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Jun 27
Dolby Q3 2025 Earnings Report
Dolby Laboratories, Inc. reported its financial results for the third quarter of fiscal 2025, showing solid performance with increased revenue and net income compared to the prior year.
Key Takeaways
Dolby Laboratories delivered solid results in the third quarter of fiscal 2025, with total revenue increasing to $315.5 million and GAAP net income attributable to Dolby Laboratories, Inc. reaching $46.1 million. The company saw growth in both licensing and products and services segments, and reported a significant increase in cash and cash equivalents.
Total revenue for Q3 fiscal 2025 was $315.5 million, an increase from $288.8 million in the same period last year.
GAAP net income attributable to Dolby Laboratories, Inc. rose to $46.1 million, up from $38.4 million in Q3 fiscal 2024.
Diluted EPS for the quarter was $0.48, consistent with the prior year's $0.40.
Cash and cash equivalents significantly increased to $698.6 million as of June 27, 2025, compared to $482.0 million at September 27, 2024.
Dolby
Dolby
Dolby Revenue by Segment
Revenue by Segment
Licensing Revenue
CapyFin.comProducts and Services Revenue
CapyFin.com Forward Guidance
Dolby is providing estimates for its fourth quarter and full fiscal year 2025, with expected GAAP diluted EPS ranging from $0.28 to $0.43 for Q4 and $2.40 to $2.55 for the full year. Non-GAAP diluted EPS is projected to be between $0.61 and $0.76 for Q4 and $3.88 to $4.03 for the full year.
Positive Outlook
- Expected GAAP diluted EPS for Q4 2025 is between $0.28 and $0.43.
- Expected Non-GAAP diluted EPS for Q4 2025 is between $0.61 and $0.76.
- Full year fiscal 2025 GAAP diluted EPS is projected to be between $2.40 and $2.55.
- Full year fiscal 2025 Non-GAAP diluted EPS is projected to be between $3.88 and $4.03.
- Non-GAAP gross margin for fiscal 2025 is estimated at 90.0%.
Challenges Ahead
- Financial outlook relies on estimates of royalty-based revenue, which are subject to uncertainty.
- Actual results could differ materially due to macroeconomic effects, including trade restrictions and changes in trade or diplomatic relationships.
- Supply chain constraints could negatively impact future results.
- International conflicts and geopolitical instability pose risks to the outlook.
- Fluctuations in inflation and interest rates could affect financial performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income