- Record net sales for fiscal 2026 of $838.7 million
- Record orders for fiscal 2026 of $860.8 million
- Q4 EPS of $0.17, adjusted EPS(1) of $0.27, up 50% from adjusted EPS(1) YoY
- Product backlog rose to $356.2 million at year end with solid pipeline entering fiscal 2027
BROOKINGS, S.D., June 24, 2026 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ: DAKT) (the “Company”, “Daktronics”, “we”, “our”, or “us”), a recognized industry leader in the design and manufacturing of best-in-class dynamic video communication displays and control systems for customers worldwide, today reported results for its fiscal year and fourth quarter ended May 2, 2026. Fiscal 2026 was a 53-week year, with an extra week in the first quarter, whereas fiscal 2025 was a 52-week year.
Fiscal Q4 and full year 2026 financial highlights:
- Q4 sales of $208.6 million, up 20.9% from the fourth quarter fiscal 2025, and record full year sales of $838.7 million, up 10.9% from full year fiscal 2025
- Q4 operating margin of 6.8% compared to negative operating margin of 1.0% in the year-earlier period, full year operating margin of 7.3%, compared to 4.4% in fiscal 2025
- Q4 earnings per share (“EPS”) of $0.17 compared to loss per share of $0.19 in the year-earlier period, adjusted EPS(1) of $0.27 compared to $0.18 in the year-earlier period; full-year EPS of $0.92 compared to loss per share of $0.21 in the year-earlier period, full year adjusted EPS of $1.05(1) compared to $0.84(1) for fiscal 2025
- Q4 new orders for products and services of $222.0 million(2), down 7.7% from the exceptionally strong Q4 of fiscal 2025; record full year new orders of $860.8 million(2), up 10.2% compared to full year 2025
- Product backlog of $356.2 million(2), up 4.3% from prior year end
“During fiscal 2026, Daktronics successfully completed numerous profitable business initiatives, laying the foundation for gaining momentum in executing our three-year strategic plan that started in fiscal 2025, advancing key initiatives that delivered accelerated sales growth, increased profitability, and a multi-quarter backlog of orders for a strong finish to the year,” said Ramesh Jayaraman, Daktronics’ President and Chief Executive Officer. “In fiscal 2026, we delivered record net sales and orders, reflecting efficient backlog conversion, steady customer demand and effective sales practices supporting our broad product and services portfolio. Margin expansion for the year was driven by stronger operational efficiency, improved supply chain execution, and disciplined inventory and working capital management, along with pricing actions aligned with our strategic initiatives. We ended the year on a strong note, delivering adjusted EPS(1) of $0.27 in the fourth quarter.”
Tracking to Three-Year Plan
As outlined at Daktronics’ April 9, 2026, Investor Day, management is focused on executing strategic priorities to support growth, operational excellence and cash deployment along the following strategic pillars:
“We enter fiscal 2027 with concrete execution plans in place, balancing our strategic priorities between growth and operational excellence,” said Jayaraman. “Our focus is to enhance our core organic growth capability, optimize our operating model to better serve customers while improving ROIC, and deploying capital in a disciplined manner to support organic growth, pursue targeted M&A, and return capital to shareholders through our share repurchase program. We are well positioned with a $356.2 million multi-quarter product backlog and a strong pipeline across all business segments backed by secular demand drivers. I’d like to thank our customers for their continued trust in Daktronics and our approximately 2,700 employees for what they have accomplished. Because of our team’s dedication, we are tracking well toward our fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin and 17-20% ROIC.”
Fourth Quarter and Year-to-Date Results
“Our team delivered an exceptional fiscal 2026, with record net sales, record orders, and a 290 basis point increase in operating margin,” said Daktronics’ Acting Chief Financial Officer Howard Atkins.
Full year 2026 orders increased 10.2 percent to a record $860.8 million, led by the Live Events business unit which won five of five Major League Baseball stadium installations since the third quarter of fiscal 2025. The Transportation and International business units had their own record orders quarters during the year. Fourth quarter fiscal 2026 orders declined 7.7 percent compared to an exceptionally strong fourth quarter of fiscal 2025 in which orders accelerated in advance of pricing increases. Product backlog rose to $356.2 million, with new orders exceeding revenue throughout the year.
