DAKTRONICS INC /SD/ (DAKT) FY2026 10-K Annual Report

Filed: Jun 24, 2026
Consumer Discretionary
Miscellaneous Manufacturing IndustriesSEC EDGAR

DAKTRONICS INC /SD/ (DAKT) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

DAKTRONICS INC /SD/ FY2026 10-K Analysis

Business Overview

  • Core business model: Design, manufacture, and sale of electronic display systems and related solutions for sports, commercial, transportation markets with lifecycle support
  • Emphasis on emerging micro-LED display technology and enhanced software capabilities in fiscal 2026 R&D efforts
  • Strategic expansion of manufacturing footprint with planned new facility in Mexico for fiscal 2027
  • Employee base decreased to 2,423 full-time and 270 part-time/temporary from prior year, total 2,693 previously reported
  • Product order backlog increased to $356.2 million from $341.6 million, reflecting continued digital display market adoption

Management Discussion & Analysis

  • Revenue $838.7M, up 10.9% YoY from $756.5M, driven by Commercial, Live Events, High School Park and Recreation, and International segments
  • Operating margin 7.3% vs 4.4%; operating income $60.8M vs $33.1M, net income $45.4M vs net loss $10.1M in prior year
  • Best segment: Live Events operating margin 19.8% ($63.7M contribution margin), worst: International 7.4% ($5.7M contribution margin)
  • Operating cash flow $49.2M vs $97.7M prior year; capex $14.9M vs $19.5M prior year; repurchased shares $25.6M; no dividends paid
  • Management highlights tariff uncertainties, plans $26.6M capex in 2027, expanding Mexico facility, ongoing digital transformation investments, and monitoring customer demand and geopolitical risks

Risk Factors

  • Regulatory risk: Uncertain realization of U.S. tariff refunds under International Emergency Economic Powers Act, pending U.S. Customs and Border Protection review
  • Geopolitical risk: Supply chain exposure to Taiwan and China suppliers affected by import/export controls, tariffs, and global tensions
  • Operational risk: Dependency on single or limited suppliers for semiconductor components with potential for shortages and extended lead times
  • Competitive risk: Pricing and product development pressure from lower-cost foreign and domestic competitors with greater capital resources
  • Financial risk: $3.8 million provision for uncollectible affiliate loans recorded in fiscal 2026, affecting financial condition

DAKTRONICS INC /SD/ FY2026 Key Financial Metrics
XBRL

Revenue

$839M

+10.9% YoY

Net Income

$45M

+548.3% YoY

Gross Margin

27.3%

+146bp YoY

Operating Margin

7.3%

+288bp YoY

Net Margin

5.4%

+675bp YoY

ROE

15.1%

+1881bp YoY

Total Assets

$554M

+10.2% YoY

EPS (Diluted)

$0.92

+538.1% YoY

Operating Cash Flow

$49M

-49.6% YoY

Source: XBRL data from DAKTRONICS INC /SD/ FY2026 10-K filing on SEC EDGAR. All figures in USD.

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