Dolby posts Q2 2026 results and dividend

Dolby Laboratories reported modestly higher results for its second quarter of fiscal 2026 and maintained its dividend.

Rhea-AI Filing Summary

Dolby Laboratories reported modestly higher results for its second quarter of fiscal 2026 and maintained its dividend. Total revenue was $395.6 million, up from $369.6 million a year earlier, driven mainly by licensing revenue of $372.2 million. GAAP net income attributable to Dolby was $94.9 million, compared with $91.8 million, and GAAP diluted EPS was $0.99. Non-GAAP net income reached $131.3 million with non-GAAP diluted EPS of $1.37. Year-to-date operating cash flow was $147.3 million. The company declared a quarterly cash dividend of $0.36 per share on Class A and B stock, payable on May 20, 2026 to stockholders of record on May 12, 2026. For fiscal 2026, Dolby targets a GAAP gross margin of 88%, non-GAAP gross margin of 90%, GAAP operating margin around 21% and non-GAAP operating margin around 34%, with GAAP diluted EPS guidance of $2.66–$2.81 and non-GAAP diluted EPS of $4.30–$4.45.

Insights

Equity research analyst

Dolby posts steady Q2 growth, strong margins and continues shareholder returns.

Dolby Laboratories delivered Q2 2026 revenue of $395.6M, up from $369.6M, with licensing still the core at $372.2M. GAAP net income was $94.9M and non-GAAP net income was $131.3M, reflecting sizeable add-backs for stock-based compensation and amortization.

GAAP diluted EPS reached $0.99, while non-GAAP diluted EPS was $1.37. The outlook calls for fiscal 2026 GAAP operating margin around 21% and non-GAAP around 34%, plus GAAP EPS of $2.66–$2.81 and non-GAAP EPS of $4.30–$4.45, indicating continued profitability.

Cash, cash equivalents and restricted cash totaled $673.8M as of March 27, 2026, after year-to-date share repurchases of $135.0M and dividends of $68.7M. The quarterly dividend of $0.36 per share, payable on May 20, 2026, underscores an ongoing capital-return approach, while future performance will be influenced by royalty trends and broader macroeconomic conditions referenced in the outlook.

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, or exhibit attachments filed with this report.

Key Figures

Q2 2026 total revenue: $395.6M Q2 2026 licensing revenue: $372.2M Q2 2026 GAAP net income: $94.9M +5 more

8 metrics

Q2 2026 total revenue $395.6M Quarter ended March 27, 2026

Q2 2026 licensing revenue $372.2M Quarter ended March 27, 2026

Q2 2026 GAAP net income $94.9M Attributable to Dolby Laboratories, Inc.

Q2 2026 GAAP diluted EPS $0.99/share Quarter ended March 27, 2026

Q2 2026 non-GAAP diluted EPS $1.37/share Quarter ended March 27, 2026

Quarterly dividend $0.36/share Payable May 20, 2026 to holders of record May 12, 2026

Operating cash flow YTD $147.3M Fiscal year-to-date ended March 27, 2026

Share repurchases YTD $135.0M Repurchase of common stock fiscal year-to-date 2026

Key Terms

non-GAAP financial measures, stock-based compensation, amortization of acquisition-related intangibles, restructuring charges, +2 more

6 terms

non-GAAP financial measures financial

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

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

stock-based compensation financial

"Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures 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.

amortization of acquisition-related intangibles financial

"Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations."

Amortization of acquisition-related intangibles is the routine accounting charge that spreads the purchase cost of non-physical assets acquired in a business deal—like brand names, customer lists, or patents—over their useful life. Think of it like writing off the cost of a recipe or trademark a little each year; it lowers reported profits without using cash, so investors watch it to separate accounting effects from actual cash performance and to assess long-term value from the acquisition.

restructuring charges financial

"Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities."

