Slide 1: Fiscal First Quarter 2026 Results Call
DYNAMIC MESSAGE SIGNS Fiscal First Quarter 2026 Results Call September 10, 2025 NASDAQ: DAKT CONTROL SYSTEMS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements: In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts
Slide 3: FQ1 2026 Business Review
FQ1 2026 BUSINESS REVIEW • Great start to the year - continued order growth, execution and transformation progress • Efficient revenue generation against strong year-ago comparison − 3rd consecutive quarter of sequential revenue growth − Continued momentum in orders – Q1 Orders +35% YoY, driven by L
Slide 4: Market Verticals – FQ1 Review
MARKET VERTICALS – FQ1 REVIEW Live Events • Won three Major League Sports Projects - International two MLB and one NHL Arena project • Record Q1 orders for Government customers • Strong Professional Sports demand • Q1 Advertising orders were highest in over 3 • Q1 Orders +81% YoY; +10% sequentially
Slide 5: FY 2026 Q1 Key Product Developments
FY 2026 Q1 KEY PRODUCT DEVELOPMENTS New Product Offerings • Q1 Milestones − Indoor Narrow Pixel Pitch – added models to our International product offering in Q1 − Indoor Fascia Ribbon display released – enhance and simplify product − Outdoor Fascia Ribbon display update released Indoor Narrow Pixel
Slide 6: Transformation: Momentum from Launched Initiatives, Next Months Focus – FQ1 Update
Transformation: Momentum from Launched Initiatives, Next 6 Months Focus – FQ1 UPDATE Driving profitable growth • Value-based pricing changes – service parts and certain products – on track • Launch of SaaS product trials to target customers – on track • Prioritizing high-growth international geograp
Slide 7: Digital Transformation FY26 – Year Plan
DIGITAL TRANSFORMATION FY26 – 28 3 YEAR PLAN FQ1 Accomplishments • Service Software System Release Quoting Platform Modernization DEMAND • Corporate Performance CREATE Management (CPM) – Subscription Management Order Capture Streamlining progress along technical process FULFILLMENT & Slated for F202
Slide 8: FQ1 FY2026 Financial Highlights
FQ1 FY2026 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) FQ1 2025 FQ4 2025 FQ1 2026 FQ1 2026 includes an additional week Orders $176.2 $240.7 $238.5 Net sales +26.9% Net sales 226.1 $172.6 $219.0 sequentially Gross margin 26.4% 25.0% 29.7% Product design and development 9.6 10.0 10.7 Q
Slide 9: FQ1: Balance Sheet and Investment
FQ1: Balance Sheet and Investment Cash balance at QE = $137 million vs $127 million at prior YE Operating cash flow = $26M, +34% Inventory efficiency - Inventory/revenue ratio of 49.2% vs 60.4% last year Share repurchase = $10.7 million @ $16.43 VWAP IT + Product Development Spend = $17.2 million Ca
Slide 10: FY26-28 Transformation Plan
FY26-28 TRANSFORMATION PLAN Top quartile ROIC = Revenue Growth > Addressable Market: 17-20% 7-10% CAGR Operating Margins + • Value-based selling Growth + • Revenue mix diversification Capital Allocation Higher Operating Margin: • New products 10-12% Timing: • Structural cost reduction across F2028 P
Slide 11: Outlook
Outlook Large and growing backlog – Capturing demand and driving revenue tailwind Efficient revenue conversion and successful inventory, supply chain, manufacturing and cost management Strong operating cash flow Tariff uncertainty - Agile and ready to pull levers to mitigate impact Remain
Slide 12: Appendix
APPENDIX Brownsburg High School Brownsburg Indiana
Slide 13: Net Sales and Orders by Business Unit
NET SALES AND ORDERS BY BUSINESS UNIT ($ in thousands) (1) Orders and backlog metrics are non-GAAP measures, 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 b
Slide 14: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW (1) ($ in thousands, unaudited) (1) In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined under accounting principles generally accepted in the United States of A
Slide 15: Reconciliation of Adjusted Net Income
RECONCILIATION OF ADJUSTED NET INCOME (1) ($ in thousands, unaudited) (1) Adjusted net income. We disclose adjusted net income as a non-GAAP financial measurement in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting thi
Slide 16: Reconciliation of Long-Term Debt
RECONCILIATION OF LONG-TERM DEBT ($ in thousands, unaudited)