돌핀 엔터테인먼트(DLPN) 2026년 2분기 실적 발표 콘퍼런스 콜: 매출 2.5% 증가

핵심 요약

• 2026 회계연도 2분기 매출은 전년 동기 대비 2.5% 증가한 1,440만 달러를 기록했습니다. 상반기 매출은 3.8% 증가한 2,720만 달러를 기록했습니다.
• 영업손실은 전년 동기 약 10만 달러에서 100만 달러로 확대되었습니다. 순손실은 2025 회계연도 2분기 140만 달러에서 160만 달러로 증가했습니다.
• 조정 EBITDA는 62만 8,000달러에서 약 24만 3,000달러로 감소했습니다. 경영진은 이러한 변화의 대부분이 약 40만 달러의 리텐션 보너스 및 약 40만 달러의 소송 관련 법률·전문가 비용 때문이라고 설명했습니다.
• 경영진은 리텐션 보너스 지급이 종료되고 소송 관련 비용이 정상 수준으로 회복됨에 따라 3분기 수익성이 "본격적으로 개선"될 것으로 전망하고 있습니다.
• 돌핀(Dolphin)은 계절적 성수기인 하반기에 매출 비중이 가장 큰 두 사업부인 더 디지털 디파트먼트(The Digital Department)와 42웨스트(42West)의 활성화로 수혜를 입을 것으로 예상합니다.
• 경영진은 첫 번째 딜메이커(DealMaker) 벤처가 연내에 시장에 진출할 것으로 확신하고 있으며, 그라비튀르 스튜디오(Graviteur Studios)와 카퍼 북스(Copper Books)가 추가적인 장기 성장 옵션을 제공할 것으로 보고 있습니다.

주요 재무 실적

2026 회계연도 상반기 매출은 2,720만 달러로, 전년 동기의 2,630만 달러 대비 3.8% 증가했습니다. 조정 EBITDA 손실은 약 22만 4,000달러로, 전년 동기의 약 8만 2,000달러 손실에 비해 확대되었습니다.

사업 및 운영 성과

돌핀 산하 대행사들은 칸 라이언즈, 트라이베카 영화제, 비드콘 애너하임, 샌디에이고 코믹콘 등 엔터테인먼트 및 마케팅 행사 전반에서 활발한 활동을 이어갔습니다. 또한 회사는 42웨스트 고객사들의 에미상 노미네이트 성과를 강조했습니다.

더 디지털 디파트먼트는 핵심 성장 사업으로 계속 자리매김할 것으로 예상됩니다. 경영진은 상반기 실적이 만족스러웠으며 8월 초 지표도 고무적이라고 밝혔습니다. 이 사업부의 실적은 신학기 및 연말 연시 캠페인에 편중되어 있으며, 브랜드들은 보통 9월과 10월에 인플루언서 계약을 시작합니다.

키네틱 미디어 벤처스(Kynetic Media Ventures)와 함께 설립한 그라비튀르 스튜디오는 스트리밍, TV 및 극장 배급을 위한 크리에이터 주도 콘텐츠를 개발할 예정입니다. 돌핀은 프로젝트 예산이 일반적인 영화 프로젝트보다 작을 것으로 예상하며, 가능한 경우 자금 조달 리스크를 줄이거나 공유할 계획입니다.

딜메이커 파트너십은 돌핀의 대차대조표상 자본 투입 없이 현금 마케팅 수수료와 지분을 확보하도록 설계되었습니다. 현재 두 건의 잠재적 거래를 검토 중입니다. 경영진의 장기적 목표는 연간 3~4개의 벤처 프로젝트를 꾸준히 추진하는 체계를 구축하는 것입니다.

카퍼 북스는 사이먼 앤 슈스터(Simon & Schuster)를 통해 돌핀에게 전국 단위, 그리고 경우에 따라 글로벌 유통망에 대한 접근성을 제공합니다. 경영진은 프로젝트 파이프라인 구축에 시간이 걸리겠지만, 이 파트너십이 마케팅 고객 유치에도 도움이 될 수 있다고 밝혔습니다.

경영진 전망

경영진은 일회성 리텐션 보너스가 소멸되고 소송 비용이 감소함에 따라 3분기 수익성이 개선될 것으로 예상합니다. 또한 특히 9월부터 12월까지 이어지는 하반기가 돌핀의 계절적 성수기라고 설명했습니다.

