Dolphin Entertainment, Inc. (DLPN)·Q1 2025 Earnings Summary

Executive Summary

• Revenue of $12.17M declined year over year due to the prior-year Blue Angels production contribution, but core Entertainment Publicity & Marketing (EPM) revenue rose 2% YoY to $12.1M; revenue materially beat S&P Global consensus of $10.00M. Bold beat: revenue beat; EPS miss: diluted EPS was $(0.21) vs consensus $(0.15)* .
• GAAP operating loss was $(1.77)M and adjusted operating loss was $(0.63)M, versus adjusted operating income of $1.03M in Q1 2024, reflecting growth investments and Q1 headwinds from LA wildfires .
• Management emphasized two growth vectors: women’s sports (Always Alpha) with plans to expand into soccer and basketball and double the roster in 2025, and a new affiliate marketing division at The Digital Dept. with intent to more than triple the influencer roster by year-end .
• CEO reiterated insider conviction: weekly purchases via a 10b5-1 plan begun in April and prior $100K stock buys, asserting the stock is deeply undervalued; tone confident about returning to normal in Q2 and maintaining a strong full-year trajectory .

What Went Well and What Went Wrong

What Went Well

• EPM resilience: “Excluding the impact of last year’s Blue Angels production revenue of $3.4 million, our core entertainment publicity and marketing revenue increased 2% year-over-year to $12.1 million,” demonstrating underlying growth amid industry disruption .
• Strategic expansion: Always Alpha JV with Deep Blue and targeted expansion into women’s soccer and basketball, with management teams planned and intent to double the roster by year-end .
• New monetization: Launch of affiliate marketing division at The Digital Dept., offering all major influencer revenue streams under one roof; “we have two dozen influencers on our affiliate roster today, and we expect to more than triple that number by the end of the year” .

What Went Wrong

• Headwinds from LA wildfires and lighter awards season reduced revenues in certain PR subsidiaries (42West and Special Projects) in Q1; the impact was contained to Q1 .
• Profitability compression: GAAP operating loss $(1.77)M vs operating income of $0.17M last year; adjusted operating loss $(0.63)M vs adjusted operating income $1.03M, reflecting strategic investments and temporary revenue headwinds .
• EPS missed consensus: diluted EPS $(0.21) vs consensus $(0.15)*, with the revenue shortfall vs prior year driven by the absence of $3.4M Blue Angels production revenue in the base period .

Financial Results

Headline P&L vs Prior Year, Prior Quarter, and Consensus

Note: Company did not disclose Q4 2024 quarterly revenue/EPS in the FY press release; only annual results were provided .
Values marked with * retrieved from S&P Global.

Operating Expense Detail (GAAP)

Segment Breakdown

Liquidity KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Excluding the impact of last year’s Blue Angels production revenue of $3.4 million, our core entertainment publicity and marketing revenue increased 2% year-over-year to $12.1 million—a clear sign of underlying growth, even during a period of industry disruption from the Los Angeles wildfires and less awards business” — Bill O’Dowd, CEO .
• “Adjusted operating loss was approximately $600,000 for the quarter… comparable to the first quarter of 2025 [after normalizing Q1 2024 for Blue Angels amortization]” — Mirta Negrini, CFO .
• “We will look to expand into women’s soccer and basketball this year… and we expect to more than triple [affiliate] influencers by the end of the year” — Bill O’Dowd .
• “I want to reiterate my belief that Dolphin’s common stock is deeply undervalued… I have continued buying through a 10b5-1 plan” — Bill O’Dowd .

Q&A Highlights

• Always Alpha ramp economics: management expects a lag from hiring managers to meaningful revenue (3–6 months for initial, 6–9 months to hit run-rate), with 2025 investments aimed at larger payoffs in 2026+ .
• Affiliate marketing model: TDD earns standard 20% commission on creator earnings; affiliate conversions can be rapid and cash-positive within months; plan to add manager teams every ~8 weeks to scale .
• Youngblood timeline: target fall 2025 festival (Toronto preferred) and February 2026 streaming-aligned release around Winter Olympics/NHL season; leveraging “40th anniversary of the original” as a marketing tailwind .
• Outlook/tone: fires’ impact contained to Q1; return to normal in Q2; confidence in full-year trajectory despite Q1 headwinds; emphasis on organic growth and optionality from ventures .

Estimates Context

Values retrieved from S&P Global.*
On the call, the covering analyst explicitly referenced a $10M revenue estimate, acknowledging the beat despite Q1 headwinds .

Key Takeaways for Investors

• Revenue beat vs consensus driven by resilient core EPM growth and diversified agency activity despite LA wildfires; EPS missed on investments and revenue mix without Blue Angels production contribution .
• Near-term catalysts: rapid scaling of affiliate marketing, incremental women’s sports mandates (soccer, basketball) and roster expansion, plus Youngblood festival/sale milestones ahead .
• Non-GAAP normalization shows adjusted operating loss of $(0.63)M vs $(1.77)M GAAP operating loss, highlighting investment-related and non-recurring items; watch adjusted trajectory through Q2/Q3 .
• Insider alignment: weekly CEO purchases via 10b5-1 plan underscore confidence and perceived undervaluation; this could be a sentiment tailwind .
• Trend analysis suggests Q1 headwinds are transitory; management expects normalization in Q2 with organic growth and cross-selling strength across agencies .
• Liquidity stable with $7.09M cash at quarter-end; investments continue but company has shown discipline in OpEx vs prior year .
• Estimate set-up: revenue beat with a single covering estimate could prompt upward adjustments; EPS miss may temper near-term revisions pending visibility on investment ramp and normalization in Q2 .