Dolphin Entertainment, Inc. Q3 FY2025 earnings call

• Record-setting Q3 with 16.7% YOY revenue growth and positive operating income.
• Organic growth driven by cross-selling among core subsidiaries, leading to margin expansion with adjusted operating income at 6.9% of revenue.
• Simplification of financial statements with the expiration of warrants, elimination of contingent consideration, and reduction of below-the-line expenses to just interest expense.
• Premiere of feature film Youngblood at the Toronto International Film Festival and ongoing negotiations for its distribution.
• Strong performance of subsidiaries: 42 West had a strong fall season, Shore Fire recognized with numerous nominations, and the door saw significant revenue growth with strategic hires.

For the third quarter of 2025, Dolphin Entertainment, Inc. reported revenue of $14.8 million, a 16.7% year-over-year increase. Operating income was positive at $300,000 despite non-cash amortization expenses. Adjusted operating income was approximately $1 million, up from $492,620 in the same period of 2024. The first nine months of 2025 surpassed the first nine months of 2024 in revenue, with Q3 2025 being the second-highest revenue quarter in the company's history, behind only the Blue Angels fueled quarter in 2024. The growth is organic, driven by cross-selling among subsidiaries.

• Management is confident adjusted operating income for 2025 will be achieved without ventures or films involved, barring an absolute collapse in December.
• Expect strong Q4 performance, particularly from 42 West which has a seasonally strong fourth quarter.
• Cash catalysts in the next three years include lease expirations (New York in one year, LA in two years) and the payment off of the commercial bank loan in 2028, which will free up significant cash.

Q: Could you explain the organic growth of 16.7% and its key drivers?

A: Organic growth is from growth at the companies themselves, driven by cross-selling among the seven subsidiaries. They are working together to get more clients, increase share of wallet, and have momentum across most companies.

Q: Comment on 42 West's fourth quarter performance?

A: 42 West had a strong end of summer into fall, with September and October being strong, and bullish on Q4 as it's seasonally strong for them.

Q: Comment on Jesse Bernstein rejoining and Disrupt Agency?

A: Jesse Bernstein rejoined the door, bringing a book of business, and Adrian Jefferson joining Disrupt is a key milestone, with the door's revenue significantly up YOY.

Q: How is Shore Fire performing?

A: Shore Fire has strong breadth and depth, with 30 nominations from Shore Fire alone for the Grammys, and has grown since joining Dolphin in 2019, with a strong management team.

Q: Update on Youngblood's distribution?

A: Hoping to announce Youngblood's distributor before the end of the year, with strong screenings at Toronto International Film Festival and ongoing negotiations.

Q: Balance between investing and growth?

A: There's a balance, with investments in affiliates setting up for future success, and confident adjusted operating income for 2025 will be achieved without ventures/films, with cash catalysts in the next few years.