Dolphin Announces Record Q3 Revenue of $14.8 Million, up 16.7% YoY | DLPN Stock News

11/12/2025 - 04:10 PM Operating Income Turns Positive $300,000 Even With Almost $600,000 of Non-Cash Amortization ExpensesCEO believes Dolphin is undervalued, purchases approximately 2% of outstanding shares since April 2025Dolphin (NASDAQ:DLPN), a leading entertainment marketing and content production company, today announced its financial results for the third quarter ended September 30, 2025.Bill O'Dowd, CEO of Dolphin Entertainment, stated:"Dolphin delivered another record-setting quarter in Q3, with revenue rising 16.7% year over year to $14.8 million and operating income turning positive with $300,000 despite almost $600,000 of non-cash amortization expenses related to our historical acquisitions. Furthermore, the first nine months of 2025 have now surpassed the first nine months of 2024 in revenue despite "The Blue Angels" generating over $3.4 million in revenues in Q1 2024. In fact, Q3 2025 is the second-highest revenue quarter in Dolphin's history, only slightly behind "The Blue Angels" fueled $15.2 million in Q1 2024.Equally important, the quarter's results were entirely organic, as our last acquisition was Elle Communications on July 1, 2024. Thus, the same agencies delivered this outstanding year‑over‑year revenue and operating income growth. This healthy organic growth is the primary driver behind our continued margin expansion, with adjusted operating income exceeding $1.0 million, or 6.9% of revenue, up from 4.5% in Q2. This performance reflects both the consistency and strength of our core subsidiaries and the growing scalability of our cross-selling operating model.Beyond the financials, we are honored by the recognition our teams received in being named among Crain's Best Places to Work in NYC, inclusion on The PR Net 100, and our selection to PRNEWS' Agency Elite 120 list. All of this on top of our PR group's recognition earlier in the year as the #1 PR Agency in the country by the Observer. These recognitions validate the strength of our culture, creativity, and leadership in entertainment marketing.And finally, as a long‑term believer in Dolphin's potential, I've personally purchased approximately 2% of our outstanding shares since April 2025. I continue to believe our share price undervalues the company's proven performance, strategic positioning, and significant growth opportunities ahead. With record results and a unified, award‑winning team, Dolphin moves ahead in Q4 and 2026 with tremendous momentum."Q3 2025 and Recent HighlightsTotal revenue for the quarter ended September 30, 2025, was $14.8 million, an increase of 16.7% from $12.7 million in the same period last year.Operating income was $308,296 for the quarter ended September 30, 2025, compared to an operating loss of $8.2 million for the quarter ended September 30, 2024.Adjusted operating income was approximately $1.0 million for the quarter ended September 30, 2025, as compared to an adjusted operating income of $492,620 for the same period in 2024.Operating expenses for Q3 2025 were $14.5 million, including depreciation and amortization of $589,388 and non-cash expenses of $127,365. This compares to operating expenses of $20.8 million in Q3 2024, including depreciation and amortization of $636,782, and non-recurring or non-cash expenses of $8.0 million.Net loss for Q3 2025 was $365,494, including depreciation and amortization of $589,388 and non-cash expenses of $177,365. This compares to a net loss of $8.7 million for Q3 2024, including depreciation and amortization of $636,782 and non-recurring and non-cash expenses of $8.0 million.Net loss per basic and diluted share in Q3 2025 was $0.03 based on 11,770,195 weighted average shares, compared to net loss per basic and diluted share in Q3 2024 of $0.80 based on 10,930,286 weighted average sharesDolphinNamed one of Crain's Best Places to Work in NYC 2025CEO Bill O'Dowd named to PRNEWS 2025 People of the Year List; company recognized on Agency Elite 120Named to The PR Net 100Forms new division, Dolphin Tastemakers, to elevate culinary and lifestyle talentA network of Dolphin's PR and marketing agencies to represent The Lumistella Company, a global toy and entertainment brand42WestDrives global reveal of 30 Ninjas' Asteroid, backed by Google's Android XR and CAAClients score 15 Primetime Emmy Nominations and 5 Primetime Emmy WinsPrepares for the fall festival season with a prolific client slateDominates at San Diego Comic-Con (SDCC) 2025The DoorExpands hospitality footprint as Jesse Gerstein rejoins with a top-tier hospitality client rosterDISRPT Agency, a division of The Door, rolls out its 2025 client roster, reinforcing its cultural influenceShore