{"success":true,"data":{"pressRelease":{"id":"71853","rtpr_id":"nGNX7N3mJ8","ticker":"DAKT","exchange":"NASDAQ","all_tickers":["DAKT"],"title":"Daktronics Announces Fourth Quarter and Full Fiscal Year 2026 Results","author":"Globe Newswire","published_at":"2026-06-24T11:30:00.234Z","article_body":"* Record net sales for fiscal 2026 of $838.7 million\n* Record orders for fiscal 2026 of $860.8 million\n* Q4 EPS of $0.17, adjusted EPS((1)) of $0.27, up 50% from adjusted EPS((1))\nYoY\n* Product backlog rose to $356.2 million at year end with solid pipeline\nentering fiscal 2027\nBROOKINGS, S.D., June 24, 2026 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ:\nDAKT) (the “Company”, “Daktronics”, “we”, “our”, or “us”),\na recognized industry leader in the design and manufacturing of best-in-class\ndynamic video communication displays and control systems for customers\nworldwide, today reported results for its fiscal year and fourth quarter ended\nMay 2, 2026. Fiscal 2026 was a 53-week year, with an extra week in the first\nquarter, whereas fiscal 2025 was a 52-week year.\n\nFiscal Q4 and full year 2026 financial highlights:\n* Q4 sales of $208.6 million, up 20.9% from the fourth quarter fiscal 2025,\nand record full year sales of $838.7 million, up 10.9% from full year fiscal\n2025\n* Q4 operating margin of 6.8% compared to negative operating margin of 1.0% in\nthe year-earlier period, full year operating margin of 7.3%, compared to 4.4%\nin fiscal 2025\n* Q4 earnings per share (“EPS”) of $0.17 compared to loss per share of\n$0.19 in the year-earlier period, adjusted EPS((1)) of $0.27 compared to $0.18\nin the year-earlier period; full-year EPS of $0.92 compared to loss per share\nof $0.21 in the year-earlier period, full year adjusted EPS of $1.05((1))\ncompared to $0.84((1)) for fiscal 2025\n* Q4 new orders for products and services of $222.0 million((2)), down 7.7%\nfrom the exceptionally strong Q4 of fiscal 2025; record full year new orders\nof $860.8 million((2)), up 10.2% compared to full year 2025\n* Product backlog of $356.2 million((2)), up 4.3% from prior year end\n“During fiscal 2026, Daktronics successfully completed numerous profitable\nbusiness initiatives, laying the foundation for gaining momentum in executing\nour three-year strategic plan that started in fiscal 2025, advancing key\ninitiatives that delivered accelerated sales growth, increased profitability,\nand a multi-quarter backlog of orders for a strong finish to the year,” said\nRamesh Jayaraman, Daktronics’ President and Chief Executive Officer. “In\nfiscal 2026, we delivered record net sales and orders, reflecting efficient\nbacklog conversion, steady customer demand and effective sales practices\nsupporting our broad product and services portfolio. Margin expansion for the\nyear was driven by stronger operational efficiency, improved supply chain\nexecution, and disciplined inventory and working capital management, along\nwith pricing actions aligned with our strategic initiatives. We ended the year\non a strong note, delivering adjusted EPS((1)) of $0.27 in the fourth\nquarter.”\n\nTracking to Three-Year Plan\nAs outlined at Daktronics’ April 9, 2026, Investor Day, management is\nfocused on executing strategic priorities to support growth, operational\nexcellence and cash deployment along the following strategic pillars:\n\n\n\n\n\n“We enter fiscal 2027 with concrete execution plans in place, balancing our\nstrategic priorities between growth and operational excellence,” said\nJayaraman. “Our focus is to enhance our core organic growth capability,\noptimize our operating model to better serve customers while improving ROIC,\nand deploying capital in a disciplined manner to support organic growth,\npursue targeted M&A, and return capital to shareholders through our share\nrepurchase program. We are well positioned with a $356.2 million multi-quarter\nproduct backlog and a strong pipeline across all business segments backed by\nsecular demand drivers. I’d like to thank our customers for their continued\ntrust in Daktronics and our approximately 2,700 employees for what they have\naccomplished. Because of our team’s dedication, we are tracking well toward\nour fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin and\n17-20% ROIC.”\n\nFourth Quarter and Year-to-Date Results\n“Our team delivered an exceptional fiscal 2026, with record net sales,\nrecord orders, and a 290 basis point increase in operating margin,” said\nDaktronics’ Acting Chief Financial Officer Howard Atkins.\n\nFull year 2026 orders increased 10.2 percent to a record $860.8 million, led\nby the Live Events business unit which won five of five Major League Baseball\nstadium installations since the third quarter of fiscal 2025. The\nTransportation and International business units had their own record orders\nquarters during the year. Fourth quarter fiscal 2026 orders declined 7.7\npercent compared to an exceptionally strong fourth quarter of fiscal 2025 in\nwhich orders accelerated in advance of pricing increases. Product backlog rose\nto $356.2 million, with new orders exceeding revenue throughout the year.\n\nNet sales for the fourth quarter of fiscal 2026 were up 20.9 percent from the\nyear-earlier period, driven by the Live Events, High School Park and\nRecreation, and Transportation business units. The Commercial and\nInternational business unit net sales were relatively flat year-over-year. For\nthe full year fiscal 2026, net sales were up 10.9 percent to a record $838.7\nmillion due to strong order growth, the introduction of value-based pricing,\nand efficient revenue conversion.\n\nFourth quarter gross profit increased 3.0 percent from a year ago on higher\nrevenue and wider gross profit margin, which increased to 28.0 percent for the\nfourth quarter of fiscal 2026 compared to 25.0 percent for the fourth quarter\nof fiscal 2025. A recapture of a prior period warranty provision accounted for\n62 basis points of the 28.0 percent gross profit margin. For the full year,\ngross profit as a percentage of net sales increased to 27.3 percent, including\nwarranty recapture, for fiscal 2026 from 25.8 percent in the prior year.\nFactors contributing to the margin increase included value-based price\nincreases and operational efficiencies in working capital. The Company is\nmonitoring developments related to tariff refunds, and no amounts have been\nrecognized in the financial statements as of May 2, 2026, due to ongoing\nuncertainty regarding eligibility, timing and amount.\n\nOperating expenses for the fourth quarter of fiscal 2026 were $44.4 million\nand relatively flat compared to $44.9 million for the fourth quarter of fiscal\n2025. Operating expenses were $168.2 million for the full fiscal 2026 year\ncompared to $162.4 million for the full fiscal 2025 year, an increase of 3.6\npercent. The year‑over‑year increase primarily reflects higher product\ndesign and development expenses, including costs associated with the\nacquisition of certain assets of X Display Company Technology Limited\n(“XDC”).