Cuộc họp công bố kết quả kinh doanh Quý 2/2026 của Dolphin Entertainment (DLPN): Doanh thu tăng 2,5%

Điểm tin chính

• Doanh thu quý 2/2026 tăng 2,5% so với cùng kỳ năm trước lên 14,4 triệu USD. Doanh thu nửa đầu năm tăng 3,8% lên 27,2 triệu USD.
• Lỗ hoạt động mở rộng lên 1,0 triệu USD từ mức khoảng 100.000 USD của một năm trước đó. Lỗ ròng là 1,6 triệu USD, so với 1,4 triệu USD trong quý 2/2025.
• EBITDA điều chỉnh giảm xuống khoảng 243.000 USD từ mức 628.000 USD. Ban quản lý cho biết phần lớn sự thay đổi này là do khoảng 400.000 USD tiền thưởng giữ chân nhân sự và khoảng 400.000 USD chi phí pháp lý và tư vấn chuyên môn liên quan đến tranh tụng.
• Ban quản lý kỳ vọng khả năng sinh lời sẽ "bước tăng thực sự" trong quý 3 khi các khoản thưởng giữ chân nhân sự kết thúc và chi phí liên quan đến tranh tụng trở lại mức bình thường.
• Dolphin kỳ vọng nửa cuối năm - giai đoạn cao điểm theo mùa - sẽ hưởng lợi từ hoạt động tại The Digital Department và 42West, hai mảng kinh doanh mang lại doanh thu lớn nhất của công ty.
• Ban quản lý vẫn tự tin rằng dự án liên doanh DealMaker đầu tiên sẽ gia nhập thị trường trước khi kết thúc năm, trong khi Graviteur Studios và Copper Books mang lại các lựa chọn tăng trưởng dài hạn bổ sung.

Kết quả tài chính cốt lõi

Trong 6 tháng đầu năm 2026, doanh thu đạt 27,2 triệu USD, tăng 3,8% từ mức 26,3 triệu USD. Lỗ EBITDA điều chỉnh là khoảng 224.000 USD, so với khoản lỗ khoảng 82.000 USD cùng kỳ năm ngoái.

Kết quả hoạt động kinh doanh

Các đại lý của Dolphin tiếp tục hoạt động tích cực tại các sự kiện giải trí và tiếp thị, bao gồm Cannes Lions, Liên hoan phim Tribeca, VidCon Anaheim và San Diego Comic-Con. Công ty cũng nhấn mạnh các đề cử giải Emmy dành cho các khách hàng của 42West.

The Digital Department dự kiến sẽ tiếp tục là mảng kinh doanh tăng trưởng then chốt. Ban quản lý cho biết kết quả hoạt động trong nửa đầu năm đạt mức hài lòng và các chỉ số đầu tháng 8 rất khả quan. Kết quả kinh doanh của mảng này phụ thuộc lớn vào các chiến dịch mùa tựu trường và lễ hội, khi các thương hiệu thường bắt đầu ký hợp đồng với những người có ảnh hưởng vào tháng 9 và tháng 10.

Graviteur Studios, được thành lập cùng Kynetic Media Ventures, sẽ phát triển nội dung do các nhà sáng tạo dẫn dắt cho các nền tảng phát trực tuyến, truyền hình và chiếu rạp. Dolphin dự kiến ngân sách các dự án này sẽ nhỏ hơn so với các dự án điện ảnh thông thường của công ty và có kế hoạch giảm thiểu hoặc chia sẻ rủi ro tài trợ vốn khi có thể.

Quan hệ đối tác với DealMaker được thiết kế để tạo ra phí tiếp thị bằng tiền mặt cùng với cổ phần vốn cho Dolphin mà không đòi hỏi nguồn vốn từ bảng cân đối kế toán của công ty. Hai giao dịch tiềm năng đang được đánh giá. Mục tiêu dài hạn của ban quản lý là duy trì nhịp độ từ 3 đến 4 dự án liên doanh mỗi năm.

Copper Books giúp Dolphin tiếp cận mạng lưới phân phối toàn quốc và trong một số trường hợp là toàn cầu thông qua Simon & Schuster. Ban quản lý cho biết hợp tác này cũng có thể giúp thu hút các khách hàng tiếp thị, mặc dù việc xây dựng danh mục dự án tiềm năng sẽ cần có thời gian.

Triển vọng từ ban quản lý

Ban quản lý kỳ vọng khả năng sinh lời trong quý 3 sẽ cải thiện do không còn các khoản thưởng giữ chân nhân sự bất thường và chi phí tranh tụng giảm xuống. Ban quản lý cũng mô tả nửa cuối năm là giai đoạn cao điểm theo mùa của Dolphin, đặc biệt là từ tháng 9 đến tháng 12.

