Dolby Laboratories, Inc. (DLB): Business Model Canvas [Dec-2025 Updated]

When you look at the financials for Dolby Laboratories, Inc. (DLB), you see a masterclass in monetizing intellectual property, and honestly, it's a model many tech firms envy. This company runs a high-margin, licensing-led operation, pulling in about $1.35 billion in total revenue for fiscal year 2025 while keeping non-GAAP gross margins near 90%-that's defintely premium territory. This whole structure rests on their 5,000+ patents, which necessitates heavy investment, with non-GAAP operating expenses projected between $765 million to $775 million for FY25 to keep R&D and enforcement sharp across auto, consumer electronics, and streaming. Below, you can see the full Business Model Canvas detailing the key partnerships and channels that make this powerful revenue engine work.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Key Partnerships

You're looking at the web of relationships Dolby Laboratories, Inc. (DLB) relies on to drive its licensing revenue, which was a major component of its $1.35 billion total revenue in Fiscal Year 2025 [cite: 7, 8, 9 from previous search]. These partnerships are the engine for embedding Dolby Atmos and Dolby Vision across consumer devices, content pipelines, and automotive platforms.

Consumer Electronics Manufacturers (Samsung, Vizio, TCL)

The consumer electronics segment remains foundational, directly impacting the royalty pool from device sales. TVs from major players like TCL and Samsung launched in Fiscal Year 2025 incorporating Dolby Atmos and/or Dolby Vision [cite: 7 from previous search]. While a key partnership with Vizio was noted in 2024 for integrating Dolby Atmos across its entire soundbar lineup and Dolby Vision on 4K TVs, this ongoing integration is crucial for volume [cite: 10, 12 from previous search].

• TVs from TCL and Samsung launched in FY2025 with Dolby Atmos and/or Dolby Vision support.
• Vizio integrated Dolby Atmos across its entire 2024 soundbar lineup, building on prior Dolby Vision TV integration.

Automotive OEMs (Cadillac, Mercedes-Benz, Tata Motors)

The automotive sector is a significant growth vector, moving Dolby from a cyclical consumer electronics play to a more stable, recurring revenue stream tied to vehicle production. Dolby confirmed it has more than doubled its auto manufacturer collaborations to over 20 brands in 2025 [cite: 10 from previous search]. The Cadillac OPTIQ, for instance, comes standard with a 19-speaker AKG audio system featuring Dolby Atmos [cite: 3, 9 from previous search]. Mercedes-Benz has rolled out Dolby Atmos across its entire line-up, even creating a mobile Dolby Atmos studio experience in the Mercedes-Maybach [cite: 2, 1 from previous search]. Furthermore, Tata Motors is incorporating Dolby Atmos into its upcoming Tata Sierra [cite: 18 from previous search]. The global premium in-car entertainment market is projected to hit $58.18 billion by 2032 [cite: 12 from previous search].

OEM Partner	Technology Focus	Key Data Point (as of late 2025)
Cadillac	Dolby Atmos (Standard)	2025 OPTIQ features a 19-speaker AKG system [cite: 3, 9 from previous search]
Mercedes-Benz	Dolby Atmos/Vision	Rolled out Dolby Atmos across the entire line-up [cite: 2 from previous search]
Tata Motors	Dolby Atmos	Integration planned for the upcoming Tata Sierra [cite: 18 from previous search]
Total Auto OEMs	Dolby Atmos	Number of collaborating manufacturers more than doubled to over 20 in 2025 [cite: 10 from previous search]

Content Distributors and Streaming Platforms (Peacock, HBO Max)

The partnership with content providers ensures that the content ecosystem is rich with Dolby-enabled titles, which drives demand for licensed devices. Peacock began streaming major live sports like NFL Sunday Night Football and NBA games in Dolby Atmos [cite: 7 from previous search]. For HBO Max (now branded as Max), its premium tiers support Dolby Atmos audio. Dolby's CEO noted momentum from a new imaging patent pool aimed at content streamers [cite: 8 from previous search].

• Peacock streams NFL Sunday Night Football and NBA games in Dolby Atmos.
• HBO Max (Max) offers Dolby Atmos support on select subscription tiers.

