Financial Analysis

Business Combination On December 22, 2025, the Company acquired the Display Business from XDC, which consisted of intellectual property, equipment assets, technical expertise, contract rights, other personal property, and related assets. The Display Business Assets acquired by the Company pursuant to the XDC Acquisition comprise substantially all of the Display Businesss assets. Certain employees of XDC were also hired by the Company in connection with the acquisition. As consideration for the hiring of such employees and the acquisition of the Display Business Assets, the Company assumed specific liabilities of XDC and settled a portion of principal and accrued interest owed to the Company by XDC under certain promissory notes. The total consideration for the XDC Acquisition was $4,141. We accounted for the XDC Acquisition as a business combination using the acquisition method of accounting and performed an allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The XDC Acquisition is not significant to our Consolidated Financial Statements included in this Form 10-K, and, as such, we have not included disclosures of the allocation of the purchase price. Additionally, we have not included any pro forma disclosures as the results of its operations are not significant to our consolidated financial results. The results of the Display Business operations have been inc …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections, and other legal matters on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued if such disclosure is necessary for our financial statements to not be misleading. We do not record an accrual when the likelihood of loss being incurred is probable, but the amount cannot be reasonably estimated, or when the loss is believed to be only reasonably possible or remote, although disclosures will be made for material matters as required by ASC 450-20, Contingencies - Loss Contingencies . Our assessment of whether a loss is reasonably possible or probable is based on managements assessment and consultation with legal counsel regarding the ultimate outcome of the matter following all appeals. For other unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss would be incurred. Accordingly, no material accrual or disclosure of potential loss range have been made related to these matters. We do not expect the ultimate liability of the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Financing Agreements Long-term debt consists of the following: May 2, 2026 April 26, 2025 Mortgage 10,925 12,375 Long-term debt, gross 10,925 12,375 Debt issuance costs, net (146) (388) Current portion (1,150) (1,500) Long-term debt, net $ 9,629 $ 10,487 Credit Agreements On November 26, 2025, the Company entered into a new $71,500 senior secured credit facility (the New Credit Facility) pursuant to a Credit Agreement (the New Credit Agreement), between and among the Company, JPMorgan Chase Bank, N.A., as administrative agent (the Administrative Agent), the Lenders, and the other Loan Parties. The following capitalized terms have specific meanings as defined in the New Credit Agreement: Lenders; Loan Parties; Adjusted Term SOFR Rate; Adjusted Daily Simple SOFR; CB Floating Rate; Total Leverage Ratio; and Fixed Charge Coverage Ratio. In connection with entering into the New Credit Agreement, the Company terminated its prior senior credit facility dated May 11, 2023 (as amended, the Prior Credit Agreement), which consisted of an asset-based revolving credit facility and a delayed draw term loan. All outstanding obligations under the Prior Credit Agreement were repaid in full, and all related liens, including the mortgage on the Companys Brookings, South Dakota real property, were released. No material early termination penalties were incurred in connection with the termination of the Prior Credit Agreement. Certain customary obligations, including indemnification and confidenti …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our disaggregation of revenue by segments: Fiscal Year 2026 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 25,443 $ 255,600 $ 38,229 $ 37,279 $ 22,935 $ 379,486 Limited configuration 132,803 34,418 133,417 30,898 44,450 375,986 Service and other 22,526 31,035 11,604 8,523 9,546 83,234 $ 180,772 $ 321,053 $ 183,250 $ 76,700 $ 76,931 $ 838,706 Timing of revenue recognition Goods/services transferred at a point in time $ 143,543 $ 45,945 $ 132,102 $ 36,449 $ 47,729 $ 405,768 Goods/services transferred over time 37,229 275,108 51,148 40,251 29,202 432,938 $ 180,772 $ 321,053 $ 183,250 $ 76,700 $ 76,931 $ 838,706 Fiscal Year 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 27,405 $ 226,780 $ 35,235 $ 49,280 $ 17,715 $ 356,415 Limited configuration 105,358 34,464 119,397 24,847 36,013 320,079 Service and other 23,440 30,240 11,289 6,934 8,080 79,983 $ 156,203 $ 291,484 $ 165,921 $ 81,061 $ 61,808 $ 756,477 Timing of revenue recognition Goods/services transferred at a point in time $ 116,605 $ 46,102 $ 120,138 $ 29,453 $ 39,903 $ 352,201 Goods/services transferred over time 39,598 245,382 45,783 51,608 21,905 404,276 $ 156,203 $ 291,484 $ 165,921 $ 81,061 $ 61,808 $ 756,477 Fiscal Year 2024 Commercial Live Events High School Park and Recreation Transportation I …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stockholders Equity and Share-Based Compensation