Slide 1: Fiscal Third Quarter 2026 Results Call
DYNAMIC MESSAGE SIGNS Fiscal Third Quarter 2026 Results Call March 4, 2026 NASDAQ: DAKT CONTROL SYSTEMS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements: In addition to statements of historical fact, this news release 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: FQ3 2026 Business Review
FQ3 2026 BUSINESS REVIEW • Solid revenue and operating income growth • Efficient fulfilment of large number of sports installations for key sports customers − Notable installs nearing completion include Seattle Mariners and several other MLB stadiums. Early phase of Installation starting Tennessee T
Slide 4: Market Verticals – FQ3 Review
MARKET VERTICALS – FQ3 REVIEW Live Events International • Installing 5 Major League baseball projects for • Won two sizable orders from repeat stadium start of season customers in Spain and Australia as they • Won another Major League Baseball project expand their systems in their venues • FY26 Q3 O
Slide 5: FY 2026 Q3 Key Product Developments
FY 2026 Q3 KEY PRODUCT DEVELOPMENTS New Product Offerings • Q3 Milestones − Next gen preconfigured indoor video (LPN series) released for High School Arenas − Next gen digital audio façade for standard outdoor audio cabinets • FY26 Q4 Planned Releases LPN series preconfigured indoor video − Next gen
Slide 6: Transformation: Momentum
Transformation: Momentum Driving profitable growth • Value-based pricing changes – service parts and certain products – on track • Prioritizing high-growth international geographies and segments – on track • Enhancing our subscription software to support expected SaaS growth – on track • Overhauling
Slide 7: FQ3 FY2026 Financial Highlights
FQ3 FY2026 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) FQ3 2025 FQ2 2026 FQ3 2026 Orders $186.9 $199.1 $201.1 Net sales $149.5 $229.3 $181.9 Gross margin 24.6% 27.0% 24.0% Operating income $(3.6) $21.6 $1.9 Operating margin (2.4%) 9.4% 1.1% Adjusted operating income $1.2 $4.0 Net inc
Slide 8: Segment Revenue
SEGMENT REVENUE FQ3 FQ2 FQ3 FQ3 2026 2025 % of total 2026 % of total 2026 % of total Gross Profit Margin Live Events $46.1 31% $81.5 36% $74.9 41% 20% High School Parks and 29.3 20% 46.0 20% 31.7 17% 30% Recreation Commercial 38.0 25% 50.7 22% 43.5 24% 28% Transportation 18.8 13% 21.3 9% 15.3 8% 29%
Slide 9: Segment Product Backlog
SEGMENT PRODUCT BACKLOG Estimated remaining FQ3 2025 FQ2 2026 FQ3 2026 Backlog after Q4 Live Events $129.1 $165.7 $168.2 $94.9 High School Parks and Recreation 43.3 54.3 62.7 29.9 Commercial 44.1 40.2 37.5 13.0 Transportation 40.1 42.2 58.9 37.9 International 16.6 18.2 15.0 2.7 Total Backlog $273.2
Slide 10: Balance Sheet Strength
BALANCE SHEET STRENGTH 5 Quarters of Inventory vs Revenue 115 100% 110 78% 49% 56% 113 63% 46% 105 109 50% Millions 100 106 104 • Efficient Working Capital Management 101 95 0% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Inventory Inventory Sales Ratio Share Repurchases 19.29 30 16.83 16.43 16.06 $20 13
Slide 11: Smooth Transition and Handover
SMOOTH TRANSITION AND HANDOVER
Slide 12: Gemba Walks with Associates, Customers and in Field
GEMBA WALKS w/ ASSOCIATES, CUSTOMERS and in FIELD
Slide 13: Summary and Outlook
SUMMARY AND OUTLOOK Entering FQ4 in strong position with order growth, multi-quarter backlog and solid YTD Finish Strong results Year Focus for remainder of year: continued efficient revenue conversion, expense management and productivity, continued cash generation Further strengthening leader
Slide 14: Appendix
APPENDIX Archbishop Spalding High School Severn, Maryland
Slide 15: Net Sales and Orders by Business Unit
NET SALES AND ORDERS BY BUSINESS UNIT ($ 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 16: 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 17: Reconciliation of Adjusted Operating Income
RECONCILIATION OF ADJUSTED OPERATING INCOME (1) ($ in thousands, unaudited) (1) Adjusted operating 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 pr
Slide 18: 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 19: Reconciliation of Long-Term Debt
RECONCILIATION OF LONG-TERM DEBT ($ in thousands, unaudited)