Aug 12, 2026, 4:58 PM ETCommunication Services

Dolphin Entertainment — Q2 2026 Earnings Summary

DLPNDOLPHIN ENTERTAINMENT INC

Financial Performance

Q2 2026 total revenue was $14.4 million, a 2.5% increase year-over-year from $14.1 million; H1 2026 revenue was $27.2 million, up 3.8% year-over-year from $26.3 million.
Operating loss for Q2 2026 was $1.0 million, widening from an operating loss of $0.1 million in Q2 2025.
Net loss for Q2 2026 was $1.6 million, compared to a net loss of $1.4 million in Q2 2025.
Basic and diluted loss per share for Q2 2026 was $(0.13) on 12,848,706 weighted average shares, compared to $(0.13) in Q2 2025.
Adjusted EBITDA for Q2 2026 was approximately $243,000, down from approximately $628,000 in Q2 2025.
Adjusted basic EPS for Q2 2026 was $0.02, compared to $0.06 in Q2 2025.
Cash and cash equivalents were $7.7 million as of June 30, 2026, down from $8.8 million as of December 31, 2025.
Deferred revenue was $1.0 million as of June 30, 2026, up from $0.8 million as of December 31, 2025.
Total debt includes term loans ($5.1 million combined current/non-current), notes payable ($8.1 million combined), and convertible notes ($9.3 million combined current/non-current).

Management expects a meaningful sequential improvement in profitability in the third quarter as retention bonuses and elevated legal fees subside.
Bank debt matures in just over two years, which will free up nearly $2.2 million in annual principal and interest payments.
The company anticipates roughly $1 million in annualized lease savings once large New York City and Los Angeles leases expire in the second half of 2027.
Dolphin expects to generate meaningful free cash flow in the periods ahead, supported by approximately $127 million in NOL carryforwards that shield the company from cash taxes.

Launched Graviteur Studios, a new creator-led content venture in partnership with KYNETIC Media Ventures.
Continued progress on the DealMaker partnership, targeting the launch of the first deal to market later in 2026.
Dolphin: Subsidiaries and clients achieved success at the Cannes Lions Festival of Creativity and Cannes Film Festival; subsidiaries powered high-profile campaigns at San Diego Comic-Con 2026.
42West: Delivered a standout film and TV slate at the 25th Tribeca Film Festival; secured multiple client nominations at the 78th Emmy Awards; drove high-profile campaigns at Anime Expo 2026 for Nebula17, TOHO International, and GKIDS.
Shore Fire Media: Partnered with Handcraft Entertainment and Takasago to develop fragrances, flavors, and consumer products for the "global" J-Pop market.
The Door: Named Agency of Record for Palm Tree Crew amid the brand's expansion into hospitality, real estate, and golf; DISRPT division represented U.S. SailGP around major U.S. race events.
Elle Communications: Clients presented at the NEXUS Global Summit 2026.
The Digital Dept.: Partnered with Vidcon to power a featured creator gifting lounge at Vidcon Anaheim 2026.

Dolphin operates in highly attractive sectors within entertainment marketing and premium content production.
The company's marketing consortium includes leading agencies across every communications discipline, including 42West, The Door, Shore Fire Media, Elle Communications, Special Projects, and The Digital Dept.
Dolphin marketing was named No. 1 Agency of the Year on the Observer PR Power List in 2025, included in The PR Net 100, and the PRNEWS Agency Elite Top 120.

Q2 2026 net loss was impacted by $360,000 in non-recurring retention bonuses paid to certain employees.
Q2 2026 operating expenses included approximately $360,000 in litigation-related legal costs, which are expected to moderate going forward.
The company faces future debt obligations with bank debt maturing in just over two years.
Forward-looking statements involve risks and uncertainties, including factors that may cause actual results to differ materially from expectations.

CEO Bill O'Dowd stated that the underlying business performed well across the portfolio and that the underlying trajectory of the business remains strong.
Management expressed confidence in the ability to generate meaningful free cash flow due to rising underlying profitability, modest capex requirements, and significant NOL carryforwards.
Management emphasized alignment with shareholders, noting insiders hold a substantial stake; CEO O'Dowd expects to own over 5% of DLPN common stock within the next week or two under a 10(b)(5) buying plan.
The tone regarding profitability is optimistic, anticipating a sequential improvement in Q3 as one-time costs subside.

No analyst questions or answers were included in the provided press release text.

Dolphin operates as both a venture studio and a marketing consortium, having completed several years of acquisitions and growth-related investments.
The company holds approximately $127 million in NOL carryforwards.
The CEO is actively purchasing shares under a 10(b)(5) plan to increase ownership to over 5%.
The company is presenting Adjusted EPS for the first time this quarter, calculated by dividing Adjusted EBITDA by weighted average shares outstanding.
Non-GAAP Adjusted EBITDA excludes interest, taxes, depreciation, acquisition costs, change in fair value of convertible notes, allowance for credit losses, litigation costs, loss on extinguishment of debt, and other one-time or non-cash costs.