Dolby Laboratories, Inc. Q2 FY2026 earnings call

• Content in Dolby: Top-tier social media companies adopting Dolby Vision, over 90% of Billboard's Top 100 Artists creating music in Dolby Atmos, sports content (Super Bowl, Winter Olympics, etc.) available in Dolby, mass market TV expansions (Amazon, TV Azteca), cinema with top grossing films in Dolby. - Automotive: BMW, BYD, Lexus, NIO adopting Dolby Atmos. - Mobile: Apple, Xiaomi, Vivo incorporating Dolby Vision and Atmos. - Living room: Dolby Vision 2 TVs expected, Hisense, TCL, Philips planning releases. - Dolby OptiView: Wins with Genius Sports, William Hill, resonated at NAB. - Video distribution program: 40 licensors onboarded, licensee pipeline strong

Revenue for the quarter was $396 million. Licensing revenue was $372 million and products and services revenue was $23 million. Broadcast end market was up 26% year-over-year, while mobile was down 6% year-over-year. Full-year guidance: fiscal 2026 total revenue to range from $1.4 billion to $1.45 billion, licensing revenue between $1.295 billion and $1.345 billion, non-GAAP operating expenses between $780 million and $800 million, and non-GAAP earnings per share between $4.30 and $4.45. Q3 fiscal 2026 revenue expected to be between $295 million and $325 million, licensing revenue between $270 million and $300 million, non-GAAP earnings per share between $0.56 and $0.71

• Maintaining full-year guidance: fiscal 2026 total revenue $1.4B - $1.45B, licensing revenue $1.295B - $1.345B, non-GAAP operating expenses $780M - $800M, non-GAAP EPS $4.30 - $4.45. - Q3 fiscal 2026: Revenue $295M - $325M, licensing revenue $270M - $300M, non-GAAP EPS $0.56 - $0.71

• Macro factors: Memory pricing, oil prices, consumer sentiment, supply chain issues impacting various end markets

Q: Talk about consumption-based revenue streams and memory pricing impact.

A: Pleased with Dolby OptiView and video distribution program progress. Memory pricing impacts mobile and PC most, macro factors closely watched but no significant impact to business yet.

Q: Automotive market penetration and mobile OEMs.

A: Big quarter for automotive with many brands adopting Dolby Atmos, Hyundai's four-channel implementation in China, Daoyin and Meta adopting Dolby Vision steering mobile OEM conversations