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Dolby Laboratories, Inc. (DLB) 10-Year Financial Performance & Capital Metrics

DLB • • Industrial / General
TechnologyIT ServicesEnterprise Software & AI PlatformsEnterprise AI Platforms
AboutDolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, DTV, transmissions and devices, mobile devices, OTT video and music services, and home entertainment devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications.; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, an digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and a range of media devices. Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices. In addition, the company designs and manufactures digital cinema servers, cinema processors, amplifiers, loudspeakers, hardware components, video conferencing solutions, and other products for the cinema, television, broadcast, communication, and entertainment industries. Further, it offers various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, cinema operators, broadcasters, and video game designers. It sells its products directly to the end users, as well as through dealers and distributors worldwide. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.Show more
  • Revenue $1.35B +5.9%
  • EBITDA $364M +3.3%
  • Net Income $255M -2.6%
  • EPS (Diluted) 2.62 -2.6%
  • Gross Margin 88.13% -0.9%
  • EBITDA Margin 26.95% -2.5%
  • Operating Margin 19.64% -5.5%
  • Net Margin 18.9% -8.0%
  • ROE 9.96% -7.5%
  • ROIC 10.13% -9.2%
  • Debt/Equity 0.01 -21.8%
  • Interest Coverage -
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Company is almost debt free
  • ✓FCF machine: 31.9% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Healthy dividend yield of 2.0%
  • ✓Healthy 5Y average net margin of 18.8%

✗Weaknesses

No significant weaknesses identified

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.35%
5Y3.04%
3Y2.47%
TTM5.92%

Profit (Net Income) CAGR

10Y3.47%
5Y1.97%
3Y11.48%
TTM-2.6%

EPS CAGR

10Y4.24%
5Y3.09%
3Y13.12%
TTM-2.95%

ROCE

10Y Avg10.18%
5Y Avg10.18%
3Y Avg10.06%
Latest9.63%

Peer Comparison

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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
INODInnodata Inc.1.84B57.6164.7396.44%14.11%34.6%1.49%0.07
NABLN-able, Inc.1.32B7.0644.1310.49%-1.31%-0.8%4.23%0.49
MGICMagic Software Enterprises Ltd.1.35B27.4536.603.26%6.64%13.31%5.44%0.29
DLBDolby Laboratories, Inc.3.84B63.3624.185.92%18.9%9.69%11.21%0.01
JDZGJIADE Limited27.67M1.244.9620.36%38.77%7.41%0.07
GMMGlobal Mofy Metaverse Limited69.68M1.523.6253.82%28.24%47.24%0.13
DVLTDatavault AI Inc.424.49M0.74-0.0528.37%-13.94%-86.44%0.11
DMRCDigimarc Corporation139.03M6.39-3.4910.23%-109.17%-88.8%0.10

