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    DLPN
    Earnings call· Jun 2026(Q2 FY26)

    Dolphin Entertainment Q2 FY26 earnings call DLPN

    Aug 12, 2026 Source

    Executive summary

    Dolphin Entertainment Q2 FY26 — Strategic Partnerships and Future Free Cash Flow

    Dolphin Entertainment reported modest revenue growth in Q2 FY26, driven by agency activity, but profitability was impacted by one-time costs. The company is strategically focused on new partnerships like Graviteur Studios and Dealmaker to unlock future upside without capital investment, while anticipating significant free cash flow improvements from debt maturity and lease rolloffs in the coming years. Management remains aligned with shareholders, with the CEO increasing his stake.

    Highlights

    5

    • Revenue for Q2 FY26 increased 2.5% year-over-year to $14.4 million.

    • First half FY26 revenue grew 3.8% to $27.2 million.

    • Launch of Graviteur Studios, a new production studio for creator-led content, in partnership with Kinetic Media Ventures.

    • Strategic partnership with Dealmaker, expected to yield first venture deal before year-end, requiring 0 capital from Dolphin.

    • Partnership with Copper Books providing national and global distribution for clients' books.

    Concerns

    5

    • Operating loss for Q2 FY26 was $1 million, compared to $100,000 in Q2 FY25.

    • Adjusted EBITDA for Q2 FY26 decreased to $243,000 from $628,000 in Q2 FY25.

    • Q2 FY26 included approximately $400,000 in one-time retention bonuses.

    • Q2 FY26 included approximately $400,000 in elevated legal and professional fees related to litigation.

    • Streaming deal for the 'Youngblood' movie has not yet materialized, which is disappointing.

    Guidance & targets

    4
    CategoryTargetConfidence
    First Dealmaker Venture
    First deal in market before the end of the year
    high materiality
    High
    Dealmaker Ventures Cadence
    3 to 4 deals a year with pretty steady regularity
    medium materiality
    Medium
    Profitability
    Real step up profitability
    high materiality
    High
    Legal and Professional Fees
    Come down to normal levels
    medium materiality
    High

    Operational metrics

    11
    Total Revenue Growth
    2.5%YoY
    Q2 FY26

    Revenue for the quarter came in at $14.4 million.

    Total Revenue Growth
    3.8%YoY
    H1 FY26

    Revenue for the first half was $27.2 million, compared to $26.3 million in the prior year period.

    Adjusted EBITDA
    $243,000down from $628,000
    Q2 FY26

    Adjusted EBITDA for Q2 2026 was approximately $243,000 compared to approximately $628,000 in the second quarter of 2025. The year-over-year change is driven almost entirely by retention bonuses and elevated litigation costs.

    Adjusted EBITDA Loss
    $224,000up from $82,000 loss
    H1 FY26

    For the 6 months ended June 30, 2026, adjusted EBITDA loss was approximately $224,000 compared to a loss of approximately $82,000 in the prior year period, reflecting the same factors.

    Adjusted EPS
    $0.02down from $0.06
    Q2 FY26

    Adjusted EBITDA basic and diluted earnings per share for Q2 2026 was $0.02 based on approximately 12.8 million weighted average shares outstanding compared to $0.06 basic earnings per share for Q2 2025 based on approximately 11.2 million weighted average shares outstanding and $0.04 fully diluted earnings per share for Q2 2025 based on 17.4 million weighted average shares outstanding.

    Cash and Cash Equivalents
    $7.7 milliondown from $8.8 million
    as of June 30, 2026

    Cash and cash equivalents as of June 30, 2026 were $7.7 million compared to $8.8 million as of December 31, 2025.

    One-time Retention Bonuses
    $400,000
    Q2 FY26

    Approximately $400,000 of nonrecurring retention bonuses for certain employees, which will not be included in Q3 of 2026 or Q2 of next year.

    Legal and Professional Fees (Litigation)
    $400,000
    Q2 FY26

    Approximately $400,000 of legal and professional fees related to our litigation that we are working to reduce going forward.

    Bank Debt Maturity Impact
    $2.2 million
    Annual

    Our bank debt matures in just over 2 years, actually 2 years from next month. Freeing up almost $2.2 million a year in principal and interest payments.

    Lease Rolloff Savings
    $1 million
    Annual

    Our large New York and Los Angeles leases roll off in the back half of next year, which we believe will lead to savings of another roughly $1 million a year.

    Net Operating Losses (NOLs)
    $127 million
    current

    With approximately $127 million of NOLs on the balance sheet, almost all of those savings will flow straight to the bottom line.

    Product announcements

    2
    ProductTypeDetails
    Graviteur Studioslaunch
    Dolphin Intelligence AI marketing capabilitiesroadmap

    Deals & partnerships

    3
    Kinetic Media VenturesPartnership to launch Graviteur Studios, a production studio for creators and influencers.

    Graviteur Studios will produce, distribute, and market creator-led content across various platforms. Leverages David Freeman's expertise in the creator economy.

    DealmakerStrategic partnership to identify and launch new ventures, with Dolphin providing marketing services in exchange for cash fees and equity stakes.