회사는 2년 남짓 남은 은행 채무의 만기 상환을 통해 궁극적으로 연간 거의 220만 달러에 달하는 원리금 상환액을 절감할 수 있을 것으로 기대합니다. 또한 2027년 하반기에 뉴욕과 로스앤젤레스의 주요 임대 계약이 만료되며, 경영진은 이를 통해 연간 약 100만 달러의 비용 절감이 가능할 것으로 보고 있습니다.

또한 돌핀은 약 1억 2,700만 달러의 이월결손금을 보유하고 있습니다. 경영진은 이를 통해 예상되는 부채 상환 및 임차료 절감액의 대부분이 순이익 증가로 연결될 수 있을 것으로 믿고 있습니다.

딜메이커의 경우, 경영진은 첫 번째 벤처가 2026년 말 이전에 시장에 출시될 것으로 계속 확신하고 있으며 두 번째 거래도 뒤따르기를 기대하고 있습니다. 올해 거래가 완료된다면 2027년에는 2건의 거래가 합리적인 초기 속도가 될 것이라고 언급했습니다.

리스크 및 관전 포인트

• 소송 관련 법률 및 전문가 비용은 2분기에 약 40만 달러로 높은 수준을 유지했습니다. 경영진은 이러한 비용을 절감하기 위해 노력하고 있으나, 정상화의 시기와 정도는 여전히 불확실합니다.
• 더 디지털 디파트먼트와 42웨스트는 계절적으로 하반기 활동성에 대한 의존도가 높기 때문에, 9월부터 12월까지의 캠페인 수요가 연간 실적에 중요하게 작용합니다.
• 영블러드(Youngblood)의 미국 내 스트리밍 계약은 완료되지 않았으며 경영진의 예상보다 더 오랜 시간이 걸리고 있었습니다. 해외 판매는 토론토 국제 영화제와 아메리칸 필름 마켓 성과에 좌우될 수 있습니다.
• 그라비튀르 스튜디오, 딜메이커, 카퍼 북스는 여전히 초기 단계의 사업 계획입니다. 파이프라인과 실질적 경제적 기여가 가시화되기까지는 시간이 필요할 것입니다.
• 현금 및 현금성 자산은 2025년 말 880만 달러에서 770만 달러로 감소했습니다.

애널리스트 Q&A 하이라이트

그라비튀르 스튜디오 자금 조달: 경영진은 크리에이터 주도 프로젝트의 예산이 비교적 적을 것으로 예상하며, 일부 경우 약 100만 달러 이하가 될 가능성이 있습니다. 돌핀은 가능한 경우 배급 파트너와 자금 조달 리스크를 공유하거나 이전할 계획입니다.

디지털 사업 전망: 더 디지털 디파트먼트의 상반기 매출은 전년 동기 대비 소폭 증가했으나, 일부 핵심 영업이익 지표는 수십만 달러 감소했습니다. 경영진은 계절적으로 중요한 하반기가 해당 사업부의 연간 성장을 결정할 것으로 예상합니다.

돌핀 인텔리전스: 고객의 관심이 시작되고 있으나, 현재 해당 AI 마케팅 서비스는 기존 PR 계약에 포함되거나 추가되는 형태로 제공되고 있습니다. 경영진은 연내에 이를 독립적인 서비스로 정립하고 레퍼런스 고객을 확보하는 것을 목표로 하고 있습니다. 회사는 이미 이루어진 투자 외에 해당 서비스에 추가 비용이 들지 않을 것이라고 밝혔습니다.

딜메이커 파이프라인: 돌핀과 딜메이커는 양사 모두 유망하게 평가하는 두 개의 벤처를 검토하고 있습니다. 회사는 궁극적으로 3~4년에 걸쳐 소비재, 라이브 이벤트 및 기타 카테고리에 걸쳐 6개에서 12개의 활성화된 벤처 포트폴리오를 구축하는 것을 목표로 하고 있습니다.

실적 발표 전화회의 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day. Welcome to the Dolphin Entertainment Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, James Carbonara with Hayden Investor Relations. James, you may begin.

James Carbonara

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 involve 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.

During the call, 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 Dolphin. Bill, please proceed.

William O'Dowd

Thanks, James, and welcome, everyone. As always, I'll start by walking through the key highlights, and then Mirta will take you through the detailed financials before we open it up for your questions.

