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• Think of them as the Samsung or LG of giant LED displays for sports stadiums, digital billboards, and transportation signs.
• They are the Kone or Otis of massive public visual systems, building and maintaining the giant LED displays for stadiums, billboards, and transportation.

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• LED Video Displays: Large-format digital screens used for dynamic content, advertising, and information in various indoor and outdoor settings.
• Scoreboards and Timing Systems: Electronic displays and integrated systems specifically designed for sports venues to show scores, time, statistics, and game information.
• Digital Message Centers: Programmable electronic signs utilized for communication in commercial, transportation, and municipal environments.
• Audio Systems: Integrated sound solutions often accompanying their display systems to provide a complete audio-visual experience for venues.
• Control Systems and Software: Proprietary hardware and software platforms that enable the management, operation, and content delivery for their display and audio products.

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Daktronics (DAKT) primarily sells its products and services to other businesses and organizations (B2B and B2G), rather than directly to individual consumers. The company specializes in designing, manufacturing, and selling large electronic displays, scoreboards, and related control systems for a wide variety of applications.

While Daktronics serves a highly diverse customer base and, according to its recent SEC filings, no single customer accounted for 10% or more of its net sales in recent fiscal years, its major customers are typically found across several key sectors. The company commonly supplies equipment to:

• Out-of-Home Advertising Companies: These companies purchase and operate digital billboards and large-format commercial displays used for advertising. Daktronics is a key supplier in this market. Examples of public companies in this sector that are significant buyers of such display equipment include:
  • Lamar Advertising Company (Symbol: LAMR)
  • Outfront Media Inc. (Symbol: OUT)
  • Clear Channel Outdoor Holdings, Inc. (Symbol: CCO)
• Professional Sports Teams and Organizations: Daktronics is a leading provider of video displays and scoreboards for stadiums and arenas across various professional sports leagues globally (e.g., NFL, NBA, MLB, NHL, NASCAR).
• Colleges and Universities: The company supplies athletic facilities at educational institutions with scoreboards, video display systems, and other solutions for sporting events and campus communications.
• High Schools and School Districts: Similar to colleges, high school athletic departments and school districts are frequent customers for scoreboard and display solutions for their sports facilities.
• Houses of Worship: Churches and other religious organizations utilize Daktronics displays for worship services, announcements, and events.
• Transportation Hubs: Airports, train stations, and other transportation facilities often use Daktronics displays for real-time information, advertising, and wayfinding.
• Municipalities and Government Entities: For public information displays, event centers, convention centers, and other civic applications.

It is important to note that while the public companies listed under "Out-of-Home Advertising Companies" are prime examples of the types of major corporate customers Daktronics serves within that specific industry, Daktronics' broad customer base means it partners with thousands of entities across the mentioned sectors, none of which individually dominate its revenue stream.

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Brad Wiemann, Interim President & CEO

Mr. Wiemann began his career at Daktronics working in manufacturing and customer service during his university years. After earning his degree, he worked for Rockwell International, where he developed flight control simulators. He returned to Daktronics in 1993, where he led product development for indoor products, and later transitioned into market and business development for commercial, financial, and outdoor billboard sectors. Mr. Wiemann has been instrumental in standardizing products to streamline engineering and manufacturing for outdoor products and in developing Daktronics’ sales and service channels. He previously served as Executive Vice President, overseeing business units such as Out of Home, On Premise, and High Schools & Parks and Recreation.

Howard Atkins, Acting Chief Financial Officer (CFO) & Chief Transformation Officer

Mr. Atkins is a seasoned financial executive who currently manages a consulting company focused on improving operating margins and developing growth strategies for businesses. He previously served as Chief Financial Officer of Wells Fargo, where he played a key role in navigating the bank through the 2008 financial crisis and in the acquisition of Wachovia Bank. Prior to Wells Fargo, Mr. Atkins was the CFO of New York Life Insurance Company, assisting in the identification and acquisition of non-U.S. insurance organizations. His experience also includes serving as CFO of Midlantic Bank, where he oversaw a financial restructuring, and as Corporate Treasurer of Chase Manhattan Bank. He has also served on the boards of Occidental Petroleum and Ingram Micro.

