SAN FRANCISCO, July 30, 2026 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2026.
“We continue to execute against our full-year objectives, and we are building momentum across several of our key growth areas,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We are expanding our total addressable market and creating new opportunities with content partners through the Video Distribution Program and Dolby OptiView, and we continue to bring Dolby Atmos and Dolby Vision to more experiences from live sports, to music in the car, to user-generated content on mobile devices and more.”
Third Quarter Fiscal 2026 Financial Highlights
Total revenue was $305 million, compared to $316 million for the third quarter of fiscal 2025.GAAP net income was $29 million or $0.30 per diluted share, compared to GAAP net income of $46 million or $0.48 per diluted share for the third quarter of fiscal 2025. On a non-GAAP basis, third quarter net income was $65 million or $0.69 per diluted share, compared to $76 million or $0.78 per diluted share for the third quarter of fiscal 2025.Dolby repurchased 1.2 million shares of its common stock for approximately $65 million.
A complete listing of Dolby’s non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
The 2026 FIFA World Cup was shown in Dolby Atmos and/or Dolby Vision across broadcast, streaming, and pay TV, including Peacock and Comcast in the U.S., Bell TV in Canada, and TV GLOBAL in Brazil.On TVs, Dolby Vision 2 is now in market with some Hisense TVs, and by the end of this calendar year, TCL and Philips will also be shipping TVs with Dolby Vision 2. RayNeo, the leading provider of augmented reality glasses, launched the RayNeo GT Max, the first AR smart glasses supporting Dolby Vision.Insta360, a leader in the action and panoramic cameras segments, launched the Luna Ultra, which supports Dolby Vision capture.Google announced support for Dolby Atmos through Android Auto with partners including BMW, Genesis, Mahindra, Mercedes, Renault, and Skoda.Roberts Communications Network, the largest horse racing streaming provider in the U.S., is using Dolby OptiView for ultra-low latency video streaming for horse racing.Access Advance announced that Meta Platforms, Inc., one of the world’s largest distributors of video content, joined the VDP program as a licensee.
Dividend
Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on August 19, 2026, to stockholders of record as of the close of business on August 11, 2026.
Stock Repurchase Program
Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $427 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.
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 herein 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 2026, to be filed on or around the date hereof.
Dolby is providing the following estimates for its fourth quarter of fiscal 2026:
Total revenue is expected to range from $362 million to $392 million.Licensing revenue is expected to range from $335 million to $365 million. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $227 million to $237 million on a GAAP basis and from $195 million to $205 million on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.78 to $0.93 on a GAAP basis and from $1.13 to $1.28 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2026:
Total revenue is expected to range from $1.41 billion to $1.44 billion.Licensing revenue is expected to range from $1.31 billion to $1.34 billion. Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $937 million to $947 million on a GAAP basis and from $785 million to $795 million on a non-GAAP basis.Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis.Effective tax rate is anticipated to be around 24% on a GAAP basis and around 21% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.62 to $2.77 on a GAAP basis and from $4.25 to $4.40 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 30, 2026.
The conference call can be accessed by registering online at Dolby Laboratories Q3 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.
A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.
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: 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. 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, http://investor.dolby.com.
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 2026 and full year fiscal 2026, 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; pricing pressures; 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; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; 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; risks associated with acquiring and successfully integrating businesses or technologies; 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
Dolby Laboratories (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 Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
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 the United States and/or other countries. Other trademarks remain the property of their respective owners.
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 26,
2026
June 27,
2025
June 26,
2026
June 27,
2025
Revenue:
Licensing
$ 282,351
$ 289,905
$ 974,367
$ 966,390
Products and services
22,644
25,641
72,964
75,716
Total revenue
304,995
315,546
1,047,331
1,042,106
Cost of revenue:
Cost of licensing
22,718
21,713
67,523
62,508
Cost of products and services
17,601
22,289
60,735
58,105
Total cost of revenue
40,319
44,002
128,258
120,613
Gross profit
264,676
271,544
919,073
921,493
Operating expenses:
Research and development
65,749
65,982
198,477
194,327
Sales and marketing
85,071
86,163
272,786
270,191
General and administrative
75,585
72,307
221,783
212,814
Restructuring charges/(credits)
3,955
(547)
16,605
8,879
Total operating expenses
230,360
223,905
709,651
686,211
Operating income
34,316
47,639
209,422
235,282
Other income/(expense):
Interest income/(expense), net
3,453
4,111
12,595
10,316
Other income, net
6,033
3,766
13,086
16,219
Total other income
9,486
7,877
25,681
26,535
Income before income taxes
43,802
55,516
235,103
261,817
Provision for income taxes
(14,588)
(8,974)
(56,754)
(54,979)
Net income including noncontrolling interest
29,214
46,542
178,349
206,838
Less: net income attributable to noncontrolling interest
(612)
(471)
(1,505)
(1,152)
Net income attributable to Dolby Laboratories, Inc.
