Filing Flows › Dolby Laboratories (DLB) › Q3 FY26 › vs Q3 FY25
Dolby Laboratories (DLB) Q3 FY26 vs Q3 FY25 (year over year)
Dolby Laboratories's revenue fell $10.6M (-3%) from $316M in Q3 FY25 to $305M in Q3 FY26. The biggest changes: Licensing −$7.6M (-3%); Products and services −$3.0M (-12%). Gross margin 86.8% against 86.1% (+0.7 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 Q3 FY25, the increases inside each band.
Margins
| Q3 FY26 | Q3 FY25 | Change | |
|---|---|---|---|
| Gross margin | 86.8% | 86.1% | +0.7 pts |
| Operating margin | 11.3% | 15.1% | -3.8 pts |
| Net margin | 9.4% | 14.6% | -5.2 pts |
| Free cash flow margin | 50.0% | 19.4% | +30.6 pts |
Every line
| Line | Q3 FY26 | Q3 FY25 | Change | % |
|---|---|---|---|---|
| Broadcast | $107M | $111M | −$4.7M | -4% |
| Other | $64.9M | $60.7M | $4.2M | +7% |
| Mobile | $51.0M | $56.3M | −$5.3M | -9% |
| CE | $31.5M | $28.1M | $3.4M | +12% |
| PC | $28.3M | $33.6M | −$5.2M | -16% |
| Licensing | $282M | $290M | −$7.6M | -3% |
| Products and services | $22.6M | $25.6M | −$3.0M | -12% |
| Revenue | $305M | $316M | −$10.6M | -3% |
| Gross profit | $265M | $272M | −$6.9M | -3% |
| Cost of revenue | $40.3M | $44.0M | −$3.7M | -8% |
| Other income, net | $9.5M | $7.9M | $1.6M | +20% |
| Operating profit | $34.3M | $47.6M | −$13.3M | -28% |
| Operating expenses | $230M | $224M | $6.5M | +3% |
| Pre-tax earnings | $43.8M | $55.5M | −$11.7M | -21% |
| Research & development | $65.7M | $66.0M | −$233K | -0.4% |
| Sales & marketing | $85.1M | $86.2M | −$1.1M | -1% |
| General & admin | $75.6M | $72.3M | $3.3M | +5% |
| Net earnings | $28.6M | $46.1M | −$17.5M | -38% |
| Minority interests | $612K | $471K | $141K | +30% |
| Income tax | $14.6M | $9.0M | $5.6M | +63% |
| Depreciation & amortization | $22.6M | $21.9M | $670K | +3% |
| Share-based compensation | $31.0M | $30.7M | $236K | +0.8% |
| Working capital & other | $85.3M | −$31.0M | $116M | — |
| Operating cash flow | $167M | $67.7M | $99.8M | +147% |
| Free cash flow (OCF − capex) | $152M | $61.3M | $91.2M | +149% |
| Capital expenditures | $15.0M | $6.4M | $8.6M | +133% |
Questions
How much did Dolby Laboratories's revenue grow year over year in Q3 FY26?
Dolby Laboratories's revenue fell $10.6M (-3%) from $316M in Q3 FY25 to $305M in Q3 FY26.
What drove Dolby Laboratories's revenue change in Q3 FY26?
Licensing −$7.6M (-3%); Products and services −$3.0M (-12%).