Overview

• US entertainment marketing firm's Q1 revenue rose 5.2% yr/yr to $12.8 mln

• Adjusted EBITDA loss narrowed 25% yr/yr to $467,000

• Company reiterates outlook for revenue growth and margin expansion in 2026

Outlook

• Company reiterates expectations for continued revenue growth in 2026

• Dolphin expects significant free cash flow generation and adjusted EBITDA margin expansion in 2026

• Company anticipates cost savings from lease expirations and debt maturities to boost free cash flow

Result Drivers

• HIGHER OPERATING EXPENSES - Q1 operating expenses rose due to non-cash depreciation and amortization, a one-time distribution guarantee, and increased legal and professional fees from litigation

Company press release: ID:nACS9s3Xpa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$12.80 mln	$13.56 mln (1 Analyst)
Q1 EPS		-$0.22
Q1 Operating Expenses		$14.90 mln
Q1 Operating Income		-$2.10 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Dolphin Entertainment Inc is $5.00, about 244.8% above its May 11 closing price of $1.45

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago

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