Dolphin Entertainment Reports First Quarter 2026 Results
Rhea-AI Summary
Dolphin Entertainment (NASDAQ:DLPN) reported Q1 2026 revenue of $12.8 million, up 5.2% year over year. Operating loss was $2.1 million and net loss was $2.7 million, or $(0.22) per share. Adjusted EBITDA loss improved 25% to approximately $(467,000).
Operating expenses rose to $14.9 million, including a $0.7 million one-time distribution guarantee and about $0.2 million in higher litigation-related legal fees. Dolphin highlighted roughly $127 million in NOL carryforwards and projected future savings from maturing bank debt and expiring leases.
AI-generated analysis. Not financial advice.
Positive
- Revenue increased 5.2% year over year to $12.8 million in Q1 2026
- Adjusted EBITDA loss improved 25% to approximately $(467,000) versus Q1 2025
- $127 million of NOL carryforwards may substantially reduce future cash taxes
- Bank debt maturity in under 2.5 years expected to free $2.2 million annually
- Expiring New York and Los Angeles leases expected to save about $1 million annually after H2 2027
Negative
- Operating loss widened to $2.1 million from $1.8 million year over year
- Net loss increased to $2.7 million versus $2.3 million in Q1 2025
- Basic and diluted loss per share rose slightly to $(0.22) from $(0.21)
- Operating expenses grew to $14.9 million from $13.9 million year over year
- Share count increased to 12,327,974 from 11,162,026, indicating dilution
Key Figures
Market Reality Check
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Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Positive | +0.0% | Record Q3 2025 revenue and swing to positive operating income. |
| Nov 07 | Earnings call notice | Neutral | -7.4% | Announcement of Q3 2025 earnings call details and access info. |
| May 13 | Q1 2025 earnings | Positive | +2.0% | Q1 2025 core segment growth and strategic investments for long-term growth. |
| Mar 27 | FY 2024 results | Positive | -0.9% | 20% 2024 revenue growth and positive adjusted operating income despite net loss. |
| May 14 | Q1 2024 earnings | Positive | +10.2% | Record Q1 2024 revenue and positive adjusted operating income turnaround. |
Earnings releases have generally been received constructively, with most showing aligned or neutral price reactions, though full-year 2024 results saw a small negative response despite improving fundamentals.
Across the last five earnings events from May 2024 through November 2025, Dolphin reported strong revenue growth, a shift to positive adjusted operating income in 2024, and narrower net losses. Q1 2025 and Q3 2025 highlighted steady core segment growth and increased CEO share purchases. One full-year 2024 report drew a modestly negative reaction despite operational improvement. Today’s Q1 2026 update fits into this progression of gradual margin and cash-flow focus after prior acquisition-driven expansion.
Historical Comparison
In the past five earnings releases, DLPN’s average 1-day move was about 0.77%, with mostly constructive reactions to revenue growth and improving adjusted operating income. The Q1 2026 report continues this focus on margin progress and cash-flow metrics.
Earnings updates since early 2024 show a shift from losses toward positive adjusted operating income and tighter net losses, as Dolphin moves from acquisition-heavy growth toward emphasizing profitability and free cash flow.
Market Pulse Summary
This announcement reports modest Q1 2026 revenue growth to $12.8M, a smaller adjusted EBITDA loss, and continued net and operating losses. Management stresses free cash flow potential, aided by $127M in NOL carryforwards and future savings from debt maturity and lease expirations. Prior earnings have shown a gradual shift toward improved margins, so investors may watch upcoming quarters for sustained revenue growth, further loss reduction, and execution on identified cost savings.
Key Terms
adjusted EBITDA financial
free cash flow financial
NOL carryforwards financial
forward-looking statements regulatory
Private Securities Litigation Reform Act regulatory
AI-generated analysis. Not financial advice.
Q1'26 Revenue Rises
5.2% YoY to$12.8M Reiterates Expectations for Continued Revenue Growth, Significant Free Cash Flow Generation, and Adjusted EBITDA Margin Expansion in 2026
MIAMI, FL / ACCESS Newswire / May 12, 2026 / Dolphin (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, today announced its financial results for the first quarter ended March 31, 2026.
