DAKTRONICS INC /SD/

Outlook

Daktronics’ product backlog of $342.3 million at quarter end provides continued strong tailwind for future revenue growth. The Company has moved through the seasonally slower third fiscal quarter with strong year-over-year growth and continued momentum leading into the final quarter of fiscal 2026.

Daktronics remains agile and ready to implement measures to maintain profitability in the dynamic global trade environment. We continue to monitor the evolving tariff landscape and inflationary electronic component cost landscape and are taking actions accordingly in pricing, supply chain and contractual protections.

(1) Adjusted operating income, adjusted operating margin, and adjusted net income are not measures defined by accounting principles generally accepted in the United States of America ("GAAP"), to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting this non-GAAP financial measurement provides investors with a consistent way to analyze our performance. For more information, see the supplemental calculation contained later in this release.

(2) Orders and backlog metrics are operating measures not defined by GAAP, and our methodology for determining orders and backlog may vary from the methodology used by other companies in determining their orders and backlog amounts. For more information related to backlog, see Part I, Item 1. “Business” of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.

Mr. Jayaraman added, “Over the past several quarters, Daktronics has further strengthened its unique position in the dynamic audiovisual space by building trust and reliability through continued innovation and sophistication, enhanced service delivery, and is firmly on a path of accelerating execution. We enter the fourth quarter in a solid position and will focus on closing the year on a strong note. The executive team and I very much look forward to sharing the next phase of Daktronics’ strategic growth at our Investor Day in April.”