Profit & Loss

Sep 2016Sep 2017Sep 2018Sep 2019Sep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025
Sales/Revenue+1.03B1.08B1.05B1.24B1.16B1.28B1.25B1.3B1.27B1.35B
Revenue Growth %0.06%0.05%-0.02%0.18%-0.06%0.1%-0.02%0.04%-0.02%0.06%
Cost of Goods Sold+108.98M118.31M127.56M160.85M146.5M130.03M141.36M152.57M140.5M160.13M
COGS % of Revenue0.11%0.11%0.12%0.13%0.13%0.1%0.11%0.12%0.11%0.12%
Gross Profit+916.76M963.15M927.04M1.08B1.02B1.15B1.11B1.15B1.13B1.19B
Gross Margin %0.89%0.89%0.88%0.87%0.87%0.9%0.89%0.88%0.89%0.88%
Gross Profit Growth %0.05%0.05%-0.04%0.17%-0.06%0.13%-0.03%0.03%-0.01%0.05%
Operating Expenses+683.73M701.66M743.98M787.13M794.73M810.47M895.21M884.36M868.51M924.04M
OpEx % of Revenue0.67%0.65%0.71%0.63%0.68%0.63%0.71%0.68%0.68%0.68%
Selling, General & Admin464.12M468.35M507.19M549.26M555.69M556.83M634.03M612.84M604.85M647.24M
SG&A % of Revenue0.45%0.43%0.48%0.44%0.48%0.43%0.51%0.47%0.47%0.48%
Research & Development219.61M233.31M236.79M237.87M239.04M253.64M261.17M271.52M263.66M261.79M
R&D % of Revenue0.21%0.22%0.22%0.19%0.21%0.2%0.21%0.21%0.21%0.19%
Other Operating Expenses00000000015.01M
Operating Income+233.03M261.49M183.06M293.63M220.56M340.76M217.23M262.81M264.71M264.96M
Operating Margin %0.23%0.24%0.17%0.24%0.19%0.27%0.17%0.2%0.21%0.2%
Operating Income Growth %0.09%0.12%-0.3%0.6%-0.25%0.54%-0.36%0.21%0.01%0%
EBITDA+318.18M345.8M264.34M378.76M311.44M436.62M320.84M358.33M352.04M363.56M
EBITDA Margin %0.31%0.32%0.25%0.31%0.27%0.34%0.26%0.28%0.28%0.27%
EBITDA Growth %0.13%0.09%-0.24%0.43%-0.18%0.4%-0.27%0.12%-0.02%0.03%
D&A (Non-Cash Add-back)85.15M84.31M81.28M85.12M90.88M95.86M103.61M95.51M87.33M98.6M
EBIT235.9M256.64M196.37M282.31M239.72M354.51M215.28M250.05M312.48M279.97M
Net Interest Income+5.68M9.58M18.97M24.92M12.72M3.49M6.57M28.09M34.08M15.38M
Interest Income5.68M9.58M18.97M24.92M12.72M3.49M6.57M28.09M34.08M15.38M
Interest Expense0000000000
Other Income/Expense2.88M-4.84M13.31M-11.33M19.15M13.75M-1.95M-12.76M47.77M38.53M
Pretax Income+235.9M256.64M196.37M282.31M239.72M354.51M215.28M250.05M312.48M303.49M
Pretax Margin %0.23%0.24%0.19%0.23%0.21%0.28%0.17%0.19%0.25%0.22%
Income Tax+49.5M54.22M154.07M26.8M8.1M36.69M31.38M48.41M48.16M46.99M
Effective Tax Rate %0.79%0.79%0.21%0.9%0.97%0.88%0.86%0.8%0.84%0.84%
Net Income+185.86M201.8M41.75M255.15M231.36M310.23M184.09M200.66M261.82M255.02M
Net Margin %0.18%0.19%0.04%0.21%0.2%0.24%0.15%0.15%0.21%0.19%
Net Income Growth %0.02%0.09%-0.79%5.11%-0.09%0.34%-0.41%0.09%0.3%-0.03%
Net Income (Continuing)186.4M202.43M42.3M255.5M231.62M317.82M183.9M201.64M264.32M256.49M
Discontinued Operations0000000000
Minority Interest8.48M7.1M6.57M5.68M5.76M6.25M4.84M17.08M9.73M9.39M
EPS (Diluted)+1.811.951.142.442.252.971.811.962.692.62
EPS Growth %0.05%0.08%-0.42%1.14%-0.08%0.32%-0.39%0.08%0.37%-0.03%
EPS (Basic)1.851.981.182.512.303.071.842.002.742.66
Diluted Shares Outstanding102.42M103.29M106.98M104.57M102.94M104.62M101.98M97.59M97.33M97.48M
Basic Shares Outstanding100.72M101.78M103.38M101.63M100.56M101.19M99.99M95.79M95.54M95.87M
Dividend Payout Ratio0.26%0.28%1.58%0.3%0.38%0.29%0.54%0.52%0.44%0.5%