Net sales for the fourth quarter of fiscal 2026 were up 20.9 percent from the year-earlier period, driven by the Live Events, High School Park and Recreation, and Transportation business units. The Commercial and International business unit net sales were relatively flat year-over-year. For the full year fiscal 2026, net sales were up 10.9 percent to a record $838.7 million due to strong order growth, the introduction of value-based pricing, and efficient revenue conversion.
Fourth quarter gross profit increased 3.0 percent from a year ago on higher revenue and wider gross profit margin, which increased to 28.0 percent for the fourth quarter of fiscal 2026 compared to 25.0 percent for the fourth quarter of fiscal 2025. A recapture of a prior period warranty provision accounted for 62 basis points of the 28.0 percent gross profit margin. For the full year, gross profit as a percentage of net sales increased to 27.3 percent, including warranty recapture, for fiscal 2026 from 25.8 percent in the prior year. Factors contributing to the margin increase included value-based price increases and operational efficiencies in working capital. The Company is monitoring developments related to tariff refunds, and no amounts have been recognized in the financial statements as of May 2, 2026, due to ongoing uncertainty regarding eligibility, timing and amount.
Operating expenses for the fourth quarter of fiscal 2026 were $44.4 million and relatively flat compared to $44.9 million for the fourth quarter of fiscal 2025. Operating expenses were $168.2 million for the full fiscal 2026 year compared to $162.4 million for the full fiscal 2025 year, an increase of 3.6 percent. The year‑over‑year increase primarily reflects higher product design and development expenses, including costs associated with the acquisition of certain assets of X Display Company Technology Limited (“XDC”).
Operating expenses during fiscal 2026 also included expenses related to management transition costs, advisory services, and legal expenses associated with the XDC acquisition. By comparison, expenses incurred during fiscal 2025 were primarily related to consultant and advisory costs supporting strategic and digital transformation initiatives and corporate governance matters.
Operating margin was 6.8 percent for the fourth quarter of fiscal 2026 compared to an operating loss of 1.0 percent for the fourth quarter of fiscal 2025. Operating margin was 7.3 percent for fiscal 2026 compared to 4.4 percent for fiscal 2025.
The increase in net interest income for the fourth quarter of fiscal 2026 compared to the same period a year ago is primarily due to a higher average cash level invested in interest-bearing accounts. During the third and fourth quarters of fiscal 2025, interest expense included interest on the convertible note payable, which was settled during fiscal 2025.
The change in fair value of the convertible note was caused by the conversion of the entire convertible note in the third and fourth quarters of fiscal 2025.
The Company’s effective tax rate for fiscal 2026 was 22.2 percent compared to negative 73.0 percent for fiscal 2025. During fiscal 2025, the Company’s effective income tax rate was primarily impacted due to the convertible note fair value adjustment to expense that is not deductible for tax purposes. In fiscal 2026, there were no further impacts of fair value adjustments on the convertible note and our effective tax rate has normalized closer to the U.S. statutory rate.
Fourth quarter fiscal 2026 earnings per diluted share were $0.17, compared to a loss per diluted share of $0.19 in the fourth quarter fiscal 2025. For fiscal 2026, earnings per diluted share were $0.92, compared to a loss per diluted share of $0.21 in fiscal 2025. Fourth quarter fiscal 2026 adjusted EPS(1) of $0.27 excludes a $3.8 million provision for possible credit losses related to the exit of an investment in an affiliate and was up 50.0 percent from adjusted EPS(1) in the year-earlier period. Fourth quarter fiscal 2025 adjusted EPS(1) of $0.18 excludes a $15.5 million provision for possible credit losses booked related to the exit of an investment in a different affiliate.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $131.6 million as of May 2, 2026, and $10.8 million of total current and long-term debt was outstanding as of that date. Accounts receivable as of May 2, 2026, was $118.6 million compared to $92.8 million at the end of fiscal 2025.