Cinema Exhibitors (AMC Entertainment for Dolby Cinema expansion)

The theatrical segment is secured through deep partnerships like the one with AMC Entertainment. This collaboration is expanding, with 40 additional Dolby Cinema at AMC locations planned in the US through the end of 2027, increasing the total to over 200 auditoriums-a nearly 25% increase [cite: 2, 3, 4, 5, 6 from previous search]. This premium format has strong content backing, with 49 of the top 50 titles from the past five years shown in Dolby Cinema [cite: 4, 6 from previous search].

Semiconductor and SoC/DSP Suppliers (Texas Instruments, MediaTek)

These component-level partnerships are critical for scaling adoption efficiently. Dolby is actively working with SoC and DSP suppliers like Texas Instruments and MediaTek to fuel the deployment of Dolby Atmos into more vehicles [cite: 3, 8, 9 from previous search]. Additionally, a strategic partnership with Samsung Display will see its OLED displays pre-tuned to deliver Dolby Vision, streamlining implementation for automotive manufacturers [cite: 9 from previous search].

Finance: draft FY2026 licensing revenue forecast sensitivity analysis by next Tuesday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Key Activities

Research and development (R&D) of new audio/visual standards

Dolby Laboratories, Inc. dedicates significant resources to creating and refining its core technologies. For the twelve months ending June 30, 2025, research and development expenses totaled $0.263B. This activity supports the continued evolution of flagship standards like Dolby Atmos and Dolby Vision, which saw strong momentum across device categories in Q1 fiscal 2025. The company also focuses on newer areas, such as the introduction of Dolby OptiView, which is designed for developers in live sports streaming.

Global management and enforcement of its patent portfolio

The management of intellectual property is central to the Dolby Laboratories, Inc. business. The company finished fiscal year 2025 with total revenue of $1.35 billion. Licensing revenue for the full year of fiscal 2025 was estimated to range from $1.22 billion to $1.28 billion. The company's Q4 fiscal 2025 licensing revenue share was projected to account for 84-86% of total revenue. Cash flows from operations for the full year of fiscal 2025 reached $472 million.

Here's a quick look at the key financial results for the full fiscal year 2025:

Metric	Amount (FY 2025)
Total Revenue	$1.35 billion
GAAP Net Income	$255 million
Non-GAAP Net Income	$414 million
Cash Flows from Operations	$472 million

Licensing and integration support for partners' products

This activity involves supporting a wide array of partners in integrating Dolby technologies. In 2024, over 80% of the domestic box office and almost 70% of the global box office came from titles released in Dolby Atmos and Dolby Vision. For Q1 2025, Dolby highlighted customer experiences like the first Dolby Vision enabled car with Li Auto. Furthermore, in Q4 2025, TVs from TCL, Samsung, Hisense, Xiaomi, and Amazon launched with Dolby Atmos and/or Dolby Vision support. The company also noted that all eight of the 2025 Grammy nominees for best new artist were available in Dolby Atmos.

Expanding the Dolby.io platform for developers

Dolby Laboratories, Inc. is expanding its platform offerings for developers, exemplified by Dolby OptiView, which is optimized for viewers and designed for developers in the live sports streaming space. The company is focused on use cases such as real-time streaming and personalized advertising through this platform. The overall enterprise software market, which provides context for platform growth, is forecasted to generate revenues of $315 billion by 2025.

Strategic acquisitions like the GE Licensing patent portfolio

A key strategic move was the acquisition of GE Licensing from GE Aerospace. Dolby Laboratories, Inc. agreed to this acquisition in a $429 million all-cash transaction. This deal brought in a portfolio of over 5,000 patents, including foundational video codec technologies like HEVC and VVC. Dolby expected this transaction to be accretive on a non-GAAP basis to operating margins and EPS in fiscal 2025. Analysts estimate these acquired patents alone could generate over $1 billion in royalties over time.