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

"Operating margin: Fiscal 2026 GAAP operating margin 21% +/- ... Non-GAAP operating margin 34% +/-"

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

"Effective tax rate: Q3 2026 GAAP effective tax rate 23.0% ... Non-GAAP effective tax rate 21.0%"

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

Revenue: $395.6M

Q2 2026

Revenue $395.6M

GAAP diluted EPS $0.99

Non-GAAP diluted EPS $1.37

GAAP net income $94.9M

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Dolby Laboratories (DLB) perform in Q2 fiscal 2026?

Dolby reported Q2 2026 revenue of $395.6 million, up from $369.6 million a year earlier, with licensing contributing $372.2 million. GAAP net income attributable to Dolby was $94.9 million and GAAP diluted EPS was $0.99, while non-GAAP diluted EPS reached $1.37.

What dividend did Dolby Laboratories (DLB) declare with its Q2 2026 results?

Dolby declared a quarterly cash dividend of $0.36 per share on its Class A and Class B common stock. The dividend is payable on May 20, 2026 to stockholders of record at the close of business on May 12, 2026.

What guidance did Dolby Laboratories (DLB) give for fiscal 2026 earnings?

For fiscal 2026, Dolby expects GAAP diluted EPS between $2.66 and $2.81 and non-GAAP diluted EPS between $4.30 and $4.45. Management also targets a GAAP operating margin of about 21% and a non-GAAP operating margin of about 34% for the year.

How strong are Dolby Laboratories’ (DLB) margins and cash generation?

Dolby posted Q2 2026 gross profit of $350.9 million on revenue of $395.6 million, indicating a high gross margin. Year-to-date, net cash provided by operating activities was $147.3 million, supporting ongoing investments, share repurchases, and dividend payments.

What were key operating expense and restructuring trends for Dolby (DLB)?

In Q2 2026, Dolby’s total operating expenses were $238.0 million, including research and development of $63.7 million, sales and marketing of $96.2 million, general and administrative of $76.0 million, and restructuring charges of $2.2 million, which are excluded in certain non-GAAP measures.

How much cash and liquidity does Dolby Laboratories (DLB) have?

As of March 27, 2026, Dolby held $594.3 million in cash and cash equivalents and $79.5 million in restricted cash, plus $81.2 million in long-term investments. Total assets were $3.25 billion, supporting operational needs and capital-return actions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 04/30/2026 - 04:15 PM Learn about SEC filing dates

false 0001308547 0001308547 2026-04-30 2026-04-30

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):

April 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 April 30, 2026, Dolby Laboratories, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal quarter ended March 27, 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 April 30, 2026, the Company announced a cash dividend of $0.36 per share of Class A and Class B Common Stock, payable on May 20, 2026 to stockholders of record as of the close of business on May 12, 2026.

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 April 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: April 30, 2026

Exhibit 99.1

Dolby Laboratories Reports Second Quarter 2026 Financial Results

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

“We continue to strengthen our position and create growth opportunities across existing and new business areas,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter, we continued to expand our reach especially in sports with events like the Super Bowl, Winter Olympics and T20 Cricket World Cup available in Dolby and automotive with automakers including BMW and Lexus integrating Dolby into their in-car experiences.”

Second Quarter Fiscal 2026 Financial Highlights

• Total revenue was $396 million, compared to $370 million for the second quarter of fiscal 2025.

• GAAP net income was $95 million or $0.99 per diluted share, compared to GAAP net income of $92 million or $0.94 per diluted share for the second quarter of fiscal 2025. On a non-GAAP basis, second quarter net income was $131 million or $1.37 per diluted share, compared to $131 million or $1.34 per diluted share for the second quarter of fiscal 2025.

• Dolby repurchased approximately one million shares of its common stock for approximately $65 million, and ended the quarter with approximately $142 million of stock repurchase authorization available going forward.

