Dolby Laboratories (NYSE: DLB) Q3 2026 results, dividend and $350 million buyback

Rhea-AI Filing Summary

Dolby Laboratories, Inc. reported financial results for the third quarter of fiscal 2026, with total revenue of 304,995 (in thousands) versus 315,546 (in thousands) a year earlier. Net income attributable to Dolby was 28,602 (in thousands), or diluted earnings per share of $0.30, compared with $0.48 in the prior-year quarter. Non-GAAP net income was 65,149 (in thousands), or non-GAAP diluted earnings per share of $0.69.

For the fiscal year-to-date, revenue was 1,047,331 (in thousands) and net income attributable to Dolby was 176,844 (in thousands). The board declared a cash dividend of $0.36 per share on Class A and Class B common stock and increased the stock repurchase program by $350 million, bringing remaining authorization to approximately $427 million. Dolby also provided fourth-quarter and full-year fiscal 2026 guidance, including GAAP diluted earnings per share of $0.78–$0.93 for Q4 and $2.62–$2.77 for the full year, and corresponding non-GAAP diluted earnings per share of $1.13–$1.28 and $4.25–$4.40.

Positive

• The board increased the stock repurchase program by $350 million, leaving about $427 million available for future repurchases, alongside a regular quarterly dividend of $0.36 per share on Class A and Class B common stock.

Negative

• Quarterly net income attributable to Dolby declined to 28,602 (in thousands) from 46,071 (in thousands) a year earlier, and GAAP diluted EPS fell from $0.48 to $0.30, reflecting lower profitability versus the prior-year quarter.

Filing Explained

The dividend has fixed record and payment dates; the expanded $427 million repurchase balance remains optional capacity with no expiration.

This Form 8-K, which reports specified material events, sets the dividend’s record and payment mechanics and describes the expanded repurchase program as future purchase capacity rather than a completed transaction.

Class A and Class B common stockholders must be holders of record at the close of business on August 11, 2026; the $0.36 per-share dividend is payable on August 19, 2026.

The approximately $427 million available for future Class A repurchases may be used through open-market or negotiated purchases, at times and in amounts the company considers appropriate; the filing does not make that capacity a required expenditure.

Shares repurchased under the program will be retired and returned to authorized-but-unissued Class A stock. The program has no specified expiration date and may be limited, suspended, or terminated without prior notice.

8-K Event Classification

3 items: 2.02, 8.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q3 2026 Total Revenue: 304,995 (in thousands) Q3 2026 GAAP Net Income Attributable: 28,602 (in thousands) Q3 2026 GAAP Diluted EPS: 0.30 +5 more

8 metrics

Q3 2026 Total Revenue 304,995 (in thousands) Fiscal quarter ended June 26, 2026

Q3 2026 GAAP Net Income Attributable 28,602 (in thousands) Fiscal quarter ended June 26, 2026

Q3 2026 GAAP Diluted EPS 0.30 Fiscal quarter ended June 26, 2026

Q3 2026 Non-GAAP Diluted EPS 0.69 Fiscal quarter ended June 26, 2026

Quarterly Dividend per Share 0.36 Cash dividend on Class A and Class B common stock payable August 19, 2026

Increase in Repurchase Authorization $350 million Additional capacity approved for stock repurchase program on July 30, 2026

Remaining Repurchase Capacity $427 million Approximate amount available for future Class A common stock repurchases

Fiscal 2026 Non-GAAP Diluted EPS Guidance 4.25–4.40 Estimated non-GAAP diluted earnings per share range for fiscal 2026

Key Terms

non-GAAP, stock-based compensation, restructuring charges, operating margin, +1 more

5 terms

non-GAAP financial

"A complete listing of Dolby’s non-GAAP measures is described and reconciled..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

stock-based compensation financial

"Specifically, Dolby excludes the following as adjustments... Stock-based compensation expense"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

restructuring charges financial

"Restructuring charges are costs associated with restructuring plans and primarily relate to costs..."

Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.

operating margin financial

"Dolby provides various non-GAAP financial measures including... non-GAAP operating margin"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

effective tax rate financial

"Dolby provides various non-GAAP financial measures including... non-GAAP effective tax rate"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

Earnings Snapshot

Total revenue: 304,995 (in thousands) · Guidance included

third quarter of fiscal 2026

Total revenue 304,995 (in thousands) Compared with 315,546 (in thousands) in the quarter ended June 27, 2025.

GAAP net income attributable 28,602 (in thousands) Down from 46,071 (in thousands) in the prior-year quarter.

GAAP diluted EPS 0.30 Down from 0.48 in the quarter ended June 27, 2025.

Non-GAAP diluted EPS 0.69 Down from 0.78 in the prior-year quarter.

Guidance

For Q4 2026, Dolby estimates GAAP diluted EPS of $0.78–$0.93 and non-GAAP diluted EPS of $1.13–$1.28, with GAAP gross margin around 88% and non-GAAP gross margin around 90%. For fiscal 2026, GAAP diluted EPS is estimated at $2.62–$2.77 and non-GAAP diluted EPS at $4.25–$4.40.

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FAQ

What were Dolby (DLB) third quarter 2026 revenue and earnings?

Dolby’s third quarter 2026 revenue was 304,995 (in thousands) and GAAP net income attributable to Dolby was 28,602 (in thousands), or $0.30 diluted EPS. In the prior-year quarter, revenue was 315,546 (in thousands) and diluted EPS was $0.48.

What dividend did Dolby (DLB) declare and when will it be paid?

Dolby declared a cash dividend of $0.36 per share on its Class A and Class B common stock. The dividend is payable on August 19, 2026, to stockholders of record as of the close of business on August 11, 2026.

How large is Dolby’s (DLB) stock repurchase authorization after the latest increase?

Dolby’s board approved an increase of $350 million to the stock repurchase program, bringing the amount available for future repurchases of Class A common stock to approximately $427 million. Repurchases may occur via open market transactions, negotiated purchases, or otherwise.

What was Dolby’s (DLB) non-GAAP earnings performance in Q3 2026?

In Q3 2026, Dolby reported non-GAAP net income of 65,149 (in thousands) and non-GAAP diluted earnings per share of $0.69. In the prior-year quarter, non-GAAP net income was 75,662 (in thousands) and non-GAAP diluted earnings per share was $0.78.

What EPS guidance did Dolby (DLB) provide for Q4 and full-year 2026?

For Q4 2026, Dolby estimates GAAP diluted EPS of $0.78–$0.93 and non-GAAP diluted EPS of $1.13–$1.28. For fiscal 2026, GAAP diluted EPS is estimated at $2.62–$2.77 and non-GAAP diluted EPS at $4.25–$4.40.

How did Dolby’s (DLB) year-to-date fiscal 2026 results compare to the prior year?

For the fiscal year-to-date ended June 26, 2026, Dolby reported revenue of 1,047,331 (in thousands) and net income attributable to Dolby of 176,844 (in thousands). In the comparable 2025 period, revenue was 1,042,106 (in thousands) and net income attributable to Dolby was 205,686 (in thousands).

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 30, 2026

DOLBY LABORATORIES, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-32431		90-0199783
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1275 Market Street

San Francisco, CA 94103-1410

(Address of principal executive offices) (Zip Code)

(415) 558-0200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A common stock, $0.001 par value		DLB		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 – Financial Information

ITEM 2.02 Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 30, 2026, Dolby Laboratories, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal quarter ended June 26, 2026. The full text of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

Section 8 – Other Events

ITEM 8.01 Other Events

Declaration of Dividend

On July 30, 2026, the Company announced a cash dividend of $0.36 per share of Class A and Class B Common Stock, payable on August 19, 2026 to stockholders of record as of the close of business on August 11, 2026.

Increase in Share Repurchase Authorization

On July 30, 2026, the Company also announced that its Board of Directors approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of the Company’s Class A Common Stock to approximately $427 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases or otherwise, at times and in such amounts as the Company considers appropriate. The timing of repurchases and the number of shares repurchased will depend on a variety of factors including price, the rate of dilution from the Company’s equity compensation programs, regulatory requirements, and other market conditions. The program does not have a specified expiration date, and the Company may limit, suspend, or terminate the stock repurchase program at any time without prior notice. Any shares repurchased under the program will be retired and returned to the status of authorized, but unissued shares of Class A Common Stock.