\n\nOperating expenses during fiscal 2026 also included expenses related to\nmanagement transition costs, advisory services, and legal expenses associated\nwith the XDC acquisition. By comparison, expenses incurred during fiscal 2025\nwere primarily related to consultant and advisory costs supporting strategic\nand digital transformation initiatives and corporate governance matters.\n\nOperating margin was 6.8 percent for the fourth quarter of fiscal 2026\ncompared to an operating loss of 1.0 percent for the fourth quarter of fiscal\n2025. Operating margin was 7.3 percent for fiscal 2026 compared to 4.4 percent\nfor fiscal 2025.\n\nThe increase in net interest income for the fourth quarter of fiscal 2026\ncompared to the same period a year ago is primarily due to a higher average\ncash level invested in interest-bearing accounts. During the third and fourth\nquarters of fiscal 2025, interest expense included interest on the convertible\nnote payable, which was settled during fiscal 2025.\n\nThe change in fair value of the convertible note was caused by the conversion\nof the entire convertible note in the third and fourth quarters of fiscal\n2025.\n\nThe Company’s effective tax rate for fiscal 2026 was 22.2 percent compared\nto negative 73.0 percent for fiscal 2025. During fiscal 2025, the Company’s\neffective income tax rate was primarily impacted due to the convertible note\nfair value adjustment to expense that is not deductible for tax purposes. In\nfiscal 2026, there were no further impacts of fair value adjustments on the\nconvertible note and our effective tax rate has normalized closer to the U.S.\nstatutory rate.\n\nFourth quarter fiscal 2026 earnings per diluted share were $0.17, compared to\na loss per diluted share of $0.19 in the fourth quarter fiscal 2025. For\nfiscal 2026, earnings per diluted share were $0.92, compared to a loss per\ndiluted share of $0.21 in fiscal 2025. Fourth quarter fiscal 2026 adjusted\nEPS((1)) of $0.27 excludes a $3.8 million provision for possible credit losses\nrelated to the exit of an investment in an affiliate and was up 50.0 percent\nfrom adjusted EPS((1)) in the year-earlier period. Fourth quarter fiscal 2025\nadjusted EPS((1)) of $0.18 excludes a $15.5 million provision for possible\ncredit losses booked related to the exit of an investment in a different\naffiliate.\n\nBalance Sheet and Cash Flow\nCash and cash equivalents totaled $131.6 million as of May 2, 2026, and $10.8\nmillion of total current and long-term debt was outstanding as of that date.\nAccounts receivable as of May 2, 2026, was $118.6 million compared to $92.8\nmillion at the end of fiscal 2025.\n\nThe Company has a $71.5 million senior credit facility that consists of a cash\nflow‑backed revolving line of credit. As of May 2, 2026, there were no\nadvances under the loan portion of the line of credit, and the balance of\nletters of credit outstanding was $1.9 million.\n\nIn fiscal 2026, Daktronics generated $49.2 million of cash from operations, of\nwhich $14.9 million was used for purchases of property and equipment. During\nfiscal 2026, the Company repurchased 1.4 million shares of common stock at the\nvolume-weighted average price of $17.80, equaling $25.4 million of share\nrepurchases. In the fourth quarter of fiscal 2026, the Company repurchased 0.1\nmillion shares of common stock at the volume-weighted average price of $19.56,\nequaling $2.6 million of share repurchases.\n\nAt the end of fiscal 2026, the Company’s working capital ratio was 2.3 to 1.\n\nWebcast Information \nThe Company will host a conference call and webcast to discuss its financial\nresults today at 10:00 a.m. (Central Time). This call will be broadcast live\nat http://investor.daktronics.com, where related presentation materials will\nalso be posted prior to the conference call. A webcast will be available for\nreplay shortly after the event.\n\nAbout Daktronics\nDaktronics has strong leadership positions in, and is the world’s largest\nsupplier of, large-screen video displays, electronic scoreboards, LED text and\ngraphics displays, and related control systems. The Company excels in the\ncontrol of display systems, including those that require integration of\nmultiple complex displays showing real-time information, graphics, animation,\nand video. Daktronics designs, manufactures, markets and services display\nsystems for customers around the world in four domestic business units: Live\nEvents, Commercial, High School Park and Recreation, and Transportation; and\none International business unit. For more information, visit the Company’s\nwebsite at: www.daktronics.com.\n\nSafe Harbor Statement\nCautionary Notice: This press release contains certain statements that by be\nconsidered forward-looking statements within the meaning of Section 27A of the\nSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange\nAct of 1934, as amended, and such statements are subject to the safe harbor\ncreated by those sections and the Private Securities Litigation Reform Act of\n1995, as amended.\n\nAll statements, other than historical facts, included or incorporated in this\nrelease could be deemed forward-looking statements, particularly statements\nthat reflect our expectations or beliefs of Daktronics, Inc. (the\n“Company,” “Daktronics,” “we,” or “us”) concerning future\nevents or our future financial performance. You are cautioned not to place\nundue reliance on forward-looking statements, which are often characterized by\ndiscussions of strategy, plans, or intentions or by the use of words such as\n“may,” “would,” “could,” “should,” “will,” “expect,”\n“estimate,” “anticipate,” “believe,” “plan,” “forecast,”\n“project,” “outlook,” “focus,” “goal,” “target,”\n“transform,” “expand,” “grow,” “predict,” “potential,”\n“continue,” or “intend,” the negative or other variants of such terms,\nor other comparable terminology. The Company cautions that these\nforward-looking statements are subject to risks and uncertainties that could\ncause actual results to differ materially from our expectations as a result of\nvarious factors, including, but not limited to, changes in economic and market\nconditions, management of growth, timing and magnitude of future contracts,\norders, and capital investment projects, fluctuations in margins, the\nintroduction of new products and technology, the impact of adverse weather\nconditions, increased regulation, the imposition of tariffs or other trade\nrestrictions, the availability and costs of raw materials, components, and\nshipping services, geopolitical and governmental actions, expansion into new\ngeographical markets, the Company’s recent leadership transition,\ntransformation initiatives, future strategy, and other risks, trends, and\nuncertainties described more fully in the Company’s Annual Report on Form\n10-K for its 2026 fiscal year (the “Form 10-K”) and in other reports filed\nwith or furnished to the U.S. Securities and Exchange Commission (the \"SEC\")\nby the Company. You should carefully consider the trends, risks, and\nuncertainties described in this press release, the Form 10-K,  other reports\nfiled with or furnished to the SEC by the Company, and other press releases\nand stockholders reports of the Company before making any investment decision\nwith respect to our securities. If any of these trends, risks, or\nuncertainties continues or occurs, our business, financial condition, or\noperating results could be materially and adversely affected, the trading\nprices of our securities could decline, and you could lose part or all of your\ninvestment.