Orders +8% YoY
Product Backlog entering Q4 of $342 million, up 25% from prior year
Execution and financial results on track with long-term financial goals
BROOKINGS, S.D., March 04, 2026 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ:DAKT) (the "Company", "Daktronics", "we", 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 2026 third quarter which ended January 31, 2026.
Fiscal Q3 2026 financial highlights include:
Sales of $181.9 million, 21.6% growth from $149.5 million for the third quarter of fiscal 2025
Operating income increased to $1.9 million, compared to operating loss of $3.6 million for the third quarter of fiscal 2025; adjusted operating income(1) was $4.0 million, compared to $1.2 million in the prior-year quarter
Operating margin as a percentage of net sales was 1.1%, compared to an operating loss of 2.4% for the third quarter of fiscal 2025; adjusted operating margin(1) as a percentage of sales was 2.2%, compared to an adjusted operating margin(1) of 0.8% in the prior-year quarter
New orders for products and services rose to $201.1 million(2) for the quarter, compared to $186.9 million from the third quarter of fiscal 2025, up 7.6%
Product backlog increased to $342.3 million(2) for the quarter, up 25.3% from $273.2 million at the end of the third quarter of fiscal 2025
Ramesh Jayaraman, Daktronicsʹ President and Chief Executive Officer, commented, "Our team continued to execute well during the fiscal third quarter, driving year-over-year revenue growth of 21.6 percent and more than tripling adjusted operating income through value-based pricing and operational efficiencies. The quarter unfolded as we expected, with efficient order conversion to revenue and the commencement of five MLB stadium projects with planned installation this spring. New orders grew 7.6 percent, supported by order growth in High School Parks and Recreation, particularly through video scoreboards, record order bookings in Transportation led by the aviation sector, and continued success in stadium projects."
OutlookDaktronics' product backlog of $342.3 million at quarter end provides continued strong tailwind for future revenue growth. The Company has moved through the seasonally slower third fiscal quarter with strong year-over-year growth and continued momentum leading into the final quarter of fiscal 2026.
Daktronics remains agile and ready to implement measures to maintain profitability in the dynamic global trade environment. We continue to monitor the evolving tariff landscape and inflationary electronic component cost landscape and are taking actions accordingly in pricing, supply chain and contractual protections.
Mr. Jayaraman added, "Over the past several quarters, Daktronics has further strengthened its unique position in the dynamic audiovisual space by building trust and reliability through continued innovation and sophistication, enhanced service delivery, and is firmly on a path of accelerating execution. We enter the fourth quarter in a solid position and will focus on closing the year on a strong note. The executive team and I very much look forward to sharing the next phase of Daktronics' strategic growth at our Investor Day in April."
Third Quarter ResultsOrders for the third quarter of fiscal 2026 increased by 7.6 percent compared to the third quarter of fiscal 2025. Order volume for the quarter reflected growth in the High School Parks and Recreation and Transportation business units, partially offset by lower order volume in the Live Events and International business units.
Net sales for the third quarter of fiscal 2026 increased by 21.6 percent as compared to the third quarter of fiscal 2025. Howard Atkins, Daktronics' Acting Chief Financial Officer, noted, "The main driver of the net sales increase in the quarter was the efficient fulfillment of the backlog coming into the quarter which we see continuing into the final quarter of fiscal 2026."
Gross profit as a percentage of net sales was 24.0 percent for the third quarter of fiscal 2026 as compared to 24.6 percent a year earlier with the benefit of fixed cost operating leverage on the gross profit margin offset by revenue fulfillment mix, particularly with a higher percentage of mix in the Live Events business unit.
Operating expenses increased slightly to $41.7 million in the third quarter of fiscal 2026 as compared to $40.4 million for the third quarter of fiscal 2025. During the third quarter of fiscal 2026, the Company incurred $2.1 million of expenses related to management transition, advisory costs, and legal expenses in connection with an acquisition. Last year, during the third quarter of fiscal 2025, the Company incurred $4.8 million of consultant related expenses associated with its strategic and digital transformation initiatives and corporate governance matters. The Company remains focused on maintaining cost discipline while continuing to target investments in innovative product development.
Operating margin for the third quarter of fiscal 2026 was 1.1 percent as compared to an operating loss of 2.4 percent for the third quarter of fiscal 2025. Excluding the above-mentioned $2.1 million of management transition, advisory and legal expenses and excluding the $4.8 million of consultant related expenses, adjusted operating margin(1) for the third quarter of fiscal 2026 was 2.2 percent as compared to an adjusted operating margin(1) of 0.8 percent for the third quarter of fiscal 2025. The impact on operating income from higher sales and well-managed costs offset the additional tariff expense between fiscal 2025 and 2026.
The increase in interest income (expense), net for the third quarter of fiscal 2026 compared to the same period a year ago is primarily due to higher cash levels invested in interest-bearing accounts. During the third quarter of fiscal 2025, interest expense included interest on the convertible note payable to Alta Fox Opportunities, LP (the "Convertible Note") which was settled during fiscal 2025.
