Dolphin Entertainment (DLPN) AI Stock Analysis

• Market Cap: $12.79M
• Dividend Yield: N/A
• Average Volume (3M): 48.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 0.31%
• EPS Growth: 27.47%
• Country: US
• Employees: 269
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): -0.13
• Shares Outstanding: 11,168,119
• 10 Day Avg. Volume: 46,133
• 30 Day Avg. Volume: 48,197
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -3.12
• 1Y Price Target: $1.00
• Price Target Upside: -14.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-14.53% Downside)

Dolphin Entertainment's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and persistent losses. The technical analysis suggests a neutral to slightly bearish outlook, while the valuation remains unattractive due to negative earnings. Strategic investments highlighted in the earnings call offer some future potential, but current financial challenges weigh heavily on the score.

Positive Factors

Affiliate Marketing Expansion

Management believes the affiliate marketing business could represent 25% to 33% of the core business within a year.

CEO Stock Purchase

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.

Negative Factors

EBITDA 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.

Investment Impact

Adjusted EBITDA for 4Q24 was ($0.5M), below the estimate of $0.9M due to investing in The Digital Dept and Always Alpha.

Wildfire 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 diversified entertainment company that specializes in the production and distribution of content across various media platforms. The company operates primarily in the entertainment sector, focusing on film and television production, digital media, and brand marketing. Dolphin also provides strategic marketing and public relations services, leveraging its expertise to connect brands with audiences through engaging content and innovative campaigns.

How the Company Makes Money

Dolphin Entertainment generates revenue through multiple streams, primarily from its film and television production services, which include creating and distributing original content. The company earns income from licensing agreements, syndication, and content sales to various platforms and networks. Additionally, Dolphin's marketing and public relations services contribute to its revenue by providing strategic support to clients looking to enhance their brand visibility. The company also benefits from partnerships with other media entities and brands, allowing for collaborative projects that can enhance revenue potential through shared resources and audience engagement.

Dolphin Entertainment Financial Statement Overview

Summary

Dolphin Entertainment faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The increase in stockholders' equity is overshadowed by questionable financial stability due to negative debt and liabilities figures. The company requires a strategic turnaround 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	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: 1.17
• 50DMA: Negative
• 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 1.17 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.18, and above the 200-day MA of 1.11, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 62.97 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 *	60 Neutral	$43.99B	4.24	-10.43%	4.00%	2.31%	-34.39%
LVO	47 Neutral	$71.44M	―	154.70%	―	-18.76%	-19.15%
DLPN	44 Neutral	$12.79M	―	-98.74%	―	0.31%	27.47%
ANGH	41 Neutral	$21.86M	―	-270.84%	―	88.72%	-85.54%
RDI	40 Underperform	$49.88M	―	-540.12%	―	-7.36%	18.52%
KUKE	38 Underperform	$9.40M	―	-218.47%	―	-36.94%	15.41%

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.