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How Dolby Laboratories (DLB) makes money
Dolby Laboratories (DLB) made $305M of revenue in the third quarter fiscal 2026 (Q3 FY26), -3% from a year earlier. Licensing brought in $282M (93%); Products and services brought in $22.6M (7%). Of every dollar of revenue, 87¢ was left as gross profit, 11¢ was left as operating profit, 9¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 FY26
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Licensing | $282M | 92.6% | -24% | -3% |
| ↳ Broadcast | $107M | 34.9% | -11% | -4% |
| ↳ Other | $64.9M | 21.3% | +11% | +7% |
| ↳ Mobile | $51.0M | 16.7% | -46% | -9% |
| ↳ CE | $31.5M | 10.3% | -23% | +12% |
| ↳ PC | $28.3M | 9.3% | -52% | -16% |
| Products and services | $22.6M | 7.4% | -3% | -12% |
Where each dollar of revenue goes
| Line | Q3 FY26 | % of revenue |
|---|---|---|
| Revenue | $305M | 100.0% |
| Cost of revenue | $40.3M | 13.2% |
| Gross profit | $265M | 86.8% |
| Operating expenses | $230M | 75.5% |
| Operating profit | $34.3M | 11.3% |
| Income tax | $14.6M | 4.8% |
| Net earnings | $28.6M | 9.4% |
| Operating cash flow | $167M | 54.9% |
| Free cash flow | $152M | 50.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 FY26 | $305M | -3% |
| Q2 FY26 | $396M | +7% |
| Q1 FY26 | $347M | -3% |
| Q4 FY25 | $307M | +0.7% |
| Q3 FY25 | $316M | +9% |
| Q2 FY25 | $370M | +1% |
| Q4 FY24 | $305M | +5% |
From Dolby Laboratories' 10-Q filed Jul 30, 2026 (on EDGAR).
Questions
How does Dolby Laboratories make money?
Dolby Laboratories (DLB) made $305M of revenue in the third quarter fiscal 2026 (Q3 FY26), -3% from a year earlier. Licensing brought in $282M (93%); Products and services brought in $22.6M (7%). Of every dollar of revenue, 87¢ was left as gross profit, 11¢ was left as operating profit, 9¢ was left as net earnings.
What is Dolby Laboratories' biggest business?
Licensing: $282M in the third quarter fiscal 2026, 93% of revenue, -3% from a year earlier.
What is Dolby Laboratories' profit margin?
Net earnings were $28.6M, 9.4% of revenue, in the third quarter fiscal 2026; the operating margin was 11.3%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.