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Dolby Laboratories Inc Financials

DLB
Source SEC Filings (10-K/10-Q) Updated Dec 26, 2025 Currency USD FYE September

This page shows Dolby Laboratories Inc (DLB) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 67 / 100
Financial Profile 67/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
66

Dolby Laboratories Inc has an operating margin of 19.6%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 66/100, reflecting efficient cost management and pricing power. This is down from 20.3% the prior year.

Growth
43

Dolby Laboratories Inc's revenue grew 5.9% year-over-year to $1.3B, a solid pace of expansion. This earns a growth score of 43/100.

Leverage
97

Dolby Laboratories Inc carries a low D/E ratio of 0.23, meaning only $0.23 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 97/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
61

Dolby Laboratories Inc's current ratio of 3.17 indicates adequate short-term liquidity, earning a score of 61/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
100

Dolby Laboratories Inc converts 32.3% of revenue into free cash flow ($435.9M). This strong cash generation earns a score of 100/100.

Returns
33

Dolby Laboratories Inc's ROE of 9.7% shows moderate profitability relative to equity, earning a score of 33/100. This is down from 10.6% the prior year.

Altman Z-Score Safe
7.79

Dolby Laboratories Inc scores 7.79, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($5.6B) relative to total liabilities ($595.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
5/9

Dolby Laboratories Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
1.85x

For every $1 of reported earnings, Dolby Laboratories Inc generates $1.85 in operating cash flow ($472.2M OCF vs $255.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe
17.2x

Dolby Laboratories Inc earns $17.2 in operating income for every $1 of interest expense ($265.0M vs $15.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$1.3B
YoY+5.9%
5Y CAGR+3.0%
10Y CAGR+3.3%

Dolby Laboratories Inc generated $1.3B in revenue in fiscal year 2025. This represents an increase of 5.9% from the prior year.

EBITDA
$352.8M
YoY+5.7%
5Y CAGR+2.6%
10Y CAGR+2.3%

Dolby Laboratories Inc's EBITDA was $352.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 5.7% from the prior year.

Net Income
$255.0M
YoY-2.6%
5Y CAGR+2.0%
10Y CAGR+3.5%

Dolby Laboratories Inc reported $255.0M in net income in fiscal year 2025. This represents a decrease of 2.6% from the prior year.

EPS (Diluted)
$2.62
YoY-2.6%
5Y CAGR+3.1%
10Y CAGR+4.1%

Dolby Laboratories Inc earned $2.62 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 2.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$435.9M
YoY+46.6%
5Y CAGR+9.4%
10Y CAGR+11.1%

Dolby Laboratories Inc generated $435.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 46.6% from the prior year.

Cash & Debt
$701.9M
YoY+45.6%
5Y CAGR-8.1%
10Y CAGR+2.8%

Dolby Laboratories Inc held $701.9M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
$1.32
YoY+7.3%
5Y CAGR+8.4%
10Y CAGR+12.1%

Dolby Laboratories Inc paid $1.32 per share in dividends in fiscal year 2025. This represents an increase of 7.3% from the prior year.

Shares Outstanding
N/A

Margins & Returns

Gross Margin
88.1%
YoY-0.8pp
5Y CAGR+0.7pp
10Y CAGR-2.1pp

Dolby Laboratories Inc's gross margin was 88.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.8 percentage points from the prior year.

Operating Margin
19.6%
YoY-0.6pp
5Y CAGR+0.8pp
10Y CAGR-2.3pp

Dolby Laboratories Inc's operating margin was 19.6% in fiscal year 2025, reflecting core business profitability. This is down 0.6 percentage points from the prior year.

Net Margin
18.9%
YoY-1.7pp
5Y CAGR-1.0pp
10Y CAGR+0.2pp

Dolby Laboratories Inc's net profit margin was 18.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.

Return on Equity
9.7%
YoY-0.9pp
5Y CAGR+0.2pp
10Y CAGR-0.3pp

Dolby Laboratories Inc's ROE was 9.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.9 percentage points from the prior year.

Capital Allocation

R&D Spending
$261.8M
YoY-0.7%
5Y CAGR+1.8%
10Y CAGR+2.7%

Dolby Laboratories Inc invested $261.8M in research and development in fiscal year 2025. This represents a decrease of 0.7% from the prior year.

Share Buybacks
$125.0M
YoY-21.9%
5Y CAGR-6.4%
10Y CAGR+1.5%

Dolby Laboratories Inc spent $125.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 21.9% from the prior year.

Capital Expenditures
$36.3M
YoY+21.1%
5Y CAGR-11.3%
10Y CAGR-13.6%

Dolby Laboratories Inc invested $36.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 21.1% from the prior year.