Disclosure Channels to Disseminate Information

The Company disseminates information to the public about the Company, its products, services and other matters through various channels, including the Company’s website (www.dolby.com), investor relations website (http://investor.dolby.com), SEC filings, press releases, public conference calls and webcasts, in order to achieve broad, non-exclusionary distribution of information to the public. The Company encourages investors and others to review the information it makes public through these channels, as such information could be deemed to be material information.

Section 9 – Financial Statements and Exhibits

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press Release of Dolby Laboratories, Inc. dated July 30, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		DOLBY LABORATORIES, INC.
By:		/s/ Robert Park
		Robert Park
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

Date: July 30, 2026

Exhibit 99.1

Dolby Laboratories Reports Third Quarter 2026 Financial Results

SAN FRANCISCO, July 30, 2026 — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2026.

“We continue to execute against our full-year objectives, and we are building momentum across several of our key growth areas,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We are expanding our total addressable market and creating new opportunities with content partners through the Video Distribution Program and Dolby OptiView, and we continue to bring Dolby Atmos and Dolby Vision to more experiences from live sports, to music in the car, to user-generated content on mobile devices and more.”

Third Quarter Fiscal 2026 Financial Highlights

• Total revenue was $305 million, compared to $316 million for the third quarter of fiscal 2025.

• GAAP net income was $29 million or $0.30 per diluted share, compared to GAAP net income of $46 million or $0.48 per diluted share for the third quarter of fiscal 2025. On a non-GAAP basis, third quarter net income was $65 million or $0.69 per diluted share, compared to $76 million or $0.78 per diluted share for the third quarter of fiscal 2025.

• Dolby repurchased 1.2 million shares of its common stock for approximately $65 million.

A complete listing of Dolby’s non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release.

Recent Business Highlights

• The 2026 FIFA World Cup was shown in Dolby Atmos and/or Dolby Vision across broadcast, streaming, and pay TV, including Peacock and Comcast in the U.S., Bell TV in Canada, and TV GLOBAL in Brazil.

• On TVs, Dolby Vision 2 is now in market with some Hisense TVs, and by the end of this calendar year, TCL and Philips will also be shipping TVs with Dolby Vision 2.

• RayNeo, the leading provider of augmented reality glasses, launched the RayNeo GT Max, the first AR smart glasses supporting Dolby Vision.

• Insta360, a leader in the action and panoramic cameras segments, launched the Luna Ultra, which supports Dolby Vision capture.

• Google announced support for Dolby Atmos through Android Auto with partners including BMW, Genesis, Mahindra, Mercedes, Renault, and Skoda.

• Roberts Communications Network, the largest horse racing streaming provider in the U.S., is using Dolby OptiView for ultra-low latency video streaming for horse racing.

• Access Advance announced that Meta Platforms, Inc., one of the world’s largest distributors of video content, joined the VDP program as a licensee.

Dividend

Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on August 19, 2026, to stockholders of record as of the close of business on August 11, 2026.

Stock Repurchase Program

Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $427 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.

Financial Outlook

Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing herein due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, to be filed on or around the date hereof.

Dolby is providing the following estimates for its fourth quarter of fiscal 2026:

• Total revenue is expected to range from $362 million to $392 million.

• Licensing revenue is expected to range from $335 million to $365 million.

• Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.

• Operating expenses are anticipated to range from $227 million to $237 million on a GAAP basis and from $195 million to $205 million on a non-GAAP basis.

• Effective tax rate is anticipated to be around 23% on a GAAP basis and around 21% on a non-GAAP basis.

• Diluted earnings per share is anticipated to range from $0.78 to $0.93 on a GAAP basis and from $1.13 to $1.28 on a non-GAAP basis.

Dolby is providing the following estimates for the full year of fiscal 2026:

• Total revenue is expected to range from $1.41 billion to $1.44 billion.