    Partnership began in February 2026. Pipeline of potential deals is being evaluated. Expects first deal to market before year-end, with a goal of 3-4 deals per year subsequently. Ventures can span various industries.

    Copper Books (via Simon & Schuster)Partnership providing national and global distribution for books written by Dolphin's clients.

    Provides national and global distribution through Simon & Schuster. Seen as a unique capability for Dolphin's clients in the PR and influencer space.

    Risks & headwinds

    3
    One-time retention bonusesQ2 FY26

    $400,000

    Mitigation: Expected to not be included in Q3 FY26 or Q2 FY27, leading to improved profitability.

    Elevated legal and professional feesQ2 FY26

    $400,000

    Mitigation: Expected to come down to normal levels in Q3 FY26 and going forward, leading to improved profitability.

    Delay in 'Youngblood' streaming distributionQ2 FY26, ongoing

    Streaming deal not yet secured

    Mitigation: Working with distributor to make a stronger push for a U.S. streaming sale in H2 FY26. International sales pending upcoming film markets (Toronto, American Film Market).

    What to watch in Q3 FY26

    5

    Profitability improvement

    Q3 FY26
    CurrentOperating loss of $1M; Adjusted EBITDA of $243K in Q2 FY26
    TargetReal step up in profitability

    Why it matters

    Verifies the impact of one-time📎 cost roll-offs and indicates the underlying business's health.

    We expect a real step up profitability in the third quarter as these two items roll off.

    Q&A highlights

    5

    Analyst asked for more details on the ownership structure, financing for creators, and overall economics of Graviteur Studios.

    Graviteur Studios is a natural extension for Dolphin and partner David Freeman, leveraging their experience in structuring films and TV shows. The studio aims to produce creator-led content, capitalizing on the audience's tendency to follow influencers across platforms. Financing will be similar to Dolphin Films, often laying off risk or splitting costs with distributors, with smaller budgets typically under $1 million, requiring minimal capital investment from Dolphin.

    “So in terms of financing, we'll look to finance those movies how we would if they were part of Dolphin films. Oftentimes, we lay off the risk when we can occasionally something like a Blue Angels that worked out very well for us.”

    asked by Derek Greenberg · answered by William O'Dowd

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance and Cost Impacts

    Dolphin Entertainment reported Q2 FY26 revenue of $14.4 million, a 2.5% increase year-over-year, and H1 FY26 revenue of $27.2 million, up 3.8%. The quarter's operating loss was $1 million, compared to $100,000 in Q2 FY25. This was primarily due to approximately $400,000 in one-time📎 retention bonuses and $400,000 in elevated legal and professional fees related to litigation. Management expects these costs to normalize in Q3 FY26, leading to a step-up in profitability.

    02

    Graviteur Studios Launch

    The company launched Graviteur Studios in June 2026, a new production studio in partnership with Kinetic Media Ventures. This initiative aims to produce, distribute, and market content led by creators and influencers across streaming platforms, television networks, and theatrical releases. The strategy is based on the belief that audiences follow creators across platforms, as evidenced by recent box office successes of creator-directed films. Dolphin views this as a natural extension of its marketing expertise and a meaningful part of its future story.

    03

    Dealmaker Partnership Progress

    Dolphin's strategic partnership with Dealmaker, initiated in February, is progressing with a pipeline of potential ventures. The company expects to bring its first deal to market before the end of 2026, with a goal of achieving a cadence of 3 to 4 deals per year. These ventures are structured to provide Dolphin with cash marketing fees and an ownership stake, crucially requiring zero capital investment from Dolphin's balance sheet, offering significant upside potential.

    04

    Copper Books and Dolphin Intelligence

    The partnership with Copper Books provides national and global distribution through Simon & Schuster for clients' books, serving as a valuable asset for Dolphin's PR agencies and clients. Additionally, Dolphin Intelligence, the company's AI-powered marketing capability, is being integrated into existing PR contracts. The goal is to establish it as a standalone service, leveraging prior investments to generate additional revenue without new costs.

    05

    Future Free Cash Flow and Capital Structure

    Management highlighted several factors expected to drive significant free cash flow improvement. Bank debt matures in just over two years (from August 2026), freeing up approximately $2.2 million annually in principal and interest payments. Additionally, major New York and Los Angeles leases will roll off in the second half of 2027, projected to save another $1 million annually. With approximately $127 million in NOLs, most of these savings are expected to flow directly to the bottom line. The CEO's 10b5-1 plan to increase his ownership stake to over 5% underscores management's alignment with shareholder value.

    06

    Digital Department and Content Performance

    The digital department is anticipated to experience strong growth in the second half of the year, which is its prime season, particularly between back-to-school and the holidays. While the 'Youngblood' movie has not yet secured a streaming deal, international sales are expected to firm up at upcoming film markets in Toronto (September) and Los Angeles (November). Other agencies like 42West and SureFire are also performing well, with 42West notably present at the Tribeca Film Festival and receiving multiple Emmy nominations.

    AI-generated summary of the company’s earnings call. Not investment advice.