DLB Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $346.7M+12.9% $307.0M-2.7% $315.5M-14.6% $369.6M+3.5% $357.0M+17.1% $304.8M+5.5% $288.8M-20.8% $364.5M
Cost of Revenue $43.2M+9.3% $39.5M-10.2% $44.0M+22.8% $35.8M-12.1% $40.8M+19.9% $34.0M-4.7% $35.7M-8.0% $38.8M
Gross Profit $303.5M+13.5% $267.5M-1.5% $271.5M-18.6% $333.7M+5.5% $316.2M+16.8% $270.8M+7.0% $253.2M-22.3% $325.7M
R&D Expenses $69.1M+2.4% $67.5M+2.2% $66.0M+6.9% $61.7M-7.4% $66.6M-2.9% $68.6M+4.8% $65.5M+4.8% $62.5M
SG&A Expenses $70.2M-4.7% $73.7M+1.9% $72.3M+2.7% $70.4M+0.5% $70.1M+1.3% $69.2M-0.1% $69.3M+3.8% $66.7M
Operating Income $62.2M+109.5% $29.7M-37.7% $47.6M-55.8% $107.8M+34.9% $79.9M+72.3% $46.4M+26.0% $36.8M-66.2% $109.0M
Interest Expense N/A N/A N/A N/A N/A N/A N/A N/A
Income Tax $17.9M+324.4% -$8.0M-189.0% $9.0M-68.0% $28.0M+55.9% $18.0M+1971.5% $868K-91.7% $10.5M-55.3% $23.5M
Net Income $53.3M+8.1% $49.3M+7.1% $46.1M-49.8% $91.8M+35.3% $67.8M+15.8% $58.6M+52.4% $38.4M-60.7% $97.8M
EPS (Diluted) $0.55 N/A $0.48-48.9% $0.94+34.3% $0.70 N/A $0.40-60.4% $1.01

DLB Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $3.2B-1.1% $3.2B+1.0% $3.2B-1.0% $3.2B+2.2% $3.2B+1.6% $3.1B+4.6% $3.0B-2.3% $3.0B
Current Assets $1.4B+1.4% $1.4B+3.7% $1.3B-3.7% $1.4B+8.0% $1.3B+7.7% $1.2B-18.7% $1.5B-5.4% $1.6B
Cash & Equivalents $643.8M-8.3% $701.9M+0.5% $698.6M+11.5% $626.6M+20.3% $520.8M+8.0% $482.0M-35.0% $741.6M+4.5% $709.5M
Inventory $31.3M+2.8% $30.4M-6.1% $32.4M-6.3% $34.6M+8.7% $31.8M-5.6% $33.7M-2.8% $34.7M-3.0% $35.8M
Accounts Receivable $373.1M+12.7% $331.1M+11.3% $297.6M-5.3% $314.1M-7.4% $339.3M+7.6% $315.5M+10.4% $285.8M+1.3% $282.1M
Goodwill $530.3M+0.1% $529.9M+0.2% $528.8M+0.7% $525.0M+0.9% $520.4M-2.4% $533.2M+30.5% $408.5M0.0% $408.7M
Total Liabilities $589.3M-1.1% $595.8M+2.4% $581.8M-9.9% $646.0M+0.7% $641.6M+3.0% $623.0M+18.4% $526.2M-13.3% $607.0M
Current Liabilities $443.5M+1.3% $437.8M+12.6% $388.8M-15.0% $457.5M+3.5% $441.9M+5.8% $417.8M+17.9% $354.5M-20.0% $442.9M
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $2.6B-1.1% $2.6B+0.7% $2.6B+1.2% $2.6B+2.6% $2.5B+1.2% $2.5B+1.8% $2.4B+0.5% $2.4B
Retained Earnings $2.6B-1.2% $2.6B+0.6% $2.6B+0.6% $2.6B+2.3% $2.5B+1.9% $2.5B+1.4% $2.5B+0.5% $2.4B