The key details of the GE Licensing acquisition include:

• Acquisition Price: $429 million cash
• Patents Acquired: Over 5,000
• Expected Accretion: Non-GAAP operating margins and EPS in FY 2025
• Estimated Future Royalty Potential: Over $1 billion

Finance: draft 13-week cash view by Friday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Key Resources

You're looking at the bedrock of Dolby Laboratories, Inc.'s (DLB) value creation, the assets that let them command premium licensing fees. Honestly, for a technology company, the Key Resources section is where the real moat is built, and for DLB, that moat is deep intellectual property and a rock-solid balance sheet.

The foundation is definitely the Intellectual Property (IP) portfolio. While the prompt mentioned 5,000+ patents, the reality as of mid-2025 is much more extensive, reflecting years of focused R&D and strategic acquisitions like the GE Licensing deal.

Key Resource Metric	Value/Data Point
Total Global Patents/Applications	22,037 (as of mid-2025)
Issued Patents (from total)	12,564
Cash and Investments (End of FY2025)	Approximately $783 million
FY2025 Licensing Revenue Contribution (Atmos, Vision, Imaging Patents)	45% of total Licensing revenue
FY2025 Growth Rate (Atmos, Vision, Imaging Patents)	Just over 14%

Your core technologies are the engines driving that IP monetization. Dolby Atmos and Dolby Vision are the standards you see everywhere, from cinema to consumer electronics, and the momentum in Dolby OptiView is expanding the addressable market, especially with content streamers.

Financially, you're sitting well. That strong balance sheet, highlighted by approximately $783 million in cash and investments at the close of fiscal year 2025, gives you the flexibility to invest in future R&D or pursue strategic tuck-in acquisitions without stressing operations. Plus, cash flows from operations for the full year 2025 were strong at $472 million.

Beyond the patents and the money, the human capital and the brand equity are irreplaceable resources:

• Highly skilled R&D engineers and technical support teams that drive new standards like Dolby Vision 2.
• The globally recognized Dolby brand name, which carries inherent trust and premium perception across entertainment ecosystems.
• New partnerships in automotive, with brands like Maruti Suzuki, Dongfeng, and Vinfast integrating key technologies.

The ongoing commitment to innovation is clear; Dolby is targeting growth of 15% to 20% per year over the next several years for its key Atmos, Vision, and Imaging Patents portfolio. That's the plan to keep these resources generating outsized returns.

Finance: draft 13-week cash view by Friday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Value Propositions

You're looking at the core value Dolby Laboratories, Inc. delivers across its ecosystem, which is heavily weighted toward intellectual property licensing and technology integration. This value is what drives their exceptionally high profitability.

High non-GAAP gross margins of approximately 90% for the business

The financial structure of Dolby Laboratories, Inc. is a direct reflection of the value proposition inherent in its licensing model. For the full fiscal year 2025, the company anticipated non-GAAP gross margins to be approximately 90%. This high margin is a consistent feature, as the guidance for the first quarter of fiscal 2026 also targets approximately 90% on a non-GAAP basis.

Here's a quick look at the financial scale supporting this high-margin business as of the end of fiscal year 2025:

Metric	Fiscal Year 2025 Actual/Guidance	Comparison to FY 2024
Total Revenue	$1.35 billion	Up from $1.27 billion
Non-GAAP Net Income	$414 million	Up from $369 million
Cash Flows from Operations	$472 million	Up from $327 million
Non-GAAP Gross Margin (FY 2025 Est.)	Approximately 90%	Consistent with prior expectations

This financial performance is built on the success of key technology adoption.

Premium, immersive audio and visual experiences for consumers

The primary value is delivering superior sensory experiences that consumers seek out. This is evidenced by the growth in the flagship technologies.

• Dolby Atmos, Dolby Vision, and imaging patents grew just over 14% in fiscal 2025.
• These key technologies represented 45% of total licensing revenue for the full fiscal year 2025.
• The introduction of Dolby Vision 2 in 2025 expanded capabilities beyond High Dynamic Range (HDR) with new tools for artists.

A standardized, high-quality content creation and playback ecosystem

Dolby Laboratories, Inc. provides the necessary standards and tools to ensure content creators can produce high-quality experiences that are consistently reproduced across a wide array of devices. This standardization creates a reliable ecosystem for both creatives and manufacturers.