\n\nForward-looking statements are made in the context of information available as\nof the date of this press release and are based on our current expectations,\nforecasts, estimates, and assumptions. The Company disclaims any obligation to\nupdate or revise any forward-looking statements to reflect actual results or\ncircumstances or events occurring after this release affecting the\nforward-looking statements except as may be required by applicable law. All\nforward-looking statements attributable to us or persons acting on our behalf\nare expressly qualified in their entirety by this cautionary statement.\n\nFor more information contact:\n\nINVESTOR RELATIONS:\nHoward Atkins, Acting Chief Financial Officer\nTel (605) 692-0200\nInvestor@daktronics.com\n\nAlliance Advisors IR\nCarolyn Capaccio / Jody Burfening \nDAKTIRTeam@allianceadvisors.com\n\nMEDIA RELATIONS\nmedia@daktronics.com\n\n\n\n\n\n Daktronics, Inc. and Subsidiaries \n Consolidated Statements of Operations \n (in thousands, except per share amounts) (unaudited) \n \n Three Months Ended Year Ended \n May 2, 2026 April 26, 2025 May 2, 2026 April 26, 2025 \n Net sales $ 208,610 $ 172,551 $ 838,706 $ 756,477 \n Cost of sales 150,130 129,406 609,700 560,990 \n Gross profit 58,480 43,145 229,006 195,487 \n \n Operating expenses: \n Selling 16,590 15,200 64,815 60,011 \n General and administrative 15,984 19,727 59,885 63,498 \n Product design and development 11,815 9,958 43,458 38,860 \n 44,389 44,885 168,158 162,369 \n Operating income (loss) 14,091 (1,740 ) 60,848 33,118 \n \n Nonoperating income (expense): \n Interest income (expense), net 1,107 637 3,630 1,347 \n Change in fair value of convertible note — 2,848 — (22,521 ) \n Other expense, net (4,461 ) (15,183 ) (6,144 ) (17,795 ) \n \n Income (loss) before income taxes 10,737 (13,438 ) 58,334 (5,851 ) \n Income tax expense (benefit) 2,322 (4,013 ) 12,958 4,270 \n Net income (loss) $ 8,415 $ (9,425 ) $ 45,376 $ (10,121 ) \n \n Weighted average shares outstanding: \n Basic 48,258 49,516 48,564 47,587 \n Diluted 49,032 49,516 49,382 47,587 \n \n Earnings (loss) per share: \n Basic $ 0.17 $ (0.19 ) $ 0.93 $ (0.21 ) \n Diluted $ 0.17 $ (0.19 ) $ 0.92 $ (0.21 ) \n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands) (unaudited) \n \n May 2, 2026 April 26, \n 2025 \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 131,639 $ 127,507 \n Accounts receivable, net 118,590 92,762 \n Inventories 110,471 105,839 \n Contract assets 66,552 41,169 \n Current maturities of long-term receivables 3,405 2,437 \n Prepaid expenses and other current assets 11,278 8,520 \n Income tax receivables 6,047 3,217 \n Total current assets 447,982 381,451 \n \n Property and equipment, net 64,263 73,884 \n Long-term receivables, less current maturities 1,125 1,030 \n Goodwill 3,685 3,188 \n Intangibles, net 3,263 568 \n Debt issuance costs, net — 1,289 \n Right of use, investment in affiliates, and other assets 11,828 9,378 \n Deferred income taxes 22,266 32,104 \n TOTAL ASSETS $ 554,412 $ 502,892 \n\n\n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (continued) (in thousands) (unaudited) \n \n May 2, 2026 April 26, \n 2025 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n CURRENT LIABILITIES: \n Current portion of long-term debt $ 1,150 $ 1,500 \n Accounts payable 68,617 46,669 \n Contract liabilities 65,310 69,050 \n Accrued expenses 44,858 41,705 \n Warranty obligations 12,398 12,706 \n Income taxes payable 1,375 375 \n Total current liabilities 193,708 172,005 \n \n Long-term warranty obligations 24,362 23,124 \n Long-term contract liabilities 20,655 18,421 \n Other long-term obligations 5,289 6,839 \n Long-term debt, net 9,629 10,487 \n Deferred income taxes 22 85 \n Total long-term liabilities 59,957 58,956 \n \n STOCKHOLDERS’ EQUITY: \n Preferred Shares, $0.00001 par value, authorized 5,000 shares; no shares issued and outstanding — — \n 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 — — \n Additional paid-in capital 196,837 189,940 \n Retained earnings 173,286 127,910 \n Treasury stock, at cost, 5,406 and 3,979 shares as of May 2, 2026 and April 26, 2025, respectively (65,324 ) (39,759 ) \n Accumulated other comprehensive loss (4,052 ) (6,160 ) \n TOTAL STOCKHOLDERS’ EQUITY 300,747 271,931 \n TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 554,412 $ 502,892 \n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in thousands) (unaudited) \n \n Year Ended \n May 2, 2026 April 26, \n 2025 \n CASH FLOWS FROM OPERATING ACTIVITIES: \n Net income (loss) $ 45,376 $ (10,121 ) \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation and amortization 19,339 19,547 \n Gain on sale of property, equipment and other assets (209 ) (156 ) \n Share-based compensation 4,905 2,944 \n Equity in loss of affiliates 2,008 3,053 \n Allowance for credit losses on affiliate loan 3,205 15,480 \n Provision (recovery) for doubtful accounts, net 627 (644 ) \n Deferred income taxes, net 9,938 (6,300 ) \n Change in fair value of convertible note — 22,521 \n Change in operating assets and liabilities (35,972 ) 51,389 \n Net cash provided by operating activities 49,217 97,713 \n \n CASH FLOWS FROM INVESTING ACTIVITIES: \n Purchases of property and equipment (14,917 ) (19,494 ) \n Proceeds from sales of property, equipment and other assets 615 277 \n Acquisition, net of cash acquired 44 — \n Loans to equity investees (5,383 ) (4,565 ) \n Net cash used in investing activities (19,641 ) (23,782 ) \n \n CASH FLOWS FROM FINANCING ACTIVITIES: \n Borrowings on notes payable 1,400 — \n Payments on notes payable (2,883 ) (2,108 ) \n Principal payments on long-term obligations (104 ) (414 ) \n Payments for common shares repurchased (25,565 ) (29,474 ) \n Proceeds from exercise of stock options 1,796 5,153 \n Tax payments related to RSU issuances (882 ) (606 ) \n Net cash used in financing activities (26,238 ) (27,449 ) \n \n EFFECT OF EXCHANGE RATE CHANGES ON CASH 794 (653 ) \n NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 4,132 45,829 \n \n CASH, CASH EQUIVALENTS AND RESTRICTED CASH: \n Beginning of period 127,507 81,678 \n End of period $ 131,639 $ 127,507 \n\n\n\n Daktronics, Inc. and Subsidiaries Net Sales and Orders by Business Unit (in thousands) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, 2025 Dollar Change Percent Change May 2, 2026 April 26, 2025 Dollar Change Percent Change \n Net Sales: \n Commercial $ 40,347 $ 40,589 $ (242 ) (0.6) % $ 180,772 $ 156,203 $ 24,569 15.7 % \n Live Events 84,861 59,597 25,264 42.4 321,053 291,484 29,569 10.1 \n High School Park