Revenue for the quarter came in at $14.4 million, up 2.5% year-over-year and $27.2 million for the first half, up 3.8% compared to last year. Driving that top line was another busy quarter for our agencies. We are front and center at several large events since we last spoke in May, including the Conn Film Festival, the week after our last earnings call. And the Cannes Lions Festival of Creativity in June, which is the preeminent conference of the year for the marketing industries. Also, 42West had a big presence at the 25th Tribeca Film Festival in June and picked up multiple Emmy nominations last month. The digital department ran the creator gifting lounge at VidCon Anaheim. Elle's clients were on stage at the Nexus Global Summit in New York City and just a few weeks ago, we were all over really all over San Diego Comic-Con, where I'm pretty sure we saw James Carbonara dressed up as Darth Vader.

But the thing I really want to spend a minute on is something new, Graviteur studios. We announced this after we last spoke in May and then announced it -- excuse me, in June time to the start of the Cannes Lion Festival I just mentioned. We built Graviteur with our partners at Kynetic Media Ventures which is run by David Freeman, someone Dolphin and myself have been doing business with for over 15 years.

David ran the digital division of CAA since its inception. When he left at the start of the year to start Kynetic, we developed together the idea of a production studio for leading creators and influencers, many of whom he signed at CAA. Both Kynetic and Dolphin believe that audiences will follow creators across platforms, and we certainly witnessed that with the box office success of 2 movies directed by creators this spring.

In fact, the name of our studio is a Port onto Gravity and Altor, signaling that these creators are as in their own right and that they yield gravitational pull on their audiences who follow them. We believe we can help produce, distribute and market creator-led content across streaming platforms, television networks and theatrical releases. It's a natural extension of everything we've learned running a marketing consortium sitting inside pop culture for years. We know these audiences, we know these creators. And now we have a vehicle to actually build and own something with them. We're early days here, but we think this can become a meaningful part of the story over the next few years, and we'll keep you posted as it develops.

Now let's talk about the bottom line because the numbers this quarter need just a couple of notes of context. Two things to note. In fact, one, we had about $360,000 of onetime retention bonuses land in the second quarter across a few of our subsidiaries; and two, legal and professional fees related to our litigation ran about another $360,000 in the quarter. We believe this number will come down to normal levels in Q3 and going forward. And the underlying business held up just fine anyway. We expect a real step up profitability in the third quarter as these 2 items roll off.

Here's how we think about the bigger picture. The core engine of this business has already pointed toward meaningfully better free cash flow, independent of anything new we do. Our bank debt matures in just over 2 years, actually 2 years from next month. Freeing up almost $2.2 million a year in principal and interest payments. Our large New York and Los Angeles leases roll off in the back half of next year, which we believe will lead to savings of another roughly $1 million a year.

And with approximately $127 million of NOLs on the balance sheet, almost all of those savings will flow straight to the bottom line. That's the base case and it doesn't require anything new to go right, just running the businesses we already have.

Finally, with insiders holding a substantial stake in the company, management remains deeply aligned with shareholders in the pursuit of long-term value. In fact, under the 10b5 buying plan currently in place for myself, I expect to own over 5% of the DLPN common stock in the next week or 2. What DealMaker and Graviteur Studios represent is optionality on top of that. With respect to DealMaker, our strategic partnership began in February, and we used the rest of Q1 and Q2 to put together our respective teams and processes and to evaluate a pipeline of potential deals.

We believe we're getting closer to having our first deal and to creating a steady flow of deals coming to market after that. We both like a couple of the names we're evaluating, and we still expect to have our first deal in the market before the end of the year. Between that, Graviteur and our other ventures, we feel we've got real upside sitting on top of a business that's already heading towards strong free cash flow on its own.

So with that, I'll turn the call over to Mirta Negrini, our Chief Financial Officer to walk through the numbers in more detail. Mirta?

Mirta Negrini

Thank you, Bill, and good afternoon, everyone. I will now review our 2026 second quarter financial results. Total revenue for the 3 months ended June 30, 2026, was $14.4 million, an increase of 2.5% from $14.1 million in the same quarter of prior year. For the 6 months ended June 30, 2026, total revenue was $27.2 million, an increase of 3.8% from $26.3 million in the same period in prior year.