$ 28,602
$ 46,071
$ 176,844
$ 205,686
Net income per share:
Basic
$ 0.30
$ 0.48
$ 1.86
$ 2.14
Diluted
$ 0.30
$ 0.48
$ 1.84
$ 2.11
Weighted-average shares outstanding:
Basic
94,242
95,897
94,975
95,947
Diluted
94,518
96,900
95,859
97,537
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
June 26,
2026
September 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 669,394
$ 701,893
Restricted cash
69,492
91,468
Short-term investments
652
703
Accounts receivable, net
285,148
331,096
Contract assets, net
206,881
180,804
Inventories, net
30,768
30,424
Prepaid expenses and other current assets
63,706
51,873
Total current assets
1,326,041
1,388,261
Long-term investments
86,437
80,205
Property, plant, and equipment, net
459,115
470,608
Operating lease right-of-use assets
42,401
33,204
Goodwill and intangible assets, net
910,777
926,957
Deferred taxes
213,171
214,361
Other non-current assets
118,660
114,164
Total assets
$ 3,156,602
$ 3,227,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 12,470
$ 17,840
Accrued liabilities
360,407
369,256
Income taxes payable
—
8,928
Contract liabilities
33,593
31,382
Operating lease liabilities
9,859
10,384
Total current liabilities
416,329
437,790
Non-current contract liabilities
23,463
29,687
Non-current operating lease liabilities
37,591
28,494
Other non-current liabilities
86,504
99,843
Total liabilities
563,887
595,814
Stockholders’ equity:
Class A common stock
52
54
Class B common stock
40
40
Retained earnings
2,598,923
2,634,980
Accumulated other comprehensive loss
(15,468)
(12,517)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,583,547
2,622,557
Noncontrolling interest
9,168
9,389
Total stockholders’ equity
2,592,715
2,631,946
Total liabilities and stockholders’ equity
$ 3,156,602
$ 3,227,760
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
June 26,
2026
June 27,
2025
Operating activities:
Net income including noncontrolling interest
$ 178,349
$ 206,838
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
70,842
65,829
Stock-based compensation
98,883
97,462
Amortization of operating lease right-of-use assets
7,889
8,193
Provision for credit losses
4,244
2,582
Deferred income taxes
1,542
(9,146)
Share of net income of equity method investees, net of cash distributions
(7,602)
1,845
Other non-cash items affecting net income
(1,289)
(429)
Changes in operating assets and liabilities:
Accounts receivable, net
1,489
15,234
Contract assets, net
(28,442)
(6,902)
Inventories
6,512
4,020
Operating lease right-of-use assets
(17,547)
(1,717)
Prepaid expenses and other assets
(31,999)
28,003
Accounts payable and accrued liabilities
35,611
(48,979)
Income taxes, net
(2,771)
1,895
Contract liabilities
1,620
(1,061)
Operating lease liabilities
9,036
(8,237)
Other non-current liabilities
(11,600)
(6,063)
Net cash provided by operating activities
314,767
349,367
Investing activities:
Proceeds from sales of marketable securities
—
15,911
Proceeds from sale of assets held for sale
—
16,881
Purchases of property, plant, and equipment
(28,681)
(20,104)
Business combinations, net of cash and restricted cash acquired, and other related payments
—
(1,362)
Purchases of intangible assets
(42,575)
—
Proceeds from sale of intangible assets
16,623
—
Net cash provided by/(used in) investing activities
(54,633)
11,326
Financing activities:
Proceeds from issuance of common stock
24,685
38,681
Repurchase of common stock
(200,001)
(89,990)
Payment of excise tax on repurchase of common stock
—
(261)
Payment of cash dividend
(102,659)
(95,010)
Distributions to noncontrolling interest
(1,640)
(1,449)
Shares repurchased for tax withholdings on vesting of restricted stock
(33,113)
(35,154)
Net cash used in financing activities
(312,728)
(183,183)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(1,881)
1,302
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(54,475)
178,812
Cash, cash equivalents, and restricted cash at beginning of period
793,361
577,752
Cash, cash equivalents, and restricted cash at end of period
$ 738,886
$ 756,564
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 26, 2026
June 27, 2025
June 26, 2026
June 27, 2025
Broadcast
$ 106,579
38 %
$ 111,286
38 %
$ 326,041
33 %
$ 321,297
33 %
Mobile
51,010
18 %
56,295
19 %
220,199
23 %
217,942
23 %
CE
31,506
11 %
28,071
10 %
118,057
12 %
115,668
12 %
PC
28,343
10 %
33,589
12 %
116,523
12 %
123,247
13 %
Other
64,913
23 %
60,664
21 %
193,547
20 %
188,236
19 %
Total licensing revenue
$ 282,351
100 %
$ 289,905
100 %
$ 974,367
100 %
$ 966,390
100 %
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 2026 and fiscal 2025:
Net income:
Fiscal Quarter Ended
(in thousands)
June 26,
2026
June 27,
2025
GAAP net income attributable to Dolby Laboratories, Inc.