Sheila Anderson, Chief Data and Analytics Officer

Ms. Anderson joined Daktronics in 2002 (as a project accountant in 2003) after working in public accounting and consulting in Minneapolis. Her prior experience includes a senior accountant role at Dakota Minnesota and Eastern Railroad and accounting and auditing functions at two public accounting firms. She became Corporate Controller in 2006 and served as Chief Financial Officer from September 2012 until March 2025. Ms. Anderson assumed the role of Chief Data and Analytics Officer in October 2024 to focus on the company's digital transformation. She holds a Bachelor of Science in Accounting and a Master's in Business Administration and became a Certified Public Accountant in 1996.

Carla Gatzke, Corporate Secretary, Vice President, Human Resources

Ms. Gatzke serves as Corporate Secretary and Vice President of Human Resources for Daktronics. Her role involves overseeing the company's human resources functions and ensuring corporate compliance.

Jeremy Johnson, Vice President, Commercial and High School, Parks and Recreation

Mr. Johnson is the Vice President of the Commercial and High School, Parks and Recreation business units at Daktronics. In this role, he is responsible for the sales and development within these market segments.

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The key risks to Daktronics' (DAKT) business operations and financial performance are primarily associated with global economic factors, intense market competition, and operational cost management.

1. Supply Chain Disruptions, Geopolitical Developments, and Tariffs: Daktronics faces significant risks from disruptions in global supply chains, geopolitical tensions, and the imposition of tariffs. These factors can impact the availability and cost of raw materials and components, which in turn affects the company's operational costs and gross margins. For instance, recent U.S. government tariffs on electronic components, aluminum, steel, and copper have contributed to increased operational costs and can influence customer purchasing behavior. Geopolitical events, military actions, and changes in trade policies are frequently cited as potential disruptors to the company's operations and financial condition.
2. Competitive Market Dynamics and Fluctuations in Customer Demand: The digital display systems market in which Daktronics operates is highly competitive, characterized by continuous innovation and the entry of new competitors. The company's financial performance is sensitive to global economic conditions, including recessions and inflation, which can directly affect customer demand and overall profitability. Fluctuations in order volumes, particularly in segments like Live Events, and a decrease in commercial segment orders due to fewer large projects, have been observed, highlighting the variability in customer demand. The timing and magnitude of future contracts and orders are also critical factors influencing its results.
3. Operational Costs and Margin Pressures: Daktronics consistently faces challenges related to managing its operational costs, which include the impact of tariffs and expenses associated with its business transformation initiatives. While the company is undertaking a comprehensive Business Transformation Plan aimed at enhancing customer outcomes and expanding operating margins, these initiatives involve significant investment and can initially contribute to margin pressures. The company's gross margins have experienced slight dips, reflecting the costs of these strategic investments and the volatility in order volumes. Daktronics' profitability has shown volatility, and maintaining or improving its relatively thin margins in a dynamic environment remains a persistent challenge.

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The rapid commoditization of LED display technology and the proliferation of low-cost global manufacturers, particularly from Asia, presents a clear emerging threat. This trend intensifies price competition and puts significant pressure on profit margins across various market segments for Daktronics, making it increasingly challenging to differentiate purely on hardware. While Daktronics emphasizes custom engineering, service, and integrated solutions, the increasing availability of reliable and high-resolution display components from a broader base of suppliers can erode its competitive advantage, necessitating continuous innovation and a strong focus on value-added services.

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Daktronics (NASDAQ: DAKT) participates in several addressable markets related to LED video displays, scoreboards, and digital billboards globally.