Our operating loss was $1 million for the second quarter of 2026 compared to an operating loss of approximately $100,000 for the same period in 2025. Operating expenses for Q2 2026 were $15.5 million. As Bill noted, this included approximately $400,000 of nonrecurring retention bonuses for certain employees, which will not be included in Q3 of 2026 or Q2 of next year.

In addition, we had approximately $400,000 of legal and professional fees related to our litigation that we are working to reduce going forward. This compares to operating expenses of $14.1 million in Q2 of 2025. Net loss for Q2 of 2026 was $1.6 million compared to a net loss of $1.4 million in Q2 2025. Basic and diluted loss per share for Q2 2026 was $0.13 based on approximately 12.8 million weighted average shares outstanding compared to basic and diluted loss per share of $0.13 in Q2 2025 based on approximately 11.2 million weighted average shares outstanding.

Turning to adjusted EBITDA. After adding back noncash and other onetime items, our adjusted EBITDA for the second quarter of 2026 was approximately $243,000 compared to approximately $628,000 in the second quarter of 2025. As Bill discussed, the year-over-year change is driven almost entirely by the retention bonus time and the elevated litigation costs.

For the 6 months ended June 30, 2026, adjusted EBITDA loss was approximately $224,000 compared to a loss of approximately $82,000 in the prior year period, reflecting the same factors. This quarter, we've introduced adjusted earnings per share. Adjusted EBITDA basic and diluted earnings per share for Q2 2026 was $0.02 based on approximately 12.8 million weighted average shares outstanding compared to $0.06 basic earnings per share for Q2 2025 based on approximately 11.2 million weighted average shares outstanding and $0.04 fully diluted earnings per share for Q2 2025 based on 17.4 million weighted average shares outstanding. We think this gives you another way to track our progress on a per share basis, and we plan to continue reporting it alongside adjusted EBITDA for future quarters. Our cash and cash equivalents as of June 30, 2026 were $7.7 million compared to $8.8 million as of December 31, 2025.

With that, I'll turn it back to the operator to open the floor for questions. Operator, would you please poll for questions?

Operator

[Operator Instructions] And your first question today is coming from Derek Greenberg from Maxim.

질의응답

Derek Greenberg

I wanted to ask about the Graviteur studios projects. Maybe if you could just explain the structure that a little bit more in terms of how much you own versus Kynetic kind of how much financing do you provide creators and just the overall economics of that project?

William O'Dowd

Sure. Derek, thank you for the question. Yes, Graviteur is something that was a natural for us and David. As I say, we go back 15 years with David, who ran the creator division, the digital division of CAA. And why? Because we're used to structuring films and TV shows and streaming series for -- we've done that for 30 years, right? And then using creators as either talent in front of the camera or talent as directors is certainly something that all of Hollywood has shown an interest in the last 3 or 4 months, I'm proud to say we were building this at the start of the year before it became vogue, mostly because we know that the people who follow these influencers will look for their content across platform.

We see in the world seeing popular people that do short-form video on TikTok are creating long-form videos on YouTube, and they're creating quite a following. And if anything, was proven by a couple of the films that were released in theatrically in May, they were wild successes, these movies, Backrooms and Obsession, highest grossing films in their distributors' histories is saying something. And they were each with creator directors who had built a following online and then made their first feature film or second feature film in one case.

And they don't need big budgets. Backrooms -- excuse me, Obsession was made for $750,000, and it's done over $200 million at the box office. So it gives you a sense of just how successful I was referencing. The level of success I was referencing. So in terms of financing, we'll look to finance those movies how we would if they were part of Dolphin films. Oftentimes, we lay off the risk when we can occasionally something like a Blue Angels that worked out very well for us. We might split the cost with a distributor like IMAX in that case.

In other cases, we may be able to lay it off entirely as we did for the most part with Youngblood, right? So the budgets will be a little smaller than the other projects, I would think, on average. Again, because with some of these projects, you can make them for even less than $1 million or around $1 million. So it wouldn't be a big capital investment anyway, but most of the time, we'll try and lay them off as they are. If that is helpful.

Derek Greenberg

Okay. Got it. I was wondering if you could possibly unpack how to think about the performance of the business across all your divisions. If you're seeing like relative outperformance in certain areas versus others specifically maybe within the digital department. I was wondering how growth is there and how that segment is performing.

