Company Performance - Daktronics reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.27 per share a year ago [1] - The company posted revenues of $172.55 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 14.19%, compared to $215.88 million in the same quarter last year [2] - Over the last four quarters, Daktronics has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2][3] Stock Outlook - Daktronics shares have declined approximately 9.9% since the beginning of the year, while the S&P 500 has gained 3.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $220.69 million, and for the current fiscal year, it is $1.02 on revenues of $814.44 million [7] - The estimate revisions trend for Daktronics was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Miscellaneous Products industry, to which Daktronics belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

[Financial & Operational Highlights](index=1&type=section&id=Daktronics%2C%20Inc.%20Announces%20Fiscal%20Year%20and%20Fourth%20Quarter%202025%20Results) This section provides an overview of Daktronics' fiscal year 2025 financial and operational performance, highlighting key achievements and reconfirmed long-term objectives [FY2025 Performance Overview](index=1&type=section&id=Fiscal%20Q4%20and%20full%20year%202025%20financial%20highlights%3A) Daktronics reported FY2025 sales of $756.5 million and operating profit of $33.1 million, with a 5.6% increase in orders, 8% rise in backlog, and 55% increase in operating cash flow, while reconfirming long-term growth targets FY2025 Key Performance Indicators | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $756.5M | $818.1M | -7.5% | | Operating Income (GAAP) | $33.1M | $87.1M | -61.9% | | Adjusted Operating Income | $49.6M | $87.1M | -43.0% | | Net (Loss) Income (GAAP) | ($10.1M) | $34.6M | -129.2% | | Adjusted Net Income | $40.1M | $59.7M | -32.8% | | Orders | $781.3M | $740.2M | +5.6% | | Year-End Product Backlog | $341.6M | $316.9M | +7.8% | | Operating Cash Flow | $97.7M | $63.2M | +54.5% | - The company reconfirmed its three-year forward objectives of **7-10%** sales growth, **10-12%** operating margin, and **17-20%** ROIC[1](index=1&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Fourth%20Quarter%20and%20Year%20to%20Date%20Results) This section provides an in-depth analysis of the company's revenue, orders, profitability, balance sheet, and cash flow performance for fiscal year 2025 [Revenue and Orders Analysis](index=3&type=section&id=Fourth%20Quarter%20and%20Year%20to%20Date%20Results) FY2025 net sales decreased 7.5% to $756.5 million due to lower Live Events volumes, while full-year orders grew 5.6% to $781.3 million, driven by strong demand in Commercial, High School Park and Recreation, and International segments Net Sales Performance (YoY) | Period | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Q4 Sales | $172.6M | $215.9M | -20.1% | | Full Year Sales | $756.5M | $818.1M | -7.5% | Order Growth (YoY) | Period | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Q4 Orders | $240.7M | $205.8M | +17.0% | | Full Year Orders | $781.3M | $740.2M | +5.6% | - The decrease in annual sales was primarily driven by the Live Events business unit due to order timing and buildable backlog[10](index=10&type=chunk) - The year-end product backlog increased by **7.8%** to **$341.6 million**, up from **$316.9 million** a year ago, due to the robust increase in Q4 orders[6](index=6&type=chunk) [Profitability Analysis](index=3&type=section&id=Fourth%20Quarter%20and%20Year%20to%20Date%20Results) FY2025 gross profit margin decreased to **25.8%** due to sales mix and lower volume, while operating expenses rose **20.0%** to **$162.4 million** due to **$16.5 million** in one-time costs, resulting in a GAAP net loss of **$10.1 million** - Full-year gross profit margin decreased to **25.8%** in FY2025 from **27.2%** in FY2024, attributed to sales mix differences and lower sales volume[2](index=2&type=chunk)[11](index=11&type=chunk) - FY2025 operating expenses increased by **20.0%** YoY, primarily due to **$16.5 million** in unique expenses, including **$7.1 million** for transformation initiatives, **$6.8 million** for corporate governance, and **$2.6 million** for management transition[12](index=12&type=chunk) Operating & Net (Loss) Income (FY2025 vs FY2024) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Operating Income (GAAP) | $33.1M | $87.1M | | Adjusted Operating Income | $49.6M | $87.1M | | Net (Loss) Income (GAAP) | ($10.1M) | $34.6M | | Adjusted Net Income | $40.1M | $59.7M | - The company recorded a provision for possible credit losses of **$15.5 million** in Q4 FY2025 related to affiliate loans[16](index=16&type=chunk) [Balance Sheet and Cash Flow](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Daktronics significantly improved its FY2025 financial position, ending with **$127.5 million** in cash, a **54.5%** increase in operating cash flow to **$97.7 million**, and a **23.3%** reduction in inventory, while converting debt and repurchasing stock - Cash, restricted cash, and marketable securities totaled **$127.5 million** at year-end, with only **$12.0 million** of long-term debt outstanding[18](index=18&type=chunk) - Cash flow from operations was **$97.7 million** in FY2025, a **54.5%** increase from **$63.2 million** in FY2024[6](index=6&type=chunk)[19](index=19&type=chunk) - Inventory levels decreased by **23.3%** from the end of FY2024, reflecting successful business transformation initiatives to optimize inventory[19](index=19&type=chunk) - The company issued **4.0 million** shares to convert its convertible note and repurchased **2.1 million** shares for **$29.5 million** during the fiscal year[18](index=18&type=chunk) [Business & Strategic Update](index=2&type=section&id=Business%20Transformation%20Update) This section outlines the company's ongoing business transformation program, its early benefits, and the strategic outlook including long-term objectives and tariff mitigation efforts [Business Transformation Program](index=2&type=section&id=Business%20Transformation%20Update) Daktronics launched a business transformation program in FY2025, yielding early benefits in pricing, inventory, and input costs, with a major Q1 FY2026 rollout of a new Service software system to streamline processes - The transformation program began to yield benefits in the last