Dolphin Reports Q1 2025 Results; Core Entertainment Publicity and Marketing Segment (EPM) Revenue Up 2% YoY to $12.1 Million, Strategic Investments and New Division Launch to Drive Long-Term Growth
Rhea-AI Summary
Dolphin Entertainment (NASDAQ:DLPN) reported Q1 2025 financial results with core Entertainment Publicity and Marketing (EPM) revenue growing 2% YoY to $12.1 million. Total revenue was $12.2 million, down from $15.2 million in Q1 2024, primarily due to the absence of $3.4 million in Blue Angels production revenue from the previous year.
The company reported an operating loss of $1.8 million and a net loss of $2.3 million ($0.21 per share) for Q1 2025. Key strategic initiatives include investments in women's sports through Always Alpha, co-founded with Allyson Felix, and the launch of a new affiliate marketing division under The Digital Dept. Notably, Dolphin was named 2025 Agency of the Year by Observer's PR Power List.
CEO Bill O'Dowd demonstrated confidence in the company's future by implementing a 10b5-1 stock purchase plan in April 2025, following $100,000 in common stock purchases in 2H 2024.
Positive
- Core EPM revenue grew 2% YoY to $12.1 million despite industry disruptions
- Named 2025 Agency of the Year on Observer's PR Power List
- Strategic expansion into women's sports market through Always Alpha venture
- Launch of new affiliate marketing division expanding revenue verticals
- CEO showing confidence through personal stock purchases via 10b5-1 plan
Negative
- Operating loss of $1.8 million compared to $0.2 million operating income in Q1 2024
- Net loss increased to $2.3 million ($0.21 per share) from $0.3 million in Q1 2024
- Total revenue decreased to $12.2 million from $15.2 million YoY
Insights
Dolphin's Q1 shows mixed results with core business growth offset by strategic investments and production revenue decline, indicating cautious near-term outlook.
Dolphin Entertainment delivered a nuanced Q1 2025 performance with some positives masked by overall declines. While total revenue fell
The company's profitability metrics deteriorated notably. Dolphin swung from
Net loss widened considerably to
Dolphin's balance sheet shows increased leverage, with total liabilities rising to
Management's commentary focuses on strategic positioning rather than near-term profitability, emphasizing investments in women's sports and affiliate marketing as high-growth opportunities. The CEO's ongoing personal stock purchases through a 10b5-1 plan signals management confidence despite the stock's apparent underperformance.
The company's operational highlights, including industry recognition as "Agency of the Year" and expanded client relationships across divisions, demonstrate continued business momentum despite financial pressures. However, investors should monitor whether these strategic investments translate to improved financial performance in coming quarters, as the current trajectory of widening losses is unsustainable long-term.
Highlights Talent Expansion, Women's Sports Investment, Affiliate Marketing Launches, and Continued Industry Recognition
Named 2025 Agency of the Year by Observer's PR Power List
MIAMI, FLORIDA / ACCESS Newswire / May 13, 2025 / Dolphin (NASDAQ:DLPN), a leading entertainment marketing and content production company, today announced its financial results for the first quarter ended March 31, 2025.
Bill O'Dowd, CEO of Dolphin commented:
"Dolphin's first quarter results reinforce the strength and momentum of our core agencies and our strategy of investing in the future of entertainment and marketing. Excluding the impact of last year's Blue Angels production revenue of
We also made deliberate, forward-looking investments in two of the most dynamic sectors in media today: women's sports and affiliate marketing. Always Alpha, our women's sports management firm co-founded by Allyson Felix, is tapping into a multi-billion-dollar sector with explosive growth rates and strong investor confidence. With an active roster of more than a dozen top athletes and sportscasters, along with our strategic partnership with women's sports ad agency Deep Blue, we believe Dolphin is well-positioned to continue its momentum as a first-mover in this space. We will look to expand into women's soccer and basketball this year, with management teams dedicated to the two most popular women's sports in the United States.
At the same time, The Digital Dept. launched a dedicated affiliate marketing division. This new capability means we now offer every major revenue vertical in influencer marketing, further expanding our addressable market and setting us apart from the competition. We already have more than two dozen influencers on our affiliate roster today, and we will continue to invest in this exciting and rapidly growing area throughout the year.
Dolphin is growing and our team's efforts have not gone unnoticed. Dolphin was named Agency of the Year on the 2025 Observer PR Power List, a distinction that validates the strength and cultural reach of our portfolio and the expertise of our people.