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

Recent Business Highlights

• Various sporting events were shown in Dolby Atmos and/or Dolby Vision including the Super Bowl, the 2026 Olympic Winter Games, and the ICC Men’s T20 Cricket World Cup. Apple TV is streaming Formula One in Dolby Vision.

• At the 2026 Beijing International Automotive Exhibition (Auto China 2026), BMW and Dolby announced the launch of Dolby Atmos in the new BMW 7 Series and the new BMW iX3 Long Wheelbase.

• Douyin, the Chinese version of TikTok, is fully supporting content in Dolby Vision.

• Hisense, TCL and Philips have announced plans to release a wide range of Dolby Vision 2 enabled TVs globally by the end of the year, with Peacock and Canal+ committed to delivering content.

• Sharp and SK Planet joined the Video Distribution Program, bringing the licensor total to 40.

Dividend

Today, Dolby announced a cash dividend of $0.36 per share of Class A and Class B common stock, payable on May 20, 2026, to stockholders of record as of the close of business on May 12, 2026.

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 second quarter of fiscal 2026, to be filed on or around the date hereof.

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

• Total revenue is estimated to range from $295 million to $325 million.

• Licensing revenue is estimated to range from $270 million to $300 million.

• Gross margins are anticipated to be approximately 86% on a GAAP basis and approximately 88% on a non-GAAP basis.

• Operating expenses are anticipated to range from $235 million to $245 million on a GAAP basis and from $200 million to $210 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 $0.19 to $0.34 on a GAAP basis and from $0.56 to $0.71 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 $1.40 billion to $1.45 billion.

• Licensing revenue is estimated to range from $1.295 billion to $1.345 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 $930 million to $950 million on a GAAP basis and from $780 million to $800 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 23% on a GAAP basis and around 20% on a non-GAAP basis.

• Diluted earnings per share is anticipated to range from $2.66 to $2.81 on a GAAP basis and from $4.30 to $4.45 on a non-GAAP basis.

Conference Call Information

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

The conference call can be accessed by registering online at Dolby Laboratories Q2 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 third 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
		March 27, 2026				March 28, 2025				March 27, 2026				March 28, 2025
Revenue:
Licensing		$	372,245			$	346,006			$	692,016			$	676,485
Products and services			23,385				23,555				50,320				50,075
Total revenue			395,630				369,561				742,336				726,560
Cost of revenue:
Cost of licensing			24,043				19,685				44,805				40,795
Cost of products and services			20,688				16,152				43,134				35,816
Total cost of revenue			44,731				35,837				87,939				76,611
Gross profit			350,899				333,724				654,397				649,949
Operating expenses:
Research and development			63,651				61,707				132,728				128,345
Sales and marketing			96,163				89,629				187,715				184,028
General and administrative			75,955				70,415				146,198				140,507
Restructuring charges			2,184				4,210				12,650				9,426
Total operating expenses			237,953				225,961				479,291				462,306
Operating income			112,946				107,763				175,106				187,643
Other income/(expense):
Interest income/(expense), net			5,024				3,559				9,142				6,205
Other income, net			1,729				8,928				7,053				12,453
Total other income			6,753				12,487				16,195				18,658
Income before income taxes			119,699				120,250				191,301				206,301
Provision for income taxes			(24,245	)			(28,024	)			(42,166	)			(46,005	)
Net income including noncontrolling interest			95,454				92,226				149,135				160,296
Less: net income attributable to noncontrolling interest			(539	)			(433	)			(893	)			(681	)
Net income attributable to Dolby Laboratories, Inc.		$	94,915			$	91,793			$	148,242			$	159,615
Net income per share:
Basic		$	1.00			$	0.95			$	1.55			$	1.66
Diluted		$	0.99			$	0.94			$	1.54			$	1.64
Weighted-average shares outstanding:
Basic			95,218				96,329				95,342				95,972
Diluted			95,515				97,471				96,273				97,581