and Recreation 46,287 40,477 5,810 14.4 183,250 165,921 17,329 10.4 \n Transportation 23,578 18,304 5,274 28.8 76,700 81,061 (4,361 ) (5.4 ) \n International 13,537 13,584 (47 ) (0.3 ) 76,931 61,808 15,123 24.5 \n $ 208,610 $ 172,551 $ 36,059 20.9 % $ 838,706 $ 756,477 $ 82,229 10.9 % \n Orders: \n Commercial $ 44,131 $ 48,930 $ (4,799 ) (9.8 )% $ 172,089 $ 176,583 $ (4,494 ) (2.5) % \n Live Events 81,195 84,225 (3,030 ) (3.6 ) 336,012 283,780 52,232 18.4 \n High School Park and Recreation 50,136 59,263 (9,127 ) (15.4 ) 188,245 176,097 12,148 6.9 \n Transportation 21,692 23,496 (1,804 ) (7.7 ) 89,467 72,315 17,152 23.7 \n International 24,892 24,769 123 0.5 75,022 72,572 2,450 3.4 \n $ 222,046 $ 240,683 $ (18,637 ) (7.7) % $ 860,835 $ 781,347 $ 79,488 10.2 % \n\n\n\n Reconciliation of Free Cash Flow (*) (in thousands) (unaudited) \n \n Twelve Months Ended \n May 2, 2026 April 26, \n 2025 \n Net cash provided by operating activities $ 49,217 $ 97,713 \n Purchases of property and equipment (14,917 ) (19,494 ) \n Proceeds from sales of property and equipment 615 277 \n Free cash flow $ 34,915 $ 78,496 \n\n\n\n * The table above reconciles free cash flow to the most directly comparable GAAP financial measure. In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined \n under accounting principles generally accepted in the United States of America (\"GAAP\"). It is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. We \n define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. Our definition of free \n cash flow may not be comparable to similarly titled definitions used by other companies. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results because it provides them with additional \n information in assessing our liquidity, capital resources and financial operating results. \n\n\n\n Reconciliation of Adjusted Operating Income* \n (in thousands) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, 2025 May 2, 2026 April 26, 2025 \n Operating income (loss) (GAAP measure) $ 14,091 $ (1,740 ) $ 60,848 $ 33,118 \n Management transition expenses 100 2,614 2,145 2,614 \n XDC acquisition, advisory, and legal costs 126 — 575 — \n Consultant related expenses associated with business transformation initiatives 1,062 1,031 1,062 7,085 \n Corporate governance expenses — 3,881 — 6,825 \n Adjusted operating income (non-GAAP measure) $ 15,379 $ 5,786 $ 64,630 $ 49,642 \n\n\n\n * In evaluating its business, Daktronics considers and uses adjusted operating income as a key measure of its operating performance. The term adjusted operating income is not defined under GAAP and is not a measure of operating income, cash flows from \n operating activities, or other GAAP figures and should not be considered alternatives to those computations. We define adjusted operating income as operating income (loss) plus management transition expenses, acquisition related expenses, consulting \n related expenses related to our business transformation initiatives, and corporate governance expenses related to legal and advisory costs of reincorporation and shareholder relations. Management transition and acquisition related expenses incurred during \n the first and second quarters of fiscal 2026 were immaterial and, accordingly, were not previously disclosed as adjustments. These expenses became more significant during the third quarter of fiscal 2026 and are therefore reflected in the twelve‑month \n adjusted operating income calculation. Management believes adjusted operating income is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of adjusted operating income may not be \n comparable to similarly titled definitions used by other companies. The table above reconciles adjusted operating income to comparable GAAP financial measures. \n\n\n\n Reconciliation of Adjusted Net Income and Adjusted Earnings per Share* (in thousands, except per share data) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, May 2, 2026 April 26, \n 2025 2025 \n Net income (loss) (GAAP measure) $ 8,415 $ (9,425 ) $ 45,376 $ (10,121 ) \n Management transition, net of taxes 74 1,934 1,587 1,934 \n XDC acquisition, advisory, and legal costs 93 — 426 — \n Consultant related expenses associated with business transformation initiatives, net of taxes 786 763 786 5,243 \n Allowance for credit losses on affiliate loan 3,750 15,480 3,750 15,480 \n Corporate governance expenses, net of taxes — 2,872 — 5,050 \n Change in fair value of convertible note — (2,848 ) — 22,521 \n Adjusted net income (non-GAAP measure) $ 13,118 $ 8,776 $ 51,925 $ 40,107 \n \n Diluted weighted-average number of common shares outstanding 49,032 49,516 49,382 47,587 \n Diluted earnings (loss) per share (GAAP measure) $ 0.17 $ (0.19 ) $ 0.92 $ (0.21 ) \n Adjusted diluted earnings per share (non-GAAP measure) $ 0.27 $ 0.18 $ 1.05 $ 0.84 \n\n\n\n * Adjusted net income using 26% tax rate. The table above reconciles adjusted net income and adjusted EPS to the most directly comparable GAAP financial measure. In evaluating its business, Daktronics considers and uses adjusted net income and adjusted EPS \n as key measures of its operating performance. The terms adjusted net income and adjusted EPS are not defined under GAAP. They are not measures of net income or other GAAP figures and should not be considered alternatives to those computations. We disclose \n adjusted net income and adjusted EPS as non-GAAP financial measures in order to report our results exclusive of items that are non-recurring, unique, or not core to our operating business. Our definition of adjusted net income and adjusted EPS may not be \n comparable to similarly titled definitions used by other companies. Management believes presenting this non-GAAP financial measurement provides investors with a consistent way to analyze our performance. \n\n\n\n Reconciliation of Long-term Debt (in thousands) (unaudited) \n \n Long-term debt consists of the following: \n \n May 2, 2026 April 26, 2025 \n Mortgage 10,925 12,375 \n Long-term debt, gross 10,925 12,375 \n Debt issuance costs, net (146 ) (388 ) \n Current portion (1,150 ) (1,500 ) \n Long-term debt, net $ 9,629 $ 10,487 \n\nA photo accompanying this announcement is available at\nhttps://www.globenewswire.com/NewsRoom/AttachmentNg/613efaa5-5af4-4fbe-9e09-e723b1ce9d59.\n\n \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/582da727-904b-4ca1-b73f-861bc4c293e8)\nDaktronics, Inc. \n(https://www.globenewswire.com/NewsRoom/AttachmentNg/613efaa5-5af4-4fbe-9e09-e723b1ce9d59/en)\nDaktronics, Inc.\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX7N3mJ8","title":"Daktronics Announces Fourth Quarter and Full Fiscal Year 2026 Results","author":"Globe Newswire","ticker":"DAKT","created":"2026-06-24T11:30:00.234Z","tickers":["DAKT"],"exchange":"NASDAQ","article_body":"* Record net sales for fiscal 2026 of $838.7 million\n* Record orders for fiscal 2026 of $860.8 million\n* Q4 EPS of $0.17, adjusted EPS((1)) of $0.27, up 50% from adjusted EPS((1))\nYoY\n* Product backlog rose to $356.2 million at year end with solid pipeline\nentering fiscal 2027\nBROOKINGS, S.D., June 24, 2026 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ:\nDAKT) (the “Company”, “Daktronics”, “we”, “our”, or “us”),\na recognized industry leader in the design and manufacturing of best-in-class\ndynamic video communication displays and control systems for customers\nworldwide, today reported results for its fiscal year and fourth quarter ended\nMay 2, 2026. Fiscal 2026 was a 53-week year, with an extra week in the first\nquarter, whereas fiscal 2025 was a 52-week year.