0.99 per diluted share, an increase of 22% from $0.81 in Q4 2024.
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Tax Benefit Impact:
- Discrete tax items contributed $0.19 per diluted share under GAAP.
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The same items contributed $0.28 per diluted share under non-GAAP.
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Stock Repurchase: Approximately 479,000 shares were repurchased for about $35 million; $277 million remains available for future stock repurchase.
Full Year Financial Highlights
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Total Revenue: $1.35 billion, representing a 6.3% increase from $1.27 billion in FY 2024.
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GAAP Net Income: $255 million, down 2.7% from $262 million in FY 2024.
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GAAP EPS: $2.62 per diluted share, down 2.6% from $2.69 in the previous fiscal year.
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Non-GAAP Net Income: $414 million, a 12.2% increase from $369 million in FY 2024.
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Non-GAAP EPS: $4.24 per diluted share, up 12% from $3.79 in FY 2024.
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Cash Flows from Operations: $472 million, an increase of 44% from $327 million in FY 2024.
Recent Business Developments
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Product Updates: The introduction of Dolby Vision 2 enhances the capabilities of modern displays, providing new tools for artists.
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New Agreements: Collaborations with major companies like Peacock for streaming NFL and NBA games in Dolby Atmos, and partnerships with automakers in various countries to include Dolby’s technology in their vehicles.
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Technology Integration: Launches of TVs from brands like Samsung and TCL featuring Dolby Atmos and Dolby Vision, while Instagram for iOS became the first Meta app to support Dolby Vision.
Dividend Declaration
- Dolby announced a cash dividend of $0.36 per share for both Class A and Class B common stock. The dividend is payable on December 10, 2025, for stockholders who are on record as of December 2, 2025.
Financial Outlook
For Q1 of Fiscal 2026:
– Total Revenue Estimate: Between $315 million to $345 million.
– Licensing Revenue Estimate: Between $290 million to $320 million.
– Gross Margins: Anticipated to be approximately 88% (GAAP) and 90% (non-GAAP).
For the Full Year of Fiscal 2026:
– Total Revenue Expected: Between $1.390 billion to $1.440 billion.
– Licensing Revenue Expected: Between $1.285 billion to $1.335 billion.
Dolby Laboratories continues to navigate challenges in the evolving entertainment technology landscape, focusing on delivering innovative solutions to its partners and consumers.
| Fiscal Quarter Ended | Fiscal Year Ended | |||
|---|---|---|---|---|
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | |
| Revenue: | ||||
| Licensing | $281,627 | $282,705 | $1,248,017 | $1,181,794 |
| Products and services | $25,397 | $22,101 | $101,113 | $91,927 |
| Total revenue | $307,024 | $304,806 | $1,349,130 | $1,273,721 |
| Cost of revenue: | ||||
| Cost of licensing | $21,111 | $18,764 | $83,619 | $67,204 |
| Cost of products and services | $18,408 | $15,232 | $76,513 | $73,292 |
| Total cost of revenue | $39,519 | $33,996 | $160,132 | $140,496 |
| Gross profit | $267,505 | $270,810 | $1,188,998 | $1,133,225 |
| Operating expenses: | ||||
| Research and development | $67,465 | $68,636 | $261,792 | $263,663 |
| Sales and marketing | $90,520 | $87,901 | $360,711 | $334,460 |
| General and administrative | $73,715 | $69,209 | $286,529 | $270,392 |
| Restructuring charges/(credits) | $6,128 | $(1,290) | $15,007 | $6,384 |
| Total operating expenses | $237,828 | $224,456 | $924,039 | $874,899 |
| Operating income | $29,677 | $46,354 | $264,959 | $258,326 |
| Other income/(expense): | ||||
| Interest income/(expense), net | $5,060 | $6,854 | $15,376 | $34,077 |
| Other income, net | $6,931 | $6,526 | $23,150 | $20,076 |
| Total other income | $11,991 | $13,380 | $38,526 | $54,153 |
| Income before income taxes | $41,668 | $59,734 | $303,485 | $312,479 |
| Provision for/(benefit from) income taxes | $7,986 | $(868) | $(46,993) | $(48,163) |
| Net income including noncontrolling interest | $49,654 | $58,866 | $256,492 | $264,316 |
| Less: net income attributable to noncontrolling interest | $(322) | $(296) | $(1,474) | $(2,491) |
| Net income attributable to Dolby Laboratories, Inc. | $49,332 | $58,570 | $255,018 | $261,825 |
| Net income per share: | ||||
| Basic | $0.52 | $0.61 | $2.66 | $2.74 |
| Diluted | $0.51 | $0.61 | $2.62 | $2.69 |
| Weighted-average shares outstanding: | ||||
| Basic | 95,632 | 95,395 | 95,868 | 95,544 |
| Diluted | 96,846 | 96,593 | 97,479 | 97,325 |
| September 26, 2025 | September 27, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $701,893 | $482,047 |
| Restricted cash | $91,468 | $95,705 |
| Short-term investments | $703 | $— |
| Accounts receivable, net | $331,096 | $315,465 |
| Contract assets, net | $180,804 | $197,478 |
| Inventories, net | $30,424 | $33,728 |
| Prepaid expenses and other current assets | $51,873 | $69,994 |
| Total current assets | $1,388,261 | $1,194,417 |
| Long-term investments | $80,205 | $89,267 |
| Property, plant, and equipment, net | $470,608 | $479,109 |
| Operating lease right-of-use assets | $33,204 | $39,046 |
| Goodwill and intangible assets, net | $926,957 | $967,722 |
| Deferred taxes | $214,361 | $219,758 |
| Other non-current assets | $114,164 | $120,609 |
| Total assets | $3,227,760 | $3,109,928 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $17,840 | $17,380 |
| Accrued liabilities | $369,256 | $347,529 |
| Income taxes payable | $8,928 | $9,045 |
| Contract liabilities | $31,382 | $31,644 |
| Operating lease liabilities | $10,384 | $12,238 |
| Total current liabilities | $437,790 | $417,836 |
| Non-current contract liabilities | $29,687 | $34,593 |
| Non-current operating lease liabilities | $28,494 | $34,754 |
| Other non-current liabilities | $99,843 | $135,852 |
| Total liabilities | $595,814 | $623,035 |
| Stockholders’ equity: | ||
| Class A common stock | $54 | $53 |
| Class B common stock | $40 | $41 |
| Retained earnings | $2,634,980 | $2,496,255 |
| Accumulated other comprehensive loss | $(12,517) | $(19,187) |
| Total stockholders’ equity – Dolby Laboratories, Inc. | $2,622,557 | $2,477,162 |
| Noncontrolling interest | $9,389 | $9,731 |
| Total stockholders’ equity | $2,631,946 | $2,486,893 |
| Total liabilities and stockholders’ equity | $3,227,760 | $3,109,928 |