Dolby Labs Beats Q4 Earnings, Guides Above Consensus; Stock Dips 2.8%

Dolby Laboratories (NYSE:DLB) reported Q4 CY2025 revenue of $346.7M, down 2.9% YoY but 4.5% above estimates, with non-GAAP EPS of $1.06 (+6.7% vs. consensus). Management guided Q1 revenue to $390M midpoint — 5.5% YoY growth and 2.4% above analyst forecasts. Despite the beat, shares fell 2.8% to $61.25 post-earnings. Five-year revenue CAGR of 1.2% remains weak, though recent two-year growth improved to 2.3%. Analysts project 6.1% revenue growth over the next year, below sector average. Negative CAC payback signals inefficient customer acquisition in a competitive market. CEO Kevin Yeaman cited optimism on market positioning and growth opportunities.