• Televisions from TCL, Samsung, Hisense, Xiaomi, and Amazon launched with Dolby Atmos and/or Dolby Vision in fiscal 2025.
• Peacock began streaming NFL Sunday Night Football and NBA games in Dolby Atmos in late 2025.
• Foundational audio technology revenue was just under negative 1% in fiscal 2025, near expectations of roughly flat growth.

Reduced complexity for licensees via patent pools for imaging technology

For content distributors, Dolby Laboratories, Inc. simplifies the licensing landscape for complex imaging technologies. The acquisition of GE Licensing in late 2024 strengthened this position, leading to a new structure for content streamers.

• The acquisition of GE Licensing was expected to be accretive to margins and earnings on a non-GAAP basis in fiscal 2025.
• A new imaging patent pool for content streamers was introduced in fiscal 2025.

Real-time interactive audio/video tools via the Dolby.io platform

The Dolby.io platform extends the value proposition into real-time interactive applications, moving beyond pre-recorded media. This targets emerging use cases in live entertainment and communication.

• Dolby OptiView, a real-time display optimization tool, is being integrated into automotive infotainment systems.
• This integration opens a new revenue stream in the automotive AV market, valued at approximately $200 billion.
• The platform supports use cases like real-time streaming and interactive fan engagement for live sports.

Finance: finalize the Q1 2026 non-GAAP margin reconciliation by next Tuesday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Customer Relationships

You're looking at how Dolby Laboratories, Inc. (DLB) manages the relationships that drive its highly recurring, royalty-based revenue. It's a mix of deep technical collaboration with giants and enabling self-service for a broader developer base. Honestly, the numbers show this relationship management is the core of their financial durability.

Dedicated, long-term strategic relationship management with key OEMs

Dolby Laboratories, Inc. maintains deep, long-term relationships with Original Equipment Manufacturers (OEMs) across key markets. This is evident in the continuous flow of new product integrations. For instance, in the automotive sector, new agreements were signed in Fiscal Year 2025 with major players like Maruti Suzuki in India, Deepal in China, and VinFast in Vietnam to integrate Dolby Atmos and Dolby Vision. Furthermore, the first in-car game featuring Dolby Atmos launched on Li Auto vehicles. In the TV market, devices from TCL, Samsung, Hisense, Xiaomi, and Amazon launched in 2025 supporting Dolby Atmos and/or Dolby Vision. This continuous integration is crucial, as the company expects growth in Dolby Atmos, Dolby Vision, and imaging patents to be in the range of 15% to 20% per year over the next 3 to 5 years.

Technical support and co-development for licensing partners

For its professional licensing partners, Dolby Laboratories, Inc. goes beyond just granting access to its intellectual property. The relationship is structured to ensure product success through hands-on assistance. This support includes providing technical support to help get products up and running, offering co-marketing opportunities, granting access to the Dolby brand for promotional materials, and requiring product certification to guarantee flawless technology delivery. The licensing process itself is structured, requiring applicants to submit an application, sign an agreement that includes an initial license fee, and then submit their product for testing and approval. The acquisition of GE Licensing, which added over 5,000+ patents, is an extension of this strategy, strengthening the IP portfolio to support next-generation standardized technologies through collaborative pool licensing.

Self-service and developer community support for Dolby.io

The self-service channel is primarily driven through the Dolby.io platform, which offers APIs for developers to build immersive and interactive experiences without needing deep expertise in the underlying science. For example, the interactivity APIs are priced at $0.0045 per participant, per minute, while media processing APIs cost $0.05 per minute. Dolby is also pushing its Dolby OptiView as a Software-as-a-Service solution for interactive streaming, providing SDKs for platforms like HTML5 / Tizen / webOS, Android / Fire TV, iOS / tvOS, Roku, React Native, and Flutter. This suite of tools is designed to help developers increase viewer retention and maximize monetization in areas like live sports and iGaming.