The Company has a $71.5 million senior credit facility that consists of a cash flow‑backed revolving line of credit. As of May 2, 2026, there were no advances under the loan portion of the line of credit, and the balance of letters of credit outstanding was $1.9 million.
In fiscal 2026, Daktronics generated $49.2 million of cash from operations, of which $14.9 million was used for purchases of property and equipment. During fiscal 2026, the Company repurchased 1.4 million shares of common stock at the volume-weighted average price of $17.80, equaling $25.4 million of share repurchases. In the fourth quarter of fiscal 2026, the Company repurchased 0.1 million shares of common stock at the volume-weighted average price of $19.56, equaling $2.6 million of share repurchases.
At the end of fiscal 2026, the Company’s working capital ratio was 2.3 to 1.
Webcast Information
The Company will host a conference call and webcast to discuss its financial results today at 10:00 a.m. (Central Time). This call will be broadcast live at http://investor.daktronics.com, where related presentation materials will also be posted prior to the conference call. A webcast will be available for replay shortly after the event.
About Daktronics
Daktronics has strong leadership positions in, and is the world’s largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation; and one International business unit. For more information, visit the Company’s website at: www.daktronics.com.
Safe Harbor Statement
Cautionary Notice: This press release contains certain statements that by be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended.
All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statements that reflect our expectations or beliefs of Daktronics, Inc. (the “Company,” “Daktronics,” “we,” or “us”) concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as “may,” “would,” “could,” “should,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “plan,” “forecast,” “project,” “outlook,” “focus,” “goal,” “target,” “transform,” “expand,” “grow,” “predict,” “potential,” “continue,” or “intend,” the negative or other variants of such terms, or other comparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, orders, and capital investment projects, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, the imposition of tariffs or other trade restrictions, the availability and costs of raw materials, components, and shipping services, geopolitical and governmental actions, expansion into new geographical markets, the Company’s recent leadership transition, transformation initiatives, future strategy, and other risks, trends, and uncertainties described more fully in the Company’s Annual Report on Form 10-K for its 2026 fiscal year (the “Form 10-K”) and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC") by the Company. You should carefully consider the trends, risks, and uncertainties described in this press release, the Form 10-K, other reports filed with or furnished to the SEC by the Company, and other press releases and stockholders reports of the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment.
Forward-looking statements are made in the context of information available as of the date of this press release and are based on our current expectations, forecasts, estimates, and assumptions. The Company disclaims any obligation to update or revise any forward-looking statements to reflect actual results or circumstances or events occurring after this release affecting the forward-looking statements except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
For more information contact:
INVESTOR RELATIONS:
Howard Atkins, Acting Chief Financial Officer
Tel (605) 692-0200
[email protected]
Alliance Advisors IR
Carolyn Capaccio / Jody Burfening
[email protected]
MEDIA RELATIONS
[email protected]
