Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share for Q1 FY26, a significant improvement from a loss in the previous year [17] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year-over-year [18][20] - The company ended the quarter with a cash balance of $137 million, a 7% increase from the previous quarter, and operating cash flow rose by 34% year-over-year [23][24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year-over-year, driven by successful projects in Major League Baseball and NHL arenas [7] - The commercial business experienced a 5% increase in orders year-over-year, although it declined by 10% sequentially from the previous quarter [8] - The high school park and recreation segment achieved record order bookings, with a 36% increase year-over-year and a 7% sequential increase [11] Market Data and Key Metrics Changes - International orders grew by 22% year-over-year, although they declined by 32% from a strong previous quarter [10] - The transportation business saw a 4% decrease in orders year-over-year, attributed to large order variability [9] Company Strategy and Development Direction - Daktronics is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - The company aims to achieve higher operating margins of 10% to 12% and a compound annual growth rate of 7% to 10% by fiscal year 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, supported by a growing backlog [27] - The company remains agile in response to tariff uncertainties and is committed to executing its growth and return objectives outlined in its transformation plan [27][28] Other Important Information - Daktronics has made significant progress in its digital transformation initiatives, including the implementation of a modernized service software system [15][16] - The company repurchased $10.7 million worth of shares during the quarter, indicating a strong capital position [23][24] Q&A Session Summary Question: What does the pipeline look like for order growth in live events? - Management noted strong growth in the live event space and expressed excitement about the pipeline, particularly in college and major league sports [30][31] Question: How sustainable are the gross margin trends moving forward? - Management indicated that gross margin sustainability will depend on revenue mix and fixed cost leverage, with some normalization expected from previous high warranty expenses [32][34] Question: What are the thoughts on M&A opportunities? - Management remains open to M&A opportunities but is being strategic about potential acquisitions, leveraging their strong cash position [35][36] Question: How will digital transformation impact operating expenses and gross margins? - Management expects efficiencies from digital transformation initiatives, which may initially incur expenses but will ultimately benefit gross margins [43][44] Question: What is the status of share buybacks? - Management confirmed that there is approximately $10 million remaining under the current buyback authority and that the board is open to considering additional buyback authorities [45][46]

Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share for Q1 FY 2026, a significant improvement from a loss in the previous year due to a $21.6 million fair value adjustment on convertible notes [17][18] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year-over-year, totaling $239 million [19][20] - The company ended the quarter with a cash balance of $137 million, a 7% increase from the previous quarter, and operating cash flow rose by 34% year-over-year [23][24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year-over-year, driven by major projects in Major League Baseball and NHL arenas [7] - The commercial business experienced a 5% increase in orders year-over-year, although it declined by 10% from the previous quarter [8] - The high school park and recreation segment achieved record order bookings, with a 36% year-over-year growth [11] Market Data and Key Metrics Changes - International orders grew by 22% year-over-year, although they declined by 32% from a strong previous quarter [10] - The transportation business saw a 4% decrease in orders year-over-year, attributed to large order variability [9] Company Strategy and Development Direction - The company is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - Daktronics aims to achieve higher operating margins of 10%-12% and a compound annual growth rate of 7%-10% by FY 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, supported by a growing backlog [27] - The company remains agile in response to tariff uncertainties and is committed to executing its growth and return objectives outlined in its transformation plan [27][28] Other Important Information - The company repurchased $10.7 million worth of shares during the quarter, maintaining a strong cash position for potential M&A opportunities [23][24] - Investments in IT and product development totaled $17.2 million, reflecting ongoing efforts in digital transformation [24] Q&A Session Summary Question: Can you talk about the pipeline and what that looks like for order growth the rest of the year? - Management indicated a positive outlook for the live events business, with expectations for continued growth and a strong pipeline [30][31] Question: Was there any one-time items affecting gross margin performance? - Management confirmed that the gross margin performance was primarily due to a favorable revenue mix and improved alignment between manufacturing expenses and revenue production [32][34] Question: Can you discuss thoughts on M&A and market valuations? - Management acknowledged ongoing M&A opportunities and expressed a strategic approach to potential acquisitions, supported by a strong cash position [35][36] Question: How was the competitive process for the live events projects won? - Management noted that competition varies by market, with significant effort put into being specified for projects, highlighting the importance of service offerings [39][41] Question: Will the digital transformation help in driving operating expenses lower? - Management expects efficiencies from digital transformation initiatives, although there may be initial expenses associated with implementation [43][44]

Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share for Q1 FY 2026, a significant improvement from a loss in the previous year due to a fair value adjustment on convertible notes [17][18] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year-over-year [19][20] - Cash balance at the end of the quarter was $137 million, up 7% from the previous quarter, with operating cash flow increasing by 34% year-over-year [23][24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year-over-year, driven by major projects in Major League Baseball and NHL arenas [7] - The commercial business experienced a 5% increase in orders year-over-year, although it declined by 10% from the previous quarter [8] - The high school park and recreation segment achieved record order growth of 36% year-over-year, supported by strong demand for video display systems [11][12] Market Data and Key Metrics Changes - International orders grew by 22% year-over-year, with government and advertising markets being the largest contributors [10] - The transportation business saw a 4% decrease in orders year-over-year, attributed to large order variability [9] Company Strategy and Development Direction - The company is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - Daktronics aims to achieve higher operating margins of 10%-12% and a compound annual growth rate of 7%-10% by FY 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, with a growing backlog providing a revenue tailwind [27] - There is ongoing uncertainty regarding tariffs, but the company remains agile in managing potential impacts [27] Other Important Information - The company repurchased $10.7 million worth of shares during the quarter, maintaining a strong cash position for potential M&A opportunities [23][24] Q&A Session Summary Question: Can you talk about the pipeline and what that looks like for order growth the rest of the year? - Management indicated a positive outlook for the live events business, with expectations for continued growth and a strong pipeline [30][31] Question: Was there any one-time items affecting gross margin performance? - Management confirmed that the gross margin performance was primarily due to a favorable revenue mix and improved operational efficiencies, with no significant one-time items impacting the results [32][34] Question: Can you discuss thoughts on M&A and market valuations? - Management acknowledged ongoing M&A opportunities and expressed a strategic approach to potential acquisitions, supported by a strong cash position [35][36] Question: How was the competitive process for the live events projects won? - Management noted that competition varies by market, with significant efforts made to secure specifications and improve margins through financial tools [39][41] Question: Will the digital transformation help in reducing operating expenses? - Management expects efficiencies from digital transformation initiatives, although there may be initial expenses associated with implementation [43][44]

Financial Data and Key Metrics Changes - Daktronics reported a net income of $16.5 million, translating to $0.33 per fully diluted share in Q1 FY26, a significant improvement from a loss in the previous year [17] - Operating income for the quarter was $23.3 million, compared to $22.7 million in the same quarter last year, with a notable increase in orders by 35% year over year [18][19] - The company ended the quarter with a cash balance of $137 million, a 7% increase from the previous quarter, and operating cash flow rose by 34% year over year [24] Business Line Data and Key Metrics Changes - The live events business saw an 81% increase in orders year over year, driven by successful projects in Major League Baseball and NHL arenas [6] - The commercial business experienced a 5% increase in orders from last year, although it declined by 10% from the previous quarter [8] - The high school park and recreation segment achieved record order growth of 36% year over year, supported by strong demand for video display systems [11] Market Data and Key Metrics Changes - International orders grew by 22% year over year, with government and advertising markets being the largest contributors [10] - The transportation business saw a 4% decrease in orders from last year, attributed to large order variability [9] Company Strategy and Development Direction - Daktronics is focused on a business and digital transformation plan aimed at improving gross margins through value-based pricing and cost control [5][14] - The company aims to achieve higher operating margins of 10% to 12% and a compound annual growth rate of 7% to 10% by FY28 [26] - Continued investment in product development and innovation is emphasized to maintain leadership in the market [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for dynamic video communication