Dolby Laboratories, Inc.
- Open
- 53.22
- Day high
- 53.50
- Day low
- 52.76
- Prev close
- 52.58
- Volume
- 200K
- Mkt cap
- $5.0B
- P/E (TTM)
- 20.8
- EPS (TTM)
- $2.56
- P/B
- 1.9
- P/S
- 3.7
- Yield
- 2.65%
- Per share
- $1.41
- ▼Insiders net selling -$1.9M over the last 3 months (0 open-market buys, 8 sales)
- 🏛Institutions mixed (13F)
Dolby Laboratories, Inc. (DLB) is a Technology company listed on NYSE. The stock is down 30% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 8 sales (SEC Form 4).
Dolby Laboratories, Inc. (DLB) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DLB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $1.31 | $1.37 | +4.6% | $396M | +2.5% |
| Jan 29, 2026 | $0.99 | $1.06 | +6.7% | $347M | +1.6% |
| Nov 18, 2025 | $0.70 | $0.99 | +41.6% | $307M | +0.4% |
| Jul 31, 2025 | $0.72 | $0.78 | +8.3% | $316M | +3.2% |
| May 1, 2025 | $1.29 | $1.34 | +3.9% | $370M | +21.1% |
| Jan 29, 2025 | $1.07 | $1.14 | +6.5% | $357M | -7.0% |
| Nov 19, 2024 | $0.70 | $0.81 | +15.7% | $305M | -1.0% |
| May 2, 2024 | $1.19 | $1.27 | +6.7% | $365M | +1.4% |
| Feb 1, 2024 | $0.89 | $1.01 | +13.5% | $316M | +0.9% |
| Nov 16, 2023 | $0.52 | $0.65 | +25.0% | $291M | +0.1% |
| Aug 3, 2023 | $0.55 | $0.55 | +0.0% | $298M | +6.4% |
| May 4, 2023 | $0.98 | $1.26 | +28.6% | $376M | +7.4% |
DLB insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 27, 2026 | Pendleton Toddofficer: SVP, Chief Marketing Officer | Sell | 11,876 | $54.55 |
| May 19, 2026 | Revankar Shriramofficer: SVP, Advanced Technology Group | Sell | 3,000 | $54.90 |
| May 19, 2026 | Revankar Shriramofficer: SVP, Advanced Technology Group | Tax | 4,329 | $54.21 |
| May 14, 2026 | Park Robert Jofficer: SVP & Chief Financial Officer | Sell | 391 | $57.35 |
| May 14, 2026 | Park Robert Jofficer: SVP & Chief Financial Officer | Sell | 4,504 | $56.62 |
| May 6, 2026 | Couling John Dofficer: SVP, Entertainment | Option | 7,666 | $45.50 |
| May 6, 2026 | Couling John Dofficer: SVP, Entertainment | Sell | 6,928 | $57.47 |
| May 6, 2026 | Couling John Dofficer: SVP, Entertainment | Sell | 4,688 | $58.47 |
| May 6, 2026 | Couling John Dofficer: SVP, Entertainment | Sell | 738 | $58.34 |
| Apr 3, 2026 | Rollins Emilydirector | Sell | 1,000 | $60.08 |
| Feb 17, 2026 | Nicholson Ryanofficer: VP, CAO and Corp. Controller | Sell | 2,667 | $66.38 |
| Feb 17, 2026 | Revankar Shriramofficer: SVP, Advanced Technology Group | Sell | 3,000 | $66.14 |
| Feb 17, 2026 | Nicholson Ryanofficer: VP, CAO and Corp. Controller | Option | 2,667 | $45.50 |
| Feb 5, 2026 | Dolby Daviddirector, 10 percent owner: | Grant | 3,908 | — |
| Feb 5, 2026 | Sud Anjalidirector | Grant | 3,908 | — |
Source: DLB SEC Form 4 filings, latest May 27, 2026. For informational purposes only — not investment advice.
