The widening operating loss and declining Adjusted EBITDA signal deteriorating core profitability despite modest top-line growth. The GAAP EPS miss of -$0.13 vs -$0.07 consensus is significant for a $14M market cap stock. Monitor the Q3 2026 earnings for the promised 'meaningful sequential improvement in profitability' and watch for any dilution from the CEO's 10b5-1 buying plan or the DealMaker partnership.
Price Chart
Executive Summary
Dolphin Entertainment reported Q2 2026 revenue of $14.4M (+2.5% YoY), slightly below the $14.5M consensus, and a GAAP net loss of $1.6M (EPS -$0.13), which is a wider loss than the $-0.07 consensus estimate. The company posted positive Adjusted EBITDA of $243K, but this was down 61% from $628K in Q2 2025, and operating loss widened to $1.0M from $0.1M. While revenue continues to grow modestly, deteriorating profitability and a GAAP earnings miss make this a bearish report for a micro-cap stock with a $14M market cap and a history of negative stock reactions to earnings.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $14.4M, up 2.5% YoY from $14.1M, but below $14.5M consensus
- GAAP net loss widened to $1.6M from $1.4M YoY; EPS -$0.13 vs consensus estimate of -$0.07
- Adjusted EBITDA fell 61% to $243K from $628K in Q2 2025
- Operating loss ballooned to $1.0M from $0.1M in the prior-year quarter
- Cash burn continues: cash and equivalents fell to $7.7M from $8.8M at year-end 2025
- CEO disclosed a 10b5-1 plan to own over 5% of DLPN common stock within weeks
- Company reiterated long-term catalysts: bank debt maturity in ~2 years, lease savings in H2 2027, and $127M in NOL carryforwards
Financial Impact
Revenue grew $356K YoY but net loss increased by $192K; Adjusted EBITDA declined $385K. The company is burning cash with no clear path to GAAP profitability.
Risk Factors
- Continued cash burn with only $7.7M cash on hand against $48.7M total liabilities
- Operating loss widening from $0.1M to $1.0M YoY suggests structural cost issues
- High litigation costs ($358K in Q2) and retention bonuses ($360K) may recur despite management's expectations
- Micro-cap stock with $14M market cap is highly sensitive to small absolute earnings misses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001079973-26-001070 |
| Document: dlpn_8k-v2.htm | 0001079973-26-001070 |
| Document: 0001079973-26-001070-index-headers.html | 0001079973-26-001070 |
| Document: 0001079973-26-001070-index.html | 0001079973-26-001070 |
| Document: 0001079973-26-001070.txt | 0001079973-26-001070 |
| 8-K Data (Synthetic) | 0001079973-26-001070 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 24, 2026 4w ago | DEFA14A | $1.09 $1.02 | ▼ −6.43% | ▼ −4.96% | $1.00 (−7.83%) |
Aug 12, 2026 10w ago | 8-K | $1.22 $1.11 | ▲ +9.43% | ▲ +7.68% | $1.00 (+18.03%) |
US Market Status
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