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended May 2, 2026 April 26, 2025 May 2, 2026 April 26, 2025Net sales$ 208,610 $ 172,551 $ 838,706 $ 756,477 Cost of sales 150,130 129,406 609,700 560,990 Gross profit 58,480 43,145 229,006 195,487 Operating expenses: Selling 16,590 15,200 64,815 60,011 General and administrative 15,984 19,727 59,885 63,498 Product design and development 11,815 9,958 43,458 38,860 44,389 44,885 168,158 162,369 Operating income (loss) 14,091 (1,740) 60,848 33,118 Nonoperating income (expense): Interest income (expense), net 1,107 637 3,630 1,347 Change in fair value of convertible note — 2,848 — (22,521)Other expense, net (4,461) (15,183) (6,144) (17,795) Income (loss) before income taxes 10,737 (13,438) 58,334 (5,851)Income tax expense (benefit) 2,322 (4,013) 12,958 4,270 Net income (loss)$ 8,415 $ (9,425) $ 45,376 $ (10,121) Weighted average shares outstanding: Basic 48,258 49,516 48,564 47,587 Diluted 49,032 49,516 49,382 47,587 Earnings (loss) per share: Basic$ 0.17 $ (0.19) $ 0.93 $ (0.21)Diluted$ 0.17 $ (0.19) $ 0.92 $ (0.21)
Consolidated Balance Sheets
(in thousands)
(unaudited) May 2, 2026 April 26,
2025ASSETS CURRENT ASSETS: Cash and cash equivalents$ 131,639 $ 127,507Accounts receivable, net 118,590 92,762Inventories 110,471 105,839Contract assets 66,552 41,169Current maturities of long-term receivables 3,405 2,437Prepaid expenses and other current assets 11,278 8,520Income tax receivables 6,047 3,217Total current assets 447,982 381,451 Property and equipment, net 64,263 73,884Long-term receivables, less current maturities 1,125 1,030Goodwill 3,685 3,188Intangibles, net 3,263 568Debt issuance costs, net — 1,289Right of use, investment in affiliates, and other assets 11,828 9,378Deferred income taxes 22,266 32,104TOTAL ASSETS$ 554,412 $ 502,892
Daktronics, Inc. and Subsidiaries
Consolidated Balance Sheets (continued)
(in thousands)
(unaudited) May 2, 2026 April 26,
2025LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Current portion of long-term debt$ 1,150 $ 1,500 Accounts payable 68,617 46,669 Contract liabilities 65,310 69,050 Accrued expenses 44,858 41,705 Warranty obligations 12,398 12,706 Income taxes payable 1,375 375 Total current liabilities 193,708 172,005 Long-term warranty obligations 24,362 23,124 Long-term contract liabilities 20,655 18,421 Other long-term obligations 5,289 6,839 Long-term debt, net 9,629 10,487 Deferred income taxes 22 85 Total long-term liabilities 59,957 58,956 STOCKHOLDERS’ EQUITY: Preferred Shares, $0.00001 par value, authorized 5,000 shares; no shares issued and
outstanding — — Common stock, $0.00001 par value, authorized 115,000 shares; 53,650 and 53,030
shares issued as of May 2, 2026 and April 26, 2025, respectively — — Additional paid-in capital 196,837 189,940 Retained earnings 173,286 127,910 Treasury stock, at cost, 5,406 and 3,979 shares as of May 2, 2026 and April 26, 2025, respectively (65,324) (39,759)Accumulated other comprehensive loss (4,052) (6,160)TOTAL STOCKHOLDERS’ EQUITY 300,747 271,931 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$ 554,412 $ 502,892
Consolidated Statements of Cash Flows
(in thousands)
(unaudited) Year Ended May 2, 2026 April 26,
2025CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)$ 45,376 $ (10,121)Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,339 19,547 Gain on sale of property, equipment and other assets (209) (156)Share-based compensation 4,905 2,944 Equity in loss of affiliates 2,008 3,053 Allowance for credit losses on affiliate loan 3,205 15,480 Provision (recovery) for doubtful accounts, net 627 (644)Deferred income taxes, net 9,938 (6,300)Change in fair value of convertible note — 22,521 Change in operating assets and liabilities (35,972) 51,389 Net cash provided by operating activities 49,217 97,713 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (14,917) (19,494)Proceeds from sales of property, equipment and other assets 615 277 Acquisition, net of cash acquired 