Dolphin Entertainment (DLPN) AI Stock Analysis

• Market Cap: $14.07M
• Dividend Yield: N/A
• Average Volume (3M): 36.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 0.31%
• EPS Growth: 27.47%
• Country: US
• Employees: 269
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -0.21
• Shares Outstanding: 11,168,119
• 10 Day Avg. Volume: 48,890
• 30 Day Avg. Volume: 36,786
• PEG Ratio: 0.06
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.79
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.64
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: $5.00
• Price Target Upside: 296.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $1.50 ▲(19.05%Upside)

Dolphin Entertainment faces significant financial challenges, with declining revenues and persistent losses. While technical indicators show some positive trends, the company's valuation remains concerning due to its negative P/E ratio. Recent strategic investments and corporate events provide some optimism for future growth, but the current financial situation remains precarious.

Positive Factors

Leadership Confidence

The CEO, Bill O'Dowd, bought $100K in stock and started a 10b5-1 plan with an initial allocation of $250K, indicating confidence in the company's future.

Revenue Growth

Dolphin Entertainment reported 4Q24 results with revenue of $12.3M, up 3% year over year, and above the estimate of $12.1M.

Strategic Investments

The company is expanding social influencing to include affiliate marketing and has launched a women's sports management firm, Always Alpha.

Negative Factors

Financial Performance

Adjusted EBITDA for 1Q25 was ($0.6M), below the estimate of ($0.5M), due to investing in The Digital Dept and Always Alpha and weakness due to the California wildfires.

Seasonal Impact

1Q is seasonally the smallest quarter and results were impacted by California wildfires.

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 is facing significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While there has been an increase in stockholders' equity, the financial stability is questionable due to negative debt and liabilities figures. The company requires strategic changes to improve revenue generation, cost management, and cash flow stability.

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

Dolphin Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1.26 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.15, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 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 *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
SOGP	55 Neutral	$26.82M	―		―	―	―
DLPN	54 Neutral	$14.07M	―	-98.74%	―	0.31%	27.47%
SLE	47 Neutral	$4.26M	―	-1222.32%	―	-43.42%	81.31%
HOFV	40 Underperform	$5.70M	―	-65.28%	―	-20.80%	19.16%
BHAT	37 Underperform	$13.76M	―	-26.18%	―	-74.59%	86.00%
VSME	31 Underperform	$57.00M	―	-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.