\n\nFiscal Q4 and full year 2026 financial highlights:\n* Q4 sales of $208.6 million, up 20.9% from the fourth quarter fiscal 2025,\nand record full year sales of $838.7 million, up 10.9% from full year fiscal\n2025\n* Q4 operating margin of 6.8% compared to negative operating margin of 1.0% in\nthe year-earlier period, full year operating margin of 7.3%, compared to 4.4%\nin fiscal 2025\n* Q4 earnings per share (“EPS”) of $0.17 compared to loss per share of\n$0.19 in the year-earlier period, adjusted EPS((1)) of $0.27 compared to $0.18\nin the year-earlier period; full-year EPS of $0.92 compared to loss per share\nof $0.21 in the year-earlier period, full year adjusted EPS of $1.05((1))\ncompared to $0.84((1)) for fiscal 2025\n* Q4 new orders for products and services of $222.0 million((2)), down 7.7%\nfrom the exceptionally strong Q4 of fiscal 2025; record full year new orders\nof $860.8 million((2)), up 10.2% compared to full year 2025\n* Product backlog of $356.2 million((2)), up 4.3% from prior year end\n“During fiscal 2026, Daktronics successfully completed numerous profitable\nbusiness initiatives, laying the foundation for gaining momentum in executing\nour three-year strategic plan that started in fiscal 2025, advancing key\ninitiatives that delivered accelerated sales growth, increased profitability,\nand a multi-quarter backlog of orders for a strong finish to the year,” said\nRamesh Jayaraman, Daktronics’ President and Chief Executive Officer. “In\nfiscal 2026, we delivered record net sales and orders, reflecting efficient\nbacklog conversion, steady customer demand and effective sales practices\nsupporting our broad product and services portfolio. Margin expansion for the\nyear was driven by stronger operational efficiency, improved supply chain\nexecution, and disciplined inventory and working capital management, along\nwith pricing actions aligned with our strategic initiatives. We ended the year\non a strong note, delivering adjusted EPS((1)) of $0.27 in the fourth\nquarter.”\n\nTracking to Three-Year Plan\nAs outlined at Daktronics’ April 9, 2026, Investor Day, management is\nfocused on executing strategic priorities to support growth, operational\nexcellence and cash deployment along the following strategic pillars:\n\n\n\n\n\n“We enter fiscal 2027 with concrete execution plans in place, balancing our\nstrategic priorities between growth and operational excellence,” said\nJayaraman. “Our focus is to enhance our core organic growth capability,\noptimize our operating model to better serve customers while improving ROIC,\nand deploying capital in a disciplined manner to support organic growth,\npursue targeted M&A, and return capital to shareholders through our share\nrepurchase program. We are well positioned with a $356.2 million multi-quarter\nproduct backlog and a strong pipeline across all business segments backed by\nsecular demand drivers. I’d like to thank our customers for their continued\ntrust in Daktronics and our approximately 2,700 employees for what they have\naccomplished. Because of our team’s dedication, we are tracking well toward\nour fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin and\n17-20% ROIC.”\n\nFourth Quarter and Year-to-Date Results\n“Our team delivered an exceptional fiscal 2026, with record net sales,\nrecord orders, and a 290 basis point increase in operating margin,” said\nDaktronics’ Acting Chief Financial Officer Howard Atkins.\n\nFull year 2026 orders increased 10.2 percent to a record $860.8 million, led\nby the Live Events business unit which won five of five Major League Baseball\nstadium installations since the third quarter of fiscal 2025. The\nTransportation and International business units had their own record orders\nquarters during the year. Fourth quarter fiscal 2026 orders declined 7.7\npercent compared to an exceptionally strong fourth quarter of fiscal 2025 in\nwhich orders accelerated in advance of pricing increases. Product backlog rose\nto $356.2 million, with new orders exceeding revenue throughout the year.\n\nNet sales for the fourth quarter of fiscal 2026 were up 20.9 percent from the\nyear-earlier period, driven by the Live Events, High School Park and\nRecreation, and Transportation business units. The Commercial and\nInternational business unit net sales were relatively flat year-over-year. For\nthe full year fiscal 2026, net sales were up 10.9 percent to a record $838.7\nmillion due to strong order growth, the introduction of value-based pricing,\nand efficient revenue conversion.\n\nFourth quarter gross profit increased 3.0 percent from a year ago on higher\nrevenue and wider gross profit margin, which increased to 28.0 percent for the\nfourth quarter of fiscal 2026 compared to 25.0 percent for the fourth quarter\nof fiscal 2025. A recapture of a prior period warranty provision accounted for\n62 basis points of the 28.0 percent gross profit margin. For the full year,\ngross profit as a percentage of net sales increased to 27.3 percent, including\nwarranty recapture, for fiscal 2026 from 25.8 percent in the prior year.\nFactors contributing to the margin increase included value-based price\nincreases and operational efficiencies in working capital. The Company is\nmonitoring developments related to tariff refunds, and no amounts have been\nrecognized in the financial statements as of May 2, 2026, due to ongoing\nuncertainty regarding eligibility, timing and amount.\n\nOperating expenses for the fourth quarter of fiscal 2026 were $44.4 million\nand relatively flat compared to $44.9 million for the fourth quarter of fiscal\n2025. Operating expenses were $168.2 million for the full fiscal 2026 year\ncompared to $162.4 million for the full fiscal 2025 year, an increase of 3.6\npercent. The year‑over‑year increase primarily reflects higher product\ndesign and development expenses, including costs associated with the\nacquisition of certain assets of X Display Company Technology Limited\n(“XDC”).\n\nOperating expenses during fiscal 2026 also included expenses related to\nmanagement transition costs, advisory services, and legal expenses associated\nwith the XDC acquisition. By comparison, expenses incurred during fiscal 2025\nwere primarily related to consultant and advisory costs supporting strategic\nand digital transformation initiatives and corporate governance matters.\n\nOperating margin was 6.8 percent for the fourth quarter of fiscal 2026\ncompared to an operating loss of 1.0 percent for the fourth quarter of fiscal\n2025. Operating margin was 7.3 percent for fiscal 2026 compared to 4.4 percent\nfor fiscal 2025.