# Daktronics, Inc. (DAKT) Q1 2026 Financial Results Summary
Released on September 10, 2025, Daktronics, Inc. (NASDAQ-DAKT) has announced its financial results for the first quarter of fiscal 2026, which ended on August 2, 2025.
### Key Financial Highlights
– **Net Income**
– $16.5 million for Q1 2026, compared to a net loss of **$4.9 million** in Q1 2025.
– **Operating Income**
– Increased to **$23.3 million** for Q1 2026, compared to **$22.7 million** for Q1 2025.
– **Sales**
– Total sales were **$219.0 million**, representing a **3.1%** decrease from **$226.1 million** in Q1 2025. This is the third consecutive quarter of sequential revenue growth.
– **Gross Profit**
– Gross profit margin was **29.7%**, up from **26.4%** in Q1 2025, due to efficiencies in manufacturing capacity and a higher-margin product mix.
– **Operating Cash Flow**
– Increased to **$26.1 million**, up **34.0%** from **$19.5 million** in Q1 2025.
– **Orders**
– Orders amounted to **$238.5 million**, a **35.4%** increase from **$176.2 million** in Q1 2025, marking it as the third-highest quarterly orders in company history.
– **Product Backlog**
– The backlog reached **$360.3 million**, rising from **$267.2 million** a year ago and up from **$341.6 million** at the beginning of the quarter.
### Operational Insights
– **Operating Margin**
– The operating margin stood at **10.6%** for Q1 2026, compared to **10.0%** in Q1 2025.
– **Dividends and Share Repurchase**
– In the first quarter, the company repurchased **0.6 million** shares of common stock at a total cost of **$10.7 million**. There is no mention of a quarterly dividend being declared.
### Business Transformation and Strategy
– Daktronics highlighted that it is on track with its Business and Digital Transformation initiatives, reiterating its objectives for the next three years:
– **7-10%** sales growth
– **10-12%** operating margin
– **17-20%** Return on Invested Capital (ROIC)
– The company has adapted to a changing tariff environment and continues to maintain a flexible supply chain, focusing on both domestic and international markets.
### Additional Financial Metrics
– **Weighted Average Shares Outstanding**
– Basic: **48.9 million**
– Diluted: **49.7 million**
– **Earnings Per Share (EPS)**
– Diluted EPS was **$0.33** compared to a loss of **$0.11** in Q1 2025.
– **Cash and Marketable Securities**
– Totaled **$136.9 million**, with **$11.6 million** in total current and long-term debt.
– **Working Capital Ratio**
– The working capital ratio was **2.1 to 1**.
### Cash Flow Summary
– Cash generated from operations for Q1 2026 was **$26.1 million**.
– After deducting **$4.3 million** for capital expenditures, the free cash flow was **$22.0 million**.
### Conclusion
Daktronics has reported strong growth in orders and operating income, leading to a notable net income turnaround compared to the previous year. The company remains focused on executing its transformation goals and strategic initiatives to drive further value for its shareholders.
| August 2, 2025 | July 27, 2024 | |
|---|---|---|
| Net sales | $218,972 | $226,088 |
| Cost of sales | $153,900 | $166,390 |
| Gross profit | $65,072 | $59,698 |
| Operating expenses: | ||
| Selling | $16,834 | $15,636 |
| General and administrative | $14,295 | $11,723 |
| Product design and development | $10,671 | $9,623 |
| $41,800 | $36,982 | |
| Operating income | $23,272 | $22,716 |
| Nonoperating income (expense): | ||
| Interest income (expense), net | $893 | $-71 |
| Change in fair value of convertible note | $— | $-21,590 |
| Other expense, net | $-1,942 | $-835 |
| Income before income taxes | $22,223 | $220 |
| Income tax expense | $5,753 | $5,166 |
| Net income (loss) | $16,470 | $-4,946 |
| Weighted average shares outstanding: | ||
| Basic | 48,902 | 46,311 |
| Diluted | 49,736 | 46,311 |
| Earnings (loss) per share: | ||
| Basic | $0.34 | $-0.11 |
| Diluted | $0.33 | $-0.11 |
| August 2, 2025 | April 26, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $136,856 | $127,507 |
| Accounts receivable, net | $124,254 | $92,762 |
| Inventories | $109,455 | $105,839 |
| Contract assets | $41,879 | $41,169 |
| Current maturities of long-term | ||
| receivables | $2,988 | $2,437 |
| Prepaid expenses and other current | ||
| assets | $13,500 | $8,520 |
| Income tax receivables | $452 | $3,217 |
| Total current assets | $429,384 | $381,451 |
| Property and equipment, net | $66,080 | $73,884 |
| Long-term receivables, less current | ||
| maturities | $278 | $1,030 |
| Goodwill | $3,193 | $3,188 |
| Intangibles, net | $499 | $568 |
| Debt issuance costs, net | $979 | $1,289 |
| Right of use, investment in affiliates, | $13,101 | $9,378 |
| and other assets | ||
| Deferred income taxes | $32,077 | $32,104 |
| TOTAL ASSETS | $545,591 | $502,892 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Current portion of long-term debt | $1,500 | $1,500 |
| Accounts payable | $64,950 | $46,669 |
| Contract liabilities | $83,408 | $69,050 |
| Accrued expenses | $44,755 | $41,705 |
| Warranty obligations | $12,449 | $12,706 |
| Income taxes payable | $489 | $375 |
| Total current liabilities | $207,551 | $172,005 |
| Long-term warranty obligations | $23,814 | $23,124 |
| Long-term contract liabilities | $18,497 | $18,421 |
| Other long-term obligations | $5,812 | $6,839 |
| Long-term debt, net | $10,081 | $10,487 |
| Deferred income taxes | $85 | $85 |
| Total long-term liabilities | $58,289 | $58,956 |
| STOCKHOLDERS’ EQUITY: | ||
| Preferred Shares, $0.00001 par value | $— | $— |
| Common stock, $0.00001 par value | ||
| Additional paid-in capital | $191,663 | $189,940 |
| Retained earnings | $144,380 | $127,910 |
| Treasury stock, at cost | $-50,411 | $-39,759 |
| Accumulated other comprehensive loss | $-5,881 | $-6,160 |
| TOTAL STOCKHOLDERS’ EQUITY | $279,751 | $271,931 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ | $545,591 | $502,892 |
| EQUITY |