displays and control systems, with a growing backlog providing a revenue tailwind [27] - The company remains agile in response to tariff uncertainties and is committed to executing its growth and return objectives [28][29] Other Important Information - The company repurchased $10.7 million worth of shares during the quarter, maintaining a strong cash position for potential M&A opportunities [24][36] - The digital transformation initiatives are expected to enhance customer experience and internal efficiencies, although they may incur some initial expenses [45] Q&A Session Summary Question: What does the pipeline look like for order growth in live events? - Management noted strong growth in the live events space and expressed excitement about the pipeline, particularly in college and major league sports [31][32] Question: What are the drivers behind the strong gross margin performance? - The gross margin improvement was attributed to a favorable revenue mix and better alignment between manufacturing expenses and revenue production [33][34] Question: Any thoughts on M&A opportunities? - Management indicated they are open to M&A opportunities but are being strategic about potential acquisitions [36] Question: Were there any one-time costs in Q1 related to the transformation plan? - Management confirmed that the bulk of transformation consulting costs were incurred in the previous year, and no significant one-time costs were present in Q1 [50]

Financial Performance - Orders increased by 35% year-over-year in Q1, driven by Live Events, HSPR (High School Park & Recreation), and International segments[6] - Product backlog reached $360 million, a 35% increase year-over-year[6] - Operating cash flow increased by 34% year-over-year[6] - Gross margin improved to 29.7%[22] - Operating income was $23.3 million, resulting in an operating margin of 10.6%[22] - Net income was $16.5 million[22] Segment Performance - Live Events orders increased by 81% year-over-year and 10% sequentially[9] - High School Park & Recreation (HSPR) orders increased by 36% year-over-year and 7% sequentially[12] - International orders decreased by 4% year-over-year and 7% sequentially[11] - Commercial orders increased by 5% year-over-year but decreased by 10% sequentially[12] Balance Sheet and Investments - Cash balance at the end of the quarter was $137 million, compared to $127 million at the prior year-end[23] - Inventory/revenue ratio improved to 49.2% compared to 60.4% last year[23] - Share repurchases amounted to $10.7 million at a VWAP (volume-weighted average price) of $16.43[23]

Group 1: Daktronics, Inc. - Daktronics reported fiscal first-quarter 2026 net income of $16.5 million, or $0.33 per diluted share, compared to a net loss of $4.9 million, or $0.11 per share, in the prior-year period [2] - Adjusted earnings of $0.33 per share exceeded the $0.25 consensus estimate, while revenue was $218.972 million, down 3.1% from last year but above the $213.412 million estimate [2] - Following the financial results, Daktronics shares surged 24.5% to $21.70 [2] Group 2: Other Notable Stock Movements - Vimeo, Inc. shares jumped 61% to $7.75 as the company agreed to be acquired by Bending Spoons in an all-cash transaction valued at $1.38 billion [4] - Oracle Corporation surged 39% to $335.55 after reporting first-quarter financial results, with multiple firms raising their price targets on the stock [4] - GameStop Corp. gained 6.3% to $25.07 after reporting better-than-expected quarterly financial results and announcing a special dividend of tradable warrants [4]

Core Insights - Daktronics (DAKT.US) shares surged over 24% to a 17-year high of $21.70 following the release of its Q1 FY2026 earnings report [1] Financial Performance - The company reported a diluted earnings per share of $0.33 for Q1 FY2026, a turnaround from a loss of $0.11 in the same period last year, exceeding analyst expectations of $0.21 [1] - Net sales for the quarter were $219 million, slightly down from $226.1 million year-over-year, but above the analyst forecast of $196.9 million [1] Order Growth - First-quarter orders increased by 35% year-over-year to $238.5 million, marking the third-highest quarterly orders in the company's history, driven by wins in major alliance stadium projects [1]

Core Viewpoint - Daktronics (DAKT.US) shares surged over 24% to a 17-year high of $21.70 following the release of its Q1 FY2026 earnings report, which showed a significant turnaround in earnings per share [1] Financial Performance - The company reported a diluted earnings per share of $0.33 for Q1 FY2026, compared to a loss of $0.11 in the same period last year, exceeding analysts' expectations of $0.21 [1] - Net sales for the quarter were $219 million, down from $226.1 million year-over-year, but above the expected $196.9 million [1] Order Growth - First-quarter orders increased by 35% year-over-year to $23.85 million, marking the third-highest quarterly orders in the company's history, driven by wins in major league sports stadium projects [1]

Daktronics, Inc. (NASDAQ:DAKT) shares surged after the company reported fiscal first-quarter 2026 net income of $16.5 million, or $0.33 per diluted share, compared with a net loss of $4.9 million, or $0.11 per share, in the prior-year period. Adjusted earnings of $0.33 per share topped the $0.25 consensus estimate. Revenue was $218.972 million, down 3.1% from last year but above the $213.412 million estimate. Adjusted net income was $16.5 million, up from $16.6 million a year earlier. Gross margin improve ...