\n\nThe increase in net interest income for the fourth quarter of fiscal 2026\ncompared to the same period a year ago is primarily due to a higher average\ncash level invested in interest-bearing accounts. During the third and fourth\nquarters of fiscal 2025, interest expense included interest on the convertible\nnote payable, which was settled during fiscal 2025.\n\nThe change in fair value of the convertible note was caused by the conversion\nof the entire convertible note in the third and fourth quarters of fiscal\n2025.\n\nThe Company’s effective tax rate for fiscal 2026 was 22.2 percent compared\nto negative 73.0 percent for fiscal 2025. During fiscal 2025, the Company’s\neffective income tax rate was primarily impacted due to the convertible note\nfair value adjustment to expense that is not deductible for tax purposes. In\nfiscal 2026, there were no further impacts of fair value adjustments on the\nconvertible note and our effective tax rate has normalized closer to the U.S.\nstatutory rate.\n\nFourth quarter fiscal 2026 earnings per diluted share were $0.17, compared to\na loss per diluted share of $0.19 in the fourth quarter fiscal 2025. For\nfiscal 2026, earnings per diluted share were $0.92, compared to a loss per\ndiluted share of $0.21 in fiscal 2025. Fourth quarter fiscal 2026 adjusted\nEPS((1)) of $0.27 excludes a $3.8 million provision for possible credit losses\nrelated to the exit of an investment in an affiliate and was up 50.0 percent\nfrom adjusted EPS((1)) in the year-earlier period. Fourth quarter fiscal 2025\nadjusted EPS((1)) of $0.18 excludes a $15.5 million provision for possible\ncredit losses booked related to the exit of an investment in a different\naffiliate.\n\nBalance Sheet and Cash Flow\nCash and cash equivalents totaled $131.6 million as of May 2, 2026, and $10.8\nmillion of total current and long-term debt was outstanding as of that date.\nAccounts receivable as of May 2, 2026, was $118.6 million compared to $92.8\nmillion at the end of fiscal 2025.\n\nThe Company has a $71.5 million senior credit facility that consists of a cash\nflow‑backed revolving line of credit. As of May 2, 2026, there were no\nadvances under the loan portion of the line of credit, and the balance of\nletters of credit outstanding was $1.9 million.\n\nIn fiscal 2026, Daktronics generated $49.2 million of cash from operations, of\nwhich $14.9 million was used for purchases of property and equipment. During\nfiscal 2026, the Company repurchased 1.4 million shares of common stock at the\nvolume-weighted average price of $17.80, equaling $25.4 million of share\nrepurchases. In the fourth quarter of fiscal 2026, the Company repurchased 0.1\nmillion shares of common stock at the volume-weighted average price of $19.56,\nequaling $2.6 million of share repurchases.\n\nAt the end of fiscal 2026, the Company’s working capital ratio was 2.3 to 1.\n\nWebcast Information \nThe Company will host a conference call and webcast to discuss its financial\nresults today at 10:00 a.m. (Central Time). This call will be broadcast live\nat http://investor.daktronics.com, where related presentation materials will\nalso be posted prior to the conference call. A webcast will be available for\nreplay shortly after the event.\n\nAbout Daktronics\nDaktronics has strong leadership positions in, and is the world’s largest\nsupplier of, large-screen video displays, electronic scoreboards, LED text and\ngraphics displays, and related control systems. The Company excels in the\ncontrol of display systems, including those that require integration of\nmultiple complex displays showing real-time information, graphics, animation,\nand video. Daktronics designs, manufactures, markets and services display\nsystems for customers around the world in four domestic business units: Live\nEvents, Commercial, High School Park and Recreation, and Transportation; and\none International business unit. For more information, visit the Company’s\nwebsite at: www.daktronics.com.\n\nSafe Harbor Statement\nCautionary Notice: This press release contains certain statements that by be\nconsidered forward-looking statements within the meaning of Section 27A of the\nSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange\nAct of 1934, as amended, and such statements are subject to the safe harbor\ncreated by those sections and the Private Securities Litigation Reform Act of\n1995, as amended.\n\nAll statements, other than historical facts, included or incorporated in this\nrelease could be deemed forward-looking statements, particularly statements\nthat reflect our expectations or beliefs of Daktronics, Inc. (the\n“Company,” “Daktronics,” “we,” or “us”) concerning future\nevents or our future financial performance. You are cautioned not to place\nundue reliance on forward-looking statements, which are often characterized by\ndiscussions of strategy, plans, or intentions or by the use of words such as\n“may,” “would,” “could,” “should,” “will,” “expect,”\n“estimate,” “anticipate,” “believe,” “plan,” “forecast,”\n“project,” “outlook,” “focus,” “goal,” “target,”\n“transform,” “expand,” “grow,” “predict,” “potential,”\n“continue,” or “intend,” the negative or other variants of such terms,\nor other comparable terminology. The Company cautions that these\nforward-looking statements are subject to risks and uncertainties that could\ncause actual results to differ materially from our expectations as a result of\nvarious factors, including, but not limited to, changes in economic and market\nconditions, management of growth, timing and magnitude of future contracts,\norders, and capital investment projects, fluctuations in margins, the\nintroduction of new products and technology, the impact of adverse weather\nconditions, increased regulation, the imposition of tariffs or other trade\nrestrictions, the availability and costs of raw materials, components, and\nshipping services, geopolitical and governmental actions, expansion into new\ngeographical markets, the Company’s recent leadership transition,\ntransformation initiatives, future strategy, and other risks, trends, and\nuncertainties described more fully in the Company’s Annual Report on Form\n10-K for its 2026 fiscal year (the “Form 10-K”) and in other reports filed\nwith or furnished to the U.S. Securities and Exchange Commission (the \"SEC\")\nby the Company. You should carefully consider the trends, risks, and\nuncertainties described in this press release, the Form 10-K,  other reports\nfiled with or furnished to the SEC by the Company, and other press releases\nand stockholders reports of the Company before making any investment decision\nwith respect to our securities. If any of these trends, risks, or\nuncertainties continues or occurs, our business, financial condition, or\noperating results could be materially and adversely affected, the trading\nprices of our securities could decline, and you could lose part or all of your\ninvestment.