Daktronics Inc (DAKT) Q1 2026 Earnings Report

Overview of QQ1 2026 metrics and key YoY/QoQ trends:
- Revenue: $218.97 million; YoY decline approximated around 3% (vs. QQ1 2025 revenue of $226.09 million); QoQ growth was reported as 46.46% in the earnings metrics, reflecting seasonality and project timing.
- Gross Profit: $65.07 million; Gross Margin 29.72%; YoY gross profit up 17.5%; QoQ up 76.92%, driven by mix and better fixed-cost absorption.
- Operating Income: $23.27 million; Margin 10.63%; YoY growth ~19.8%; QoQ surge ~741.5% (reflects quarterly mix and cost discipline).
- Net Income: $16.47 million; Net Margin 7.52%; YoY growth 554% (benefit from absence of prior year one-time charges and improved operating performance); QoQ growth 196%.
- Diluted EPS: $0.33; Basic EPS $0.34; YoY EPS growth ~525%; QoQ ~194%.
- Backlog: $360 million; Strength across live events and international fields supports revenue tailwinds into 2026/2027.
- Cash flow: Operating cash flow $26.10 million; Free cash flow $21.81 million; Cash balance end of period $136.86 million; Net debt roughly $31.13 million (net debt = total debt).
- Capital allocation: Share repurchases of $10.65 million in the quarter; no borrowings under bank line; investment in IT/product development remains elevated (Q1 IT/product development spend $17.2 million combined).
- Commentary on tariffs: Tariff expense of about $6 million in the quarter remains a notable uncertainty going forward.