[Fiscal First Quarter 2026 Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%202026%20Highlights) [Executive Summary](index=1&type=section&id=Executive%20Summary) Daktronics reported a strong start to fiscal 2026, with robust order growth, profit expansion, and significant progress on its transformation roadmap | Metric | Q1 FY26 | Q1 FY25 | Change | | :----- | :------ | :------ | :----- | | Operating Profit | $23.3 million | $22.7 million | +$0.6 million | | Operating Margin | 10.6% | 10.0% | +0.6 pp | | Orders | $238.5 million | $176.2 million | +35.4% YoY | | Operating Cash Flow | $26.1 million | $19.5 million | +34.0% YoY | | Ending Cash Balance | $137 million | N/A | N/A | - Reiterated three-year forward objectives: **7-10% sales growth**, **10-12% operating margin**, **17-20% ROIC**[1](index=1&type=chunk) - Fiscal Q1 2026 included **14 weeks of operating results**, compared to **13 weeks in Q1 FY25**[2](index=2&type=chunk) [Key Financial and Operational Achievements](index=1&type=section&id=Key%20Financial%20and%20Operational%20Achievements) The company achieved a significant turnaround from a net loss to net income, driven by improved gross profit margins and strong order bookings, particularly in Live Events and High School Park and Recreation | Metric | Q1 FY26 | Q1 FY25 | Change | | :----- | :------ | :------ | :----- | | Net Income (Loss) | $16.5 million | $(4.9) million | +$21.4 million | | Sales | $219.0 million | $226.1 million | -3.1% YoY | | Gross Profit as % of Net Sales | 29.7% | 26.4% | +3.3 pp | | Orders for Product and Service | $238.5 million | $176.2 million | +35.4% YoY | | Product Backlog (as of Aug 2, 2025) | $360.3 million | $267.2 million (Q1 FY25) | +35.0% YoY | - Introduced new product enhancements for indoor/outdoor Fascia Ribbon Displays and indoor Narrow Pixel Pitch display offerings for International Markets[6](index=6&type=chunk) - Launched a new Service software system to enhance customer experience and operational agility[6](index=6&type=chunk) [Outlook and Strategic Initiatives](index=2&type=section&id=Outlook) [Business and Digital Transformation](index=2&type=section&id=Business%20and%20Digital%20Transformation) Daktronics is actively pursuing a business and digital transformation to achieve profitable growth and cost reduction, including a tiered product strategy and leveraging data and AI tools - Executing business and digital transformation to drive profitable growth and reduce costs[7](index=7&type=chunk) - Implementing a tiered product strategy and enhancing sales, fulfillment, support, corporate management, and data/AI tools[7](index=7&type=chunk) - Maintaining a global manufacturing footprint and flexible supply chain to mitigate tariff impacts and diversify international growth[8](index=8&type=chunk) [Forward-Looking Strategy](index=2&type=section&id=Forward-Looking%20Strategy) The company is focused on executing its three-year transformation plan, driven by robust backlog and strong customer demand, to enhance customer experience and deliver long-term shareholder value - Entering Q2 with robust backlog, strong customer demand, and improved efficiency[9](index=9&type=chunk) - Continuing to execute the three-year transformation plan with momentum, focusing on enhancing customer experience and driving long-term profitability[9](index=9&type=chunk) - Maintaining differential leadership in innovation by focusing on high-return product development initiatives[9](index=9&type=chunk) [Detailed First Quarter Results](index=2&type=section&id=First%20Quarter%20Results) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) Daktronics reported a significant improvement in net income, primarily due to the absence of a non-operating debt fair value adjustment, with gross profit margin increasing despite a slight decrease in net sales | Metric | Q1 FY26 | Q1 FY25 | Change | | :----- | :------ | :------ | :----- | | Net Income (Loss) | $16.5 million | $(4.9) million | +$21.4 million | | Net Sales | $219.0 million | $226.1 million | -3.1% YoY | | Gross Profit as % of Net Sales | 29.7% | 26.4% | +3.3 pp | | Operating Expenses | $41.8 million | $37.0 million | +$4.8 million | | Operating Margin | 10.6% | 10.0% | +0.6 pp | | Interest Income (Expense), net | $0.9 million | $(0.1) million | +$1.0 million | | Effective Tax Rate | 25.9% | Skewed | N/A | | Diluted EPS | $0.33 | $(0.11) | +$0.44 | - Net sales increased **26.9% sequentially from Q4 FY25**, driven by the Live Events, High School Park and Recreation, Commercial, and International business units[12](index=12&type=chunk) - Operating expenses increased due to investments in information technology, product efficiency, and revenue growth initiatives[14](index=14&type=chunk) [Orders and Sales by Business Unit](index=2&type=section&id=Orders%20and%20Sales%20by%20Business%20Unit) Orders