Công ty dự kiến khoản nợ ngân hàng đáo hạn trong hơn 2 năm tới sẽ giúp cắt giảm gần 2,2 triệu USD tiền gốc và lãi vay hàng năm. Các hợp đồng thuê văn phòng lớn tại New York và Los Angeles sẽ hết hạn vào nửa cuối năm 2027, điều mà ban quản lý tin rằng có thể mang lại khoản tiết kiệm khoảng 1 triệu USD mỗi năm.

Dolphin cũng có khoảng 127 triệu USD khoản chuyển lỗ hoạt động kinh doanh. Ban quản lý tin rằng điều này sẽ cho phép hầu hết các khoản tiết kiệm dự kiến từ chi phí trả nợ và thuê văn phòng được chuyển thẳng thành lợi nhuận ròng.

Đối với DealMaker, ban quản lý vẫn tự tin rằng dự án liên doanh đầu tiên sẽ ra mắt thị trường trước khi kết thúc năm 2026 và hy vọng một giao dịch thứ hai có thể diễn ra tiếp theo. Công ty chỉ ra rằng 2 giao dịch trong năm 2027 sẽ là nhịp độ ban đầu hợp lý nếu một giao dịch được hoàn tất trong năm nay.

Rủi ro và các yếu tố cần theo dõi

• Chi phí pháp lý và tư vấn chuyên môn liên quan đến tranh tụng vẫn ở mức cao, khoảng 400.000 USD trong quý 2. Ban quản lý đang nỗ lực cắt giảm các chi phí này, nhưng thời điểm và mức độ trở lại bình thường vẫn chưa chắc chắn.
• The Digital Department và 42West phụ thuộc vào tính mùa vụ với hoạt động mạnh mẽ hơn trong nửa cuối năm, khiến nhu cầu chiến dịch từ tháng 9 đến tháng 12 đóng vai trò quan trọng đối với kết quả hoạt động cả năm.
• Thỏa thuận phát trực tuyến tại Mỹ dành cho Youngblood vẫn chưa hoàn tất và mất nhiều thời gian hơn dự kiến của ban quản lý. Doanh số quốc tế có thể phụ thuộc vào Liên hoan phim quốc tế Toronto và Thị trường Phim Mỹ.
• Graviteur Studios, DealMaker và Copper Books vẫn là các sáng kiến ở giai đoạn đầu. Danh mục dự án và đóng góp kinh tế của các sáng kiến này sẽ cần có thời gian để phát triển.
• Tiền và các khoản tương đương tiền giảm xuống 7,7 triệu USD từ mức 8,8 triệu USD vào cuối năm 2025.

Điểm nhấn phiên hỏi đáp với chuyên gia phân tích

Huy động vốn cho Graviteur Studios: Ban quản lý dự kiến các dự án do nhà sáng tạo dẫn dắt sẽ có ngân sách tương đối khiêm tốn, trong một số trường hợp có thể khoảng hoặc dưới 1 triệu USD. Dolphin có kế hoạch chia sẻ hoặc chuyển giao rủi ro tài trợ vốn cho các đối tác phân phối khi có thể.

Triển vọng mảng kinh doanh kỹ thuật số: Doanh thu nửa đầu năm của The Digital Department tăng nhẹ so với cùng kỳ năm trước, trong khi một số thước đo thu nhập từ hoạt động cốt lõi giảm vài trăm nghìn USD. Ban quản lý kỳ vọng nửa cuối năm - thời điểm quan trọng theo mùa - sẽ quyết định sự tăng trưởng cả năm của đơn vị này.

Dolphin Intelligence: Sự quan tâm từ khách hàng đã xuất hiện, nhưng dịch vụ tiếp thị AI hiện đang được tích hợp vào các hợp đồng PR hiện có hoặc được bổ sung vào đó. Ban quản lý mục tiêu thiết lập đây thành một dịch vụ độc lập và ký hợp đồng với một khách hàng tiêu biểu trước khi kết thúc năm. Công ty cho biết dịch vụ này sẽ không yêu cầu chi phí bổ sung ngoài các khoản đầu tư đã thực hiện.

Danh mục dự án DealMaker: Dolphin và DealMaker đang đánh giá hai dự án liên doanh mà cả hai bên đều ủng hộ. Công ty hướng tới mục tiêu cuối cùng là xây dựng một danh mục từ 6 đến 12 dự án hoạt động trong 3 đến 4 năm, với khả năng tiếp cận trên các mảng sản phẩm tiêu dùng, sự kiện trực tiếp và các lĩnh vực khác.

Toàn văn Biên bản cuộc họp công bố kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

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.

Phần hỏi đáp

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.