Bill O'Dowd, CEO of Dolphin, commented:
"While the first quarter is historically our lightest due to normal business seasonality, we are pleased to report continued top-line growth, with total revenue increasing
As noted in our prior quarter's remarks, following several years of acquisitions and growth-related investment, Dolphin is now well positioned to realize the benefits of that work. We continue to operate in highly attractive sectors, and with rising profitability, modest capex requirements, and
Looking ahead, we are excited about the rest of 2026, 2027, and beyond. In addition to organic improvements in our existing business, there are readily identifiable catalysts that should increase earnings even more. We are making progress with our DealMaker partnership, and we just announced a publishing imprint venture with Copper Books and Simon & Schuster that allows us to offer premium book publishing services to our clients with no upfront capital required from Dolphin. We would also remind investors that our bank debt matures in less than two and a half years, which will free up nearly
Q1 2026 and Recent Highlights
Total revenue for the three months ended March 31, 2026, was
$12.8 million , an increase of5.2% from$12.2 million last year.Operating loss was
$2.1 million for the three months ended March 31, 2026, compared to an operating loss of$1.8 million for the three months ended March 31, 2025.Operating expenses for Q1 2026 were
$14.9 million , including non-cash expenses of$0.5 million related to depreciation and amortization, a one-time non-recurring distribution guarantee of$0.7 million and legal and professional fees higher than usual due to litigation costs of approximately$0.2 million . This compares to operating expenses of$13.9 million in Q1 2025, including depreciation and amortization of$0.6 million and acquisition costs of approximately$0.4 million .Net loss for Q1 2026 was
$2.7 million as compared to a net loss of$2.3 million for Q1 2025.Basic and diluted loss per share for Q1 2026 was
$(0.22) b ased on 12,327,974 weighted average shares outstanding compared to basic and diluted loss per share in Q1 2025 of$(0.21) b ased on 11,162,026 weighted average shares outstanding.Adjusted EBITDA loss for Q1 2026 of approximately
$(467,000) improved by25% compared to approximately$(625,000) in Q1 2025.
Dolphin
Subsidiary clients shaped the Summer 2026 season with culture-defining festivals and events
CEO was featured on Variety's "Strictly Business" podcast and discussed the creator economy's transformation of marketing and consumer product launches
Expanded Miami footprint to support continued growth across subsidiaries
Partnered with DealMaker to unlock community capital for celebrity and influencer brands
Powerhouse subsidiaries led major brand activations during Super Bowl LX
42West
Drove global film publicity at CinemaCon 2026
Delivered marquee talent and a standout film slate at the 2026 SXSW Festival, featuring a company-record 16 world premiere titles and three audience award-winners
Celebrated an Oscar win as "Mr. Nobody Against Putin" took Best Documentary Feature at the 98th Academy Awards
Clients presented, performed, and took home honors at the 2026 GRAMMY Awards (in partnership with Shore Fire Media)
Landed six nominations for clients at the 98th Academy Awards
Brought exciting and diverse projects to the 2026 Sundance Film Festival
Shore Fire Media
Client and Afrobeat pioneer Fela Kuti became the first African solo artist to be inducted into the Rock & Roll Hall of Fame
Clients earned 9 nominations for Independent Music's top awards
Partnered with The Door on the launch of Pawn Shop, a new sports-driven hospitality concept
Clients presented, performed, and took home honors at the 2026 GRAMMY Awards (in partnership with 42West)
The Door
Partnered with Shore Fire Media on the launch of Pawn Shop, a new sports-driven hospitality concept
Launched a Miami hub, expanding Dolphin's South Florida presence
DISRPT Agency, a division of The Door, powered "Art of Glam" during Oscars week, driving cultural momentum into Camille Rose's upcoming Beauté Noir
Elle Communications
Client Harbor Fund announced Sundance Mountain Resort as the new long-term home of Harbor Film Forum
The Digital Dept.
Signed reality TV show stars, top beauty creators, and more
Youngblood
As hockey had a Hollywood moment, Dolphin's adaptation of the cult classic Youngblood premiered in Los Angeles
Partnered with Vaneast Pictures to bring the sports drama Youngblood to Berlin for international sales
Official trailer and key art were released for Hubert Davis' adaptation of the hockey classic "Youngblood"
Conference Call Information
To participate in this event, dial in approximately 5 to 10 minutes before the beginning of the call.