\n\nForward-looking statements are made in the context of information available as\nof the date of this press release and are based on our current expectations,\nforecasts, estimates, and assumptions. The Company disclaims any obligation to\nupdate or revise any forward-looking statements to reflect actual results or\ncircumstances or events occurring after this release affecting the\nforward-looking statements except as may be required by applicable law. All\nforward-looking statements attributable to us or persons acting on our behalf\nare expressly qualified in their entirety by this cautionary statement.\n\nFor more information contact:\n\nINVESTOR RELATIONS:\nHoward Atkins, Acting Chief Financial Officer\nTel (605) 692-0200\nInvestor@daktronics.com\n\nAlliance Advisors IR\nCarolyn Capaccio / Jody Burfening \nDAKTIRTeam@allianceadvisors.com\n\nMEDIA RELATIONS\nmedia@daktronics.com\n\n\n\n\n\n Daktronics, Inc. and Subsidiaries \n Consolidated Statements of Operations \n (in thousands, except per share amounts) (unaudited) \n \n Three Months Ended Year Ended \n May 2, 2026 April 26, 2025 May 2, 2026 April 26, 2025 \n Net sales $ 208,610 $ 172,551 $ 838,706 $ 756,477 \n Cost of sales 150,130 129,406 609,700 560,990 \n Gross profit 58,480 43,145 229,006 195,487 \n \n Operating expenses: \n Selling 16,590 15,200 64,815 60,011 \n General and administrative 15,984 19,727 59,885 63,498 \n Product design and development 11,815 9,958 43,458 38,860 \n 44,389 44,885 168,158 162,369 \n Operating income (loss) 14,091 (1,740 ) 60,848 33,118 \n \n Nonoperating income (expense): \n Interest income (expense), net 1,107 637 3,630 1,347 \n Change in fair value of convertible note — 2,848 — (22,521 ) \n Other expense, net (4,461 ) (15,183 ) (6,144 ) (17,795 ) \n \n Income (loss) before income taxes 10,737 (13,438 ) 58,334 (5,851 ) \n Income tax expense (benefit) 2,322 (4,013 ) 12,958 4,270 \n Net income (loss) $ 8,415 $ (9,425 ) $ 45,376 $ (10,121 ) \n \n Weighted average shares outstanding: \n Basic 48,258 49,516 48,564 47,587 \n Diluted 49,032 49,516 49,382 47,587 \n \n Earnings (loss) per share: \n Basic $ 0.17 $ (0.19 ) $ 0.93 $ (0.21 ) \n Diluted $ 0.17 $ (0.19 ) $ 0.92 $ (0.21 ) \n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands) (unaudited) \n \n May 2, 2026 April 26, \n 2025 \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 131,639 $ 127,507 \n Accounts receivable, net 118,590 92,762 \n Inventories 110,471 105,839 \n Contract assets 66,552 41,169 \n Current maturities of long-term receivables 3,405 2,437 \n Prepaid expenses and other current assets 11,278 8,520 \n Income tax receivables 6,047 3,217 \n Total current assets 447,982 381,451 \n \n Property and equipment, net 64,263 73,884 \n Long-term receivables, less current maturities 1,125 1,030 \n Goodwill 3,685 3,188 \n Intangibles, net 3,263 568 \n Debt issuance costs, net — 1,289 \n Right of use, investment in affiliates, and other assets 11,828 9,378 \n Deferred income taxes 22,266 32,104 \n TOTAL ASSETS $ 554,412 $ 502,892 \n\n\n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (continued) (in thousands) (unaudited) \n \n May 2, 2026 April 26, \n 2025 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n CURRENT LIABILITIES: \n Current portion of long-term debt $ 1,150 $ 1,500 \n Accounts payable 68,617 46,669 \n Contract liabilities 65,310 69,050 \n Accrued expenses 44,858 41,705 \n Warranty obligations 12,398 12,706 \n Income taxes payable 1,375 375 \n Total current liabilities 193,708 172,005 \n \n Long-term warranty obligations 24,362 23,124 \n Long-term contract liabilities 20,655 18,421 \n Other long-term obligations 5,289 6,839 \n Long-term debt, net 9,629 10,487 \n Deferred income taxes 22 85 \n Total long-term liabilities 59,957 58,956 \n \n STOCKHOLDERS’ EQUITY: \n Preferred Shares, $0.00001 par value, authorized 5,000 shares; no shares issued and outstanding — — \n 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 — — \n Additional paid-in capital 196,837 189,940 \n Retained earnings 173,286 127,910 \n Treasury stock, at cost, 5,406 and 3,979 shares as of May 2, 2026 and April 26, 2025, respectively (65,324 ) (39,759 ) \n Accumulated other comprehensive loss (4,052 ) (6,160 ) \n TOTAL STOCKHOLDERS’ EQUITY 300,747 271,931 \n TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 554,412 $ 502,892 \n\n\n\n Daktronics, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in thousands) (unaudited) \n \n Year Ended \n May 2, 2026 April 26, \n 2025 \n CASH FLOWS FROM OPERATING ACTIVITIES: \n Net income (loss) $ 45,376 $ (10,121 ) \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation and amortization 19,339 19,547 \n Gain on sale of property, equipment and other assets (209 ) (156 ) \n Share-based compensation 4,905 2,944 \n Equity in loss of affiliates 2,008 3,053 \n Allowance for credit losses on affiliate loan 3,205 15,480 \n Provision (recovery) for doubtful accounts, net 627 (644 ) \n Deferred income taxes, net 9,938 (6,300 ) \n Change in fair value of convertible note — 22,521 \n Change in operating assets and liabilities (35,972 ) 51,389 \n Net cash provided by operating activities 49,217 97,713 \n \n CASH FLOWS FROM INVESTING ACTIVITIES: \n Purchases of property and equipment (14,917 ) (19,494 ) \n Proceeds from sales of property, equipment and other assets 615 277 \n Acquisition, net of cash acquired 44 — \n Loans to equity investees (5,383 ) (4,565 ) \n Net cash used in investing activities (19,641 ) (23,782 ) \n \n CASH FLOWS FROM FINANCING ACTIVITIES: \n Borrowings on notes payable 1,400 — \n Payments on notes payable (2,883 ) (2,108 ) \n Principal payments on long-term obligations (104 ) (414 ) \n Payments for common shares repurchased (25,565 ) (29,474 ) \n Proceeds from exercise of stock options 1,796 5,153 \n Tax payments related to RSU issuances (882 ) (606 ) \n Net cash used in financing activities (26,238 ) (27,449 ) \n \n EFFECT OF EXCHANGE RATE CHANGES ON CASH 794 (653 ) \n NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 4,132 45,829 \n \n CASH, CASH EQUIVALENTS AND RESTRICTED CASH: \n Beginning of period 127,507 81,678 \n End of period $ 131,639 $ 127,507 \n\n\n\n Daktronics, Inc. and Subsidiaries Net Sales and Orders by Business Unit (in thousands) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, 2025 Dollar Change Percent Change May 2, 2026 April 26, 2025 Dollar Change Percent Change \n Net Sales: \n Commercial $ 40,347 $ 40,589 $ (242 ) (0.6) % $ 180,772 $ 156,203 $ 24,569 15.7 % \n Live Events 84,861 59,597 25,264 42.4 321,053 291,484 29,569 10.1 \n High School Park and Recreation 46,287 40,477 5,810 14.4 183,250 165,921 17,329 10.4 \n Transportation 23,578 18,304 5,274 28.8 76,700 81,061 (4,361 ) (5.4 ) \n International 13,537 13,584 (47 ) (0.3 ) 76,931 61,808 15,123 24.5 \n $ 208,610 $ 172,551 $ 36,059 20.9 % $ 838,706 $ 756,477 $ 82,229 10.9 % \n Orders: \n Commercial $ 44,131 $ 48,930 $ (4,799 ) (9.8 )% $ 172,089 $ 176,583 $ (4,494 ) (2.5) % \n Live Events 81,195 84,225 (3,030 ) (3.6 ) 336,012 283,780 52,232 18.4 \n High School Park and Recreation 50,136 59,263 (9,127 ) (15.4 ) 188,245 176,097 12,148 