Dolby Laboratories Inc

Latest Results (20.11.2025):

Dolby Laboratories Inc reported results for the fourth quarter of fiscal 2025 showing modest revenue growth and stronger non-GAAP profitability: Q4 revenue was $307 million, GAAP net income was $49 million ($0.51 diluted EPS) while non‑GAAP net income was $96 million ($0.99 diluted EPS). The company also closed the year with higher full‑year revenue and cash flow, returned capital via buybacks, and provided FY26 guidance with growth expected in revenue and earnings.

Q4 Revenue

Total revenue for the fourth quarter of fiscal 2025 was $307 million, up slightly from $305 million in Q4 FY24.

Q4 Earnings — GAAP vs Non‑GAAP

GAAP net income in Q4 FY25 was $49 million, or $0.51 per diluted share (versus $59 million, $0.61 in Q4 FY24). On a non‑GAAP basis Q4 net income was $96 million, or $0.99 per diluted share (up from $78 million, $0.81 a year earlier). Results included discrete tax benefits that boosted EPS.

Full‑Year FY25 Results

For fiscal 2025, Dolby reported total revenue of $1.35 billion (vs. $1.27 billion in FY24). GAAP net income was $255 million ($2.62 diluted EPS) while non‑GAAP net income was $414 million ($4.24 diluted EPS). Operating cash flow improved to $472 million from $327 million a year earlier.

Capital Return & Liquidity

During Q4 Dolby repurchased ~479,000 shares for about $35 million and ended the quarter with roughly $277 million of remaining repurchase authorization.

Dividend

Dolby announced a cash dividend of $0.36 per share (Class A and B), payable December 10, 2025, to shareholders of record as of close of business on December 2, 2025.

FY26 Guidance

Dolby provided Q1 FY26 revenue guidance of $315–345 million and FY26 revenue guidance of $1.390–1.440 billion. They expect licensing revenue to drive results (Q1 licensing $290–320M; FY26 licensing $1.285–1.335B), gross margins ~88% GAAP (~90% non‑GAAP), and diluted EPS ranges: Q1 GAAP $0.39–0.54 / non‑GAAP $0.79–0.94; FY26 GAAP $2.61–2.76 / non‑GAAP $4.19–4.34.

Business Momentum

The company cited content and device wins (e.g., Peacock streaming NFL/NBA in Dolby Atmos, multiple TV OEM launches, Dolby Vision 2 announcement, Instagram/Douyin Dolby Vision support, and new automaker agreements) as drivers of its addressable market expansion and licensing momentum.