Balance Sheet

Sep 2016Sep 2017Sep 2018Sep 2019Sep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025
Total Current Assets+759.73M1.01B1.3B1.38B1.55B1.76B1.31B1.49B1.19B1.39B
Cash & Short-Term Investments641.39M882.13M1.1B924.74M1.13B1.27B817.58M957.11M577.75M702.6M
Cash Only519.76M634.37M925.25M805.59M1.08B1.23B628.37M817.97M577.75M701.89M
Short-Term Investments121.63M247.76M178.14M119.15M46.95M38.84M189.21M139.15M0703K
Accounts Receivable76.97M76.19M334.53M385.55M341.7M414.93M419.69M444.38M512.94M511.9M
Days Sales Outstanding27.3925.72115.78113.34107.35118.2122.18124.79146.99138.49
Inventory16.35M25.05M26.21M32.33M25.55M10.96M23.55M35.62M33.73M30.42M
Days Inventory Outstanding54.7777.2974.9873.3663.6630.7860.885.2287.6269.35
Other Current Assets11.58M11.38M13.95M20.92M35.14M32.77M23.22M26.26M40.25M115.33M
Total Non-Current Assets+1.56B1.53B1.37B1.44B1.39B1.36B1.39B1.51B1.94B1.84B
Property, Plant & Equipment443.66M485.27M514.18M537.43M618.48M601.51M560.01M521.78M518.15M503.81M
Fixed Asset Turnover2.31x2.23x2.05x2.31x1.88x2.13x2.24x2.49x2.46x2.68x
Goodwill309.62M311.09M327.98M334.83M336.94M340.69M365.15M408.41M533.21M529.9M
Intangible Assets215.34M189.65M184.02M180.89M152.43M122.89M112.27M167.43M434.51M397.06M
Long-Term Investments393.9M314.36M187.78M179.59M52.15M62.82M102.51M97.81M89.27M80.2M
Other Non-Current Assets21.07M30.83M80.08M93.39M91.24M61.26M55.15M94.67M120.61M114.16M
Total Assets+2.32B2.54B2.87B2.82B2.94B3.12B2.7B2.99B3.13B3.23B
Asset Turnover0.44x0.43x0.37x0.44x0.40x0.41x0.46x0.43x0.41x0.42x
Asset Growth %0.09%0.1%0.13%-0.02%0.04%0.06%-0.13%0.11%0.05%0.03%
Total Current Liabilities+213.08M245.77M272.13M306.85M267.11M315.72M277.52M422.23M417.84M437.79M
Accounts Payable17.54M14.37M21.92M15.21M12.62M17.78M14.17M20.93M17.38M17.84M
Days Payables Outstanding58.7644.3462.7334.5231.4449.9136.5950.0645.1540.66
Short-Term Debt000015.82M15.4M13.26M13.63M12.24M10.38M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities97.79M114.76M158.64M189.43M130.29M155.41M146.13M232.67M250.35M96.19M
Current Ratio3.57x4.12x4.78x4.50x5.79x5.58x4.72x3.52x2.86x3.17x
Quick Ratio3.49x4.01x4.69x4.40x5.70x5.54x4.64x3.44x2.78x3.10x
Cash Conversion Cycle23.458.66128.04152.19139.5799.07146.39159.96189.46167.18
Total Non-Current Liabilities+124.7M151.36M212.52M204.22M232.07M202.94M173.63M200.15M225.88M158.02M
Long-Term Debt0000000000
Capital Lease Obligations000065.31M56.72M37.69M37.02M34.75M28.49M
Deferred Tax Liabilities6.42M7.42M2.83M2.35M20.26M17.2M12.63M14.8M20.68M10.96M
Other Non-Current Liabilities82.92M107.51M183.8M177.46M122.15M105.31M100.12M108.34M135.85M99.84M
Total Liabilities337.79M397.14M497.71M511.07M499.18M518.66M451.15M622.38M643.72M595.81M
Total Debt+000081.14M72.12M50.94M50.65M46.99M38.88M
Net Debt-519.76M-634.37M-925.25M-805.59M-998.84M-1.16B-577.43M-767.32M-530.76M-663.01M
Debt / Equity----0.03x0.03x0.02x0.02x0.02x0.01x
Debt / EBITDA----0.26x0.17x0.16x0.14x0.13x0.11x
Net Debt / EBITDA-1.63x-1.83x-3.50x-2.13x-3.21x-2.66x-1.80x-2.14x-1.51x-1.82x
Interest Coverage----------
Total Equity+1.98B2.14B2.2B2.31B2.44B2.6B2.25B2.37B2.49B2.63B
Equity Growth %0.09%0.08%0.02%0.05%0.05%0.07%-0.14%0.05%0.05%0.06%
Book Value per Share19.3220.7620.5322.1223.6924.8922.0724.3125.5527.00
Total Shareholders' Equity1.97B2.14B2.19B2.31B2.43B2.6B2.25B2.36B2.48B2.62B
Common Stock101K101K102K99K99K100K94K94K94K94K
Retained Earnings1.94B2.08B2.14B2.33B2.44B2.61B2.3B2.39B2.5B2.63B
Treasury Stock--------00
Accumulated OCI-10.2M-7.75M-15.83M-20.63M-10.59M-10.03M-51.64M-36.98M-19.19M-12.52M
Minority Interest8.48M7.1M6.57M5.68M5.76M6.25M4.84M17.08M9.73M9.39M

