Dolphin Entertainment — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue reached a record $16.0 million, an 8.3% year-over-year increase from $14.8 million in Q3 2025; nine-month revenue totaled $43.3 million, up 5.4% from $41.1 million.
• Net income for Q3 2026 was $0.2 million ($0.02 per share), compared to a net loss of $0.4 million ($0.03 per share) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $1.6 million, a 42.9% increase from $1.1 million in Q3 2025; nine-month adjusted EBITDA was $1.4 million, up 24% from $1.1 million.
• Income from operations for Q3 2026 was $0.8 million, a 167% increase from $0.3 million in Q3 2025.
• Operating expenses for Q3 2026 were $15.2 million, including $0.5 million in non-cash depreciation and amortization and approximately $0.4 million in litigation-related legal costs, compared to $14.5 million in Q3 2025.
• Cash and cash equivalents were $8.1 million as of September 30, 2026, down from $8.8 million at December 31, 2025.
• Deferred revenue was $302,466 as of September 30, 2026, down from $794,177 at December 31, 2025.
• Total debt includes term loans (current portion $1.9 million, noncurrent $2.8 million), notes payable (current $3.0 million, noncurrent $5.3 million), and convertible notes payable (current $0, noncurrent $7.9 million plus related party notes).

Guidance and Future Outlook:

• Management anticipates four new ventures in 2027, with the first expected to launch in Q1 2027.
• Expected savings from lease expirations in New York and Los Angeles in the second half of 2027 exceed $1 million annually.
• The primary bank term loan matures in September 2028, expected to free up approximately $2.2 million annually in principal and interest payments.
• With approximately $127 million in NOL carryforwards, management expects most lease and debt savings to flow directly to free cash flow.
• Management expects continued improved operating results in upcoming quarters driven by cross-selling services between agencies and leveraging horizontal scale in entertainment sectors.

Business Segments and Product Lines:

• The Digital Dept.: Expanded its creator roster to over 380 (up from roughly 250 a year ago), increased team size by 45%, and established new teams in Dallas and Boston.
• Graviteur Studios: Named Kristen Brancaccio to direct the first feature film "Crush Party," with production slated to begin in the first half of 2027.
• 42West: Delivered 16 titles at the 51st Toronto International Film Festival, including the People's Choice Documentary Award winner "Darlene Love: I Know Where I've Been," and handled Christian Siriano's SS27 fashion show.
• Shore Fire Media: Secured recognition for client Qobuz as one of TIME's Best Inventions of 2026 and supported Angélique Kidjo's Hollywood Walk of Fame induction.
• The Door: Named U.S. public relations agency for Kewpie and retained as CultureCon's agency of record for the fifth consecutive year.
• Elle Communications: Appointed communications and thought leadership agency for The Longest Table movement.
• Special Projects: Produced events for Academy Museum Gala week with W Magazine, FENDI, Boucheron, and Cartier, and partnered with Moncler, CHANEL, and Rag & Bone during New York Fashion Week.
• Subsidiaries Special Projects, 42West, and The Digital Dept.: Delivered a wide-ranging presence at New York Fashion Week.

Market and Competitive Landscape:

• Dolphin was named to The PR Net 100 2026, an annual list of leading global agencies recognized for talent, innovation, and influence.
• The company operates as a marketing consortium featuring agencies across every communications discipline, including film, television, music, influencers, sports, hospitality, and fashion.
• Dolphin's marketing division has previously received accolades including No. 1 Agency of the Year on the Observer PR Power List in 2025.

Risks and Challenges:

• The press release notes that actual results may differ materially from forward-looking statements due to risks and uncertainties, including factors described in filings with the Securities and Exchange Commission.
• Management highlighted that large non-cash amortization expenses often obscure cash flow results, necessitating the use of adjusted EBITDA for performance measurement.

Management Commentary and Tone:

• CEO Bill O'Dowd described the quarter as "outstanding," noting that revenue growth was organic and would have been 9.7% excluding the Always Alpha spin-out in November 2025.
• Management emphasized a strategy to grow profits faster than revenue, citing that revenue growth of over 8% outpaced core operating cost growth.
• O'Dowd stated that management remains closely aligned with shareholders, noting he owns over 5% of common shares outstanding and has continued buying stock weekly under a 10b5-1 plan.

Other Key Points:

• Dolphin identified its next two ventures, with at least one expected to be in market in Q1 2027.
• The company has approximately $127 million in NOL carryforwards.
• The primary bank term loan is scheduled to mature in September 2028.
• The company reported a net loss for the nine months ended September 30, 2026, of $4.1 million, compared to a loss of $4.1 million in the same period in 2025.
• The company hosted an exclusive Ranch House for creators at LTK Con 2026.