Daktronics announced their 1st quarter earning for fiscal 2026. Here are some highlights from their press releases.

Fiscal Q1 2026 financial highlights include:

• Net income for the quarter of $16.5 million, compared to net loss of $4.9 million for the first quarter of fiscal 2025
• Operating income increased to $23.3 million, compared to $22.7 million for the first quarter of fiscal 2025
• Sales of $219.0 million, reflecting the third consecutive quarter of sequential revenue growth
• Gross profit as a percentage of net sales rose to 29.7%, reflecting efficiencies in manufacturing capacity, value-based pricing, and higher-margin product mix
• Cash flows from operations rose to $26.1 million for the fiscal first quarter, up from $19.5 million for the first quarter of fiscal 2025
• Orders for product and service rose to $238.5 million(1) for the quarter, up 35.4% from the first quarter of fiscal 2025, and the third highest quarterly orders in the Company’s history
• Product backlog increased to $360.3 million(1) as of August 2, 2025, up from $267.2 million for the first quarter of fiscal 2025 and up from $341.6 million at the beginning of the quarter

(1) Orders and backlog metrics are not measures defined by GAAP, and our methodology for determining orders and backlog may vary from the methodology used by other companies in determining their orders and backlog amounts. For more information related to backlog, see Part I, Item 1. Business of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.

Brad Wiemann, Daktronicsʹ Interim President and Chief Executive Officer, commented, “Fiscal 2026 is off to a great start, with robust order growth, profit expansion and progress along our transformation roadmap driving tangible results. Our teams delivered sequential top-line growth of 26.9 percent, with Q1 net sales down slightly against a strong year-ago comparison.

We also drove higher profitability through the initiatives we launched in fiscal 2025, including value-based pricing and better alignment between revenue and manufacturing capacity, while adapting to an uncertain and changing tariff environment. This expanded profitability and our strategic working capital management generated $26.1 million in operating cash flow, up 34.0 percent from the first quarter last year, $10.7 million of which we used to repurchase shares.”

Outlook
Daktronics continues to execute its business and digital transformation to drive profitable growth and reduce costs. This includes implementing a tiered product strategy and enhancing key areas such as sales, fulfillment and support capabilities, corporate and performance management, and data and artificial intelligence tools.

Daktronics remains agile and ready to implement measures to mitigate future tariff impacts, including protections built into contracts and keeping the Company’s supply chain for components flexible. The Company maintains a global manufacturing footprint that affords flexibility and increasingly diversified international growth opportunities. The Company continues to focus on proactively managing the business to generate profitable growth over the long term.

Commercial

• On Premise growth continues after strong finish to FY25
• OOH growth remains strong – Increasing market share with Independent Operators • Spectaculars remains highly competitive
• Q1 Orders +5% YoY; -10% sequentially

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