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

		March 27, 2026				September 26, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	594,282			$	701,893
Restricted cash			79,523				91,468
Short-term investments			460				703
Accounts receivable, net			391,293				331,096
Contract assets, net			238,924				180,804
Inventories, net			31,929				30,424
Prepaid expenses and other current assets			78,298				51,873
Total current assets			1,414,709				1,388,261
Long-term investments			81,220				80,205
Property, plant, and equipment, net			461,841				470,608
Operating lease right-of-use assets			44,759				33,204
Goodwill and intangible assets, net			919,378				926,957
Deferred taxes			209,321				214,361
Other non-current assets			118,266				114,164
Total assets		$	3,249,494			$	3,227,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	20,688			$	17,840
Accrued liabilities			405,200				369,256
Income taxes payable			15				8,928
Contract liabilities			38,837				31,382
Operating lease liabilities			9,866				10,384
Total current liabilities			474,606				437,790
Non-current contract liabilities			24,084				29,687
Non-current operating lease liabilities			39,826				28,494
Other non-current liabilities			83,846				99,843
Total liabilities			622,362				595,814
Stockholders’ equity:
Class A common stock			53				54
Class B common stock			40				40
Retained earnings			2,630,175				2,634,980
Accumulated other comprehensive loss			(12,276	)			(12,517	)
Total stockholders’ equity – Dolby Laboratories, Inc.			2,617,992				2,622,557
Noncontrolling interest			9,140				9,389
Total stockholders’ equity			2,627,132				2,631,946
Total liabilities and stockholders’ equity		$	3,249,494			$	3,227,760

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

		Fiscal Year-To-Date Ended
		March 27, 2026				March 28, 2025
Operating activities:
Net income including noncontrolling interest		$	149,135			$	160,296
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			48,242				43,899
Stock-based compensation			67,919				66,734
Amortization of operating lease right-of-use assets			5,417				5,725
Provision for credit losses			3,691				1,967
Deferred income taxes			5,212				(3,741	)
Share of net income of equity method investees, net of cash distributions			(1,933	)			(1,325	)
Other non-cash items affecting net income			(1,741	)			(443	)
Changes in operating assets and liabilities:
Accounts receivable, net			(104,083	)			(420	)
Contract assets, net			(60,474	)			(32,864	)
Inventories			3,853				(1,155	)
Operating lease right-of-use assets			(17,177	)			(1,608	)
Prepaid expenses and other assets			(33,842	)			26,577
Accounts payable and accrued liabilities			82,873				27,267
Income taxes, net			(6,067	)			5,906
Contract liabilities			7,478				3,282
Operating lease liabilities			11,029				(5,682	)
Other non-current liabilities			(12,227	)			(12,739	)
Net cash provided by operating activities			147,305				281,676
Investing activities:
Proceeds from sales of marketable securities			—				15,911
Proceeds from sale of assets held for sale			—				16,881
Proceeds from sale of intangible assets			6,623				—
Purchases of property, plant, and equipment			(13,690	)			(13,676	)
Business combinations, net of cash and restricted cash acquired, and other related payments			—				(1,362	)
Purchases of intangible assets			(37,775	)			—
Net cash provided by/(used in) investing activities			(44,842	)			17,754
Financing activities:
Proceeds from issuance of common stock			15,293				26,124
Repurchase of common stock			(135,004	)			(49,999	)
Payment of excise tax on repurchase of common stock			—				(261	)
Payment of cash dividend			(68,674	)			(63,377	)
Distributions to noncontrolling interest			(1,106	)			(981	)
Shares repurchased for tax withholdings on vesting of restricted stock			(32,222	)			(33,950	)
Net cash used in financing activities			(221,713	)			(122,444	)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash			(306	)			(4,396	)
Net increase/(decrease) in cash, cash equivalents, and restricted cash			(119,556	)			172,590
Cash, cash equivalents, and restricted cash at beginning of period			793,361				577,752
Cash, cash equivalents, and restricted cash at end of period		$	673,805			$	750,342

