Dolphin Entertainment (DLPN) AI Stock Analysis

• Market Cap: $12.40M
• Dividend Yield: N/A
• Average Volume (3M): 28.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 0.31%
• EPS Growth: 27.47%
• Country: US
• Employees: 269
• Sector: Communication Services
• Sector Strength: 87
• Industry: Entertainment
• EPS (TTM): -0.21
• Shares Outstanding: 11,168,119
• 10 Day Avg. Volume: 18,677
• 30 Day Avg. Volume: 28,622
• PEG Ratio: 0.17
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.65
• Enterprise Value/Market Cap: 4.13
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: -1.22
• 1Y Price Target: $5.00
• Price Target Upside: 323.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $1.00 ▼(-15.25%Downside)

Dolphin Entertainment's stock score is primarily impacted by its weak financial performance, with ongoing losses and negative cash flows. While technical indicators show modestly positive trends, and strategic investments are promising, these are offset by valuation challenges and current financial instability.

Positive Factors

Financial Performance

Dolphin Entertainment's 4Q24 revenue of $12.3M exceeded expectations, showing a positive financial performance.

Leadership Confidence

The CEO's purchase of $100K in stock and initiation of a 10b5-1 plan with $250K indicate confidence in the company's future.

Strategic Investments

Investment in the women's sports management firm and expanding social influencing to include affiliate marketing are positive strategic moves.

Negative Factors

Earnings Impact

1Q results were negatively impacted by California wildfires, affecting the company's financial performance.

Earnings Performance

Adjusted EBITDA for 1Q25 was ($0.6M), falling short of estimates due to investments and external challenges.

Financial Obligations

The company ended March with $7.1M in cash and $22.6M in debt, suggesting potential stress in meeting financial obligations.

Dolphin Entertainment Business Overview & Revenue Model

Company Description

Dolphin Entertainment (DLPN) is a prominent entertainment marketing and production company based in the United States. The company operates through diversified segments, including content development and production, marketing and publicity services, and digital content creation. Dolphin Entertainment is renowned for its capabilities in producing premium content across film, television, and digital platforms. Additionally, the company offers comprehensive marketing services, leveraging its expertise in PR, influencer marketing, and social media strategy to help brands and entertainment properties reach their target audiences effectively.

How the Company Makes Money

Dolphin Entertainment generates revenue through multiple streams. The company earns income from its content production division by developing and producing films, television shows, and digital content, which are then distributed through various channels. This division may also involve financing partnerships and distribution deals that contribute to its earnings. Additionally, Dolphin's marketing and publicity services, which include public relations, influencer marketing, and social media management, provide another significant revenue stream. These services are offered to entertainment brands, corporations, and consumer brands looking to enhance their visibility and market presence. The company may also engage in strategic partnerships and collaborations that further bolster its revenue potential.

Dolphin Entertainment Financial Statement Overview

Summary

Dolphin Entertainment faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. Although stockholders' equity has increased, underlying financial stability is questionable due to negative debt and liabilities figures. A strategic turnaround is necessary to improve financial health.

Income Statement

Dolphin Entertainment has experienced a significant decline in revenue, evidenced by a drop from $43.12 million in 2023 to $0 in 2024. The company has consistently posted negative net income and EBIT over the years, indicating ongoing profitability challenges. The margins are unfavorable, with negative EBIT and EBITDA margins, reflecting operational inefficiencies. The company needs to address its core revenue generation strategies and cost management to improve financial health.

Balance Sheet

The balance sheet presents a mixed picture. There is a negative total debt, and stockholders' equity has increased significantly to $6.45 million in 2024 from $19.96 million in 2023. The debt-to-equity ratio is favorable due to negative debt, but this may be due to accounting adjustments rather than actual debt reductions. The equity ratio has improved, but the negative liabilities and debt figures raise concerns about the financial stability and accuracy of financial reporting.

Cash Flow

Cash flow from operations has been consistently negative, with a free cash flow of -$157,851 in 2024, showing no improvement from previous years. The company relies heavily on financing activities to sustain operations, as seen by the significant positive financing cash flows. The lack of positive operating cash flow relative to net income indicates operational inefficiencies and a need to stabilize cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.62M	51.68M	43.12M	40.51M	35.73M	24.05M
Gross Profit	47.33M	48.42M	42.25M	37.03M	31.85M	21.48M
EBITDA	-9.96M	-8.05M	-17.86M	-1.74M	-3.73M	2.09M
Net Income	-14.61M	-12.60M	-24.40M	-4.78M	-6.46M	-1.94M
Balance Sheet
Total Assets	0.00	58.44M	66.25M	75.38M	52.75M	49.35M
Cash, Cash Equivalents and Short-Term Investments	0.00	9.13M	7.56M	6.07M	7.69M	7.92M
Total Debt	16.64M	27.62M	25.59M	21.82M	12.92M	17.11M
Total Liabilities	49.26M	46.79M	46.30M	41.29M	29.81M	29.68M
Stockholders Equity	9.32M	11.65M	19.96M	34.09M	22.93M	19.67M
Cash Flow
Free Cash Flow	-880.64K	-159.36K	-4.65M	-4.10M	-1.32M	-1.58M
Operating Cash Flow	-878.05K	-157.85K	-4.62M	-4.03M	-1.32M	-1.51M
Investing Cash Flow	-2.46M	-2.46M	-4.54M	-7.92M	-3.03M	-1.38M
Financing Cash Flow	3.84M	4.18M	9.52M	10.91M	3.94M	8.61M

Dolphin Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLPN, the sentiment is Positive. The current price of 1.18 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.10, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLPN.

Dolphin Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
DLPN	52 Neutral	$12.40M	―	-98.74%	―	0.31%	27.47%
SOGP	49 Neutral	$26.15M	―		―	―	―
SLE	48 Neutral	$4.64M	―	-1222.32%	―	-43.42%	81.31%
HOFV	39 Underperform	$5.50M	―	-65.28%	―	-20.80%	19.16%
BHAT	37 Underperform	$12.31M	―	-26.18%	―	-74.59%	86.00%
VSME	31 Underperform	$51.79M	―	-157.27%	―	―	―

Dolphin Entertainment Corporate Events

Dolphin Entertainment Secures $1.065M Through Convertible Notes

Between March 24, 2025, and May 6, 2025, Dolphin Entertainment, Inc. entered into eight subscription agreements with investors for convertible promissory notes totaling $1,065,000. These notes, bearing an interest rate of 10% per annum, have varying maturity dates ranging from one to five years and can be converted into common stock at specified prices. This strategic move allows Dolphin Entertainment to raise capital while offering investors the potential for equity participation, potentially impacting the company’s financial flexibility and market positioning.