$ 28,602
$ 46,071
Stock-based compensation (1)
30,964
30,728
Amortization of acquisition-related intangibles (2)
9,705
10,016
Restructuring charges/(credits)
3,955
(547)
Income tax adjustments
(8,077)
(10,606)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 65,149
$ 75,662
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 440
$ 420
Research and development
9,695
9,188
Sales and marketing
10,293
10,589
General and administrative
10,536
10,531
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 6,590
$ 6,610
Cost of products and services
768
753
Sales and marketing
352
340
General and administrative
1,554
1,872
Other income, net
441
441
Diluted earnings per share:
Fiscal Quarter Ended
June 26,
2026
June 27,
2025
GAAP diluted earnings per share
$ 0.30
$ 0.48
Stock-based compensation
0.33
0.32
Amortization of acquisition-related intangibles
0.10
0.10
Restructuring charges/(credits)
0.04
(0.01)
Income tax adjustments
(0.08)
(0.11)
Non-GAAP diluted earnings per share
$ 0.69
$ 0.78
Weighted-average shares outstanding – diluted (in thousands)
94,518
96,900
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of
fiscal 2026 and full year fiscal 2026 included in this release:
Gross margin:
Q4 2026
Fiscal 2026
GAAP gross margin
88.0 %
88.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
1.9 %
1.9 %
Non-GAAP gross margin
90.0 %
90.0 %
Operating expenses (in millions):
Q4 2026
Fiscal 2026
GAAP operating expenses (low – high end of range)
$227 – $237
$937 – $947
Stock-based compensation
(30)
(127)
Amortization of acquisition-related intangibles
(2)
(8)
Restructuring charges
—
(17)
Non-GAAP operating expenses (low – high end of range)
$195 – $205
$785 – $795
Operating margin:
Fiscal 2026
GAAP operating margin
21% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
3 %
Restructuring charges
1 %
Non-GAAP operating margin
34% +/-
Effective tax rate:
Q4 2026
Fiscal 2026
GAAP effective tax rate
23.0 %
24.0 %
Stock-based compensation (low – high end of range)
(2%) – 1%
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of
range)
(1%) – 0%
(1%) – 0%
Non-GAAP effective tax rate
21.0 %
21.0 %
Diluted earnings per share:
Q4 2026
Fiscal 2026
Low
High
Low
High
GAAP diluted earnings per share (low – high end of range)
$ 0.78
$ 0.93
$ 2.62
$ 2.77
Stock-based compensation (low – high end of range)
0.32
0.32
1.33
1.33
Amortization of acquisition-related intangibles (low – high end of
range)
0.10
0.10
0.41
0.41
Restructuring charges (low – high end of range)
—
—
0.18
0.18
Income tax adjustments (low – high end of range)
(0.07)
(0.07)
(0.29)
(0.29)
Non-GAAP diluted earnings per share (low – high end of range)
$ 1.13
$ 1.28
$ 4.25
$ 4.40
Weighted-average shares outstanding – diluted (in thousands)
93,600
93,600
95,200
95,200
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
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SOURCE Dolby Laboratories, Inc.
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