Cash Flow

Sep 2016Sep 2017Sep 2018Sep 2019Sep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025
Cash from Operations+360.06M377.79M352.2M327.67M343.85M447.75M318.58M367.08M327.25M472.2M
Operating CF Margin %0.35%0.35%0.33%0.26%0.3%0.35%0.25%0.28%0.26%0.35%
Operating CF Growth %0.16%0.05%-0.07%-0.07%0.05%0.3%-0.29%0.15%-0.11%0.44%
Net Income186.4M207.11M42.3M255.5M231.62M317.82M183.9M201.64M264.32M256.49M
Depreciation & Amortization85.15M84.31M81.28M85.12M111.88M112.76M103.61M95.51M87.33M98.6M
Stock-Based Compensation66.98M65.34M71.25M76.58M86.63M99.7M114.92M118.49M119.83M128.51M
Deferred Taxes-22.8M-35.05M61.06M-40.19M-5.27M-37.05M-29.46M-18.34M-21.61M4.99M
Other Non-Cash Items6.62M6.57M12.46M11.83M19.41M-20.84M1.86M16.86M-3.89M619K
Working Capital Changes37.7M49.51M83.85M-61.18M-100.42M-24.64M-56.25M-47.08M-118.71M-17.01M
Change in Receivables24.89M-62.08M97.63M-57.2M35.55M-70.19M-8.01M48.13M-37.67M-1.78M
Change in Inventory-2.95M-11.92M-6.6M-16.1M-11.78M17.15M-11.76M-13.23M-2.65M8.02M
Change in Payables2.83M103.5M-29.02M33.42M-43.55M44.23M00022.85M
Cash from Investing+-282.5M-158.03M78.09M-56.23M134.37M-44.91M-295.94M54.21M-286.29M-10.59M
Capital Expenditures-100.76M-99.62M-72.81M-96.28M-66.35M-54.45M-47.93M-30.34M-30.01M-36.35M
CapEx % of Revenue0.1%0.09%0.07%0.08%0.06%0.04%0.04%0.02%0.02%0.03%
Acquisitions----------
Investments----------
Other Investing-121.73M-5.25M-12.54M-17.25M-2.64M16.36M-11.53M0011.29M
Cash from Financing+-91.99M-106.83M-133.63M-385.28M-207.78M-252.51M-610.56M-236.81M-287.81M-247.24M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-48.4M-57.06M-66.16M-77.5M-88.58M-89.17M-100.07M-103.41M-114.58M-126.6M
Share Repurchases----------
Other Financing-214K-2.09M-1.02M-1.76M-5.04M-7.36M-1.44M-766K-14.36M-2.11M
Net Change in Cash----------
Free Cash Flow+138.28M272.93M266.85M214.14M274.86M393.3M259.12M336.74M297.25M430.26M
FCF Margin %0.13%0.25%0.25%0.17%0.24%0.31%0.21%0.26%0.23%0.32%
FCF Growth %0.21%0.97%-0.02%-0.2%0.28%0.43%-0.34%0.3%-0.12%0.45%
FCF per Share1.352.642.492.052.673.762.543.453.054.41
FCF Conversion (FCF/Net Income)1.94x1.87x8.44x1.28x1.49x1.44x1.73x1.83x1.25x1.85x
Interest Paid--------00
Taxes Paid55.09M56.76M60.88M59.72M52.87M70.74M40.34M61.48M63.22M73.74M