For the three months ended January 31, 2026, the effective tax rate was 14.3 percent compared to an effective tax rate of 3.7 percent for the three months ended January 25, 2025. The lower tax rate in the third quarter of fiscal 2025 is due to the reduction of the Convertible Note fair value adjustment to expense in proportion to the period's decrease in pre-tax income, whereas in the third quarter of fiscal 2026, the tax rate was reduced by increases to discrete tax benefits and a reversal of a valuation allowance with no fair value adjustments applicable.
Net income for the third quarter of fiscal 2026 was $3.0 million, compared to a net loss of $17.2 million for the third quarter of fiscal 2025. For the third quarter of fiscal 2026, excluding the management transition, advisory and legal expenses, adjusted net income(1) was $4.6 million. For the third quarter of fiscal 2025, excluding the non-operating non-cash debt fair value adjustment, operating adjustment for consultant related expenses associated with business and digital transformation initiatives, and corporate governance matters, adjusted net income(1) was $0.5 million.
For the three months ended January 31, 2026, earnings per diluted share was $0.06 compared to loss per diluted share of $0.36 in the same period last year.
Balance Sheet and Cash Flow Cash and cash equivalents totaled $144.4 million at January 31, 2026, and $11.1 million of total current and long-term debt was outstanding as of that date, which included $11.2 million of face value and is net of $0.1 million of debt issuance costs.
On November 26, 2025, the Company entered into a new $71.5 million senior credit facility (the "New Credit Facility") pursuant to a Credit Agreement. The New Credit Facility consists of a cash flow‑backed revolving line of credit and a term loan that is not collateralized by real estate. The Company believes the New Credit Facility enhances financial flexibility in managing its operations and capital structure by extending maturities and providing committed liquidity. As of January 31, 2026, there were no advances under the loan portion of our line of credit, and the balance of letters of credit outstanding was $1.9 million.
On December 22, 2025, the Company acquired the Display Business from X Display Company Technology Limited ("XDC"), which consisted of intellectual property, equipment assets, technical expertise, contract rights, other personal property and related assets. The acquisition did not materially impact the Company's financial statements.
In the first nine months of fiscal 2026, Daktronics generated $54.3 million of cash from operations and used $10.4 million for purchases of property and equipment. We repurchased 1.3 million shares of common stock in the first nine months of fiscal 2026 at the volume-weighted average price of $17.61, equaling $22.8 million of share repurchases.
At the end of the fiscal 2026 third quarter, the Company's working capital ratio was 2.2 to 1. The Company efficiently manages working capital to support profitable growth while taking into account the seasonal dynamics of its component businesses.
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 StatementCautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws.
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," "intend," "plan," "forecast," "project," "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, trade wars, 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 2025 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 presentation, the Form 10-K, and other reports filed with or furnished to the SEC by 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 news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this presentation 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 I. Atkins, Acting Chief Financial OfficerTel (605) 692-0200[email protected]
Alliance Advisors IRCarolyn Capaccio / Jody Burfening [email protected]
Daktronics, Inc. and SubsidiariesConsolidated Statements of Operations(in thousands, except per share amounts)(unaudited)
Three Months Ended
Nine Months Ended
January 31,2026
January 25,2025
January 31,2026
January 25,2025
Net sales
$
181,871
$
149,507
$
630,096
$
583,926
Cost of sales
138,242
112,726
459,570
431,584
Gross profit
43,629
36,781
170,526
152,342
Operating expenses:
Selling
15,335
14,471
48,225
44,811
General and administrative
15,844
16,498
43,901
43,771
Product design and development
10,528
9,440
31,643
28,902
41,707
40,409
123,769
117,484
Operating income (loss)
1,922
(3,628
)
46,757
34,858
Nonoperating income (expense):
Interest income (expense), net
1,072
508
2,523
710
Change in fair value of convertible note
—
(14,083
)
—
(25,369
)
Other income (expense), net
518
(613
)
(1,683
)
(2,612
)
Income (loss) before income taxes
3,512
(17,816
)
47,597
7,587
Income tax expense (benefit)
502
(660
)
10,636
8,283
Net income (loss)
$
3,010
$
(17,156
)
$
36,961
$
(696
)
Weighted average shares outstanding:
Basic
48,489
47,764
48,696
46,944
Diluted
49,257
47,764
49,528
46,944
Earnings per share:
Basic
$
0.06
$
(0.36
)
$
0.76
$
(0.01
)
Diluted
$
0.06
$
(0.36
)
$
0.75
$
(0.01
)
Fiscal 2026 is a 53-week year and fiscal 2025 was a 52-week year. As a result, the nine months ended January 31, 2026, includes 40 weeks of operating results, whereas the nine months ended January 25, 2025, includes 39 weeks of operating results.
Daktronics, Inc. and SubsidiariesConsolidated Balance Sheets(in thousands)(unaudited)
January 31,2026
April 26,2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
144,424
$
127,507
Accounts receivable, net
114,326
92,762
Inventories