William O'Dowd

Yes. The digital apartment, it's definitely the subsidiary that we believe will have tremendous mid- and long-term growth potential for us. We are happy with how the first half of the year went. Also, we have some visibility going into their prime season of the second half of the year. So much of their success in any given 12-month period depends on the time period between back-to-school and the holidays, especially the holidays.

So you generally -- you don't need to wait until November and December for that. You'll get a really strong indication by September because the brands will start reaching out to talent, the influencers in this case, to contract for brand campaigns that will be running in November and December. They'll need to start contracting in September and October. We certainly don't have a reason to believe that the business won't grow from last year when it really had a great second half of the year. We believe that will happen again this year.

We're seeing encouraging signs on that already here in the first half of August. we're so weighted to -- a couple of our companies are so seasonal, I should say, like the digital apartment that the first half of the year numbers, while very comparable to last year, revenue is up a little. Some core operating income metrics might be down a couple of hundred thousand, but it really comes down to the second half of the year for us and what our success will look like as we continue to grow the companies.

Derek Greenberg

Okay. And then on the Youngblood movie. I was wondering, I think last call, you said there is still potential for an international distribution agreement possibly streaming distribution agreement. I was wondering if there's any updates on those 2 items.

William O'Dowd

No. And that's -- the streaming is a little disappointing to us. We had thought that we would have a streaming deal by about now. International will often take through the international sales markets, which are in the second half of the year have not occurred yet. You'll -- that's often Toronto Film Festival, which is the week after Labor Day and the American film market, which is in Los Angeles in November, in the first week of November. So we might need those 2 markets to start firming up some of our international sales on Youngblood. But we're working with our distributor, Well Go to really make a stronger push to get a streaming sale in the U.S. certainly here in the second half of the year, but it would be great if we could see if we could -- what we can do here in Q3. But it has not occurred yet.

Derek Greenberg

Okay. Got it. And then on other initiatives that was fairly new, the Dolphin Intelligence marketing capabilities for AI. I was wondering just how that's progressing, what you're seeing there?

William O'Dowd

I would say we have a couple of big calls coming up here in the next 2 weeks and many clients have expressed an interest in it, but it's -- what we're seeing in the early days is we're folding it into existing PR contracts or it's being layered on top of existing PR contracts. And what we're going to try and do is break out the service to be more of a stand-alone because we think it's valuable in its own right. And we haven't had the signature client yet that would take it and say, look, we've signed up blank for this service. So I think that's a mission for us here in the second half of the year just because it's all upside to us.

If we get it, there's no additional cost to us to service or provide the service from what we've already invested in. So it's something that we're excited about because it's just -- it's a great return on investment from this point forward, right? So I think that one is something we're looking to accomplish before the end of the year. And I think definitely speaking of upside, the first of the DealMaker ventures to enter market will be the poster child for upside for Dolphin as we put pipeline together, as I mentioned in my prepared remarks, with DealMaker to be able to do ventures together with consistency.

But just to remind everyone, those would be what qualifies as a venture, I should say, would be something that a start-up or an existing company that's starting a new product line or a venture of some sort, which would pay Dolphin through its subsidiaries, cash marketing fees that we would get paid to market the venture but we would also receive an ownership stake in the venture as well. So those are the perfect combination of upside with cash contracts.

We're not trading our work for equity. We're actually getting both. And with DealMaker being a tool in our tool belt together with the venture to go raise capital, then it won't be for lack of funds that someone could actually then hire Dolphin and its subsidiaries to market the product. So it's a pretty interesting one-two punch of you get the best-in-class marketing companies with access to capital that DealMaker provides. So that -- I would say that's our biggest focus as management is to get the first deal in market before the end of the year. And then maybe even how close can we be to announcing a second venture by the end of the year as well. That's where our focus is.

Derek Greenberg

Yes. Great. That's super helpful. Maybe just on DealMaker. Just maybe if you could talk about the pipeline a little bit more. I mean, you just said that you could possibly have another deal right after. I was wondering the cadence of how many deals per year kind of the timing from here?

William O'Dowd

Yes. It's a little bit like starting up Graviteur, right, or a film slate. You need a few months or whatever period of time depending on what you're starting, right, to build the deal flow or have the pipeline no different here. We announced this project at the end of February or second half of February, I believe. And worked with DealMaker to evaluate -- we set out that we will give each other 3 months. I think I even said that maybe on the last quarterly earnings call and evaluate deals together and then pick the first one we'd go out with.