6.9 \n Transportation 21,692 23,496 (1,804 ) (7.7 ) 89,467 72,315 17,152 23.7 \n International 24,892 24,769 123 0.5 75,022 72,572 2,450 3.4 \n $ 222,046 $ 240,683 $ (18,637 ) (7.7) % $ 860,835 $ 781,347 $ 79,488 10.2 % \n\n\n\n Reconciliation of Free Cash Flow (*) (in thousands) (unaudited) \n \n Twelve Months Ended \n May 2, 2026 April 26, \n 2025 \n Net cash provided by operating activities $ 49,217 $ 97,713 \n Purchases of property and equipment (14,917 ) (19,494 ) \n Proceeds from sales of property and equipment 615 277 \n Free cash flow $ 34,915 $ 78,496 \n\n\n\n * The table above reconciles free cash flow to the most directly comparable GAAP financial measure. In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined \n under accounting principles generally accepted in the United States of America (\"GAAP\"). It is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. We \n define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. Our definition of free \n cash flow may not be comparable to similarly titled definitions used by other companies. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results because it provides them with additional \n information in assessing our liquidity, capital resources and financial operating results. \n\n\n\n Reconciliation of Adjusted Operating Income* \n (in thousands) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, 2025 May 2, 2026 April 26, 2025 \n Operating income (loss) (GAAP measure) $ 14,091 $ (1,740 ) $ 60,848 $ 33,118 \n Management transition expenses 100 2,614 2,145 2,614 \n XDC acquisition, advisory, and legal costs 126 — 575 — \n Consultant related expenses associated with business transformation initiatives 1,062 1,031 1,062 7,085 \n Corporate governance expenses — 3,881 — 6,825 \n Adjusted operating income (non-GAAP measure) $ 15,379 $ 5,786 $ 64,630 $ 49,642 \n\n\n\n * In evaluating its business, Daktronics considers and uses adjusted operating income as a key measure of its operating performance. The term adjusted operating income is not defined under GAAP and is not a measure of operating income, cash flows from \n operating activities, or other GAAP figures and should not be considered alternatives to those computations. We define adjusted operating income as operating income (loss) plus management transition expenses, acquisition related expenses, consulting \n related expenses related to our business transformation initiatives, and corporate governance expenses related to legal and advisory costs of reincorporation and shareholder relations. Management transition and acquisition related expenses incurred during \n the first and second quarters of fiscal 2026 were immaterial and, accordingly, were not previously disclosed as adjustments. These expenses became more significant during the third quarter of fiscal 2026 and are therefore reflected in the twelve‑month \n adjusted operating income calculation. Management believes adjusted operating income is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of adjusted operating income may not be \n comparable to similarly titled definitions used by other companies. The table above reconciles adjusted operating income to comparable GAAP financial measures. \n\n\n\n Reconciliation of Adjusted Net Income and Adjusted Earnings per Share* (in thousands, except per share data) (unaudited) \n \n Three Months Ended Twelve Months Ended \n May 2, 2026 April 26, May 2, 2026 April 26, \n 2025 2025 \n Net income (loss) (GAAP measure) $ 8,415 $ (9,425 ) $ 45,376 $ (10,121 ) \n Management transition, net of taxes 74 1,934 1,587 1,934 \n XDC acquisition, advisory, and legal costs 93 — 426 — \n Consultant related expenses associated with business transformation initiatives, net of taxes 786 763 786 5,243 \n Allowance for credit losses on affiliate loan 3,750 15,480 3,750 15,480 \n Corporate governance expenses, net of taxes — 2,872 — 5,050 \n Change in fair value of convertible note — (2,848 ) — 22,521 \n Adjusted net income (non-GAAP measure) $ 13,118 $ 8,776 $ 51,925 $ 40,107 \n \n Diluted weighted-average number of common shares outstanding 49,032 49,516 49,382 47,587 \n Diluted earnings (loss) per share (GAAP measure) $ 0.17 $ (0.19 ) $ 0.92 $ (0.21 ) \n Adjusted diluted earnings per share (non-GAAP measure) $ 0.27 $ 0.18 $ 1.05 $ 0.84 \n\n\n\n * Adjusted net income using 26% tax rate. The table above reconciles adjusted net income and adjusted EPS to the most directly comparable GAAP financial measure. In evaluating its business, Daktronics considers and uses adjusted net income and adjusted EPS \n as key measures of its operating performance. The terms adjusted net income and adjusted EPS are not defined under GAAP. They are not measures of net income or other GAAP figures and should not be considered alternatives to those computations. We disclose \n adjusted net income and adjusted EPS as non-GAAP financial measures in order to report our results exclusive of items that are non-recurring, unique, or not core to our operating business. Our definition of adjusted net income and adjusted EPS may not be \n comparable to similarly titled definitions used by other companies. Management believes presenting this non-GAAP financial measurement provides investors with a consistent way to analyze our performance. \n\n\n\n Reconciliation of Long-term Debt (in thousands) (unaudited) \n \n Long-term debt consists of the following: \n \n May 2, 2026 April 26, 2025 \n Mortgage 10,925 12,375 \n Long-term debt, gross 10,925 12,375 \n Debt issuance costs, net (146 ) (388 ) \n Current portion (1,150 ) (1,500 ) \n Long-term debt, net $ 9,629 $ 10,487 \n\nA photo accompanying this announcement is available at\nhttps://www.globenewswire.com/NewsRoom/AttachmentNg/613efaa5-5af4-4fbe-9e09-e723b1ce9d59.\n\n \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/582da727-904b-4ca1-b73f-861bc4c293e8)\nDaktronics, Inc. \n(https://www.globenewswire.com/NewsRoom/AttachmentNg/613efaa5-5af4-4fbe-9e09-e723b1ce9d59/en)\nDaktronics, Inc.\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-06-24T11:30:00.430729039Z","server_sent_at_ms":1782300600430},"received_at":"2026-06-24T11:30:00.646Z","source_url":"https://www.globenewswire.com/news-release/2026/06/24/3316740/10684/en/Daktronics-Announces-Fourth-Quarter-and-Full-Fiscal-Year-2026-Results.html"},"analysis":{"id":"61227","press_release_id":"71853","analysis_json":{"industry":{"label":"Technology Hardware, Storage & Peripherals","sector":"Information Technology"},"redFlags":["Q4 gross margin benefited from a 62 basis point warranty recapture"],"eventType":"earnings","narrative":"Daktronics reported record fiscal 2026 results, with net sales rising 10.9% to $838.7 million and new orders increasing 10.2% to $860.8 million.\n\nThe company returned to profitability with adjusted EPS of $1.05, compared to a prior-year loss, while operating margin expanded 290 basis points to 7.3%.\n\nManagement maintained a strong outlook with a $356.2 million backlog and provided long-term targets 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