On a personal note, I want to reiterate my belief that Dolphin's common stock is deeply undervalued, which is why I began purchasing shares last year and have continued buying through a 10b5-1 plan every week since we reported our 10-K. My ongoing purchases reflect my strong confidence in our company's future and the significant upside I see ahead for our shareholders.
We are building on a powerful foundation, with clear leadership in growing and lucrative categories. As we look ahead, we remain focused on execution, investment in rapidly growing areas, and capturing emerging opportunities for both our clients and our shareholders."
Q1 2025 and Recent Highlights
Total revenue for the quarter ended March 31, 2025, was
Operating loss was
Adjusted operating loss was approximately
Operating expenses for Q1 2025 were
Net loss for Q1 2025 was
Net loss per share was
Dolphin
Named Agency of the Year on the 2025 Observer PR Power List.
CEO Bill O'Dowd started 10b5-1 stock purchase plan in April 2025, building on
$100,000 in common stock purchases in 2H 2024.
42West
Shined at Toy Fair representing Funko, the Op Games, and Super7.
Secured eight nominations for clients at the 97th Academy Awards.
Supported multiple exciting new projects at the 2025 Sundance Film Festival and the 2025 SxSW Festival.
At Superbowl LIX led Perdue's Wingin' It campaign with Wayne Brady providing live, improvisational game-day commentary; enhanced media visibility for the annual Puppy Bowl, featuring a DC Studios sneak peek with Director James Gunn.
The Door
Announced major roster of chef and lifestyle talent for 2025, showcasing prowess for culinary launches and brand expansion.
At Superbowl LIX created and executed the Not So Fast, Not So Furious Super Bowl campaign featuring Vin Diesel, Michelle Rodriguez, and Ludacris. Launched the "Dazs Drive" cross-country activation, culminating at Shaq's Fun House event. DISRPT Division's client, Serena Williams, debuted A Ma Maniere Converse sneakers during the Super Bowl halftime show. BLK & Bold coffee featured in Google's "50 States, 50 Stories" Super Bowl ad.
Shore Fire Media
Longtime client Cyndi Lauper was inducted into Rock & Roll Hall of Fame.
Clients earned 10 wins at the 2025 Grammy Awards.
At Superbowl LIX, Trombone Shorty and Lauren Daigle performed America the Beautiful during the pregame show. Fred Minnick hosted Fred Minnick Live 2025, a top-rated Super Bowl event. Bruce Springsteen's Born to Run covered by H.E.R. for Dove's #KeepHerConfident campaign. Booker T. Jones' Green Onions featured in Uber Eats' commercial with Matthew McConaughey. Client Reggie Bush participated in campaigns and events for Bounty, Tostitos, Wilson Football, and Guy Fieri's tailgate party.
Elle
Serviced over two dozen clients across Lifestyle and Impact divisions
The Digital Dept.
Launched new division for affiliate marketing and content creator services.
Hosted highest-grossing BRANDEdit influencer experience to date in Los Angeles.
Expanded BRANDEdit experiences and corporate event services to Nashville for 2025.
Always Alpha
Along with Dolphin, rang the NASDAQ Closing Bell on March 7, 2025, to celebrate Women in Sports and International Women's Day.
Announced joint venture with Deep Blue Sports + Entertainment, creating women's sports' first full-service management offering. At Superbowl LIX announced a partnership with Deep Blue to form the largest firm supporting female athletes. Celebrated with an exclusive Super Bowl luncheon on February 8 in New Orleans.
Special Projects
Curated celebrity and cultural influencer attendance for Max, Warner Bros., and Louis Vuitton launches, driving cultural impact and elevating brand visibility.
Blue Angels
The Blue Angels won for Outstanding Achievement in Sound Editing for a Feature Documentary at the MPSE Golden Reel Awards.
Returned to select IMAX® theatres in January 2025 with a new 3D version.
Youngblood
Feature adaptation began and completed principal photography.
Conference Call Information
To participate in this event, dial in approximately 5 to 10 minutes before the beginning of the call.
Date: May 13, 2025
Time: 4:30pm ET
Toll Free: 888-506-0062 International: 973-528-0011 Participant Access Code: 893617
Webcast:https://www.webcaster4.com/Webcast/Page/2225/52465
Replay
Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 52465
Webcast Replay: https://www.webcaster4.com/Webcast/Page/2225/52465
ABOUT DOLPHIN
Dolphin (NASDAQ:DLPN) was founded in 1996 by Bill O'Dowd and has evolved from its origins as an Emmy-nominated television, digital and feature film content producer to a company with three dynamic divisions: Dolphin Entertainment, Dolphin Marketing and Dolphin Ventures.
