Dolphin Entertainment (DLPN) investor relations material

Executive summary

• Q1 2026 revenue grew 5.2% year-over-year to $12.8 million, driven by organic growth in entertainment publicity, marketing, and content production, notably from the Youngblood film release, despite seasonality.

• Adjusted EBITDA loss improved by 25% year-over-year, reflecting operational efficiency gains and progress toward profitability.

• Net loss widened to $2.7 million ($0.22 per share) from $2.3 million ($0.21 per share) in Q1 2025, primarily due to higher direct costs, payroll, and legal expenses.

• Agencies and subsidiaries led major brand activations at Super Bowl, Grammys, Oscars, SXSW, and CinemaCon, with record cross-agency collaboration and client wins.

• Management expects continued revenue growth, margin expansion, and significant free cash flow as infrastructure investments and strategic initiatives, such as the DealMaker partnership and publishing venture with Copper Books and Simon & Schuster, pay off.

Financial highlights

• Q1 2026 revenue: $12.8 million, up from $12.2 million in Q1 2025.

• Operating loss: $2.1 million, compared to $1.8 million in Q1 2025.

• Net loss: $2.7 million, versus $2.3 million in Q1 2025.

• Adjusted EBITDA loss: $467,000, a 25% improvement from $625,000 in Q1 2025.

• Loss per share: $0.22, compared to $0.21 in Q1 2025.

Outlook and guidance

• Management anticipates continued revenue growth, adjusted EBITDA margin expansion, and significant free cash flow throughout 2026 and beyond.

• Major catalysts include the DealMaker partnership and a new publishing venture with Copper Books and Simon & Schuster.

• Over $3 million in annual cash flow savings expected from lease expirations and debt payoff by end of 2027.

• Substantial NOL carryforwards ($127 million) are expected to shield future cash taxes.

• Management expects current cash, operating cash flow, and available funds to be sufficient to meet debt requirements.