See the full DLB insider & 13F page →Dolby Laboratories, Inc. company profile
Overview
Dolby Laboratories, Inc. (NASDAQ:DLB) is a leading audio and imaging technology company founded in 1965 by Ray Dolby in London, England, and later headquartered in San Francisco, California. The company went public in 2005 and has established itself as a pioneer in entertainment technology, creating the audio and visual standards that define modern cinema, television, music, and digital media experiences. Dolby is best known for developing breakthrough technologies like Dolby Atmos surround sound and Dolby Vision high dynamic range imaging that have become industry standards across entertainment platforms worldwide.
Business
Dolby Laboratories operates in the entertainment technology sector, developing and licensing audio and imaging technologies that enhance content creation, distribution, and playback across multiple industries. The company's business is structured around two primary segments that generate distinct revenue streams. The Licensing segment represents approximately 93% of total revenue and focuses on intellectual property licensing of Dolby's patented technologies. This segment is further divided into two categories: Foundational Audio Technologies, which includes established codec standards like Dolby Digital and AAC that provide the basic audio infrastructure for digital media, accounting for roughly 60% of licensing revenue; and Dolby Atmos, Dolby Vision, and Imaging Patents, representing the company's newer premium technologies that deliver immersive audio and enhanced visual experiences, contributing about 40% of licensing revenue. The Products and Services segment comprises the remaining 7% of revenue and involves manufacturing and selling hardware equipment including digital cinema servers, audio processors, amplifiers, and conferencing solutions primarily to movie theaters, broadcast facilities, and production studios. This segment also provides technical services to support content creation and distribution. Dolby's core technologies serve as the backbone for digital entertainment. Dolby Atmos is an object-based surround sound technology that creates three-dimensional audio experiences by placing sounds precisely in space rather than just through traditional channel-based systems. Dolby Vision is a high dynamic range (HDR) imaging technology that delivers enhanced brightness, contrast, and color accuracy for visual content. These technologies require specialized encoding during content creation and compatible hardware for playback, creating a comprehensive ecosystem that spans from Hollywood studios to consumer devices.
Revenue model
Dolby generates revenue primarily through intellectual property licensing, operating on a royalty-based business model where device manufacturers, content creators, and service providers pay licensing fees to incorporate Dolby's patented technologies into their products and services. The company receives per-unit royalties when manufacturers ship devices with Dolby technologies embedded, such as smartphones, televisions, gaming consoles, set-top boxes, and automotive systems. Additionally, Dolby earns revenue from content licensing when streaming services, broadcasters, and production studios use Dolby's encoding technologies. The company's customers span the entire entertainment value chain, including major device manufacturers like Samsung, LG, Apple, and Xiaomi; streaming platforms such as Netflix, Amazon Prime, and Disney+; automotive manufacturers including Mercedes-Benz, NIO, and General Motors; and content creators from Hollywood studios to independent music artists. Over 90% of Billboard's global Top 100 artists now release music in Dolby Atmos, demonstrating the technology's broad adoption. Several factors influence Dolby's revenue margins and growth trajectory. Positive drivers include the ongoing transition to premium audio and visual experiences in entertainment, expansion into new markets like automotive and mobile devices, growing adoption of streaming services that support Dolby technologies, and the shift toward immersive content in sports and music. The company benefits from increasing consumer expectations for high-quality audio-visual experiences and the proliferation of content creation tools that make Dolby technologies more accessible. Margin pressures come from macroeconomic headwinds affecting consumer electronics demand, pricing competition in foundational audio technologies as patents mature, potential market saturation in traditional segments like broadcast television, and the cyclical nature of device refresh cycles. The company also faces challenges from alternative audio and imaging standards, though Dolby's market position remains strong due to widespread industry adoption and content ecosystem effects.