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		March 27, 2026								March 28, 2025								March 27, 2026								March 28, 2025
Broadcast		$	119,199				32	%		$	94,249				27	%		$	219,462				32	%		$	210,011				31	%
Mobile			94,240				25	%			100,123				29	%			169,189				24	%			161,647				24	%
CE			40,949				11	%			38,140				11	%			86,551				13	%			87,597				13	%
PC			59,463				16	%			58,402				17	%			88,180				13	%			89,658				13	%
Other			58,394				16	%			55,092				16	%			128,634				18	%			127,572				19	%
Total licensing revenue		$	372,245				100	%		$	346,006				100	%		$	692,016				100	%		$	676,485				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 second quarters of fiscal 2026 and fiscal 2025:

Net income:		Fiscal Quarter Ended
(in thousands)		March 27, 2026				March 28, 2025
GAAP net income attributable to Dolby Laboratories, Inc.		$	94,915			$	91,793
Stock-based compensation (1)			30,708				30,664
Amortization of acquisition-related intangibles (2)			9,713				10,078
Restructuring charges			2,184				4,210
Income tax adjustments			(6,190	)			(6,017	)
Non-GAAP net income attributable to Dolby Laboratories, Inc.		$	131,330			$	130,728
(1) Stock-based compensation included in above line items:
Cost of products and services		$	424			$	414
Research and development			9,807				9,043
Sales and marketing			10,216				10,640
General and administrative			10,261				10,567
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing		$	6,589			$	6,720
Cost of products and services			772				728
Sales and marketing			356				317
General and administrative			1,555				1,872
Other income, net			441				441
Diluted earnings per share:		Fiscal Quarter Ended
		March 27, 2026				March 28, 2025
GAAP diluted earnings per share		$	0.99			$	0.94
Stock-based compensation			0.32				0.32
Amortization of acquisition-related intangibles			0.10				0.10
Restructuring charges			0.02				0.04
Income tax adjustments			(0.06	)			(0.06	)
Non-GAAP diluted earnings per share		$	1.37			$	1.34
Weighted-average shares outstanding - diluted (in thousands)			95,515				97,471

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of fiscal 2026 and full year fiscal 2026 included in this release:
Gross margin:		Q3 2026				Fiscal 2026
GAAP gross margin			86.0%				88.0%
Stock-based compensation			0.1%				0.1%
Amortization of acquisition-related intangibles			1.9%				1.9%
Non-GAAP gross margin			88.0%				90.0%
Operating expenses (in millions):		Q3 2026				Fiscal 2026
GAAP operating expenses (low - high end of range)		$	235 - $245			$	930 - $950
Stock-based compensation			(32)				(128)
Amortization of acquisition-related intangibles			(3)				(9)
Restructuring charges			—				(13)
Non-GAAP operating expenses (low - high end of range)		$	200 - $210			$	780 - $800
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:		Q3 2026				Fiscal 2026
GAAP effective tax rate			23.0%				23.0%
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%				20.0%

Diluted earnings per share:		Q3 2026								Fiscal 2026
		Low				High				Low				High
GAAP diluted earnings per share (low - high end of range)		$	0.19			$	0.34			$	2.66			$	2.81
Stock-based compensation			0.34				0.34				1.34				1.34
Amortization of acquisition-related intangibles			0.11				0.11				0.43				0.43
Restructuring charges			—				—				0.13				0.13
Income tax adjustments			(0.08	)			(0.08	)			(0.26	)			(0.26	)
Non-GAAP diluted earnings per share (low - high end of range)		$	0.56			$	0.71			$	4.30			$	4.45
Weighted-average shares outstanding - diluted (in thousands)			95,000				95,000				95,700				95,700

Investor Contact:

Peter Goldmacher

415-254-7415

peter.goldmacher@dolby.com

Media Contact:

media@dolby.com

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