Authorized share types : Our 120,000 authorized shares of stock consist of 115,000 shares of Common Stock and 5,000 shares of Preferred Stock. Stock incentive plans : During fiscal 2026, our shareholders approved the Daktronics, Inc. 2025 Stock Incentive Plan (2025 Plan), under which shares available for issuance include remaining authorized shares from the 2020 Stock Incentive Plan (2020 Plan). No new awards will be granted under the 2020 Plan. The 2025 Plan provides for the issuance of stock-based awards, including, but not limited to, stock options, restricted stock, restricted stock units (RSUs), performance stock, performance stock units (PSUs), and deferred stock to employees, directors, and consultants. Stock options issued to employees under the 2020 Plan and 2025 Plan generally have a 10-year life, an exercise price equal to the closing market value on the grant date, and a five-year annual vesting period. The restricted stock granted to independent directors vests in one year, provided that the directors remain on the Board of Directors. Restricted stock units are granted to employees and generally vest over a defined service period or, in the case of PSUs, based on performance criteria, which may vary by award. Performance stock awards are granted to employees and vest, if at all, based on the achievement of specified performance criteria. PSUs and RSUs are granted to employees as units that are settled in shares of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurement ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy within ASC 820 distinguishes between the following three levels of inputs which may be utilized when measuring fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included within level 1 for the assets or liabilities, either directly or indirectly (for example, quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated input). Level 3 - Unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities. The fair values for fixed-rate long-term receivables are estimated using a discounted cash flow analysis based on interest rates currently being offered for contracts with similar terms to customers with similar credit quality. The carrying amounts reported in …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill related to each reportable segment for the fiscal year ended May 2, 2026 were as follows: Live Events Commercial Transportation Total Balance as of April 26, 2025: $ $ 3,159 $ 29 $ 3,188 Foreign currency translation 36 11 47 XDC Acquisition $ 153 $ 148 $ 149 $ 450 Balance as of May 2, 2026: $ 153 $ 3,343 $ 189 $ 3,685 We perform an analysis of goodwill on an annual basis, and it is tested for impairment more frequently if events or changes in circumstances indicate that an asset might be impaired. Our annual analysis is performed during our third quarter of each fiscal year based on the goodwill amount as of the first business day of our third fiscal quarter. We performed our annual impairment test on November 2 , 2025 and c onclude d no goodwill impairment existed for fiscal year 2026 . The annual impairment test for fiscal year 2025 concluded no goodwill impairment existed. As part of the XDC Acquisition, we recorded $450 of goodwill which is related to the value of the assembled workforce acquired and is not deductible for tax purposes. The amount of accumulated impairments to goodwill as of May 2, 2026 and April 26, 2025 was $4,576. Intangible Assets The following table summarizes intangible assets, net, as of May 2, 2026 and April 26, 2025: May 2, 2026 Weighted Average Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Registered trademarks 13.8 $ 1,782 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The following tables reflect the significant components of our income tax provision. The pretax income (loss) attributable to domestic and foreign operations was as follows: Year Ended May 2, 2026 April 26, 2025 April 27, 2024 Domestic $ 47,731 $ (13,407) $ 46,763 Foreign 10,603 7,556 7,288 Income (loss) before income taxes $ 58,334 $ (5,851) $ 54,051 Income tax expense consisted of the following: Year Ended May 2, 2026 April 26, 2025 April 27, 2024 Current: Federal $ (246) $ 6,819 $ 21,174 State 823 1,786 5,512 Foreign 2,572 1,965 1,813 Deferred: Federal 8,709 (5,308) (8,101) State 1,392 (946) (1,045) Foreign (292) (46) 77 $ 12,958 $ 4,270 $ 19,430 In fiscal 2026, the Company retrospectively adopted ASU 2023-09, Improvements to Income Tax Disclosures. The reconciliation of items accounting for the difference between income taxes computed at the United States federal statutory rate and the Company's effective rate for the fiscal years 2026, 2025, and 2024 is summarized as follows: Year Ended May 2, 2026 April 26, 2025 April 27, 2024 Amount Percent Amount Percent Amount Percent Income (loss) before income taxes $ 58,334 $ (5,851) $ 54,051 Federal income tax expense at statutory rate 12,250 21.0 % (1,229) 21.0 % 11,351 21.0 % State and local income tax, net of federal income tax effect (a) 1,750 3.0 % 664 (11.3) % 3,529 6.5 % Foreign tax effects Canada Statutory tax rate difference between Canada and United States (96) (0.2) % (176) 3.0 % (123) (0.2) % Ontario prov …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We lease facilities and various equipment to manufacture products and provide employee collaboration space and tools. These are all classified as