Dolby Laboratories (DLB) Stock Analysis
Industrials · Specialty Business Services
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $53.98 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: licensing (93.0%); Concentration risk — Supplier: sole source suppliers.
Dolby Laboratories licenses audio and video technologies — including Dolby Atmos, Dolby Vision, and audio codecs — to approximately 1,000 device manufacturers, generating 93% of fiscal 2025 revenue from licensing and 7% from cinema hardware and services. Per-unit royalties from... Read more
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $53.98 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: licensing (93.0%); Concentration risk — Supplier: sole source suppliers. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
About Dolby Laboratories
About Dolby Laboratories
Dolby Laboratories derived 93% of fiscal 2025 revenue from licensing technology, brands, and patents to approximately 1,000 consumer electronics manufacturers globally. Broadcast markets (televisions and set-top boxes) represented 34% of licensing revenue in fiscal 2025, Mobile (smartphones and tablets) 22%, CE (Blu-ray, AVRs, soundbars) 12%, PC 12%, and Other markets including Dolby Cinema and Automotive 20%. The company held approximately 28,400 issued patents across more than 200 jurisdictions as of September 26, 2025, with 4,179 new patents issued in fiscal 2025.
Dolby earns licensing revenue through two channels: Branded Technology licensing (Dolby Atmos, Dolby Vision, DD+, and AC-4 codecs) sold to semiconductor manufacturers and OEMs under per-unit royalty, committed-volume, or fixed-fee arrangements, and Patent Licensing through pools administered by Access Advance, Sisvel, Via LA, and Vectis. Dolby holds majority ownership in Via LA alongside Philips and Mitsubishi. The licensing cycle typically runs in two stages — IC manufacturers embed Dolby technologies in chips, then OEM system manufacturers incorporate those chips and pay per-unit royalties. In fiscal 2025, Dolby shifted distribution of DD and DD+ codecs for Windows 11 24H2 PCs directly to PC OEMs, bypassing Microsoft's operating system channel. Products and services (7% of revenue) encompass cinema hardware including digital servers, audio processors, and amplifiers, plus Dolby Cinema box-office revenue-sharing. The company relies on sole source suppliers for certain components used in cinema hardware manufacturing.
Show full overview
Dolby's issued patents expire between 2025 and 2047, and licensing agreements generally require licensees to pay full royalties only while patents remain in force in relevant markets. If pool licensees determine that pooled patents lack sufficient aggregate value, they may not renew their agreements — a risk that applies across Access Advance, Sisvel, Via LA, and Vectis pools. With approximately 6,100 pending patent applications as of September 26, 2025, the company's revenue sustainability depends on continued successful patent prosecution and active participation in international standards bodies including ETSI, ISO, IEC, and ITU.
See also: Industrials · Specialty Business Services
From Dolby Laboratories's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-15Recent Developments — Dolby Laboratories
Latest news
- NEWS Vest Financial LLC Increases Stock Holdings in Dolby Laboratories $DLB - MarketBeat — MarketBeat positive
- NEWS Dolby Laboratories (DLB) Reports Q1: Everything You Need To Know Ahead Of Earnings - StockStory — StockStory neutral
- NEWS Dolby Laboratories (DLB) Reports Q1: Everything You Need To Know Ahead Of Earnings - The Globe and Mail — The Globe and Mail neutral
- NEWS Dolby Laboratories (DLB) Enhances BMW 7 Series with Dolby Atmos Audio - GuruFocus — GuruFocus positive
- NEWS Boston Trust Walden Corp Has $56.85 Million Stake in Dolby Laboratories $DLB - MarketBeat — MarketBeat neutral
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductlicensing93%10-K Item 1: 'We generated 93% of our revenues in fiscal 2025 by licensing technology, brand, and patents'
- HIGHSuppliersole source suppliers10-K Item 1: 'we rely on sole source suppliers for certain components used to manufacture our products'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $53.98 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: licensing (93.0%); Concentration risk — Supplier: sole source suppliers. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $51.16. Score 5.5/10, moderate confidence.
Take-profit target: $66.58 (+23.3% upside). Prior stop was $51.16. Stop-loss: $51.16.
Concentration risk — Product: licensing (93.0%); Concentration risk — Supplier: sole source suppliers; Leverage penalty (D/E 1.9): -1.0.
Dolby Laboratories trades at a P/E of 20.8 (forward 11.4). TrendMatrix value score: 6.7/10. Verdict: Sell.
10 analysts cover DLB with a consensus score of 4.0/5. Average price target: $78.
What does Dolby Laboratories do?Dolby Laboratories licenses audio and video technologies — including Dolby Atmos, Dolby Vision, and audio codecs — to...
Dolby Laboratories licenses audio and video technologies — including Dolby Atmos, Dolby Vision, and audio codecs — to approximately 1,000 device manufacturers, generating 93% of fiscal 2025 revenue from licensing and 7% from cinema hardware and services. Per-unit royalties from OEMs across broadcast, mobile, PC, and CE device markets drive the licensing model. The company held approximately 28,400 issued patents as of September 26, 2025.