saw significant growth, particularly in Live Events, High School Park and Recreation, and International units, while net sales showed strong sequential growth | Business Unit | Q1 FY26 Orders ($M) | Q1 FY25 Orders ($M) | % Change | Q1 FY26 Net Sales ($M) | Q1 FY25 Net Sales ($M) | % Change | | :------------ | :------------------ | :------------------ | :------- | :--------------------- | :--------------------- | :------- | | Commercial | 44.2 | 42.1 | 5.0% | 46.2 | 34.2 | 35.0% | | Live Events | 92.2 | 50.9 | 81.2% | 79.8 | 108.6 | (26.5)% | | High School Park and Recreation | 63.3 | 46.4 | 36.2% | 59.3 | 48.0 | 23.6% | | Transportation | 21.9 | 22.8 | (3.7)% | 16.6 | 22.5 | (26.3)% | | International | 16.9 | 13.9 | 21.5% | 17.1 | 12.8 | 33.6% | | **Total** | **238.5** | **176.2** | **35.4%** | **219.0** | **226.1** | **(3.1)%** | - Live Events had large order bookings from three major league sports stadiums and multiple college/university projects[11](index=11&type=chunk) - High School Park and Recreation achieved a record quarter for orders due to continued video adoption in schools[11](index=11&type=chunk) [Balance Sheet and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) [Financial Position](index=3&type=section&id=Financial%20Position) Daktronics maintained a strong balance sheet with increased cash and marketable securities and a healthy working capital ratio, demonstrating effective capital management | Metric | As of Aug 2, 2025 | As of Apr 26, 2025 | Change | | :----- | :---------------- | :----------------- | :----- | | Cash, Restricted Cash & Marketable Securities | $136.9 million | $127.5 million | +$9.4 million | | Total Current & Long-Term Debt | $11.6 million | $11.9 million | -$0.3 million | | Working Capital Ratio | 2.1 to 1 | N/A | N/A | - No draw-downs on the asset-based revolving credit facility during Q1 FY26, with **$41.5 million available to draw**[18](index=18&type=chunk) [Cash Flow Activities](index=3&type=section&id=Cash%20Flow%20Activities) The company generated substantial cash from operations, which was partially used for capital expenditures and significant share repurchases | Metric | Q1 FY26 | Q1 FY25 | Change | | :----- | :------ | :------ | :----- | | Cash from Operations | $26.1 million | $19.5 million | +$6.6 million | | Purchases of Property and Equipment | $4.3 million | $5.1 million | -$0.8 million | | Share Repurchases | $10.7 million (0.6M shares) | $0 million | +$10.7 million | [Corporate Information](index=3&type=section&id=Corporate%20Information) [Webcast Information](index=3&type=section&id=Webcast%20Information) Daktronics hosted a conference call and webcast on September 10, 2025, to discuss its financial results, with replay available online - Conference call and webcast held on **September 10, 2025**, at **10:00 a.m. (Central Time)**[21](index=21&type=chunk) - Related presentation materials and webcast replay available at http://investor.daktronics.com[21](index=21&type=chunk) [About Daktronics](index=3&type=section&id=About%20Daktronics) Daktronics is a global leader in designing, manufacturing, marketing, and servicing large-screen video displays, electronic scoreboards, and related control systems across various business units - World's largest supplier of large-screen video displays, electronic scoreboards, LED text/graphics displays, and control systems[22](index=22&type=chunk) - Excels in control of display systems requiring integration of multiple complex displays showing real-time information, graphics, animation, and video[22](index=22&type=chunk) - Operates in four domestic business units (Live Events, Commercial, High School Park and Recreation, Transportation) and one International business unit[22](index=22&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This section provides a cautionary notice regarding forward-looking statements, emphasizing that actual results may differ materially due to various risks and uncertainties - Contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[23](index=23&type=chunk)[24](index=24&type=chunk) - Risk factors include changes in economic/market conditions, management of growth, timing of contracts, margin fluctuations, new products, weather, regulation, tariffs, raw material costs, geopolitical actions, and other risks detailed in Form 10-K[24](index=24&type=chunk) - Company undertakes no obligation to update or revise forward-looking statements except as required by applicable law[26](index=26&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations present Daktronics' financial performance, including net sales, cost of sales, gross profit, operating expenses, and net income (loss) for the three months ended August 2, 2025, and July 27, 2024 | | Three Months Ended August 2, 2025 ($ thousands) | Three