Dolphin Entertainment, Inc.

Good afternoon, and welcome to the Dolphin Entertainment first quarter 2026 earnings call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, James Carbonara, with Hayden Investor Relations. James, the floor is yours.

Thank you, Operator. And once again, good afternoon, everyone. Before we begin, I'd like to remind everyone that during the course of this conference call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and involves risks and uncertainties that could differ materially from actual results. Please refer to the forward-looking statements contained in the earnings release published today, as well as the most recent SEC filings and reports. Management will also discuss non-GAAP financial measures, including adjusted EBITDA or loss. The company believes that these will provide helpful information for investors. Reconciliations to the most comparable GAAP measures are provided in the earnings release. Now I would like to turn the call over to Bill O'Dowd, Chief Executive Officer of Dothan. Bill, please proceed.

Thanks, James, and welcome, everyone. As always, I'll start by walking through the key highlights from our first quarter, and then Myrta will take you through the detailed financials before we open it up for your questions. For those who have followed Dolphin for a while, you know that our business has a very natural seasonality to it. The first quarter is historically our lightest, and our revenue tends to build as the year goes on, usually peaking in the very strong fourth quarter. With that seasonal context in mind, we are pleased with our start to 2026. On the top line, total revenue grew 5.2% to $12.8 million. To give you just a quick flavor of what that growth looks like on the ground, our agencies have been at the absolute center of pop culture this year. Our powerhouse subsidiaries led major brand activations during Super Bowl 60, and we dominated the awards circuit. 42S and Shorefire Media clients took home honors at the Grammys, and we celebrated an Oscar win for Best Documentary Feature at the Academy Awards. We also had a massive presence at South by Southwest with a company record 16 world premier titles, and we are seeing fantastic cross-agency collaboration like The Door and Shorefire teaming up to launch the new hospitality concept Pawn Shop in Los Angeles. But where I really want to focus your attention today is on our profitability and our cash flow potential. For the first quarter, we reduced our adjusted EBITDA loss from last year's first quarter by 25% year-over-year. When we calculate adjusted EBITDA, we add back one-time and non-recurring items, along with our significant non-cash amortization costs that come from expensing the intangible assets we acquired through the years of building our marketing supergroup. We do this because it strips out the noise and gives you a much clearer, more accurate picture of our true cash flow potential. And the takeaway there is that our core business is operating more efficiently, driving that 25% improvement. While Q1 has historically resulted in an adjusted EBITDA loss, it's also worth noting that in the full year 2025, our adjusted EBITDA was a positive $2.9 million. This speaks to the seasonality in our business that I mentioned at the top of my remarks. We certainly hope to beat that adjusted EBITDA result this year. Taking a step back, the broader thesis we laid out on our last call remains entirely intact. After several years of aggressive acquisitions and growth-related investments, Dolphin has built the infrastructure. We are now in the phase where we get to reap the benefits of that work. We operate in incredibly hot sectors, and with our rising profitability and very low capital expenditure requirements, we expect to generate significant free cash flow going forward. It's also worth reminding everyone that we are sitting on approximately $127 million in federal and state net operating loss carry-forwards. Because of those NOLs, we pay very little in cash taxes. That means as our EBITDA grows, It translates almost directly into free cash flow. And since our management team and insiders hold a substantial stake in the company, you can be sure we are deeply aligned with our shareholders in driving long-term value. Looking ahead to the rest of this year, to next year, and beyond, we are incredibly enthusiastic. Alongside the organic growth we expect from our agencies, we have several major catalysts lined up. First, we are making strides with our dealmaker partnerships. We are having good conversations and are targeting having our first deal on the market later this year. This is a perfect example of a catalyst that leverages our existing marketing acumen and carries highly attractive margins. Second, we just announced earlier today the launch of a publishing in-print venture with Copper Books and Simon & Schuster. This gives us the ability to offer premium book publishing services to our clients, whether that's a children's book, James Carbonara's favorite, a cookbook, or a novel. The best part of this model is that Dolphin puts up zero capital, but we receive 15% of the revenue. It's exactly the kind of capital light venture we love to pursue. Finally, we want to reiterate two massive contractual catalysts that will fundamentally change our free cash flow profile. First, we expect to realize about a million dollars in annualized lease savings when our large legacy leases in New York and Los Angeles expire before the end of 2027. Second, Our bank debt matures in roughly two and a half years. Paying that off will save us almost $2.2 million annually in principal and interest. Combined, that is over $3 million in annual cash flow savings that we expect will flow almost entirely to our bottom line. In short, the infrastructure is built. We expect continued revenue growth and just even a margin expansion throughout 2026, and we are very excited to watch our incremental revenue flow disproportionately to the bottom line. With that, I will turn the call over to Myrta Negrini, our Chief Financial Officer, to walk through the numbers. Myrta.