Fire MediaClients earn 30 Grammy Nominations across multiple categories, including Songwriter of the YearNamed PR agency of record for the Miles Davis Estate ahead of the 2026 CentennialElle CommunicationsLaunches "The Shift," a quarterly report, weekly newsletter, and live workshop series on the future of communicationsLeads press for "A Day Of Unreasonable Conversation" summit at The Getty CenterExpands literary footprint, driving acclaimed book launches across social justice, memoir, and cultural commentaryThe Digital Dept.Hosts largest-ever Fashion Week experience, BRANDEdit, immersing top creators in the future of fashion, beauty, and wellnessSpecial ProjectsManages talent relations for The Academy Museum of Motion Pictures Fifth Annual Gala honoring Penélope Cruz, Walter Salles, Bruce Springsteen, and Bowen YangRemains a driving force at New York Fashion Week, partnering with CHANEL, FENDI, J.Crew, W Magazine, and NYLONDolphin FilmsYoungblood feature adaptation selected to premiere at the 2025 Toronto International Film FestivalYoungblood enters production and marketing partnership with the LA KingsAbout DolphinDolphin (NASDAQ:DLPN) is where cultural creation meets marketing execution. Founded in 1996 by Bill O'Dowd, Dolphin operates as both a venture studio-developing and investing in breakthrough content, products, and experiences-and a marketing consortium, featuring leading agencies across every communications discipline.At its core, the venture studio creates, produces, finances, markets, and promotes new businesses and cultural ideas - ranging from acclaimed film, television, and digital content to consumer goods, live events and partnerships that define entertainment and lifestyle. Surrounding this entrepreneurial engine, Dolphin's marketing prowess brings together best-in-class firms including 42West, The Door, Shore Fire Media, Elle Communications, Special Projects, The Digital Dept. and Always Alpha. Together, this collective delivers unmatched cross-marketing expertise and relationships across every vertical of pop culture - from film, television, music, influencers, sports, hospitality, and fashion to consumer brands and purpose-driven initiatives. Dolphin marketing has been the recipient of many accolades, including #1 Agency of the Year on the Observer PR Power List in 2025, The PR Net 100, and the PR News Elite 120.Follow us on Instagram here.This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, Dolphin Entertainment Inc.'s offering of common stock as well as expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by the use of words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, Dolphin Entertainment's actual results may differ materially from the results discussed in its forward-looking statements. Dolphin Entertainment's forward-looking statements contained herein speak only as of the date of this press release. Factors or events Dolphin Entertainment cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause its actual results to differ from those expressed in forward-looking statements. Although Dolphin Entertainment believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved, and Dolphin Entertainment undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.CONTACT:James CarbonaraHAYDEN IR(646)-755-7412james@haydenir.comDOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)September 30, 2025December 31, 2024ASSETSCurrentCash and cash equivalents$7,832,402$8,203,842Restricted cash925,004925,004Accounts receivable:Trade, net of allowance of $326,979 and $1,327,808, respectively8,490,0355,113,157Other receivables6,238,1205,451,697Other current assets993,453373,399Total current assets24,479,01420,067,099Capitalized production costs, net640,216594,763Employee receivable1,148,0851,007,418Right-of-use asset3,465,5914,738,997Goodwill21,507,94421,507,944Intangible assets, net8,466,30010,189,026Property, equipment and leasehold improvements, net65,360114,011Other long-term assets189,298218,021Total Assets$59,961,808$58,437,279LIABILITIESCurrentAccounts payable$2,797,753$2,344,272Term loan, current portion1,778,0831,686,018Notes payable, current portion3,350,0003,750,000Convertible note payable, current portion500,000-Revolving line of credit400,000400,000Accrued interest - related parties2,095,8121,857,986Accrued compensation - related party2,625,0002,625,000Lease liability, current portion2,042,7381,919,672Deferred revenue1,811,631341,153Contingent consideration-486,000Other current liabilities12,471,30911,104,036Total current liabilities29,872,32626,514,137Term loan, noncurrent portion3,446,9604,782,271Notes payable4,330,0003,130,000Convertible notes payable7,250,0005,100,000Convertible note payable at fair