Key Ratios

Metric2016201720182019202020212022202320242025
Return on Equity (ROE)9.8%9.79%1.92%11.32%9.74%12.3%7.58%8.68%10.78%9.96%
Return on Invested Capital (ROIC)12.77%13.21%9.88%15.85%11.23%17.73%10.45%12.02%11.15%10.13%
Gross Margin89.38%89.06%87.9%87.04%87.39%89.85%88.73%88.26%88.97%88.13%
Net Margin18.12%18.66%3.96%20.55%19.91%24.21%14.68%15.44%20.56%18.9%
Debt / Equity----0.03x0.03x0.02x0.02x0.02x0.01x
FCF Conversion1.94x1.87x8.44x1.28x1.49x1.44x1.73x1.83x1.25x1.85x
Revenue Growth5.68%5.43%-2.48%17.73%-6.43%10.28%-2.14%3.67%-2%5.92%

Revenue by Segment

2016201720182019202020212022202320242025
Licensing, Brodcast Revenue---474.15M439.42M475.65M433.99M451.72M409.11M428.47M
Licensing, Brodcast Revenue Growth-----7.33%8.25%-8.76%4.08%-9.43%4.73%
Licensing, Mobile Revenue---193.05M226.97M261.23M238.74M243.9M235.77M268.57M
Licensing, Mobile Revenue Growth----17.57%15.09%-8.61%2.16%-3.33%13.91%
Licensing, Other Revenue---172.09M127.28M153.4M154.44M207.75M229.8M248.38M
Licensing, Other Revenue Growth-----26.04%20.52%0.68%34.52%10.61%8.09%
Licensing, PC Revenue---113.6M132.3M141.92M151.08M124.36M141.3M151.89M
Licensing, PC Revenue Growth----16.47%7.27%6.45%-17.68%13.62%7.50%
Licensing, CE Revenue---154.4M152.61M181.94M186.28M170.2M165.82M150.7M
Licensing, CE Revenue Growth-----1.16%19.22%2.39%-8.64%-2.57%-9.11%
Products And Services---134.34M83.22M67.11M89.26M101.81M91.93M101.11M
Products And Services Growth-----38.06%-19.35%33.01%14.06%-9.71%9.99%

Revenue by Geography

2016201720182019202020212022202320242025
Non-US---792.42M700.82M861.36M785.55M833.71M823.46M852.14M
Non-US Growth-----11.56%22.91%-8.80%6.13%-1.23%3.48%
UNITED STATES320.13M373.26M388.7M449.2M460.97M419.9M468.25M466.03M450.26M496.99M
UNITED STATES Growth-16.60%4.14%15.57%2.62%-8.91%11.51%-0.47%-3.38%10.38%

Frequently Asked Questions

Valuation & Price

Dolby Laboratories, Inc. (DLB) has a price-to-earnings (P/E) ratio of 24.2x. This is roughly in line with market averages.

Growth & Financials

Dolby Laboratories, Inc. (DLB) reported $1.35B in revenue for fiscal year 2025. This represents a 46% increase from $926.3M in 2012.

Dolby Laboratories, Inc. (DLB) grew revenue by 5.9% over the past year. This is steady growth.

Yes, Dolby Laboratories, Inc. (DLB) is profitable, generating $255.0M in net income for fiscal year 2025 (18.9% net margin).

Dividend & Returns

Yes, Dolby Laboratories, Inc. (DLB) pays a dividend with a yield of 2.05%. This makes it attractive for income-focused investors.

Dolby Laboratories, Inc. (DLB) has a return on equity (ROE) of 10.0%. This is below average, suggesting room for improvement.

Dolby Laboratories, Inc. (DLB) generated $430.3M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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