• The global LED display market is estimated at approximately USD 19.67 billion in 2025 and is projected to grow to USD 25.98 billion by 2030. Another estimate places the global LED display screen market at USD 9.39 billion in 2025, with a projection to reach USD 15.15 billion by 2035.
• For outdoor LED displays specifically, the global market size was USD 9.0 billion in 2024 and is expected to reach USD 16.5 billion by 2033.
• The global digital billboard advertising market was valued at approximately USD 39.14 billion in 2024 and is expected to expand to USD 69.29 billion by 2031. Other reports indicate the global digital billboards market size was USD 42.60 billion in 2024, projected to reach USD 112.52 billion by 2034, or USD 39.07 billion in 2023, predicted to grow to USD 109.45 billion by 2033.
• The broader global digital out-of-home (DOOH) advertising market, which includes billboards, was estimated at USD 20.74 billion in 2024 and is projected to reach USD 39.12 billion by 2030.
• In the sports segment, the global game scoreboard market was USD 2.07 billion in 2025 and is forecasted to reach USD 3.68 billion by 2034. The global LED digital scoreboard market was valued at US$566 million in 2024 and is projected to reach US$699 million by 2031. Another source indicates the global scoreboard display market was valued at $1.4 billion in 2024, forecasted to hit $2.8 billion by 2033. The global digital scoreboard market reached USD 9.8 billion in 2024. The global smart scoreboard market was valued at USD 335.2 million in 2024 and is projected to reach USD 493.8 million by 2033.
• The global LED video wall display market is estimated at US$6.85 billion in 2025 and is projected to grow to US$15 billion by 2032.

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Daktronics (DAKT) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Continued Strength in Live Events and High School Park and Recreation Segments: Daktronics has demonstrated significant order growth and strong demand within its Live Events and High School Park and Recreation business units. The company secured major league stadium projects and experienced record order growth in the high school and recreation sectors.
2. International Market Expansion: The company is actively focusing on expanding its presence in international markets, with particular attention to regions like the Middle East and Australia. Daktronics has opened new offices in APAC, Europe, and Latin America to capitalize on urbanization and sports tourism growth in emerging markets.
3. New Product Launches and Technological Innovation: Daktronics is investing in and introducing new products and advanced display technologies to enhance its offerings and penetrate new market segments. This includes the development of narrow pixel pitch and MicroLED displays for indoor applications, as well as energy-efficient urban billboards like the DXB-1000.
4. Digital Transformation and Enhanced Service Offerings: The company is undertaking digital transformation initiatives, which include advancing its control system solutions, enhancing live entertainment experiences, and expanding functionalities in scoring and timing software. These efforts are expected to generate new revenue streams from software and comprehensive service platforms.
5. Strategic Business Transformation and Operational Efficiencies: Daktronics' ongoing business transformation plan aims to accelerate profitable growth through initiatives like improved manufacturing efficiencies, a shift to a higher-margin product mix, and value-based pricing strategies. These operational improvements are designed to bolster the company's competitive positioning and ability to fulfill demand, indirectly supporting revenue growth.

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Share Repurchases

• Daktronics repurchased 2.1 million shares for a total of $29.5 million in fiscal year 2025.
• In the first quarter of fiscal year 2026, Daktronics repurchased 0.6 million shares for $10.7 million.
• The Board of Directors approved an additional $10 million for share repurchases in March 2025 and again in June 2025, with approximately $20 million remaining under the existing program at that time.

Share Issuance

• In fiscal year 2025, Daktronics issued 4.0 million shares to convert a $25.0 million 9.0 percent convertible note payable.
• Stockholders approved the "2025 Stock Incentive Plan" and additional shares for issuance under the plan in September 2025, replacing the 2020 Stock Incentive Plan.

Capital Expenditures

• Daktronics used $19.5 million for purchases of property and equipment in fiscal year 2025.
• Capital expenditures are expected to be less than $19 million for fiscal year 2024, with a focus on manufacturing equipment for new product production, expanded capacity, increased automation, and information infrastructure investments.
• For fiscal year 2026, the company plans to invest in general and administrative functions to support digital transformation initiatives, including modernizing field service automation systems and streamlining sales processes.