Dolphin Entertainment: This legacy division, where it all began, has a rich history of producing acclaimed television shows, digital content and feature films. With high-profile partners like IMAX and notable projects including The Blue Angels, Dolphin Entertainment continues to set the standard in quality storytelling and innovative content creation.
Dolphin Marketing: Established in 2017, the Marketing division, which was just named by Observer as the 2025 #1 Agency of the Year, is a powerhouse in public relations, influencer marketing, branding strategy, talent booking and special events. Comprising top-tier companies such as 42West, The Door, Shore Fire Media, Elle Communications, Special Projects, The Digital Dept., and Always Alpha, Dolphin Marketing serves a wide range of industries - from entertainment, music and sports to hospitality, fashion and consumer products.
Dolphin Ventures: This division leverages Dolphin's best-in-class cross-marketing acumen and business development relationships to create, launch and/or accelerate innovative ideas and promising products, events and content in our areas of expertise.
Dolphin has also launched "The Pod", a new shareholder loyalty program in partnership with TiiCKER, the world's first and largest shareholder engagement platform. "The Pod" features high-value tiered perks for Dolphin's verified investors, including gift cards and discount codes for brands like Häagen-Dazs, Francis Ford Coppola Wines, Carbone Fine Food, Saysh, and Foster Supply Hospitality. Investors may also receive special access to concerts, movie screenings, and celebrity meet-and-greet opportunities throughout the year.
Dolphin Entertainment shareholders can now visit TiiCKER.com/DLPN to connect their brokerage accounts and claim their perks and VIP experiences.
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 Information
James Carbonara
Partner, Hayden IR
james@haydenir.com
646-755-7412
###
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, 2025 | December 31, 2024 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 7,085,260 | $ | 8,203,842 | ||||
Restricted cash | 925,004 | 925,004 | ||||||
Accounts receivable: | ||||||||
Trade, net of allowance of | 6,066,237 | 5,113,157 | ||||||
Other receivables | 6,538,095 | 5,451,697 | ||||||
Other current assets | 553,808 | 373,399 | ||||||
Total current assets | 21,168,404 | 20,067,099 | ||||||
Capitalized production costs, net | 615,662 | 594,763 | ||||||
Employee receivable | 1,054,168 | 1,007,418 | ||||||
Right-of-use assets | 4,327,155 | 4,738,997 | ||||||
Goodwill | 21,507,944 | 21,507,944 | ||||||
Intangible assets, net | 9,614,784 | 10,189,026 | ||||||
Property, equipment and leasehold improvements, net | 97,788 | 114,011 | ||||||
Other long-term assets | 189,296 | 218,021 | ||||||
Total Assets | $ | 58,575,201 | $ | 58,437,279 | ||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable | $ | 2,120,089 | $ | 2,344,272 | ||||
Term loans, current portion | 1,708,051 | 1,686,018 | ||||||
Revolving line of credit | 400,000 | 400,000 | ||||||
Notes payable, current portion | 3,750,000 | 3,750,000 | ||||||
Contingent consideration | 486,000 | 486,000 | ||||||
Accrued interest - related party | 2,002,593 | 1,857,986 | ||||||
Accrued compensation - related party | 2,625,000 | 2,625,000 | ||||||
Lease liabilities, current portion | 1,531,098 | 1,919,672 | ||||||
Deferred revenue | 818,302 | 341,153 | ||||||
Other current liabilities | 13,013,339 | 11,104,036 | ||||||
Total current liabilities | 28,454,472 | 26,514,137 | ||||||
Noncurrent | ||||||||
Term loans, noncurrent portion | 4,349,537 | 4,782,271 | ||||||
Notes payable, noncurrent portion | 3,380,000 | 3,130,000 | ||||||
Convertible notes payable | 5,875,000 | 5,100,000 | ||||||
Convertible notes payable at fair value | 300,000 | 320,000 | ||||||
Loans from related party | 3,225,985 | 3,225,985 | ||||||
Lease liabilities | 3,257,809 | 3,306,033 | ||||||
