Daktronics Announces Fourth Quarter and Full Fiscal Year 2026 Results (Form 8-K)

Daktronics Announces Fourth Quarter and Full Fiscal Year 2026 Results

•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 -- 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.