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what it is
Daktronics builds the scoreboards, giant video walls, and transit signs that run live information in public places.
how it gets paid
Last year Daktronics made $756M in revenue. Commercial was the main engine at $249.5M, or 33% of sales.
why growth slowed
Revenue fell 7.5% last year. The latest quarter showed $0.75 EPS and 27.1% gross margin.
what just happened
Latest quarter revenue near ~$190M (≈¼ of $756M FY)—not $630M as one quarter. Profit still looks uneven year to year.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
trailing P/E distorted — latest FY printed a $0.21 loss; do not read headline multiples like a normal value stock
12.7% return on capital — nothing to write home about
-$0.21 fy2024 eps est
xvary composite: 55/100 — below average
What they do
Daktronics builds the scoreboards, giant video walls, and transit signs that run live information in public places.
Daktronics sells the whole stack: the screen, the controller, the timing, the sound, and the install. That matters when your stadium or transit hub wants one system to show real-time video without glitches. The company has 2,422 employees across 5 business units, which gives you reach from high schools to major venues.
How they make money
$756M
annual revenue · their business grew -7.5% last year
Commercial
$249.5M
Live Events
$204.1M
High School Park and Recreation
$128.5M
Transportation
$98.3M
International
$75.6M
The products that matter
digital billboard and signage systems
Commercial
$249.5M · 33% of revenue
Segment table: commercial $249.5M (~33% of sales)—the FY mix shrank with the overall -7.5% revenue decline; do not use alternate $/pct blocks that skip the table.
largest segment
stadium and arena display systems
Live Events
$204.1M · 27% of revenue
Live events $204.1M (~27%)—large venue projects, still cyclical; align any growth claims to the filing, not conflicting card math.
large venues
scoreboards for schools and community venues
High School Park & Recreation
$128.5M · 17% of revenue
High school / park / recreation $128.5M (~17%)—meaningful, but part of the same FY decline shown in the segment rows.
demand check
Key numbers
$14M
long-term debt
Long-term debt is just $14M, or 1% of capital. Plain English: borrowing is light. So what: debt is less likely to be the thing that breaks your thesis.
7.0%
operating margin
Operating margin means profit after running the business. Plain English: Daktronics keeps 7 cents from each sales dollar before interest and taxes. So what: small mistakes still hurt.
12.7%
return on capital
Return on capital means profit versus the money tied up in the business. Plain English: each dollar invested earned 12.7 cents. So what: decent, but not enough to excuse weak execution.
$756M
annual revenue
That is the scale of the business after a 7.5% decline. Plain English: this is still a real operator, not a concept stock. So what: revenue size is solid, but growth is not automatic.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $14M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for DAKT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarterly revenue near ~$190M (≈¼ of $756M FY)—not $630M as one quarter. Profit still looks uneven.
The latest quarter showed $0.75 EPS and 27.1% gross margin, yet the full-year picture stayed messy. Annual revenue was $756M, down 7.5%, and fiscal 2025 ended at a $0.21 per-share loss after fiscal 2024 delivered $0.74.
$190M
revenue
$0.75
eps
27.1%
gross margin
the number that mattered
The number that mattered was 27.1% gross margin, because this is still a project business where margin decides whether revenue turns into real profit.
source: company earnings report, 2026
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What could go wrong
The top risk here is margin repair that never arrives. Daktronics already has demand. The problem is turning that demand into better profit.
med
Margin execution failure
Q3 gross margin was flat at 24%, and operating margin is still 7.0% against a 10–12% target. That is not a rounding error. That is the thesis gap.
If margins stay stuck here, the stock stops being a turnaround on improving economics and becomes just a low-predictability project business on 17.64x forward earnings.
med
Backlog quality risk
Product backlog rose 25% to $201M and new orders reached $201.1M. That's encouraging. It still does not guarantee timely conversion, clean installation, or attractive margins.
If backlog slips, gets delayed, or converts at weak margins, revenue can look fine while EPS disappoints again. You just saw that movie.
med
Lumpy end-market demand
Commercial and Live Events account for $567M of the $757M total. Those are real businesses, but they depend on customers approving projects, budgets, and venue spending.
When a few large projects move, the quarter moves with them. That helps explain the 20/100 earnings predictability score and the stock's wide $11–$28 trading range.
A business with only $14M of long-term debt can survive a lot. That does not mean the stock deserves a better multiple if operating margin stays at 7.0% instead of moving toward 10–12%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q4 FY2026 earnings report
Expected on June 24, 2026. You want to see whether revenue growth finally carries margin improvement with it.
metric
Operating margin versus the 10–12% target
7.0% is the current score. If that number does not move, the rest of the story matters less than it looks.
trend
Backlog conversion quality
Backlog is $201M after a 25% increase. The key question is not just whether it ships, but whether it ships at better margins.
risk
Execution under the new CEO
Ramesh Jayaraman took the top job in Feb 2026. Your read on the stock should improve only if the strategy starts showing up in profit, not just presentations.
Analyst rankings
earnings predictability
20 / 100
A 20 / 100 score means estimates have been hard to hit. In human-speak, analysts do not trust this business to deliver smooth quarters.
risk rank
3
Risk rank 3 says the balance sheet is not the main problem. The issue is execution volatility, not financial distress.
source: institutional data
Institutional activity
institutional ownership data for DAKT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$20
current price
n/a
target midpoint · n/a from current
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