DLB Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $54.8M-55.4% $122.8M+81.5% $67.7M-61.3% $174.9M+63.8% $106.8M-8.1% $116.2M+446.3% $21.3M-88.3% $181.4M
Capital Expenditures $4.6M-71.5% $16.2M+152.7% $6.4M-6.8% $6.9M+1.7% $6.8M-8.1% $7.4M-3.1% $7.6M-14.6% $8.9M
Free Cash Flow $50.2M-52.9% $106.6M+74.0% $61.3M-63.5% $168.0M+68.0% $100.0M-8.1% $108.8M+696.9% $13.7M-92.1% $172.5M
Investing Cash Flow $1.2M+105.7% -$21.9M-240.9% -$6.4M-124.8% $25.9M+418.1% -$8.1M+96.9% -$261.3M-3274.3% -$7.7M+56.7% -$17.9M
Financing Cash Flow -$121.8M-90.2% -$64.1M-5.5% -$60.7M+6.4% -$64.9M-12.7% -$57.6M+4.2% -$60.1M-3.0% -$58.4M-32.2% -$44.2M
Dividends Paid $34.3M+8.7% $31.6M0.0% $31.6M-0.6% $31.8M+0.8% $31.5M+0.2% $31.5M+10.1% $28.6M-0.3% $28.7M
Share Buybacks $70.0M+100.0% $35.0M-50.0% $70.0M+100.0% $35.0M+133.3% $15.0M-25.0% $20.0M-42.9% $35.0M+40.0% $25.0M

DLB Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin 87.5%+0.4pp 87.1%+1.1pp 86.1%-4.2pp 90.3%+1.7pp 88.6%-0.3pp 88.8%+1.2pp 87.6%-1.7pp 89.4%
Operating Margin 17.9%+8.3pp 9.7%-5.4pp 15.1%-14.1pp 29.2%+6.8pp 22.4%+7.2pp 15.2%+2.5pp 12.7%-17.1pp 29.9%
Net Margin 15.4%-0.7pp 16.1%+1.5pp 14.6%-10.2pp 24.8%+5.8pp 19.0%-0.2pp 19.2%+5.9pp 13.3%-13.5pp 26.8%
Return on Equity 2.1%+0.2pp 1.9%+0.1pp 1.8%-1.8pp 3.6%+0.9pp 2.7%+0.3pp 2.4%+0.8pp 1.6%-2.5pp 4.0%
Return on Assets 1.7%+0.1pp 1.5%+0.1pp 1.4%-1.4pp 2.8%+0.7pp 2.1%+0.3pp 1.9%+0.6pp 1.3%-1.9pp 3.2%
Current Ratio 3.170.0 3.17-0.3 3.44+0.4 3.04+0.1 2.91+0.1 2.86-1.3 4.14+0.6 3.50
Debt-to-Equity 0.230.0 0.230.0 0.22-0.0 0.250.0 0.260.0 0.25+0.0 0.22-0.0 0.25
FCF Margin 14.5%-20.3pp 34.7%+15.3pp 19.4%-26.1pp 45.5%+17.4pp 28.0%-7.7pp 35.7%+31.0pp 4.7%-42.6pp 47.3%

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Frequently Asked Questions

Dolby Laboratories Inc (DLB) reported $1.3B in total revenue for fiscal year 2025. This represents a 5.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Dolby Laboratories Inc (DLB) revenue grew by 5.9% year-over-year, from $1.3B to $1.3B in fiscal year 2025.

Yes, Dolby Laboratories Inc (DLB) reported a net income of $255.0M in fiscal year 2025, with a net profit margin of 18.9%.

Dolby Laboratories Inc (DLB) reported diluted earnings per share of $2.62 for fiscal year 2025. This represents a -2.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Dolby Laboratories Inc (DLB) had EBITDA of $352.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Dolby Laboratories Inc (DLB) had a gross margin of 88.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Dolby Laboratories Inc (DLB) had an operating margin of 19.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Dolby Laboratories Inc (DLB) had a net profit margin of 18.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Dolby Laboratories Inc (DLB) paid $1.32 per share in dividends during fiscal year 2025.

Dolby Laboratories Inc (DLB) has a return on equity of 9.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Dolby Laboratories Inc (DLB) generated $435.9M in free cash flow during fiscal year 2025. This represents a 46.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Dolby Laboratories Inc (DLB) generated $472.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Dolby Laboratories Inc (DLB) had $3.2B in total assets as of fiscal year 2025, including both current and long-term assets.

Dolby Laboratories Inc (DLB) invested $36.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Dolby Laboratories Inc (DLB) invested $261.8M in research and development during fiscal year 2025.

Yes, Dolby Laboratories Inc (DLB) spent $125.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Dolby Laboratories Inc (DLB) had a current ratio of 3.17 as of fiscal year 2025, which is generally considered healthy.

Dolby Laboratories Inc (DLB) had a debt-to-equity ratio of 0.23 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Dolby Laboratories Inc (DLB) had a return on assets of 7.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Dolby Laboratories Inc (DLB) has an Altman Z-Score of 7.79, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Dolby Laboratories Inc (DLB) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Dolby Laboratories Inc (DLB) has an earnings quality ratio of 1.85x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Dolby Laboratories Inc (DLB) has an interest coverage ratio of 17.2x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Dolby Laboratories Inc (DLB) scores 67 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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