dakt-20250802

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2025

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___.

Commission File Number: 001-38747

Daktronics, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware			46-0306862
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

201 Daktronics Drive	Brookings,	SD	57006
(Address of Principal Executive Offices) (Zip Code)

(605) 692-0200

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.00001 per share	DAKT	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer			o
Accelerated filer			x
Non-accelerated filer			o
Smaller reporting company			o
Emerging growth company			o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of September 2, 2025 was 48,530,238.

Table of Contents

DAKTRONICS, INC. AND SUBSIDIARIES

FORM 10-Q

For the Quarter Ended August 2, 2025

Table of Contents


		Page
Part I.	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets as of August 2, 2025 and April 26, 2025	1
	Condensed Consolidated Statements of Operations for the Three Months Ended August 2, 2025 and July 27, 2024	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended August 2, 2025 and July 27, 2024	4
	Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended August 2, 2025 and July 27, 2024	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended August 2, 2025 and July 27, 2024	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32

Part II.	Other Information	33
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	34

Index to Exhibits		35
Signatures		36

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data) (unaudited)


	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, and other assets	13,101		9,378
Deferred income taxes	32,077		32,104
TOTAL ASSETS	$	545,591	$	502,892

Table of Contents

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(in thousands, except per share data) (unaudited)


	August 2, 2025		April 26, 2025
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, authorized 5,000 shares; no shares issued and outstanding	—		—
Common stock, $0.00001 par value, authorized 115,000 shares; 53,108 and 53,030 shares issued as of August 2, 2025 and April 26, 2025, respectively	—		—
Additional paid-in capital	191,663		189,940
Retained earnings	144,380		127,910
Treasury stock, at cost, 4,627 and 3,979 shares as of August 2, 2025 and April 26, 2025, respectively	(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

See notes to Condensed Consolidated Financial Statements.

Table of Contents

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended
	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)

See notes to Condensed Consolidated Financial Statements.

Table of Contents

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)


	Three Months Ended
	August 2, 2025		July 27, 2024

Net income (loss)	$	16,470	$	(4,946)

Other comprehensive income:
Cumulative translation adjustments	279		128

Total other comprehensive income, net of tax	279		128
Comprehensive income (loss)	$	16,749	$	(4,818)

See notes to Condensed Consolidated Financial Statements.

Table of Contents

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands)

(unaudited)


	Common Stock							Treasury Stock
	Number	Amount		Additional Paid-In Capital		Retained Earnings		Number	Amount		Accumulated Other Comprehensive Loss		Total
Balance as of April 26, 2025	53,030	$	—	$	189,940	$	127,910	(3,979)	$	(39,759)	$	(6,160)	$	271,931
Net income	—	—		—		16,470		—	—		—		16,470
Cumulative translation adjustments	—	—		—		—		—	—		279		279

Share-based compensation	—	—		947		—		—	—		—		947
Exercise of stock options	18	—		128		—		—	—		—		128

Employee savings plan activity	60	—		648		—		—	—		—		648

Treasury stock purchased	—	$	—	$	—	$	—	(648)	(10,652)		$	—	(10,652)

Balance as of August 2, 2025	53,108	$	—	$	191,663	$	144,380	(4,627)	$	(50,411)	$	(5,881)	$	279,751

SEC Form 10-Q filed by Daktronics Inc.