Dolphin Entertainment (NASDAQ:DLPN) reported record third-quarter revenue of $16 million and returned to profitability, as growth across its marketing agencies helped lift adjusted earnings.
Revenue rose 8.3% from $14.8 million a year earlier, Chief Financial Officer Mirta Negrini said on the company’s earnings call. Excluding Always Alpha, which Dolphin spun out in November 2025, revenue increased 9.7% from the prior-year quarter.
Net income was $200,000, or $0.02 per diluted share, compared with a net loss of $400,000, or $0.03 per share, a year earlier. Adjusted EBITDA, a non-GAAP measure, rose 42.9% to approximately $1.6 million from $1.1 million.
CEO Bill O’Dowd said the company prefers to assess its performance using adjusted EBITDA because noncash amortization expenses can obscure its cash flow results. He attributed much of the growth to agencies selling services across the group and sharing clients.
Operating Costs and Cash
Third-quarter operating income increased to approximately $800,000 from $300,000 a year earlier. Operating expenses rose to $15.2 million from $14.5 million, Negrini said.
Legal and professional fees totaled $1 million, including approximately $400,000 in litigation-related costs. Asked how long those expenses might remain elevated, O’Dowd said they were driven by one matter and that it was difficult to predict when it would end. He said Dolphin was confident in its position and prepared to pursue the case.
For the first nine months of 2026, revenue increased 5.4% to $43.3 million. Adjusted EBITDA for the period rose 24.2% to approximately $1.4 million. Cash and cash equivalents stood at $8.1 million on Sept. 30, compared with $7.7 million at the end of June and $8.8 million at the end of 2025.
O’Dowd said Dolphin expects to save more than $1 million annually as its largest New York and Los Angeles leases expire in the second half of 2027. He also said the company’s primary bank term loan matures in September 2028, potentially freeing up roughly $2.2 million a year in principal and interest payments.
Agency Growth and Seasonality
O’Dowd said cross-selling among Dolphin’s agencies had generated a seven-figure impact and contributed to both revenue and profit. Public relations firms have been working with influencer marketing agency The Digital Dept., as well as sharing and co-representing clients with one another, he said.
The Digital Dept.’s talent roster has grown to more than 380 creators from about 250 a year ago, according to O’Dowd. He added that the agency increased its team by 45% and started teams in Dallas and Boston.
O’Dowd said Dolphin typically experiences its weakest quarter in the first quarter, particularly because of seasonality in the influencer business, with results generally strengthening through the fourth quarter. He said the fourth quarter was looking strong, while noting that the latest third quarter had been unusually strong.
Film and Venture Plans
Dolphin’s Graviteur Studios is casting its first feature, Crush Party, with Kristen Brancaccio set to direct. O’Dowd said the company expects to film in the first half of 2027 and is aiming for a first-quarter 2028 release. He estimated the budget at about $1.5 million.
The company is considering financing arrangements ranging from contributing none of the budget alongside certain studio distributors to funding half, O’Dowd said. The decision would involve trade-offs over how much of the film’s eventual profit Dolphin could receive.
Dolphin also expects four ventures to come to market in 2027, including at least one in the first quarter, O’Dowd said. The company has identified its first two ventures and is evaluating two more, subject to due diligence. He said Dolphin expects the majority of its future ventures to use its partnership with fundraising platform DealMaker.
O’Dowd also said he has purchased more than 520,000 Dolphin common shares since August 2024, including purchases outside his trading plan, and owns more than 5% of the company’s outstanding common shares.
About Dolphin Entertainment (NASDAQ:DLPN)
Dolphin Entertainment, Inc. (NASDAQ: DLPN) is an entertainment marketing and content production company. Through its portfolio of specialized agencies, the company provides public relations, digital marketing, social media, influencer marketing, branding, and strategic communications services to clients in the entertainment, hospitality, lifestyle, and consumer sectors. The company’s marketing businesses have included 42West, The Door, and Shore Fire Media, which serve clients across film, television, music, and related industries.