value300,000320,000Convertible notes payable - related party3,062,823-Loans from related party983,1123,225,985Lease liability1,848,7323,306,033Deferred tax liability437,592394,547Other noncurrent liabilities-18,915Total Liabilities51,531,54546,791,888Commitments and contingencies (Note 14)STOCKHOLDERS' EQUITYPreferred Stock, Series C, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding at September 30, 2025 and December 31, 20241,0001,000Common stock, $0.015 par value, 200,000,000 shares authorized, 11,982,422 and 11,162,026 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively179,736166,688Additional paid-in capital158,572,430157,692,132Accumulated deficit(150,322,903)(146,214,429)Total Stockholders' Equity8,430,26311,645,391Total Liabilities and Stockholders' Equity$59,961,808$58,437,279DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Revenues$14,796,309$12,682,437$41,053,549$39,367,418Expenses:Direct costs643,931254,5741,730,5162,790,043Payroll and benefits10,397,5599,575,59631,004,54428,344,865Selling, general and administrative2,041,4401,838,7655,735,7595,665,365Depreciation and amortization589,388636,7821,772,4921,745,579Impairment of goodwill-6,480,992-6,671,557Impairment of notes receivables-1,270,000-1,270,000Acquisition costs-148,798416,171164,044Legal and professional815,695631,6291,916,3511,825,588Total expenses14,488,01320,837,13642,575,83348,477,041Income (loss) from operations308,296(8,154,699)(1,522,284)(9,109,623)Other (expenses) income, net:Change in fair value of convertible note(50,000)(10,000)20,00055,000Change in fair value of warrants---5,000Loss on extinguishment of debt--(835,324)-Interest income4,1643,39121,4439,991Interest expense(627,954)(533,454)(1,749,264)(1,559,276)Total other (expenses) income, net(673,790)(540,063)(2,543,145)(1,489,285)Loss before income taxes(365,494)(8,694,762)(4,065,429)(10,598,908)Income tax benefit (expense)-2,373(43,045)(44,706)Net loss$(365,494)$(8,692,389)$(4,108,474)$(10,643,614)Loss per share:Basic$(0.03)$(0.80)$(0.36)$(1.07)Diluted$(0.03)$(0.80)$(0.36)$(1.07)Weighted average number of shares outstanding:Basic11,770,19510,930,28611,370,0079,964,607Diluted11,770,19510,930,28611,370,0079,964,607Use of Non-GAAP Financial MeasuresIn order to provide greater transparency regarding our operating performance, the financial results in this press release refer to a non-GAAP financial measure that involves adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management deems are not directly attributable to the Company's core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance.Adjusted operating income or loss is defined by Dolphin as (loss) income from operations before: (i) depreciation and amortization, (ii) write-off of assets, (iii) impairment of goodwill or intangible assets, (iv) acquisition costs, (v) employee stock compensation, (vi) change in fair value of contingent consideration, (vii) bad debt expense and (viii) and impairment of capitalized production costs.Management believes that the presentation of operating results using this non-GAAP financial measure provides useful supplemental information for investors by providing them with the non-GAAP financial measure used by management for financial and operational decision making, planning and forecasting and in managing the business. This non-GAAP financial measure does not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered a measure of liquidity and is unlikely to be comparable to non-GAAP financial measures provided by other companies.Reconciliation of GAAP loss from operations to non-GAAP income from operationsThree Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Revenues (GAAP)$14,796,309$12,682,437$41,053,549$39,367,418Expenses:Direct costs643,931254,5741,730,5162,790,043Payroll and benefits10,397,5599,575,59631,004,54428,344,865Selling, general and administrative2,041,4401,838,7655,735,7595,665,365Acquisition costs-148,798416,171164,044Depreciation and amortization589,388636,7821,772,4921,745,579Impairment of goodwill-6,480,992-6,671,557Impairment of notes receivable-1,270,000-1,270,000Legal and professional815,695631,6291,916,3511,825,588Total expenses (GAAP)14,488,01320,837,13642,575,83348,477,041Income (loss) from operations (GAAP)308,296(8,154,699)(1,522,284)(9,109,623)Adjustments to GAAP measure:Depreciation and amortization589,388636,7821,772,4921,745,579Bad debt expense115,42214,051264,583301,030Acquisition costs-148,798416,171164,044Impairment of goodwill-6,480,992-6,671,557Impairment of notes receivable-1,270,000-1,270,000Stock compensation11,94396,69611,943346,440Adjusted income from operations (non-GAAP)1,025,049492,620942,9051,389,027SOURCE: Dolphin EntertainmentView the original press release on ACCESS Newswire