Immersive retail experiences like the Dolby Home Experience at NFM

To bridge the gap between technology and consumer understanding, Dolby Laboratories, Inc. is investing in experience-led retail. A prime example is the launch of the first-ever Dolby Home Experience at NFM (Nebraska Furniture Mart) in The Colony, Texas, on December 6, 2025. This is an immersive destination where shoppers can experience Dolby Vision and Dolby Atmos in a home-like setting, guided by Dolby-trained experts in a true 'try-before-you-buy' journey. This experiential retail push complements existing long-term venue relationships, such as the announced expansion with AMC Entertainment to add 40 Dolby Cinema screens at select locations nationwide by 2027.

Royalty-based, recurring revenue model with licensees

The foundation of Dolby Laboratories, Inc.'s customer relationship is its royalty-based, recurring revenue model, which proved highly resilient in Fiscal Year 2025. Licensing revenue is the dominant stream, making up the bulk of the company's top line. You can see the financial weight of these relationships here:

Metric	FY 2025 Actual/Range	FY 2024 Comparison
Total Revenue	$1.35 billion	Up from $1.27 billion in FY24
Licensing Revenue	$1.23 billion to $1.26 billion (Estimate)	Represents 84-86% of total revenue in Q4 FY25 guidance
Dolby Atmos/Vision/Patents Growth	Over 14%	FY2025 growth rate
Cash Flows from Operations	$472 million	Up from $327 million in FY24

The company's IP moat is substantial, holding approximately 28,000 issued patents that are licensed to third parties as of December 27, 2024. The strategic acquisition of GE Licensing for $429 million in cash in 2024, which included over 5,000+ patents like HEVC and VVC, is expected to generate over $1 billion in royalties over time. Furthermore, Dolby is actively expanding this recurring base by launching a Video Distribution Program using a consumption-based model, signing its first licensees in the second half of FY25, with revenue recognition starting in fiscal 2026.

Finance: draft 13-week cash view by Friday

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Channels

You're looking at how Dolby Laboratories, Inc. gets its technology and services into the hands of customers, which is heavily weighted toward licensing its intellectual property. This channel strategy is the engine behind their financial performance.

Direct licensing agreements with device manufacturers and content providers form the bedrock of Dolby Laboratories, Inc.'s revenue. This is where the vast majority of their money comes from, primarily through implementation and system licenses for technologies like Dolby Atmos and Dolby Vision.

For the full fiscal year 2025, Dolby Laboratories, Inc. reported total revenue of $1.35 billion. The licensing segment is clearly dominant, with projected licensing revenue for fiscal year 2026 guided to range between $1.285 billion and $1.335 billion. This shows that the direct licensing channel is expected to account for roughly 90% of the projected total revenue for FY2026.

Here's a quick look at the financial scale of the primary revenue-generating channels based on recent reporting:

Channel Component	FY2025 Actual/Reported Metric	FY2026 Guidance/Projection
Total Revenue	$1.35 billion	$1.390 billion to $1.440 billion
Licensing Revenue (Implied/Segment)	Q4: $282 million (Licensing)	$1.285 billion to $1.335 billion
Products and Services Revenue	Q4: $25 million	Implied as a smaller portion of total revenue
Dolby Atmos, Vision, and Patents Growth Rate	Grew just over 14% (FY2025)	Targeted 15% to 20% annual growth over 3 to 5 years

Dolby Cinema installations in partnership with exhibitors drive the premium theatrical experience channel. The expansion with AMC Entertainment is a concrete example of this channel in action. They announced adding an additional 40 Dolby Cinema at AMC locations in the United States through the end of 2027.

This expansion represents a nearly 25 percent increase of the existing Dolby Cinema at AMC auditoriums in the US, bringing the total number to over 200 locations. The content pipeline supports this channel, with more than 725 theatrical features released or confirmed in Dolby Vision and Dolby Atmos to date. To be fair, 49 of the top 50 box office titles over the last five years were shown in Dolby Cinema.

Digital distribution via streaming platforms and app stores (e.g., Instagram) is a crucial, expanding route for consumer reach. This channel is seeing adoption across major mobile ecosystems.

