0001079973-26-000368
SEC filingDolphin Entertainment, Inc. reported revenues of $56.7 million for fiscal year 2025, which were entirely offset by total expenses of $56.7 million, resulting in a minimal operating loss of $39 thousand. However, significant other expenses, including a $2.2 million net interest expense and an $835 thousand loss on debt extinguishment, led to a net loss of $3.1 million. The company's balance sheet shows total assets of $58.3 million, with a significant portion in goodwill ($21.5 million) and intangible assets ($7.9 million), offset by total liabilities of $48.6 million, resulting in stockholders' equity of $9.7 million. Cash flow from operations was negative $2.0 million, but financing activities provided $2.3 million, leading to a net increase in cash of $553 thousand. The company operates in two reportable segments: entertainment publicity and marketing, and content production, with strategic focus on cross-selling services and expanding into new verticals.
Dolphin Entertainment, Inc. reported total revenues of $56.7 million for the fiscal year ending December 31, 2025. The company's total expenses also amounted to $56.7 million, resulting in a loss from operations of $39 thousand. Major expense components included payroll and benefits of $41.9 million, selling, general and administrative expenses of $7.8 million, and impairment of goodwill of $6.7 million. Other significant expenses included a write-off of notes receivables of $1.3 million and acquisition costs of $416 thousand. The company reported a net loss of $3.1 million, which included $2.2 million in net interest expense and a $835 thousand loss on extinguishment of debt. Income tax expense was $69 thousand.
The company operates in two reportable segments: entertainment publicity and marketing, and content production. The entertainment publicity and marketing segment includes subsidiaries 42West, Shore Fire, The Door, Elle, The Digital Dept., and Special Projects, providing public relations, entertainment content marketing, strategic communications, social media and influencer marketing, and celebrity booking services. The content production segment includes Dolphin Films and Dolphin Digital Studios, which develop, produce, and distribute feature films, television, and digital content. The company's strategy focuses on cross-selling services among subsidiaries and expanding into new verticals. Specific revenue breakdown by segment is not disclosed in the provided data.
The company's revenue of $56.7 million was exactly offset by total expenses of $56.7 million, resulting in essentially zero operating margin. The largest expense categories were payroll and benefits ($41.9 million), representing approximately 74% of total revenue, and selling, general and administrative expenses ($7.8 million), representing approximately 14% of revenue. Significant non-cash expenses included impairment of goodwill ($6.7 million) and depreciation and amortization ($2.4 million). The company reported a net loss margin of approximately 5.5% based on the $3.1 million net loss relative to $56.7 million in revenue.
Cash flow from operating activities was negative $2.0 million, primarily due to the net loss of $3.1 million, partially offset by non-cash adjustments including $2.4 million in depreciation and amortization and $6.7 million in goodwill impairment. Investing activities provided $233 thousand in cash, including $234 thousand from the sale of Always Alpha Sports Management LLC, partially offset by $1.2 million for the acquisition of Elle Communications LLC. Financing activities provided $2.3 million in cash, primarily from $2.1 million in proceeds from related party notes payable and $3.5 million from convertible notes payable. The balance sheet shows total assets of $58.3 million, including $24.0 million in current assets (with $8.8 million in cash and cash equivalents) and $21.5 million in goodwill. Total liabilities were $48.6 million, resulting in stockholders' equity of $9.7 million.
The company's strategic priorities include expanding its entertainment publicity and marketing segment through cross-selling services among subsidiaries and entering new verticals. Specific growth initiatives mentioned include expanding 42West's services to streaming clients, growing Shore Fire's presence in new music markets, expanding The Door's consumer products public relations business, growing Elle's non-profit client base, and diversifying The Digital Dept.'s brand client bases. The company also plans to develop ventures in content, live events, and consumer products. Risk factors include competition in all business segments and dependence on key personnel. No specific financial guidance for future periods is provided in the document.