Dolby Laboratories Q1 Net Income Falls, Shares Slip on Weak Licensing Revenue

Dolby Laboratories (NYSE: DLB) reported a decline in Q1 net income for the period ended December 31, 2025, as licensing revenue underperformed amid softer consumer electronics demand. Net income fell to $89.2 million, or $0.98 per diluted share, down from $107.5 million, or $1.16 per share, in the year-ago quarter. Total revenue slipped 6% year-over-year to $342.1 million. Licensing revenue — Dolby’s core segment — dropped 8% to $289.4 million. CEO Kevin Yeaman cited “ongoing macroeconomic headwinds” affecting OEM partnerships. The company reaffirmed its full-year guidance but noted continued uncertainty in global hardware markets.