Date: May 12, 2026
Time: 4:30pm ET
Toll Free: 888-506-0062 International: 973-528-0011 Participant Access Code: 364505
Webcast: https://www.webcaster5.com/Webcast/Page/2225/53967
Replay
Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 53967
Webcast Replay: https://www.webcaster5.com/Webcast/Page/2225/53967
This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, Dolphin Entertainment Inc.'s offering of common stock as well as expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by the use of words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, Dolphin Entertainment's actual results may differ materially from the results discussed in its forward-looking statements. Dolphin Entertainment's forward-looking statements contained herein speak only as of the date of this press release. Factors or events Dolphin Entertainment cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause its actual results to differ from those expressed in forward-looking statements. Although Dolphin Entertainment believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved, and Dolphin Entertainment undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.
CONTACT:
James Carbonara
HAYDEN IR
(646)-755-7412
james@haydenir.com
ABOUT DOLPHIN:
Dolphin (NASDAQ:DLPN) is where cultural creation meets marketing execution. Founded in 1996 by Bill O'Dowd, Dolphin operates as both a venture studio-developing and investing in breakthrough content, products, and experiences-and a marketing consortium, featuring leading agencies across every communications discipline.
At its core, the venture studio creates, produces, finances, markets, and promotes new businesses and cultural ideas - ranging from acclaimed film, television, and digital content to consumer goods, live events and partnerships that define entertainment and lifestyle. Surrounding this entrepreneurial engine, Dolphin's marketing prowess brings together best-in-class firms including 42West, The Door, Shore Fire Media, Elle Communications, Special Projects and The Digital Dept. Together, this collective delivers unmatched cross-marketing expertise and relationships across every vertical of pop culture - from film, television, music, influencers, sports, hospitality, and fashion to consumer brands and purpose-driven initiatives. Dolphin marketing has been the recipient of many accolades, including #1 Agency of the Year on the Observer PR Power List in 2025, The PR Net 100, and the PR News Elite 120.
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DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2026 | December 31, 2025 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 6,283,857 | $ | 8,756,585 | ||||
Restricted cash | 925,004 | 925,004 | ||||||
Accounts receivable: | ||||||||
Trade, net of allowance of | 6,952,004 | 7,848,970 | ||||||
Other receivables | 4,384,663 | 5,243,931 | ||||||
Other current assets | 1,201,594 | 1,179,498 | ||||||
Total current assets | 19,747,122 | 23,953,988 | ||||||
Capitalized production costs, net | 542,305 | 520,338 | ||||||
Employee receivable | 1,228,085 | 1,196,085 | ||||||
Right-of-use assets | 2,630,279 | 3,012,941 | ||||||
Goodwill | 21,507,944 | 21,507,944 | ||||||
Intangible assets, net | 7,375,731 | 7,898,607 | ||||||
Property, equipment and leasehold improvements, net | 38,410 | 50,961 | ||||||
Other long-term assets | 198,296 | 189,296 | ||||||
Total Assets | $ | 53,268,172 | $ | 58,330,160 | ||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable | $ | 2,415,858 | $ | 3,096,715 | ||||
Term loans, current portion | 1,852,548 | 1,813,760 | ||||||
Revolving line of credit | 400,000 | 400,000 | ||||||
Notes payable, current portion | 3,500,000 | 3,500,000 | ||||||
Convertible notes payable, current portion | 1,550,000 | 1,250,000 | ||||||
Accrued interest - related party | 2,163,116 | 2,043,087 | ||||||
Accrued compensation - related party | 2,625,000 | 2,625,000 | ||||||
Lease liabilities, current portion | 1,671,364 | 1,912,482 | ||||||
Deferred revenue | 953,969 | 794,177 | ||||||
Other current liabilities | 10,010,068 | 11,096,820 | ||||||
Total current liabilities | 27,141,923 | 28,532,041 | ||||||
Noncurrent | ||||||||
