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Dolby Laboratories (DLB) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Jul 31, 2025
Dolby Laboratories (DLB) reported revenue of $316M for the third quarter fiscal 2025 (Q3 FY25), +9% from a year earlier and -15% from the quarter before. Operating margin was 15.1%, net earnings $46.1M (14.6% of revenue).
Dolby Laboratories, Q3 FY25: revenue $316M (+9% year over year), operating margin 15.1%, net earnings $46.1M, operating cash flow $67.7M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $316M | -15% | +9% |
| Gross profit | $272M | -19% | +7% |
| Operating profit | $47.6M | -56% | +30% |
| Net earnings | $46.1M | -50% | +20% |
| Operating cash flow | $67.7M | -61% | +218% |
| Free cash flow | $61.3M | -64% | +349% |
What changed
Revenue was $315.5M in Q3 FY25, up 9% year over year and down 15% from the previous quarter. Broadcast was the largest line at 35% of revenue. Broadcast added $15.9M year over year (up 17%), 59% of the total change. Mobile declined 11%.
Gross margin was 86.1%, down 1.6 points from a year earlier. Operating profit was $47.6M, a 15.1% margin (up 2.4 points year over year). Of the extra revenue versus a year earlier, 41% reached operating profit, above the 13% margin then. Operating expenses grew 3% against revenue growth of 9%. The fastest-growing cost line was Sales & marketing (+11%). Net earnings were $46.1M, up 20% year over year. The effective tax rate was 16.2%.
Operating cash flow was $67.7M (up 218% year over year), 145% of net earnings. Non-cash charges added back $21.9M of depreciation and amortization and $30.7M of share-based compensation. Working capital and other items used $31.5M. Capital expenditures of $6.4M left free cash flow of $61.3M.
Questions
What was Dolby Laboratories' revenue in the third quarter fiscal 2025?
Dolby Laboratories (DLB) reported revenue of $316M for the third quarter fiscal 2025 (Q3 FY25), +9% from a year earlier and -15% from the quarter before.
Was Dolby Laboratories profitable in the third quarter fiscal 2025?
Operating profit was $47.6M (15.1% of revenue) and net earnings $46.1M.
Source: Dolby Laboratories 10-Q on SEC EDGAR.