four months of FY2025 through initiatives in pricing, inventory efficiency, and purchasing[4](index=4&type=chunk) - The company's increased focus on working capital management has reduced accounts receivable and contract assets[4](index=4&type=chunk) - In Q1 FY2026, the company rolled out its Service software system, a major milestone expected to streamline processes and improve customer service[4](index=4&type=chunk) [Outlook and Forward-Looking Statements](index=2&type=section&id=Outlook%20and%20Tariff%20Backdrop) Daktronics is positioned for FY2026 growth, supported by transformation efforts and a strong balance sheet, with a three-year plan focusing on indoor markets and service enhancements, while mitigating tariff uncertainties - The company reconfirmed its three-year financial objectives: **7-10%** sales growth, **10-12%** operating margin, and **17-20%** ROIC[1](index=1&type=chunk) - Strategic priorities include expanding presence in indoor markets, enhancing service offerings, and focusing on high-growth, high-profit sales channels[9](index=9&type=chunk) - The tariff environment remains highly uncertain. The company is mitigating impacts through selective price adjustments, supply chain flexibility, and its global manufacturing footprint[5](index=5&type=chunk)[7](index=7&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the detailed consolidated statements of operations, balance sheets, and cash flows for fiscal years 2025 and 2024 [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the detailed unaudited income statement for Q4 and full fiscal year 2025, reporting net sales of **$756.5 million** and a net loss of **$10.1 million** for FY2025 Consolidated Statements of Operations (in thousands) | | Three Months Ended | Year Ended | | :--- | :--- | :--- | | | **Apr 26, 2025** | **Apr 27, 2024** | **Apr 26, 2025** | **Apr 27, 2024** | | **Net sales** | **$172,551** | **$215,880** | **$756,477** | **$818,083** | | Gross profit | $43,145 | $55,379 | $195,487 | $222,443 | | Operating (loss) income | ($1,740) | $19,427 | $33,118 | $87,115 | | (Loss) income before income taxes | ($13,438) | $7,167 | ($5,851) | $54,051 | | **Net (loss) income** | **($9,425)** | **$2,518** | **($10,121)** | **$34,621** | | **Diluted (Loss) earnings per share** | **($0.19)** | **$0.05** | **($0.21)** | **$0.74** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This section presents the detailed unaudited balance sheet as of April 26, 2025, showing total assets of **$502.9 million**, **$127.5 million** in cash, and total stockholders' equity of **$271.9 million** Consolidated Balance Sheet Highlights (in thousands) | | April 26, 2025 | April 27, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $127,507 | $81,299 | | Inventories | $105,839 | $138,008 | | Total current assets | $381,451 | $401,949 | | **TOTAL ASSETS** | **$502,892** | **$527,884** | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $172,005 | $192,296 | | Long-term debt, net | $10,487 | $53,164 | | Total liabilities | $230,961 | $289,092 | | **TOTAL STOCKHOLDERS' EQUITY** | **$271,931** | **$238,792** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the detailed unaudited statement of cash flows for FY2025, showing **$97.7 million** in net cash from operating activities and a net cash increase of **$45.8 million** Consolidated Statements of Cash Flows (in thousands) | | Year Ended Apr 26, 2025 | Year Ended Apr 27, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $97,713 | $63,241 | | Net cash used in investing activities | ($23,782) | ($21,306) | | Net cash (used in) provided by financing activities | ($27,449) | $15,122 | | **NET INCREASE IN CASH** | **$45,829** | **$56,988** | | Cash at beginning of period | $81,678 | $24,690 | | **Cash at end of period** | **$127,507** | **$81,678** | [Supplemental Data & Reconciliations](index=10&type=section&id=Net%20Sales%20and%20Orders%20by%20Business%20Unit) This section provides supplemental financial data, including net sales and orders by business unit, and reconciliations of non-GAAP financial measures [Net Sales and Orders by Business Unit](index=10&type=section&id=Net%20Sales%20and%20Orders%20by%20Business%20Unit) FY2025 order growth was led by International (**+31.7%**), Commercial (**+30.6%**), and High School Park and Recreation (**+18.6%**), while net sales declined across most segments, notably Live Events (**-13.9%**) FY2025 Net Sales by Business Unit (in thousands) | Business Unit | FY2025 Sales | FY2024 Sales | % Change | | :--- | :--- | :--- | :--- | | Commercial | $156,203 | $161,626 | (3.4)% | | Live Events | $291,484 | $338,508 | (13.9)% | | High School Park and Rec | $165,921 | $170,349 | (2.6)% | | Transportation | $81,061 | $85,390 | (5.1)% | | International | $61,808 | $62,210 | (0.6)% | FY2025 Orders by Business Unit (in thousands) | Business Unit | FY2025 Orders | FY2024 Orders | % Change | | :--- | :--- | :--- | :--- | | Commercial | $176,583 | $135,251 | 30.6% | | Live Events | $283,780 | $321,191 | (11.6)% | | High School Park and Rec | $176,097 | $148,505 | 18.6% | | Transportation | $72,315 | $80,107 | (9.7)% | | International | $72,572 | $55,117 | 31.7% | [Non-GAAP Reconciliations](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income%2A) This section provides reconciliations of non-GAAP financial measures, showing FY2025 adjusted operating income of **$49.6 million** and adjusted net income of **$40.1 million** after accounting for specific expenses and non-cash charges FY2025 Reconciliation of Adjusted Operating Income (in thousands) | | Amount | | :--- | :--- | | Operating income (GAAP) | $33,118 | | Corporate governance expenses | $6,825 | | Management transition | $2,614 | | Consultant related expenses | $7,085 | | **Adjusted operating income (non-GAAP)** | **$49,642** | FY2025 Reconciliation of Adjusted Net Income (in thousands) | | Amount | | :--- | :--- | | Net (loss) income (GAAP) | $(10,121) | | Change in fair value of convertible note | $22,521 | | Allowance for credit losses on affiliate loan | $15,480 | | Other adjustments (governance, transition, etc.) | $12,227 | | **Adjusted net income (non-GAAP)** | **$40,107** | - Free cash flow, a non-GAAP measure calculated as net cash from operations less capital expenditures, was **$78.5 million** for fiscal year 2025, compared to **$46.4 million** in fiscal 2024[37](index=37&type=chunk)