Term loans, noncurrent portion | 2,502,601 | 2,976,930 | ||||||
Notes payable, noncurrent portion | 4,580,000 | 4,580,000 | ||||||
Convertible notes payable | 5,900,000 | 6,460,000 | ||||||
Convertible notes payable- related party | 2,839,556 | 2,904,357 | ||||||
Convertible notes payable at fair value | 260,000 | 270,000 | ||||||
Loans from related party | 983,112 | 983,112 | ||||||
Lease liabilities | 1,271,028 | 1,469,386 | ||||||
Deferred tax liability | 481,561 | 463,909 | ||||||
Total Liabilities | 45,959,781 | 48,639,735 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, Series C, | 1,000 | 1,000 | ||||||
Common stock, | 187,697 | 183,321 | ||||||
Additional paid-in capital | 159,114,925 | 158,809,301 | ||||||
Accumulated deficit | (151,995,231 | ) | (149,303,197 | ) | ||||
Total Stockholders' Equity | 7,308,391 | 9,690,425 | ||||||
Total Liabilities and Stockholders' Equity | $ | 53,268,172 | $ | 58,330,160 | ||||
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Revenues | $ | 12,803,937 | $ | 12,169,711 | ||||
Expenses: | ||||||||
Direct costs | 784,650 | 344,414 | ||||||
Payroll and benefits | 10,715,144 | 10,304,233 | ||||||
Selling, general and administrative | 2,047,161 | 1,772,444 | ||||||
Depreciation and amortization | 537,276 | 591,552 | ||||||
Acquisition cost | - | 416,171 | ||||||
Legal and professional | 856,138 | 514,424 | ||||||
Total expenses | 14,940,369 | 13,943,238 | ||||||
Loss from operations | (2,136,432 | ) | (1,773,527 | ) | ||||
Other (expenses) income: | ||||||||
Change in fair value of convertible note | 10,000 | 20,000 | ||||||
Interest expense, net | (547,950 | ) | (554,013 | ) | ||||
Total other (expenses) income, net | (537,950 | ) | (534,013 | ) | ||||
Loss before income taxes | (2,674,382 | ) | (2,307,540 | ) | ||||
Income tax expense | (17,652 | ) | (21,522 | ) | ||||
Net loss | $ | (2,692,034 | ) | $ | (2,329,062 | ) | ||
Loss per share: | ||||||||
Basic | $ | (0.22 | ) | $ | (0.21 | ) | ||
Diluted | $ | (0.22 | ) | $ | (0.21 | ) | ||
Weighted average number of shares outstanding: | ||||||||
Basic | 12,327,974 | 11,162,026 | ||||||
Diluted | 12,327,974 | 11,162,026 | ||||||
Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results in this press release refer to a non-GAAP financial measure that involves adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management deems are not directly attributable to the Company's core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is defined by Dolphin as net (loss) or income adjusted for (i) interest, (ii) taxes, (iii) depreciation and amortization, (iv) acquisition costs, (v) change in fair value of convertible note, (vi) allowance for credit losses, (vii) litigation costs; (viii) other one-time or non-cash costs.
Management believes that the presentation of operating results using this non-GAAP financial measure provides useful supplemental information for investors by providing them with the non-GAAP financial measure used by management for financial and operational decision making, planning and forecasting and in managing the business. This non-GAAP financial measure does not replace the presentation of financial information in accordance with U.S. GAAP. These non-GAAP financial results should not be considered a measure of liquidity and is unlikely to be comparable to non-GAAP financial measures provided by other companies.
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA loss
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Net (loss) income (GAAP) | $ | (2,692,034 | ) | $ | (2,329,062 | ) | ||
Adjustments to GAAP measure: | ||||||||
Interest expense | 547,950 | 554,013 | ||||||
Income tax expense | 17,652 | 21,522 | ||||||
Depreciation and amortization | 537,276 | 591,552 | ||||||
Acquisition costs | 52,728 | 416,171 | ||||||
Change in fair value of convertible note | (10,000 | ) | (20,000 | ) | ||||
Allowance for credit losses | 149,791 | 55,754 | ||||||
One-time advance on distribution of Youngblood | 700,000 | - | ||||||
Litigation costs | 229,376 | - | ||||||
One-time signing bonus | - | 85,000 | ||||||
Adjusted EBITDA (non-GAAP) | $ | (467,261 | ) | $ | (625,050 | ) | ||
SOURCE: Dolphin Entertainment
View the original press release on ACCESS Newswire