• Licensing revenue is expected to range from $1.31 billion to $1.34 billion.

• Gross margins are anticipated to be approximately 88% on a GAAP basis and approximately 90% on a non-GAAP basis.

• Operating expenses are anticipated to range from $937 million to $947 million on a GAAP basis and from $785 million to $795 million on a non-GAAP basis.

• Dolby expects operating margins to be approximately 21% on a GAAP basis and to be approximately 34% on a non-GAAP basis.

• Effective tax rate is anticipated to be around 24% on a GAAP basis and around 21% on a non-GAAP basis.

• Diluted earnings per share is anticipated to range from $2.62 to $2.77 on a GAAP basis and from $4.25 to $4.40 on a non-GAAP basis.

Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2026 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, July 30, 2026.

The conference call can be accessed by registering online at Dolby Laboratories Q3 Fiscal Year 2026 Financial Results, at which time registrants will receive dial-in information as well as a conference ID.

A live audio webcast of the conference call will be available at http://investor.dolby.com where it will be archived for one year.

Non-GAAP Financial Information

To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:

Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.

Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.

Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.

Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.

Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.

Forward-Looking Statements

Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2026 and full year fiscal 2026, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

About Dolby

Dolby Laboratories (NYSE: DLB) is a world leader in immersive entertainment. From movies and TV, to music, sports, gaming, and beyond, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide across all their favorite devices. We partner with artists, storytellers, and the brands you love to transform entertainment and digital experiences through groundbreaking innovations like Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.

Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts; unaudited)

		Fiscal Quarter Ended								Fiscal Year-To-Date Ended
		June 26, 2026				June 27, 2025				June 26, 2026				June 27, 2025
Revenue:
Licensing		$	282,351			$	289,905			$	974,367			$	966,390
Products and services			22,644				25,641				72,964				75,716
Total revenue			304,995				315,546				1,047,331				1,042,106
Cost of revenue:
Cost of licensing			22,718				21,713				67,523				62,508
Cost of products and services			17,601				22,289				60,735				58,105
Total cost of revenue			40,319				44,002				128,258				120,613
Gross profit			264,676				271,544				919,073				921,493
Operating expenses:
Research and development			65,749				65,982				198,477				194,327
Sales and marketing			85,071				86,163				272,786				270,191
General and administrative			75,585				72,307				221,783				212,814
Restructuring charges/(credits)			3,955				(547	)			16,605				8,879
Total operating expenses			230,360				223,905				709,651				686,211
Operating income			34,316				47,639				209,422				235,282
Other income/(expense):
Interest income/(expense), net			3,453				4,111				12,595				10,316
Other income, net			6,033				3,766				13,086				16,219
Total other income			9,486				7,877				25,681				26,535
Income before income taxes			43,802				55,516				235,103				261,817
Provision for income taxes			(14,588	)			(8,974	)			(56,754	)			(54,979	)
Net income including noncontrolling interest			29,214				46,542				178,349				206,838
Less: net income attributable to noncontrolling interest			(612	)			(471	)			(1,505	)			(1,152	)
Net income attributable to Dolby Laboratories, Inc.		$	28,602			$	46,071			$	176,844			$	205,686
Net income per share:
Basic		$	0.30			$	0.48			$	1.86			$	2.14
Diluted		$	0.30			$	0.48			$	1.84			$	2.11
Weighted-average shares outstanding:
Basic			94,242				95,897				94,975				95,947
Diluted			94,518				96,900				95,859				97,537