44 — Loans to equity investees (5,383) (4,565)Net cash used in investing activities (19,641) (23,782) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on notes payable 1,400 — Payments on notes payable (2,883) (2,108)Principal payments on long-term obligations (104) (414)Payments for common shares repurchased (25,565) (29,474)Proceeds from exercise of stock options 1,796 5,153 Tax payments related to RSU issuances (882) (606)Net cash used in financing activities (26,238) (27,449) EFFECT OF EXCHANGE RATE CHANGES ON CASH 794 (653)NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 4,132 45,829 CASH, CASH EQUIVALENTS AND RESTRICTED CASH: Beginning of period 127,507 81,678 End of period$ 131,639 $ 127,507
Net Sales and Orders by Business Unit
(in thousands)
(unaudited) Three Months Ended Twelve Months Ended May 2,
2026 April 26,
2025 Dollar
Change Percent
Change May 2,
2026 April 26,
2025 Dollar
Change Percent
ChangeNet Sales: Commercial$ 40,347 $ 40,589 $ (242) (0.6)% $ 180,772 $ 156,203 $ 24,569 15.7%Live Events 84,861 59,597 25,264 42.4 321,053 291,484 29,569 10.1 High School Park
and Recreation 46,287 40,477 5,810 14.4 183,250 165,921 17,329 10.4 Transportation 23,578 18,304 5,274 28.8 76,700 81,061 (4,361) (5.4)International 13,537 13,584 (47) (0.3) 76,931 61,808 15,123 24.5 $ 208,610 $ 172,551 $ 36,059 20.9% $ 838,706 $ 756,477 $ 82,229 10.9%Orders: Commercial$ 44,131 $ 48,930 $ (4,799) (9.8)% $ 172,089 $ 176,583 $ (4,494) (2.5)%Live Events 81,195 84,225 (3,030) (3.6) 336,012 283,780 52,232 18.4 High School Park
and Recreation 50,136 59,263 (9,127) (15.4) 188,245 176,097 12,148 6.9 Transportation 21,692 23,496 (1,804) (7.7) 89,467 72,315 17,152 23.7 International 24,892 24,769 123 0.5 75,022 72,572 2,450 3.4 $ 222,046 $ 240,683 $ (18,637) (7.7)% $ 860,835 $ 781,347 $ 79,488 10.2%
(in thousands)
(unaudited) Twelve Months Ended May 2,
2026 April 26,
2025Net cash provided by operating activities$ 49,217 $ 97,713 Purchases of property and equipment (14,917) (19,494)Proceeds from sales of property and equipment 615 277 Free cash flow$ 34,915 $ 78,496
(in thousands)
(unaudited)
Three Months Ended Twelve Months Ended May 2,
2026 April 26,
2025 May 2,
2026 April 26,
2025Operating income (loss) (GAAP measure)$ 14,091 $ (1,740) $ 60,848 $ 33,118Management transition expenses 100 2,614 2,145 2,614XDC acquisition, advisory, and legal costs 126 — 575 —Consultant related expenses associated with business transformation initiatives 1,062 1,031 1,062 7,085Corporate governance expenses — 3,881 — 6,825Adjusted operating income (non-GAAP measure)$ 15,379 $ 5,786 $ 64,630 $ 49,642
(in thousands, except per share data)
(unaudited) Three Months Ended Twelve Months Ended May 2, 2026 April 26,
2025 May 2, 2026 April 26,
2025Net income (loss) (GAAP measure)$ 8,415 $ (9,425) $ 45,376 $ (10,121)Management transition, net of taxes 74 1,934 1,587 1,934 XDC acquisition, advisory, and legal costs 93 — 426 — Consultant related expenses associated with business
transformation initiatives, net of taxes 786 763 786 5,243 Allowance for credit losses on affiliate loan 3,750 15,480 3,750 15,480 Corporate governance expenses, net of taxes — 2,872 — 5,050 Change in fair value of convertible note — (2,848) — 22,521 Adjusted net income (non-GAAP measure)$ 13,118 $ 8,776 $ 51,925 $ 40,107 Diluted weighted-average number of common shares outstanding 49,032 49,516 49,382 47,587 Diluted earnings (loss) per share (GAAP measure)$ 0.17 $ (0.19) $ 0.92 $ (0.21)Adjusted diluted earnings per share (non-GAAP measure)$ 0.27 $ 0.18 $ 1.05 $ 0.84
(in thousands)
(unaudited)
Long-term debt consists of the following:
May 2,
2026 April 26,
2025Mortgage 10,925 12,375 Long-term debt, gross 10,925 12,375 Debt issuance costs, net (146) (388)Current portion (1,150) (1,500)Long-term debt, net$ 9,629 $ 10,487
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/613efaa5-5af4-4fbe-9e09-e723b1ce9d59.