Dolby Laboratories, Inc.DLB

Dolby Laboratories, Inc. Earnings Per Share Disclosure

10-KFiled Nov 18, 20252 min read
Earnings Per Share
Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average
shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period.
Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS.
Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and unvested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on EPS.
The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts):
 Fiscal Year Ended
 September 26,
2025		September 27,
2024		September 29,
2023
Numerator:
Net income attributable to Dolby Laboratories, Inc.$255,018 $261,825 $200,656 
 
Denominator:
Weighted-average shares outstanding—basic95,868 95,544 95,771 
Potential common shares from options to purchase common stock358 586 763 
Potential common shares from restricted stock units1,213 1,158 1,139 
Potential common shares from employee stock purchase plan40 37 60 
Weighted-average shares outstanding—diluted97,479 97,325 97,733 
Net income per share attributable to Dolby Laboratories, Inc.:
Basic$2.66 $2.74 $2.10 
Diluted$2.62 $2.69 $2.05 
Antidilutive awards excluded from calculation:
Stock options1,448 1,152 930 
Restricted stock units1 10 7 
Employee stock purchase plan1 3 2 
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Historical Timeline

Fiscal YearFiled
2025Nov 18, 2025Showing above
2024Nov 19, 2024
2023Nov 17, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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