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

		June 26, 2026				September 26, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	669,394			$	701,893
Restricted cash			69,492				91,468
Short-term investments			652				703
Accounts receivable, net			285,148				331,096
Contract assets, net			206,881				180,804
Inventories, net			30,768				30,424
Prepaid expenses and other current assets			63,706				51,873
Total current assets			1,326,041				1,388,261
Long-term investments			86,437				80,205
Property, plant, and equipment, net			459,115				470,608
Operating lease right-of-use assets			42,401				33,204
Goodwill and intangible assets, net			910,777				926,957
Deferred taxes			213,171				214,361
Other non-current assets			118,660				114,164
Total assets		$	3,156,602			$	3,227,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	12,470			$	17,840
Accrued liabilities			360,407				369,256
Income taxes payable			—				8,928
Contract liabilities			33,593				31,382
Operating lease liabilities			9,859				10,384
Total current liabilities			416,329				437,790
Non-current contract liabilities			23,463				29,687
Non-current operating lease liabilities			37,591				28,494
Other non-current liabilities			86,504				99,843
Total liabilities			563,887				595,814
Stockholders’ equity:
Class A common stock			52				54
Class B common stock			40				40
Retained earnings			2,598,923				2,634,980
Accumulated other comprehensive loss			(15,468	)			(12,517	)
Total stockholders’ equity – Dolby Laboratories, Inc.			2,583,547				2,622,557
Noncontrolling interest			9,168				9,389
Total stockholders’ equity			2,592,715				2,631,946
Total liabilities and stockholders’ equity		$	3,156,602			$	3,227,760

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

		Fiscal Year-To-Date Ended
		June 26, 2026				June 27, 2025
Operating activities:
Net income including noncontrolling interest		$	178,349			$	206,838
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			70,842				65,829
Stock-based compensation			98,883				97,462
Amortization of operating lease right-of-use assets			7,889				8,193
Provision for credit losses			4,244				2,582
Deferred income taxes			1,542				(9,146	)
Share of net income of equity method investees, net of cash distributions			(7,602	)			1,845
Other non-cash items affecting net income			(1,289	)			(429	)
Changes in operating assets and liabilities:
Accounts receivable, net			1,489				15,234
Contract assets, net			(28,442	)			(6,902	)
Inventories			6,512				4,020
Operating lease right-of-use assets			(17,547	)			(1,717	)
Prepaid expenses and other assets			(31,999	)			28,003
Accounts payable and accrued liabilities			35,611				(48,979	)
Income taxes, net			(2,771	)			1,895
Contract liabilities			1,620				(1,061	)
Operating lease liabilities			9,036				(8,237	)
Other non-current liabilities			(11,600	)			(6,063	)
Net cash provided by operating activities			314,767				349,367
Investing activities:
Proceeds from sales of marketable securities			—				15,911
Proceeds from sale of assets held for sale			—				16,881
Purchases of property, plant, and equipment			(28,681	)			(20,104	)
Business combinations, net of cash and restricted cash acquired, and other related payments			—				(1,362	)
Purchases of intangible assets			(42,575	)			—
Proceeds from sale of intangible assets			16,623				—
Net cash provided by/(used in) investing activities			(54,633	)			11,326
Financing activities:
Proceeds from issuance of common stock			24,685				38,681
Repurchase of common stock			(200,001	)			(89,990	)
Payment of excise tax on repurchase of common stock			—				(261	)
Payment of cash dividend			(102,659	)			(95,010	)
Distributions to noncontrolling interest			(1,640	)			(1,449	)
Shares repurchased for tax withholdings on vesting of restricted stock			(33,113	)			(35,154	)
Net cash used in financing activities			(312,728	)			(183,183	)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash			(1,881	)			1,302
Net increase/(decrease) in cash, cash equivalents, and restricted cash			(54,475	)			178,812
Cash, cash equivalents, and restricted cash at beginning of period			793,361				577,752
Cash, cash equivalents, and restricted cash at end of period		$	738,886			$	756,564

Licensing Revenue by Market

(unaudited)

The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):

		Fiscal Quarter Ended																Fiscal Year-To-Date Ended
Market		June 26, 2026								June 27, 2025								June 26, 2026								June 27, 2025
Broadcast		$	106,579				38	%		$	111,286				38	%		$	326,041				33	%		$	321,297				33	%
Mobile			51,010				18	%			56,295				19	%			220,199				23	%			217,942				23	%
CE			31,506				11	%			28,071				10	%			118,057				12	%			115,668				12	%
PC			28,343				10	%			33,589				12	%			116,523				12	%			123,247				13	%
Other			64,913				23	%			60,664				21	%			193,547				20	%			188,236				19	%
Total licensing revenue		$	282,351				100	%		$	289,905				100	%		$	974,367				100	%		$	966,390				100	%

