Daktronics (DAKT) Q3 2026 earnings summary

Executive summary

• Achieved 21.6% year-over-year revenue growth in Q3/FQ3 2026, reaching $181.9 million, with net income of $3.0 million, reversing a prior year loss.

• Orders increased 7.6% year-over-year to $201.1 million, with backlog up 25% to $342.3 million, reflecting strong demand in sports, transportation, and commercial verticals.

• Completed acquisition of X Display Company’s IP and engineering teams, enhancing Micro LED capabilities and technical expertise.

• Leadership transition completed, with new CEO in place as of February 1 and ongoing strategic planning.

• Transformation initiatives focused on profitable growth, operational efficiency, and technology alignment are progressing as planned.

Financial highlights

• Q3/FQ3 revenue reached $181.9 million, up 21.6% year-over-year; gross margin was 24.0%, down from 27.0% sequentially.

• Net income after tax was $3.0 million ($0.06 per diluted share); adjusted net income was $4.6 million, up from $0.5 million last year.

• Operating income was $1.9 million (1.1% margin), compared to a $3.6 million operating loss in Q3 FY2025.

• Cash and cash equivalents at quarter-end were $144.4 million, up 13% from Q4 FY2025.

• Free cash flow for the first nine months was $44.5 million.

Outlook and guidance

• Entering Q4 with a record backlog and multi-quarter revenue visibility, supporting strong future momentum.

• Expect continued strong demand in Live Events, Transportation, and high school markets; anticipate recovery from a key commercial account delay.

• Mexico facility on track to be operational in Q1 FY2027; investing in manufacturing expansion and digital transformation.

• Strategic transformation and growth plans to be outlined at Investor Day in April.

• Capital expenditures for fiscal 2026 projected at $15.1 million.