Dolby Laboratories (DLB) investor relations material

Executive summary

• Q3 2025 revenue reached $316M, up 9% year-over-year, driven by strong licensing and services growth.

• Net income for Q3 2025 was $46M, a 20% increase year-over-year, with non-GAAP net income at $76M.

• Licensing accounted for 92% of total revenue, with strong contributions from broadcast, PC, and automotive markets.

• Continued expansion of Dolby Atmos and Dolby Vision across platforms, with new partnerships in automotive, mobile, and streaming.

• Major sports events, new product launches, and expanded partnerships with Lenovo, Google, and HBO Max featured Dolby technology.

Financial highlights

• Q3 2025 revenue: $316M (+9% YoY); licensing revenue: $290M (+9% YoY); product and services revenue: $26M (+18% YoY).

• GAAP net income: $46M ($0.48/share); non-GAAP net income: $76M ($0.78/share); diluted EPS up from $0.40 in Q3 2024.

• Gross margin for Q3 2025: 86% GAAP, 88% non-GAAP; licensing gross margin at 93%.

• Cash and equivalents at quarter-end: $698.6M; working capital: $949.3M.

• Repurchased $40M in shares; $312M remains authorized. Dividend of $0.33/share declared.

Outlook and guidance

• Q4 2025 revenue expected between $288M and $318M; licensing revenue between $263M and $293M.

• Q4 2025 non-GAAP EPS expected between $0.61 and $0.76; GAAP EPS: $0.28–$0.43.

• Full-year 2025 revenue guidance: $1.33B–$1.36B; licensing revenue: $1.23B–$1.26B; non-GAAP EPS: $3.88–$4.03.

• Gross margin guidance: 88% GAAP, 90% non-GAAP for the year.

• Management expects continued growth in licensing, driven by Dolby Atmos and Dolby Vision adoption.