Dolphin Entertainment (DLPN) investor relations material

Executive summary

• Q2 2026 revenue was $14.4 million, up 2.5% year-over-year, with first half revenue at $27.2 million, up 3.8% from last year, driven by organic growth in entertainment publicity and marketing.

• Content production revenue increased to $0.5 million in Q2 2026, primarily from the Youngblood film release.

• Net loss for Q2 2026 was $1.6 million ($0.13/share), compared to $1.4 million ($0.13/share) in Q2 2025; net loss for the first half was $4.3 million ($0.34/share), up from $3.7 million ($0.33/share) in the prior year.

• Agencies and subsidiaries were active at major industry events, and new ventures like Graviteur Studios and DealMaker were highlighted as future growth drivers.

• Management emphasized strong alignment with shareholders and a focus on building long-term value, with CEO increasing ownership stake.

Financial highlights

• Operating loss for Q2 2026 was $1 million, compared to $100,000 in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $243,000, down from $628,000 in Q2 2025, mainly due to one-time retention bonuses and elevated litigation costs.

• Cash and cash equivalents stood at $7.7 million as of June 30, 2026, down from $8.8 million at year-end 2025.

• Operating expenses for Q2 2026 totaled $15.5 million, up from $14.1 million in Q2 2025, driven by non-recurring items.

• Payroll and benefits increased by $1 million in Q2, reflecting workforce expansion and pay increases.

Outlook and guidance

• Profitability is expected to improve in Q3 as non-recurring costs roll off.

• Management anticipates strong free cash flow as bank debt and major leases expire over the next two years, aided by $127 million in NOL carryforwards.

• First DealMaker venture is expected to launch before year-end 2026, with a goal of scaling to 3-4 ventures annually.

• The Digital Department and 42West are expected to drive second-half growth due to seasonality.

• Management expects continued organic growth in entertainment publicity and marketing, with further content production revenue dependent on new releases and distribution deals.