Dolby lowers guidance; Porsche, Cadillac adding Atmos
May 2, 2025
By Chris Forrester
Dolby announced its Q2 results on May 1st and delivering lower guidance for the year revised to $1.31 billion (€1.16) to $1.38 billion due to macroeconomic uncertainties, down from the prior $1.33 billion to $1.39 billion range.
On the more positive side Dolby CEO Kevin Yeaman told analysts that recent automotive partnerships had expanded significantly. Porsche would be integrating Dolby Atmos in its 2026 Taycan, Panamera, Cayenne and 911 models, and Cadillac is incorporating Atmos in its entire 2026 EV lineup. Volvo, Xiaomi and Hyundai also introduced models featuring Dolby Atmos and Dolby Vision.
In the living room segment, major sporting events like the Super Bowl and March Madness were broadcasted in Dolby Atmos and Dolby Vision. Partnerships with waipu.tv in Germany, TOD in MENA, and new product launches from LG, Sharp and Hisense were emphasised.
Revenue guidance for Q3 2025 was set between $290 million and $320 million.
CFO Robert Park highlighted that Q2 licensing revenue grew 2 per cent year-over-year, reaching $346 million. Products and services revenue, however, declined by 10 per cent year-over-year to $24 million.
However, economic uncertainties over the Trump administration’s tariff rules were a worry. Management acknowledged limited visibility due to macroeconomic uncertainties but emphasised potential revenue impacts ranging from $15 million to $25 million if device shipment volumes decline by 5 per cent for the remainder of the year.
Yeaman added: “Mexico is the largest location to manufacture TVs, generally exempt from tariffs, accounting for about 10 per cent in China.” Asked about automotive adoption trends. Yeaman explained that EVs and models with more screens are driving adoption, with Chinese manufacturers leading early implementation.
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