• Instagram for iOS is the first Meta app to support Dolby Vision.
• Douyin (TikTok China) has also adopted Dolby Vision.
• Peacock began streaming NFL Sunday Night Football and NBA games in Dolby Atmos.
• The Super Bowl LIX was shown with Dolby Vision HDR and Dolby Atmos Sound for the first time.

Direct sales of professional products and services are represented by the Products and Services revenue line, though it is significantly smaller than licensing. For the fourth quarter of fiscal 2025, this segment generated $25 million in revenue. This channel also includes momentum in the automotive sector, with new agreements noted with manufacturers like Maruti Suzuki, Deepal, and VinFast.

The Developer portal for the Dolby.io Software-as-a-Service (SaaS) offering represents the emerging service-based channel. Management highlighted Dolby OptiView as a Software-as-a-Service solution for interactive streaming in sports and iGaming. The company launched a Video Distribution Program using a consumption-based model in the second half of fiscal 2025, with revenue recognition starting in fiscal 2026.

Finance: review the Q1 FY26 revenue guidance against the Q4 FY25 Products and Services actuals by Monday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Dolby Laboratories, Inc. as of late 2025, which is overwhelmingly driven by licensing across hardware and content ecosystems. The company's full fiscal year 2025 total revenue was $1.35 billion, up from $1.27 billion in fiscal 2024. The vast majority of this comes from licensing.

Financial Metric	FY 2025 Actual/Range	FY 2024 Actual
Total Revenue (USD million)	1,350	1,270
Licensing Revenue (USD million Range)	$1,285 to $1,335	Not explicitly stated as a range for FY2024
Cash Flows from Operations (USD million)	472	327

The customer segments are the entities that pay royalties for the use of Dolby's intellectual property, primarily Dolby Atmos and Dolby Vision.

Consumer Electronics (CE) manufacturers (TVs, soundbars, mobile devices)

• TV manufacturers launching models with Dolby Atmos and/or Dolby Vision in Q4 2025 included TCL, Samsung, Hisense, Xiaomi, and Amazon.
• Mobile device makers, such as OPPO, launched devices like the Find X8 Ultra supporting Dolby Vision capture and playback in Q2 2025.

Automotive Original Equipment Manufacturers (OEMs)

Dolby Laboratories expanded its automotive deals, showing direct engagement with vehicle makers.

• Automotive deals were signed in 2025 with Maruti Suzuki (India), Deepal (China), and VinFast (Vietnam).
• The first in-car game featuring Dolby Atmos launched in Li Auto vehicles.
• Customers experienced the first Dolby Vision enabled car with Li Auto in Q1 2025.

Content creators, studios, and post-production facilities

These entities adopt the technologies for creation, which drives adoption downstream by device makers.

• Dolby Vision 2 was announced, expanding capabilities beyond HDR with new tools for artists.
• Douyin (TikTok in China) enabled Dolby Vision content creation and editing in 2025.

Cinema operators globally

This segment is tied to theatrical releases and premium cinema experiences.

• Dolby Laboratories and AMC Entertainment announced an expansion to add 40 Dolby Cinema screens at select US locations by 2027.

Software developers and businesses using real-time APIs

This group utilizes the Dolby.io platform for interactive experiences.

• The company cited excitement about the opportunity with Dolby.io for real time interactive experiences for sports and entertainment in early 2025.
• Peacock began streaming NFL Sunday Night Football and NBA games in Dolby Atmos in late 2025.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Cost Structure

You're looking at where Dolby Laboratories, Inc. (DLB) puts its money to work; it's a structure heavily weighted toward innovation. The primary cost driver here is definitely the investment in future technology.

High fixed costs dominated by Research and Development (R&D)

The commitment to R&D is substantial, which is typical for a company whose value is tied to intellectual property and constant technological advancement. For the full fiscal year 2025, the reported Research and Development expense was $263,663 thousand.

The anticipated Non-GAAP Operating Expenses for the full fiscal year 2025 were guided to be between $765 million to $775 million. For context, the guidance provided for the subsequent fiscal year 2026 Non-GAAP Operating Expenses was slightly higher, set between $780 million and $800 million.