GAAP to Non-GAAP Reconciliations

(unaudited)

The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third quarters of fiscal 2026 and fiscal 2025:

Net income:		Fiscal Quarter Ended
(in thousands)		June 26, 2026				June 27, 2025
GAAP net income attributable to Dolby Laboratories, Inc.		$	28,602			$	46,071
Stock-based compensation (1)			30,964				30,728
Amortization of acquisition-related intangibles (2)			9,705				10,016
Restructuring charges/(credits)			3,955				(547	)
Income tax adjustments			(8,077	)			(10,606	)
Non-GAAP net income attributable to Dolby Laboratories, Inc.		$	65,149			$	75,662
(1) Stock-based compensation included in above line items:
Cost of products and services		$	440			$	420
Research and development			9,695				9,188
Sales and marketing			10,293				10,589
General and administrative			10,536				10,531
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing		$	6,590			$	6,610
Cost of products and services			768				753
Sales and marketing			352				340
General and administrative			1,554				1,872
Other income, net			441				441
Diluted earnings per share:		Fiscal Quarter Ended
		June 26, 2026				June 27, 2025
GAAP diluted earnings per share		$	0.30			$	0.48
Stock-based compensation			0.33				0.32
Amortization of acquisition-related intangibles			0.10				0.10
Restructuring charges/(credits)			0.04				(0.01	)
Income tax adjustments			(0.08	)			(0.11	)
Non-GAAP diluted earnings per share		$	0.69			$	0.78
Weighted-average shares outstanding - diluted (in thousands)			94,518				96,900

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of fiscal 2026 and full year fiscal 2026 included in this release:

Gross margin:		Q4 2026				Fiscal 2026
GAAP gross margin			88.0	%			88.0	%
Stock-based compensation			0.1	%			0.1	%
Amortization of acquisition-related intangibles			1.9	%			1.9	%
Non-GAAP gross margin			90.0	%			90.0	%
Operating expenses (in millions):		Q4 2026				Fiscal 2026
GAAP operating expenses (low - high end of range)		$	227 - $237			$	937 - $947
Stock-based compensation			(30	)			(127	)
Amortization of acquisition-related intangibles			(2	)			(8	)
Restructuring charges			—				(17	)
Non-GAAP operating expenses (low - high end of range)		$	195 - $205			$	785 - $795
Operating margin:						Fiscal 2026
GAAP operating margin							21	% +/-
Stock-based compensation							9	%
Amortization of acquisition-related intangibles							3	%
Restructuring charges							1	%
Non-GAAP operating margin							34	% +/-
Effective tax rate:		Q4 2026				Fiscal 2026
GAAP effective tax rate			23.0	%			24.0	%
Stock-based compensation (low - high end of range)			(2%) - 1	%			(2%) - 0	%
Amortization of acquisition-related intangibles (low - high end of range)			(1%) - 0	%			(1%) - 0	%
Non-GAAP effective tax rate			21.0	%			21.0	%

Diluted earnings per share:		Q4 2026								Fiscal 2026
		Low				High				Low				High
GAAP diluted earnings per share (low - high end of range)		$	0.78			$	0.93			$	2.62			$	2.77
Stock-based compensation (low - high end of range)			0.32				0.32				1.33				1.33
Amortization of acquisition-related intangibles (low - high end of range)			0.10				0.10				0.41				0.41
Restructuring charges (low - high end of range)			—				—				0.18				0.18
Income tax adjustments (low - high end of range)			(0.07	)			(0.07	)			(0.29	)			(0.29	)
Non-GAAP diluted earnings per share (low - high end of range)		$	1.13			$	1.28			$	4.25			$	4.40
Weighted-average shares outstanding - diluted (in thousands)			93,600				93,600				95,200				95,200

Investor Contact:

Peter Goldmacher

415-254-7415

peter.goldmacher@dolby.com

Media Contact:

media@dolby.com

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