Filing Flows › Dolby Laboratories (DLB) › Q3 FY26 › vs Q2 FY26
Dolby Laboratories (DLB) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Dolby Laboratories's revenue fell $90.6M (-23%) from $396M in Q2 FY26 to $305M in Q3 FY26. The biggest changes: Licensing −$89.9M (-24%); Products and services −$741K (-3%). Gross margin 86.8% against 88.7% (-1.9 pts).
Dolby Laboratories, Q3 FY26: revenue $305M (-3% year over year), operating margin 11.3%, net earnings $28.6M, operating cash flow $167M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 86.8% | 88.7% | -1.9 pts |
| Operating margin | 11.3% | 28.5% | -17.3 pts |
| Net margin | 9.4% | 24.0% | -14.6 pts |
| Free cash flow margin | 50.0% | 21.1% | +28.9 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Broadcast | $107M | $119M | −$12.6M | -11% |
| Other | $64.9M | $58.4M | $6.5M | +11% |
| Mobile | $51.0M | $94.2M | −$43.2M | -46% |
| CE | $31.5M | $40.9M | −$9.4M | -23% |
| PC | $28.3M | $59.5M | −$31.1M | -52% |
| Licensing | $282M | $372M | −$89.9M | -24% |
| Products and services | $22.6M | $23.4M | −$741K | -3% |
| Revenue | $305M | $396M | −$90.6M | -23% |
| Gross profit | $265M | $351M | −$86.2M | -25% |
| Cost of revenue | $40.3M | $44.7M | −$4.4M | -10% |
| Other income, net | $9.5M | $6.8M | $2.7M | +40% |
| Operating profit | $34.3M | $113M | −$78.6M | -70% |
| Operating expenses | $230M | $238M | −$7.6M | -3% |
| Pre-tax earnings | $43.8M | $120M | −$75.9M | -63% |
| Research & development | $65.7M | $63.7M | $2.1M | +3% |
| Sales & marketing | $85.1M | $96.2M | −$11.1M | -12% |
| General & admin | $75.6M | $76.0M | −$370K | -0.5% |
| Other operating costs | $4.0M | $2.2M | $1.8M | +81% |
| Net earnings | $28.6M | $94.9M | −$66.3M | -70% |
| Minority interests | $612K | $539K | $73K | +14% |
| Income tax | $14.6M | $24.2M | −$9.7M | -40% |
| Depreciation & amortization | $22.6M | $24.1M | −$1.5M | -6% |
| Share-based compensation | $31.0M | $30.7M | $256K | +0.8% |
| Working capital & other | $85.3M | −$57.2M | $143M | — |
| Operating cash flow | $167M | $92.5M | $75.0M | +81% |
| Free cash flow (OCF − capex) | $152M | $83.4M | $69.0M | +83% |
| Capital expenditures | $15.0M | $9.1M | $5.9M | +65% |
Questions
How much did Dolby Laboratories's revenue grow quarter over quarter in Q3 FY26?
Dolby Laboratories's revenue fell $90.6M (-23%) from $396M in Q2 FY26 to $305M in Q3 FY26.
What drove Dolby Laboratories's revenue change in Q3 FY26?
Licensing −$89.9M (-24%); Products and services −$741K (-3%).