Core Insights - Daktronics, Inc. reported a fiscal year 2025 operating profit of $33 million and an adjusted operating profit of $50 million, despite a fourth quarter operating loss of $2 million [1][5][11] - The company experienced a 29% sequential increase in orders and a 17% year-over-year increase, with a year-end product backlog of $342 million, up 8% [1][5][9] - Operating cash flow for FY2025 increased by 55% to $98 million, with a year-end cash balance of $128 million [1][5][20] Financial Performance - Fourth quarter sales were $172.6 million, down 20.1% compared to the same quarter in fiscal 2024, while full-year sales totaled $756.5 million, a decrease of 7.5% from the previous year [5][11] - Gross profit as a percentage of sales decreased to 25.0% in Q4 2025 from 25.7% in Q4 2024, and for the full year, it decreased to 25.8% from 27.2% [12][14] - Operating expenses increased by 24.8% in Q4 2025 to $44.9 million, and for the full year, they rose by 20.0% to $162.4 million, driven by investments in digital transformation and corporate governance [13][14] Business Transformation - The company initiated a business transformation program in fiscal 2025 aimed at achieving higher profit growth, with benefits starting to materialize in the last four months of the fiscal year [6][8] - Key initiatives included repricing products, improving inventory efficiency, and enhancing working capital management [6][10] - The rollout of a new service software system is expected to streamline processes and improve customer experiences [6] Market Outlook - Daktronics is positioned to capitalize on increasing market demand, with a focus on expanding its presence in indoor markets and enhancing service offerings [8][9] - The company is navigating a highly uncertain tariff environment, implementing measures to mitigate potential impacts [7][10] - The three-year transformation plan aims for 7-10% sales growth, 10-12% operating margin, and 17-20% return on invested capital (ROIC) [1][4][8]