Competitive moat
Dolby possesses a substantial competitive moat built on multiple reinforcing factors that create high barriers to entry and switching costs for customers. The company's primary moat stems from its extensive patent portfolio covering fundamental audio and imaging technologies, with many patents extending well into the future and continuous innovation adding new intellectual property protections. The most significant aspect of Dolby's moat is the network effect created by its two-sided ecosystem. Content creators adopt Dolby technologies to reach audiences with premium experiences, while device manufacturers integrate Dolby capabilities to play this content, creating a self-reinforcing cycle. With over 1,200 studios worldwide equipped with Dolby Atmos and major streaming platforms supporting Dolby formats, the switching costs for the industry to adopt alternative standards are prohibitively high. Brand recognition and quality standards provide additional protection, as Dolby has become synonymous with premium audio and visual quality over nearly six decades. The "Dolby" brand carries significant consumer recognition and trust, making device manufacturers willing to pay licensing fees for the marketing value alone. The company's deep technical expertise and relationships with major entertainment companies create additional switching costs and competitive advantages. However, Dolby's moat faces some challenges. The foundational audio technologies represent a mature market with declining growth, and some patents in this area are approaching expiration. Competition exists from open-source alternatives and other proprietary standards, particularly in emerging markets where cost sensitivity is higher. Technology giants like Apple, Google, and Amazon have the resources to develop competing standards, though they have generally chosen to license Dolby technologies rather than compete directly. The strength of Dolby's moat varies by market segment, with the strongest protection in premium entertainment applications and somewhat weaker positions in commodity audio applications where price sensitivity is higher.
Risks & safety
Dolby demonstrates a strong financial position with substantial margin of safety across multiple metrics: **Cash Position and Solvency:** - Cash and short-term investments of $578 million as of Q4 2024 - Minimal debt with debt-to-equity ratio of just 0.019 - Strong current ratio of 2.86 indicating solid liquidity - Positive free cash flow of $297 million for fiscal 2024 - No significant solvency risk given strong balance sheet **Valuation Metrics:** - Price-to-earnings ratio of 20.0 based on fiscal 2024 results - EV/EBITDA of 26.3, reflecting premium valuation for technology company - Price-to-book ratio of 2.92 - Graham number of $46.92 compared to current price around $71, suggesting modest overvaluation by traditional value metrics **Other Considerations:** - Recurring revenue model provides predictable cash flows - Strong return on equity of 14.6% for fiscal 2024 - Conservative capital allocation with focus on acquisitions and R&D investment - Limited capital intensity due to asset-light licensing model
Recent development
Over the past few years, Dolby has executed several strategic initiatives to expand beyond its traditional entertainment markets and strengthen its technology portfolio. The company has made significant investments in the automotive sector, growing from 10 OEM partners to over 20 partners by 2024, including luxury brands like Mercedes-Benz and emerging electric vehicle manufacturers like NIO, Rivian, and Lucid Motors. This expansion represents a major growth opportunity as automotive manufacturers increasingly differentiate through premium audio experiences. Strategic acquisitions have played a key role in Dolby's evolution. The company acquired GE Licensing to strengthen its imaging patent portfolio, providing additional intellectual property assets for licensing. More significantly, Dolby acquired THEO Technologies for $55 million to enhance its Dolby.io platform, which targets real-time streaming and interactive digital experiences. These acquisitions support Dolby's expansion into new markets like sports betting, gaming, and live streaming applications. The company has also focused on content ecosystem expansion, with over 90% of Billboard's global Top 100 artists now releasing music in Dolby Atmos, compared to much lower penetration just a few years ago. Major sports organizations and streaming platforms have adopted Dolby technologies for live sports broadcasting, creating new revenue streams and demonstrating the versatility of Dolby's technologies beyond traditional entertainment. Mobile and emerging market expansion has accelerated through partnerships with manufacturers like OPPO, Xiaomi, Honor, and Transsion, bringing Dolby technologies to more affordable devices and reaching consumers in developing markets. The company has also strengthened its position in connected TV platforms and streaming services, ensuring its technologies remain relevant as entertainment consumption shifts toward digital platforms.
DLB company profile · for informational purposes only — not investment advice.
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