We have 2 deals we like quite a bit. We both would look to proceed, and we're in the process of seeing if we can close on them to then take them to market. I think we were hoping to do at least one by the end of the year. I feel very confident we'll be able to do that and hopefully another one, like I said. And I think I mentioned we would be comfortable saying we could do 2 next year if we did this year. But obviously, we're in a shoot to get to the point where we could do 3 to 4 a year with pretty steady regularity. That's our hope.

And then since they can span all types of industries and/or categories. Some might be consumer products, some might be live events. Some might be something unique that's not in 1 of those 2 categories. It allows us to both create a variety in our slate as well as put different subsidiaries of ours as kind of like the lead marketing agency. So it won't be 6 straight ventures that all need 1 agency to market a particular consumer product that they have an expertise in. We would be spreading it out, and that allows us to create a pretty robust and steady pipeline.

And then we just imagine the day in 3 years' time and we've got half a dozen to a dozen of these in market in 3 or 4 years, and you've got these choose your flavor, right? Optionality, lottery tickets, upside catalysts, whatever it may be, that any 1 of them we would hope would have exit values to us in the -- in the certainly 8 figures and hopefully even higher. So that's what makes it a venture versus just a joint project of a couple of our companies. So that's what we're building, and we're pretty excited about it.

Derek Greenberg

Okay. That makes a lot of sense. Last one for me, just on the Copper Books partnership. Just maybe if you could talk about how that's going.

William O'Dowd

Sure. On the Copper Books. And one other thought I had just as I wrap that last one, I just remember a fact. And I should point out again, with the DealMaker partnership, those ventures I was mentioning require 0 capital of Dolphin. So each of that slate, those projects we envision having in 3 to 4 years that are growing in the market, we hope to an eventual exit, they required 0 capital off our balance sheet. So that's why we went looking for a partnership. That's why DealMaker was so strategic to us.

As a matter of fact, in each of those ventures, we imagine we're getting paid to market. So that's the upside for us. In terms of Copper Books, yes, a lot of our publicists, a lot of our PR agencies, in general, are excited about having this partnership. We have many of our clients want -- either want to write books or have already written books, many of our clients have already written books and want to write more. So having that partnership that gives us national distribution in many cases, global distribution through Simon & Schuster is really a great asset.

We're fans of Ali Trowbridge, who started Copper Books and is the CEO, and she's very tight with many members of our senior management. And we're excited. We're -- it will take us time just like with Graviteur and just like with DealMaker to build up a pipeline of things that would otherwise go through this partnership, a book that's already been written and finished in the last 6 months already has a distribution partner. So it will take a little bit of time to create the get the water through the pipes, so to speak.

But it's a great tool for us to have. It's something different from any competitor in the PR space or the influencer space that we know of and it could become a nice little resource for us, too, to who knows, identify new clients that we can offer this to that sways them to hire our marketing firms for it because, of course, we'll be marketing those books as well. So it might take a minute.

Maybe we'd have something to say on Q3, I would imagine by the time we get to the 10-K next year, we'll be able to talk about it more in depth, but it's another -- of the 3 announcements we made in the first half of the year that speak to the upside potential of having built this group, DealMaker, Copper Books and Graviteur. That's how we see all of them. They're great in their own right, and they're additionally great business development for us because they're differentiated. No one competitor of any of our companies has any of those 3 capabilities. So we're pretty excited for all 3.

Operator

There were no other questions in queue at this time. I would now like to hand the call back to Bill O'Dowd for closing remarks.

William O'Dowd

Well, thank you. And thank you, everybody, for listening. We're continuing to build, as you heard, and get every quarter is 3 months closer to the happy days of the free cash flow from the leases that expire in the second half of the year now in next year. And 1 year after that, we're finished paying off our bank loan that was used to make those acquisitions that built this super group.

So brick by brick, as I say. And we're entering our fun season. The second half of the year is always better for us than the first half of the year. And many of our companies surge, as I said, between September and December. TDD, the digital apartment is certainly one of them. 42West is another. And of course, those two are our biggest revenue companies.

So when they swing up, the whole company swings up. But many of our companies are having a great start to the second half of the year. Sure Fire is doing very, very well, to name a leader for us. And we're excited to report our numbers in November. So with that said, I look forward to speaking to everybody again then. Thank you very much for your time.

Operator

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.