NEW YORK, NY / ACCESS Newswire / January 6, 2026 / Dolphin (NASDAQ: DLPN) a leading entertainment marketing and premium content production company, today issued a letter to shareholders from Dolphin CEO, Bill O'Dowd:

To My Fellow Shareholders,

As we settle into the New Year, I wanted to take a moment to reflect on what was a pivotal 2025 for Dolphin and share why we are entering 2026 with such tremendous momentum.

Record-Setting Organic Growth

The revenue and operating income trajectory established throughout 2025 has been undeniable. As we discussed in our last earnings call, after a very strong second quarter, the third quarter of 2025 was yet another milestone for the company. We delivered revenue of $14.8 million, up 16.7% year-over-year, and, perhaps most importantly, we turned positive on GAAP operating income, despite the large non-cash amortization expenses we record as a result of our years-long acquisition strategy. This was achieved entirely through organic growth, as 2025 was the first year since uplisting to NASDAQ in 2017 that we did not make an acquisition. We expect this momentum to continue, proving the power of our collaborative model where our best-in-class marketing agencies are delivering outstanding results and creating further tailwinds simply by working better together. And the strength of this group, and of our team-first approach, has been recognized within our industry. In March, our PR firms were ranked #1 in the country by the New York Observer, which gave as the rationale behind its choice: "For orchestrating a supergroup that's greater than the sum of its already impressive parts, Dolphin takes the crown as our 2025 agency of the year."

Operational Efficiency and Improved Financial Results

We have spent the last few years building toward this moment. We are now seeing the results of our operational cost efficiencies, and the elimination of almost all of our "below-the-line" expenses. We paid out the last of the contingent consideration from our acquisitions in the spring, and the last of our warrants expired in the fall. Thus, our financial reporting now much more clearly reflects the true operational performance of the business.

And our financial results will receive added boosts for each of the next 3 years. As part of our acquisition strategy, we inherited multiple office leases, and we now have a clear opportunity to rationalize our footprint. Working as a true collective has created meaningful synergies across our agencies-allowing teams to collaborate more fluidly, share infrastructure, and operate with greater flexibility. That integration is also driving tangible financial efficiencies. In New York, three leases are set to expire within the next 13 months, and in Los Angeles, two leases expire by November 2027. In a post-Covid operating environment, our collective structure enables us to refine our space in both markets without sacrificing collaboration, generating meaningful and durable operating savings that will benefit results over the next several years.

We are also more than halfway through our only commercial term loan, taken out over 3 years ago to facilitate our last few acquisitions. The principal on this loan was reduced to less than $5 million with our December payment. We currently pay over $2 million in principal and interest per year to service this loan, which matures in September 2028.

Thus, we see strong cash catalysts for Dolphin with the expiration of our NY leases, the expiration of our LA leases, and the payment in full of our only term loan expected to result in total cash savings greater than $3 million on annual basis beginning in October 2028.

Leading the Way in AI and Earned Media

Looking ahead, we are not just resting on the stability of our core agencies; we are actively reimagining what this group can do.

In December, we launched Dolphin Intelligence, a new division dedicated to optimizing marketing results in an AI-driven world. This isn't just about using new tools; it is about ensuring our clients dominate in the new era of "Generative Engine Optimization." By leveraging our expertise in earned media across all of pop culture to influence the Large Language Models (LLMs) that drive modern search and recommendation engines, we are flexing our capabilities in PR, influencer marketing and celebrity events to create strategy and drive results that no other single PR firm or influencer agency could do alone.

We Are Only Getting Started

By assembling our supergroup of marketing agencies with an entertainment focus, we have created unique horizontal scale across culture and vertical scale in earned media. We expect to have further announcements in the first half of this year regarding other important initiatives that will allow us to leverage our unique breadth and capabilities. Stay tuned.

A Personal Commitment to Our Future

Finally, I want to remind you that my confidence in Dolphin's future is backed by action. Since April 2025, I have personally purchased more than 2% of our outstanding shares, and I have entered into a trading plan to continue buying on a weekly basis through the end of 2026. I believe our stock price does not yet reflect the company's proven performance or the significant growth opportunities ahead as outlined herein.

Looking Ahead with Confidence

We have reported back-to-back strong quarters, and we expect to deliver more of the same for Q4 and in 2026. We are growing, and we are doing so organically. As set forth above, we have additional operational and cash flow tailwinds coming in each of the next 3 years. And we have near term opportunities to create optionality, with our December announcements of the launch of Dolphin Intelligence and the theatrical release on March 6 of our feature film "Youngblood" representing just two recent examples.

This is our vision at work. Continuous revenue growth towards positive net income and free cash flow with upside "options" created by opportunities in content, consumer products and live events.

We couldn't be more excited.

Sincerely,

Bill O'Dowd
CEO
Dolphin

CONTACT:

James Carbonara
HAYDEN IR
(646)-755-7412
james@haydenir.com

SOURCE: Dolphin Entertainment