operating leases and have initial lease terms ranging from 1 year to 5 years. These operating leases do not contain material residual value guarantees or material restrictive covenants. Our lease for our facility in Sioux Falls, South Dakota contains a purchase option. We have no material financing leases. We determine if an arrangement is a lease at the inception of the lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As we are generally not able to determine the rate implicit in our leases, we use the incremental borrowing rate based on the information available at the commencement date in determining the present value of future lease payments. The operating lease right-of-use asset includes any prepaid lease payments and initial direct costs and excludes any lease incentives and impairments. Some of our leases include options to extend the term, which is only included in the right-of-use assets and lease liability calculation when it is reasonab …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Accounting Standards Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires the disclosure of specified additional information in the income tax rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 also requires the disaggregation of the disclosures of income taxes paid by federal, state, and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company adopted ASU 2023-09 for the fiscal year ending May 2, 2026, retrospectively, and it did not have a material effect on our financial statements. See Note 13. Income Taxes of the Notes to our Consolidated Financial Statements included in this Form 10-K for additional discussion. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (ASU 2024-03), requiring disclosure in the notes to the financial statements for specified information about certain costs and expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027; however, early adoption is permitted and can be applied either prospectively or retrospectively. We are currently evaluating the impact of ASU 2024-03 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement Benefits We sponsor a 401(k) savings plan providing benefits for substantially all United States-based employees of Daktronics and its subsidiaries, subject to certain Internal Revenue Service (IRS) limits. We made matching cash contributions equal to 50 percent of each participating employees qualifying contribution up to six percent of such employees compensation. Employees are eligible to participate in the 401(k) savings plan the first day of the calendar month following completion of 30 days of continuous service if they have attained the age of 21. We contributed $3,729, $3,522, and $3,201 for matches to the plan for fiscal years 2026, 2025, and 2024, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Related Party Transactions Daktronics Related Person Transaction Policy: The Board of Directors has adopted the Daktronics Related Person Transaction Policy (the Policy), a written policy and procedures with respect to related party transactions, that the Audit Committee of the Board (the ""Audit Committee"") oversees. Under the Policy, a Related Person Transaction is generally defined as a transaction, arrangement, or relationship (or any series of similar transactions, arrangements, or relationships) in which the Company was, is, or will be a participant; the amount involved exceeds $120; and any Related Person had, has, or will have a direct or indirect material interest. The Policy generally defines a ""Related Person"" as: a director, director nominee, or executive officer of the Company at any time during the last fiscal year; a beneficial owner of more than five percent of any class of our voting securities; or any immediate family member of any of the foregoing persons. Our Chief Financial Officer is responsible for overseeing the monitoring and identification of Related Person Transactions and the appropriate reporting of any potential Related Person Transactions to the Audit Committee. The Audit Committee reviews and, if appropriate, approves Related Person Transactions, including certain transactions which are deemed to be pre-approved under the Policy. On an annual basis, the Audit Committee reviews any previously approved Related Person Transactions that are ong …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Disaggregation of revenue In accordance with ASC 606-10-50, we disaggregate revenue from contracts with customers by the type of performance obligation and the timing of revenue recognition. We determine that disaggregating revenue in these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors and to enable users of financial statements to understand the relationship to each reportable segment. The following table presents our disaggregation of revenue by segments: Fiscal Year 2026 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 25,443 $ 255,600 $ 38,229 $ 37,279 $ 22,935 $ 379,486 Limited configuration 132,803 34,418 133,417 30,898 44,450 375,986 Service and other 22,526 31,035 11,604 8,523 9,546 83,234 $ 180,772 $ 321,053 $ 183,250 $ 76,700 $ 76,931 $ 838,706 Timing of revenue recognition Goods/services transferred at a point in time $ 143,543 $ 45,945 $ 132,102 $ 36,449 $ 47,729 $ 405,768 Goods/services transferred over time 37,229 275,108 51,148 40,251 29,202 432,938 $ 180,772 $ 321,053 $ 183,250 $ 76,700 $ 76,931 $ 838,706 Fiscal Year 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 27,405 $ 226,780 $ 35,235 $ 49,280 $ 17,715 $ 356,415 Limited configura …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting We organize and manage our business by the following five segments which meet the definition of reportable segments under ASC 280-10 , Segment Reporting : Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the customer type or geography and are the same as our operating segments/business units. Our chief operating decision-maker (CODM), who is our president and chief executive officer, regularly reviews the consolidated financial results in their entirety and the operating segment financial results to the GAAP measure of gross profit. The CODM uses gross profit and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment gross profit for evaluating pricing strategy to assess the performance of each segment by comparing the results of each segment with one another. Assets and capital expenditures are reviewed by the CODM at the consolidated level, rather than segment level, as the information is not used in evaluating segment performance or allocating resources. The CODM has ultimate responsibility for enterprise decisions and making resource allocation decisions for our Company and our segments. Management of each operating segment has the responsibility for operating decisions, allocating resources, and assessing performance within their segment. Our Commercial busine …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Share Repurchases. On June 22, 2026, our Board of Directors authorized an additional $25,897 under the Repurchase Program, resulting in a total amount of $40,000 available under the Repurchase Program as of the date of the authorization. For additional information, see Note 9. Share Repurchase Program of the Notes to our Consolidated Financial Statements included in this Form 10-K. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Litigation: We are involved in legal proceedings and claims that arise in the ordinary course of business. We continuously evaluate these matters, including regulatory reviews and inspections, and apply appropriate accounting guidance when determining accruals and disclosures. Contingency accruals are recorded when a loss is considered probable and the amount can be reasonably estimated. If a reasonably possible loss exceeds the amount accrued and disclosure is necessary to avoid misleading financial statements, we disclose the estimated range of loss. No accrual is recorded when a loss is probable but not reasonably estimable, or when a loss is considered reasonably possible or remote; however, material matters are disclosed as required under ASC 450-20, Contingencies Loss Contingencies . Our assessment of whether a loss is reasonably possible or probable is based on managements evaluation and consultation with legal counsel regarding the ultimate outcome of each matter, including the impact of any appeals. For other unresolved legal proceedings or claims, we do not believe there is a reasonable probability that a material loss will be incurred. Accordingly, no material accruals or disclosures of potential loss ranges have been made. We do not expect the ultimate resolution of these matters to have a material impact on our financial position, liquidity, or capital resources. Warranties: The following table summarizes changes in our warranty obli …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Financing Agreements The following table summarizes the components of our long-term debt as of the dates indicated: November 1, 2025 April 26, 2025 Mortgage $ 11,500 $ 12,375 Long-term debt, gross 11,500 12,375 Debt issuance costs, net (201) (388) Current portion (1,500) (1,500) Long-term debt, net $ 9,799 $ 10,487 Credit Agreements On May 11, 2023, the Company entered into a $75,000 senior credit facility (the Credit Facility) pursuant to a Credit Agreement dated as of May 11, 2023 (as amended, restated, modified, or supplemented from time to time, the Credit Agreement), between and among the Company, JPMorgan Chase Bank, N.A., as administrative agent (the Administrative Agent), the Lenders (as defined in the Credit Agreement), and the other Loan Parties (as defined in the Credit Agreement). The Credit Facility and the Credit Agreement were in effect throughout the periods covered by this Quarterly Report on Form 10-Q, including the quarter ended November 1, 2025, and were superseded and replaced by the New Credit Facility and the New Credit Agreement (as each such term is defined herein). The Credit Facility made pursuant to the Credit Agreement was comprised of: a $60,000 asset-based revolving credit facility (the ABL), maturing on May 11, 2026, secured by a first-priority lien on the Companys assets pursuant to a Pledge and Security Agreement dated May 11, 2023, between and among the Company, Daktronics Installation, Inc. (Daktronics Installation), and the Administrative …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our disaggregated revenue by segment: Three Months Ended November 1, 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 5,968 $ 62,495 $ 4,631 $ 8,139 $ 9,719 $ 90,952 Limited configuration 39,196 10,162 37,614 11,068 17,975 116,015 Service and other 5,588 8,824 3,722 2,067 2,085 22,286 $ 50,752 $ 81,481 $ 45,967 $ 21,274 $ 29,779 $ 229,253 Timing of revenue recognition Goods/services transferred at a point in time $ 41,936 $ 14,027 $ 37,858 $ 12,386 $ 18,625 $ 124,832 Goods/services transferred over time 8,816 67,454 8,109 8,888 11,154 104,421 $ 50,752 $ 81,481 $ 45,967 $ 21,274 $ 29,779 $ 229,253 Six Months Ended November 1, 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 14,882 $ 125,758 $ 19,528 $ 17,637 $ 16,327 $ 194,132 Limited configuration 70,438 19,556 79,525 15,458 26,033 211,010 Service and other 11,599 15,967 6,261 4,754 4,502 43,083 $ 96,919 $ 161,281 $ 105,314 $ 37,849 $ 46,862 $ 448,225 Timing of revenue recognition Goods/services transferred at a point in time $ 76,005 $ 25,707 $ 79,652 $ 18,527 $ 27,528 $ 227,419 Goods/services transferred over time 20,914 135,574 25,662 19,322 19,334 220,806 $ 96,919 $ 161,281 $ 105,314 $ 37,849 $ 46,862 $ 448,225 Three Months Ended October 26, 2024 Commercial Live Events High School Park and Recreat …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurement The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of November 1, 2025 and April 26, 2025, classified by level within the fair value hierarchy based on the valuation techniques utilized to determine fair value. There were no transfers between levels of the fair value hierarchy during the periods presented. Fair Value Measurements Level 1 Level 2 Level 3 Total Balance as of November 1, 2025 Cash and cash equivalents $ 149,604 $ $ $ 149,604 $ 149,604 $ $ $ 149,604 Balance as of April 26, 2025 Cash and cash equivalents $ 127,507 $ $ $ 127,507 $ 127,507 $ $ $ 127,507 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill The following table summarizes changes in the carrying amount of goodwill for each reportable segment with a goodwill balance for the six months ended November 1, 2025: Commercial Transportation Total Balance as of April 26, 2025 $ 3,159 $ 29 $ 3,188 Foreign currency translation (16) (4) (20) Balance as of November 1, 2025 $ 3,143 $ 25 $ 3,168 We perform an analysis of goodwill on an annual basis, and it is tested for impairment more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment assessment is performed during the third quarter of each fiscal year, based on the goodwill balance as of the first business day of that quarter. As of November 1, 2025, our most recent annual goodwill impairment test concluded that no impairment existed. As of November 1, 2025 and April 26, 2025, the total accumulated goodwill impairments were $4,576.

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Income Taxes The provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to ordinary income or loss for the reporting period, adjusted for discrete items. Due to various factors, including our estimate of annual income, our effective tax rate is subject to fluctuation. Our effective tax rates for the three and six months ended November 1, 2025 were 20.0 percent and 23.0 percent, respectively. The tax rates were primarily driven by permanent tax adjustments and the reversal of a valuation allowance in proportion to the increase in pre-tax income during the period. The effective tax rate for the three and six months ended October 26, 2024 of 15.0 percent and 35.2 percent, respectively, were driven by the impacts of the Convertible Note fair value adjustments. We operate both domestically and internationally and, as of November 1, 2025, the undistributed earnings of our foreign subsidiaries were considered to be reinvested indefinitely. Additionally, as of November 1, 2025, we had $558 of unrecognized tax benefits which would reduce our effective tax rate if recognized. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The OBBBA includes significant tax related provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain busi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Accounting Standards Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 requires enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 requires the retrospective adoption method. The Company adopted ASU 2023-07 for annual periods beginning in the fiscal year ended April 26, 2025, noting there were no changes to our reportable segments. The Company has adopted ASU 2023-07 for interim periods beginning in the fiscal year ending May 2, 2026. Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (""ASU 2023-09""). ASU 2023-09 requires the disclosure of specified additional information in its income tax rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the disaggregation of the disclosures of income taxes paid by federal, state, and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company is required to adopt this guidance for its annual rep …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Related Party Transactions Daktronics Related Person Transaction Policy: The Board of Directors has adopted the Daktronics Related Person Transaction Policy, a written policy and procedures with respect to related party transactions (the Policy), which the Audit Committee of the Board (the ""Audit Committee"") oversees. Under the Policy, a Related Person Transaction is generally defined as a transaction, arrangement, or relationship (or any series of similar transactions, arrangements, or relationships) in which the Company was, is, or will be a participant; the amount involved exceeds $120; and any Related Person had, has, or will have a direct