Insider’s Note: Shown below are highlights from Daktronics reporting of 4th quarter and fiscal year end results.

FY2025 Operating Profit of $33 million; Adjusted Operating Profit of $50 million

FQ4 Operating Loss of $2 million; Adjusted Operating Income of $6 million

FQ4 Orders +29% Sequentially and +17% YoY; Year-end Product Backlog of $342 million up 8%

FY2025 Operating Cash Flow +55% to $98 million; Year-end Cash Balance of $128 million

Business and Digital Transformation on Track; Reconfirming Three Year Forward Objectives of 7-10% Sales Growth, 10-12% operating margin, 17-20% ROIC

BROOKINGS, S.D., June 25, 2025 (GLOBE NEWSWIRE) — Daktronics, Inc. (NASDAQ:DAKT) (“Daktronics,” the “Company,” “we,” “our,” or “us”), the leading U.S.-based designer and manufacturer 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 April 26, 2025.

Fiscal Q4 and full year 2025 financial highlights:

• Q4 sales of $172.6 million and full year 2025 sales of $756.5 million compared to $215.9 million and record sales of $818.1 million at the end of Q4 and full year 2024, respectively. On a sequential basis from the seasonally slower Q3, Q4 sales rose 15.4%
• Q4 gross profit as a percentage of sales of 25.0% compared to 25.7% in the year-earlier period; full year gross profit as a percentage of net sales of 25.8% decreased as compared to 27.2% for fiscal 2024
• Q4 operating loss of $1.7 million compared to a profit of $19.4 million in the year-earlier period; adjusted operating income⁽¹⁾ was $5.8 million after excluding $7.5 million related to business and digital transformation consultant costs, legal costs associated with special corporate governance matters, and management transition costs; full-year operating income was $33.1 million compared to a record $87.1 million in fiscal 2024; full-year adjusted operating income was $49.6 million⁽¹⁾ after excluding $16.5 million related to business and digital transformation consultant costs, legal costs associated with special corporate governance matters, and management transition costs
• Q4 net loss of $9.4 million, compared to income of $2.5 million in the year-earlier period; adjusted net income⁽¹⁾ was $8.8 million for the quarter after excluding a provision for credit losses on affiliate loans, the non-operating non-cash debt fair value adjustment, and tax impacted operating expense adjustments; full-year net loss was $10.1 million, compared to income of $34.6 million in fiscal 2024; adjusted net income⁽¹⁾ was $40.1 million for full-year fiscal 2025 after excluding a non-cash allowance for credit loss on affiliate loans, the non-operating non-cash debt fair value adjustment, and tax impacted operating expense adjustments
• Q4 product and service orders of $240.7 million⁽²⁾ increased 17.0% from $205.8 million in the year-ago period; full-year product and service orders were $781.3 million⁽¹⁾ up 5.6% from $740.2 million in fiscal 2024
• Product order backlog was $341.6 million at April 26, 2025 compared to $316.9 million a year ago due to the robust increase in orders during Q4 of fiscal 2025⁽²⁾
• Q4 cash flows from operations of $22.9 million and $97.7 million for full year fiscal 2025, compared to $9.5 million and $63.2 million in the same periods a year earlier, respectively

_{(1) Adjusted Operating Income and Adjusted Net Income are measures not defined by accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are used to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting this non-GAAP financial measurement provides investors with a consistent way to analyze our performance. For more information, see the supplemental calculation contained later in this release. 
(2) Orders and backlog metrics are non-GAAP measures, 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.}

Business Transformation Update

During fiscal 2025, the Company embarked on a business transformation program to achieve and sustain a higher profit growth trajectory. The investment in this program began to realize benefits in the last four months of fiscal 2025 through initiatives to reprice products to their intrinsic value to customers, raise inventory efficiency and turnover as well as leverage the Company’s purchasing power to improve input costs to get to market quicker and more efficiently. The Company’s increased focus on working capital management has additionally reduced accounts receivable and contract assets. In the first quarter fiscal 2026, Daktronics rolled out its Service software system, a major milestone, which will benefit the Company in streamlining processes and enhancing customer experiences through better service management and enablement of self-service options.

Outlook and Tariff Backdrop

The tariff environment remains highly uncertain and fluid. Since the announcement of reciprocal tariffs on April 2, 2025, tariff rates have fluctuated, including periods of increases, reductions, and temporary suspensions. Given this high degree of uncertainty with respect to tariff rates, effectiveness, exceptions and competitive reaction, Daktronics cannot reliably determine the ultimate tariff impact at this time.

• Daktronics remains agile and is able to implement certain measures to mitigate tariff impacts, though offsets may not be immediate. These measures include:
• Selective price adjustments and escalation clauses built into contracts
• Supply chain flexibility on many components
• A global manufacturing footprint that affords flexibility, including shifting production to a Daktronics lower-tariff international facility, potentially reshoring production to the U.S, or a mix of both depending on specific product cost, certainty of price or customer preference
• A strong and developing international growth opportunity that can further diversify the revenue base to reduce exposure to U.S.-based revenue
• The Company continues to focus on proactively managing the areas of the business within our control to generate profitable growth over the long term

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