Deferred tax liability | 416,069 | 394,547 | ||||||
Other noncurrent liabilities | - | 18,915 | ||||||
Total Liabilities | 49,258,872 | 46,791,888 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, Series C, | 1,000 | 1,000 | ||||||
Common stock, | 166,779 | 166,688 | ||||||
Additional paid in capital | 157,692,041 | 157,692,132 | ||||||
Accumulated deficit | (148,543,491 | ) | (146,214,429 | ) | ||||
Total Stockholders' Equity | 9,316,329 | 11,645,391 | ||||||
Total Liabilities and Stockholders' Equity | $ | 58,575,201 | $ | 58,437,279 | ||||
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three months ended March 31, | ||||||||
2025 | 2024 | |||||||
Revenues | $ | 12,169,711 | $ | 15,235,892 | ||||
Expenses: | ||||||||
Direct costs | 344,414 | 2,319,227 | ||||||
Payroll and benefits | 10,304,233 | 9,574,251 | ||||||
Selling, general and administrative | 1,772,444 | 1,976,990 | ||||||
Acquisition costs | 416,171 | - | ||||||
Depreciation and amortization | 591,552 | 553,103 | ||||||
Legal and professional | 514,424 | 647,781 | ||||||
Total expenses | 13,943,238 | 15,071,352 | ||||||
Loss from operations | (1,773,527 | ) | 164,540 | |||||
Other (expenses) income: | ||||||||
Change in fair value of convertible note | 20,000 | 25,000 | ||||||
Change in fair value of warrant | - | 5,000 | ||||||
Interest income | 6,075 | 5,869 | ||||||
Interest expense | (560,088 | ) | (503,637 | ) | ||||
Total other expense (income), net | (534,013 | ) | (467,768 | ) | ||||
Loss before income taxes and equity in losses of unconsolidated affiliates | $ | (2,307,540 | ) | $ | (303,228 | ) | ||
Income tax expense | (21,522 | ) | (23,539 | ) | ||||
Net loss | $ | (2,329,062 | ) | $ | (326,767 | ) | ||
Loss per share: | ||||||||
Basic | $ | (0.21 | ) | $ | (0.04 | ) | ||
Diluted | $ | (0.21 | ) | $ | (0.04 | ) | ||
Weighted average number of shares used in per share calculation | ||||||||
Basic | 11,162,026 | 9,238,913 | ||||||
Diluted | 11,162,026 | 9,302,851 | ||||||
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 operating income or loss is defined by Dolphin as (loss) income from operations before: (i) depreciation and amortization, (ii) write-off of assets, (iii) impairment of goodwill or intangible assets, (iv) acquisition costs, (v) employee stock compensation, (vi) change in fair value of contingent consideration, (vii) bad debt expense and (viii) and impairment of capitalized production 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 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 (loss) income from operations to non-GAAP (loss) income from operations
For the three months ended March 31, | ||||||||
2025 | 2024 | |||||||
Revenues (GAAP) | $ | 12,169,711 | $ | 15,235,892 | ||||
Expenses: | ||||||||
Direct costs | 344,414 | 2,319,227 | ||||||
Payroll and benefits | 10,304,233 | 9,574,251 | ||||||
Selling, general and administrative | 1,772,444 | 1,976,990 | ||||||
Acquisition costs | 416,171 | - | ||||||
Depreciation and amortization | 591,552 | 553,103 | ||||||
Legal and professional | 514,424 | 647,781 | ||||||
Total expenses (GAAP) | 13,943,238 | 15,071,352 | ||||||
(Loss) income from operations (GAAP) | $ | (1,773,527 | ) | $ | 164,540 | |||
Adjustments to GAAP measure: | ||||||||
Acquisition costs | 416,171 | - | ||||||
Depreciation and amortization | 591,552 | 553,103 | ||||||
Bad debt expense | 55,754 | 204,021 | ||||||
One-time payroll related costs | 85,000 | - | ||||||
Stock compensation | - | 105,761 | ||||||
Adjusted (loss) income from operations (non-GAAP) | $ | (625,050 | ) | $ | 1,027,425 | |||
SOURCE: Dolphin Entertainment
View the original press release on ACCESS Newswire
FAQ
What were Dolphin Entertainment's (DLPN) Q1 2025 earnings results?
Why did DLPN's revenue decline in Q1 2025 compared to Q1 2024?
What new strategic initiatives has Dolphin Entertainment (DLPN) launched in 2025?
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What major recognition did Dolphin Entertainment receive in 2025?