or indirect material interest. The Policy generally defines a ""Related Person"" as: a director, director nominee, or executive officer of the Company at any time during the last fiscal year; a beneficial owner of more than five percent of any class of our voting securities; or any immediate family member of any of the foregoing persons. Our Chief Financial Officer is responsible for overseeing the monitoring and identification of Related Person Transactions and the appropriate reporting of any potential Related Person Transactions to the Audit Committee. The Audit Committee reviews and, if appropriate, approves Related Person Transactions, including certain transactions which are deemed to be pre-approved under the Policy. On an annual basis, the Audit Committee reviews any previously approved Related Person Transactions that are on …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue Recognition Disaggregation of revenue In accordance with ASC 606-10-50, Revenue from Contracts with Customers, we disaggregate revenue based on the nature of the performance obligations and the timing of revenue recognition. This approach is intended to meet the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are influenced by economic factors. It also enables users of the financial statements to understand the relationship between revenue streams and each of our reportable segments. The following table presents our disaggregated revenue by segment: Three Months Ended November 1, 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 5,968 $ 62,495 $ 4,631 $ 8,139 $ 9,719 $ 90,952 Limited configuration 39,196 10,162 37,614 11,068 17,975 116,015 Service and other 5,588 8,824 3,722 2,067 2,085 22,286 $ 50,752 $ 81,481 $ 45,967 $ 21,274 $ 29,779 $ 229,253 Timing of revenue recognition Goods/services transferred at a point in time $ 41,936 $ 14,027 $ 37,858 $ 12,386 $ 18,625 $ 124,832 Goods/services transferred over time 8,816 67,454 8,109 8,888 11,154 104,421 $ 50,752 $ 81,481 $ 45,967 $ 21,274 $ 29,779 $ 229,253 Six Months Ended November 1, 2025 Commercial Live Events High School Park and Recreation Transportation International Total Type of performance obligation Unique configuration $ 14,882 $ 125,758 $ 19,528 $ 17, …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting The following table presents selected financial information for each of our five reportable segments for the periods indicated: Three Months Ended Six Months Ended November 1, 2025 October 26, 2024 November 1, 2025 October 26, 2024 Net sales: Commercial $ 50,752 $ 43,439 $ 96,919 $ 77,638 Live Events 81,481 77,207 161,281 185,815 High School Park and Recreation 45,967 48,071 105,314 96,077 Transportation 21,274 21,478 37,849 43,968 International 29,779 18,136 46,862 30,921 Total consolidated net sales 229,253 208,331 448,225 434,419 Cost of Sales: Commercial 37,432 32,301 69,949 58,905 Live Events 61,717 62,237 121,331 144,817 High School Park and Recreation 31,880 30,267 69,286 60,957 Transportation 14,711 12,806 26,130 27,547 International 21,688 14,857 34,632 26,632 Gross profit: Commercial 13,320 11,138 26,970 18,733 Live Events 19,764 14,970 39,950 40,998 High School Park and Recreation 14,087 17,804 36,028 35,120 Transportation 6,563 8,672 11,719 16,421 International 8,091 3,279 12,230 4,289 Total consolidated gross profit 61,825 55,863 126,897 115,561 Less: Selling 16,056 14,704 32,890 30,340 General and administrative 13,762 15,550 28,057 27,273 Product design and development 10,444 9,839 21,115 19,462 Interest (income) expense, net (558) (273) (1,451) (202) Change in fair value of convertible note 10,304 (11,286) Other expense, net 259 1,164 2,201 1,999 Income before income taxes $ 21,862 $ 25,183 $ 44,085 $ 25,403 Depreciation and amortization: Com …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Subsequent Events New Credit Facility On November 26, 2025, the Company entered into the New Credit Facility with the Administrative Agent, the Lenders (as defined in the New Credit Agreement), and the other Loan Parties (as defined in the New Credit Agreement) pursuant to the New Credit Agreement. The New Credit Facility created pursuant to the New Credit Agreement is comprised of: a $60,000 revolving credit facility (the Revolver), maturing on November 26, 2028 (the Maturity Date); and an $11,500 term loan (the ""New Term Loan""), amortizing in equal quarterly installments of $288, with the remaining principal due on the Maturity Date. Under the New Credit Agreement, both the Revolver and the New Term Loan are guaranteed by the Loan Parties and secured by perfected, first priority liens on personal property of the Company and the other Loan Parties pursuant to the Pledge and Security Agreement executed between and among the Company, Daktronics Installation (collectively with the Company and any additional entities that may become parties thereto, the ""Grantors""), and the Administrative Agent for the benefit of the secured parties thereto under the New Credit Agreement (the ""New Security Agreement"") and other Collateral Documents (as defined in the New Credit Agreement). The New Security Agreement, which replaced the prior Pledge and Security Agreement, establishes a security interest in substantially all of the personal property and assets of the Grantors and secures t …

SubsequentEventsTextBlock · excerpt; the full note is in the filing