Months Ended July 27, 2024 ($ thousands) | | :--- | :--- | :--- | | 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 | | Total Operating expenses | 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 | $(0.11) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets provide a detailed view of Daktronics' financial position, including assets, liabilities, and stockholders' equity, as of August 2, 2025, and April 26, 2025 | ASSETS | August 2, 2025 ($ thousands) | April 26, 2025 ($ thousands) | | :--- | :--- | :--- | | **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, and other assets | 13,101 | 9,378 | | 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 | — | — | | Common stock | — | — | | 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' EQUITY** | **$545,591** | **$502,892** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows detail the sources and uses of cash across operating, investing, and financing activities for the three months ended August 2, 2025, and July 27, 2024 | CASH FLOWS FROM OPERATING ACTIVITIES: | August 2, 2025 ($ thousands) | July 27, 2024 ($ thousands) | | :--- | :--- | :--- | | Net income (loss) | $16,470 | $(4,946) | | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | Depreciation and amortization | 4,804 | 4,893 | | Gain on sale of property, equipment and other assets | (38) | (20) | | Share-based compensation | 947 | 520 | | Equity in loss of affiliates | 805 | 931 | | Allowance for credit losses on affiliate loan | 795 | — | | Provision for doubtful accounts, net | 594 | 265 | | Deferred income taxes, net | 32 | 13 | | Change in fair value of convertible note | — | 21,590 | | Change in operating assets and liabilities | 1,688 | (3,765) | | **Net cash provided by operating activities** | **26,097** | **19,481** | | **CASH FLOWS FROM INVESTING ACTIVITIES:** | | | | Purchases of property and equipment | (4,291) | (5,081) | | Proceeds from sales of property, equipment and other assets | 218 | 45 | | Loans to equity investees | (1,547) | (933) | | **Net cash used in investing activities** | **(5,620)** | **(5,969)** | | **CASH FLOWS FROM FINANCING ACTIVITIES:** | | | | Payments on notes payable | (500) | (983) | | Principal payments on long-term obligations | (104) | (103) | | Payments for common shares repurchased | (10,652) | — | | Proceeds from exercise of stock options | 128 | 3,148 | | **Net cash (used in) provided by financing activities** | **(11,128)** | **2,062** | | **EFFECT OF EXCHANGE RATE CHANGES ON CASH** | **—** | **(64)** | | **NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH** | **9,349** | **15,510** | | **CASH, CASH EQUIVALENTS AND RESTRICTED CASH:** | | | | Beginning of period | 127,507 | 81,678 | | End of period | $136,856 | $97,188 | [Non-GAAP Financial Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Reconciliations) [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) This section provides the reconciliation of net cash provided by operating activities to free cash flow, a non-GAAP measure used by management to evaluate operating performance | | Three Months Ended August 2, 2025 ($ thousands) | Three Months Ended July 27, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,097 | $19,481 | | Purchases of property and equipment | (4,291) | (5,081) | | Proceeds from sales of property and equipment | 218 | 45 | | **Free cash flow** | **$22,024** | **$14,445** | - Free cash flow is a non-GAAP measure used to assess period-to-period operating performance[39](index=39&type=chunk) [Reconciliation of Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income) This reconciliation adjusts net income (loss) by excluding non-recurring or non-core items, such as the change in fair value of the convertible note, to provide a consistent view of the company's operating performance | | Three Months Ended August 2, 2025 ($ thousands) | Three Months Ended July 27, 2024 ($ thousands) | | :--- | :--- | :--- | | Net income (loss) | $16,470 | $(4,946) | | Change in fair value of convertible note | — | 21,590 | | **Adjusted net income** | **$16,470** | **$16,644** | - Adjusted net income is a non-GAAP financial measurement used to report results exclusive of non-recurring, unique, or non-core operating business items[41](index=41&type=chunk) [Reconciliation of Long-term Debt](index=12&type=section&id=Reconciliation%20of%20Long-term%20Debt) This section details the components of Daktronics' long-term debt, including mortgage, debt issuance costs, and current portion | | August 2, 2025 ($ thousands) | April 26, 2025 ($ thousands) | | :--- | :--- | :--- | | Mortgage | $11,875 | $12,375 | | Long-term debt, gross | 11,875 | 12,375 | | Debt issuance costs, net | (294) | (388) | | Current portion | (1,500) | (1,500) | | **Long-term debt, net** | **$10,081** | **$10,487** |