Core Viewpoint - Daktronics, Inc. will release its fourth quarter and fiscal 2025 financial results on June 25, 2025, before market opening, followed by a conference call at 10:00 AM CT [1][2] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems [5] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [5] Conference Call Details - The conference call will be hosted by Interim CEO Brad Wiemann and Acting CFO Howard Atkins, featuring forward-looking statements and material information [2] - Participants must pre-register to access the call, receiving dial-in information and a PIN for entry [3][4] - The call will be accessible via phone or webcast, with a recording available for later replay [4]

Core Insights - Daktronics, Inc. announced participation in the Craig-Hallum Capital Group's 22nd Annual Institutional Investor Conference on May 28, 2025, with Interim CEO Brad Wiemann and Acting CFO Howard Atkins representing the company [1] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems [2] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [2] - Daktronics specializes in the control of display systems that integrate multiple complex displays to show real-time information, graphics, animation, and video [2]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Daktronics, Inc. and its officers or directors [1] Financial Performance - On March 5, 2025, Daktronics reported its third quarter fiscal 2025 financial results, indicating significant expenses related to a "business transformation plan" and seasonally lower sales volume, leading to an earnings per share (EPS) consensus miss [3] - Following the financial report, Daktronics' stock price dropped by $2.13 per share, or 14.9%, closing at $12.20 per share on the same day [3]

Core Insights - Daktronics has been selected as the official large display partner for the Tennessee Titans, set to manufacture and install 37 displays totaling over 77,000 square feet at the new Nissan Stadium, which will rank among the top three in the league for total LED square footage [1][2][3] Display Details - The installation includes a unique Ring of Fire display that encircles the upper bowl of the stadium, measuring 13 feet high by 2,275 feet wide, totaling 29,575 square feet, making it the longest display in the league with a 10-millimeter pixel spacing [2][3][4] - The main video displays will be located in the east, northwest, and southwest end zones, with the east end zone display measuring 41 feet high by 343 feet wide, totaling 14,063 square feet, while the other two displays will each measure 41 feet high by 136 feet wide [5][6] - Additional displays include 23 ribbon and vomitory displays totaling over 17,000 square feet, four concourse displays totaling 1,125 square feet, and a south exterior display measuring 3,750 square feet, all featuring various pixel spacings for enhanced viewing [8][9][10] Company Background - Daktronics, founded in 1968, specializes in large-format LED video displays and has become a global leader in audiovisual systems, serving various applications in sports, business, and transportation [13]

Core Insights - Daktronics has been selected as the official large display partner for the Tennessee Titans, set to manufacture and install 37 LED displays totaling over 77,000 square feet at the new Nissan Stadium, which will open in 2027, ranking it among the top three stadiums in the league for total LED square footage [4][5][6] Display Features - The installation includes a unique "Ring of Fire" display that encircles the upper bowl of the stadium, measuring 13 feet high and 2,275 feet wide, totaling 29,575 square feet, making it the longest display in the league with a 10-millimeter pixel spacing for clear images [5][6][8] - The main video displays will be located in the east, northwest, and southwest end zones, with the east display measuring 41 feet high by 343 feet wide, totaling 14,063 square feet, while the combined area of all three displays will be 25,215 square feet [8][9][10] Additional Displays - The stadium will feature 23 ribbon and vomitory displays totaling over 17,000 square feet, all with 10-millimeter pixel spacing, enhancing the visual experience during events [11] - Four concourse displays will add 1,125 square feet, and a west entry lobby display will measure 161.5 square feet, utilizing narrow pixel pitch technology for high-quality imagery [12] - An exterior display on the south side will measure 3,750 square feet, the largest of its type in the league, while an east lower bowl exterior display will measure 140 square feet with a 4.4-millimeter pixel spacing [13] Company Background - Daktronics, founded in 1968, is a leader in large-format LED video displays and audiovisual systems, serving various sectors including sports, business, and transportation [16]

Company Overview - Daktronics Inc. is a leading global designer and manufacturer of dynamic video communication displays and control systems [1][3] - The company holds a strong leadership position as the world's largest supplier of large-screen video displays, electronic scoreboards, and LED text and graphics displays [3] Upcoming Events - Management will present and host one-on-one meetings with investors at the Sidoti Virtual Investor Conference on March 19-20, 2025 [1] - The presentation will begin at 10:00am ET on March 19, 2025, and will be accessible live [2] - Registration for the presentation and one-on-ones is free and open to both Sidoti clients and non-clients [2]

Group 1 - Daktronics, Inc. is under investigation by Pomerantz LLP for potential securities fraud or unlawful business practices involving its officers and/or directors [1] - On March 5, 2025, Daktronics reported its Q3 fiscal 2025 results, which included significant expenses from a "business transformation plan" and lower seasonal sales volume, leading to an earnings per share (EPS) consensus miss [2] - Following the financial results announcement, Daktronics' stock price dropped by $2.13, or 14.9%, closing at $12.20 per share on the same day [2]