Dolby Laboratories (DLB) investor relations material

Executive summary

• Q2 2026 revenue was $396 million, up 7% year-over-year, driven by licensing growth, recoveries, and expansion in sports, automotive, and content platforms.

• Net income attributable to the company was $95 million ($0.99 per diluted share), up from $92 million ($0.94 per share) year-over-year; non-GAAP net income was $131 million ($1.37 per share), flat year-over-year.

• Growth momentum continues across Dolby Atmos and Dolby Vision, with adoption in social media, music, sports, automotive, and mobile devices.

• Major wins include Meta, Douyin, and TV brands adopting Dolby Vision, and automotive brands launching Dolby Atmos-enabled vehicles.

• Content platforms and patent licensing programs are generating incremental revenue and expanding the customer base.

Financial highlights

• Q2 2026 revenue was $396 million, with licensing revenue at $372.2 million and products/services revenue at $23.4 million.

• Operating income was $112.9 million, up from $107.8 million in Q2 2025.

• Gross margin for Q2 2026 was 89%, with licensing gross margin at 94% and products/services gross margin at 12%.

• Operating cash flow was $93 million for the quarter; cash and cash equivalents at quarter-end were $594.3 million.

• Dividend declared at $0.36 per share, up 9% year-over-year.

Outlook and guidance

• FY26 revenue expected between $1.4 billion and $1.45 billion; licensing revenue between $1.295 billion and $1.345 billion.

• Non-GAAP operating expenses targeted at $780–$800 million; operating margin improvement of 50–100 basis points.

• Non-GAAP EPS expected between $4.30 and $4.45; GAAP EPS $2.66–$2.81.

• Q3 2026 revenue guidance: $295–$325 million; licensing revenue: $270–$300 million; non-GAAP EPS: $0.56–$0.71.

• Gross margin for Q3 expected at 88% (non-GAAP); operating expenses $200–$210 million.