You can see the breakdown of operating expenses for the fourth quarter of fiscal 2025, which gives you a snapshot of the spending rhythm:

Expense Category	Q4 FY2025 Amount (in thousands)
Research and development	67,465
Sales and marketing	90,520
General and administrative	73,715

Also, restructuring costs are a factor when the company streamlines. For instance, a restructuring charge of $6 million was recorded in the fourth quarter of fiscal 2025 as Dolby adjusted resources.

Costs associated with patent litigation and enforcement

While specific dollar amounts for litigation costs aren't always broken out separately, the risk factors section of their filings highlights that success depends on the ability to enforce contractual rights, especially in jurisdictions with historically limited intellectual property recognition. This implies ongoing legal and enforcement expenditure is a necessary, albeit variable, cost.

Cost of goods sold (COGS) for the small Products and Services segment

The Products and Services segment is quite small relative to Licensing revenue. For the fourth quarter of fiscal 2025, revenue for this segment was $25 million. The Cost of Goods Sold for this specific segment is not explicitly detailed in the latest reports, but the overall company non-GAAP gross margin guidance for FY2026 is approximately 90%, suggesting that the associated COGS for the Products and Services segment would be around 10% of its revenue if its margins align with the company average.

The key cost components for Dolby Laboratories, Inc. (DLB) are:

• R&D Investment: The engine for future licensing revenue.
• Operating Expenses: Guided to be in the $765 million to $775 million range for FY25 (non-GAAP).
• Restructuring: One-time costs like the $6 million charge in Q4 2025.
• Segment Revenue: Products and Services generated $25 million in Q4 2025.

Finance: draft 13-week cash view by Friday.

Dolby Laboratories, Inc. (DLB) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Dolby Laboratories, Inc. (DLB) as of late 2025, which is overwhelmingly driven by intellectual property monetization. Honestly, this is an IP licensing machine, and the numbers from the last fiscal year tell that story clearly.

For the full fiscal year 2025, Dolby Laboratories reported total revenue of $1.35 billion. This represented a 5.92% growth over the fiscal year 2024 revenue of $1.27 billion.

The revenue streams are heavily weighted toward licensing agreements, which is the high-margin component of the model. Here's a breakdown based on the reported split for fiscal year 2025:

Revenue Category	Approximate Percentage of Total Revenue (FY2025)	Calculated Dollar Amount (FY2025)
Licensing Revenue	93%	$1.2555 billion
Products and Services Revenue	7%	$94.5 million

The licensing revenue is segmented across several key markets, showing a broad ecosystem adoption. The revenue from these streams is primarily driven by device shipments from licensees and the adoption of their branded technologies like Dolby Atmos and Dolby Vision.

Licensing revenue from consumer electronics and mobile devices remains a foundational pillar. In fiscal year 2025, device manufacturers such as OPPO, Motorola, and Xiaomi released new mobile devices supporting Dolby technologies.

Licensing revenue from broadcast, cinema, and automotive markets also contributes significantly. For instance, in fiscal year 2025, Peacock began streaming NFL Sunday Night Football and NBA games in Dolby Atmos. The automotive sector saw announcements or launches supporting Dolby Atmos from manufacturers including Porsche, Cadillac, Volvo, Xiaomi, Hyundai, and Audi, with NIO, ZEEKR, and Li Auto supporting Dolby Vision.

The company is actively expanding its royalty base beyond traditional device makers. Royalty revenue from imaging patent pools for content streamers is a growing area, evidenced by the expansion of the imaging program footprint through participation as a licensor in the new Video Distribution Program administered by Access Advance in fiscal year 2025.

The Products and Services revenue stream, while smaller, supports the overall technology ecosystem. This segment includes revenue from items such as cinema servers and software.

Key components driving the licensing revenue include:

• Adoption of Branded Audio Codecs (DD+ and AC-4) across diverse devices.
• Adoption of Dolby Vision and Dolby Atmos on new consumer electronics.
• Revenue derived from the licensing of foundational audio and video patents.
• New standardized technologies and patent programs contributing to royalty share within patent pools.