Daktronics, Inc. (DAKT): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that builds the massive video boards lighting up stadiums, and you need to know if their business engine is running smoothly heading into late 2025. Honestly, dissecting the core model of a complex manufacturer like Daktronics, Inc. can be tough, but the numbers tell a defintely clear story: with $756.5 million in net sales for fiscal 2025 and a healthy $342 million backlog, their value proposition-best-in-class displays backed by U.S. manufacturing-is clearly resonating with Live Events and Commercial segments. So, let's break down exactly how they turn those big projects and service contracts into revenue, mapping their key partnerships and cost structure against that impressive order book below.

Daktronics, Inc. (DAKT) - Canvas Business Model: Key Partnerships

You're looking at how Daktronics, Inc. structures its external relationships to drive sales and manage costs as of late 2025. These partnerships are critical for market reach and navigating global supply chain pressures, especially with ongoing tariff uncertainty.

Distribution and Sales Channel Partners

Daktronics relies heavily on channel partners to distribute and install its display systems across various markets. This network includes specialized firms for different end-uses.

The company actively teams up with specific partner types:

• Sign Companies: Partners across the US and Canada interested in reselling, installing, and servicing LED signs and indoor digital networks for local, regional, or national entities.
• AV Integrators: Collaboration with integrators and consultants globally, deepening relationships in new customer areas, such as delivering displays to several military sites in fiscal 2024 to reach growing markets.

Here's a look at the financial context surrounding the business environment these partners operate within, based on recent performance:

Strategic Component Suppliers and Supply Chain Resilience

Managing the cost impact from tariffs is a key focus, which directly involves managing relationships with the suppliers providing necessary components. Daktronics pulls materials and components from more than 40 countries, making supplier flexibility paramount.

The company's strategy to mitigate tariff risk involves several actions with its supply base:

• Renegotiation of key supply agreements is a stated priority within the ongoing transformation.
• Maintaining supply chain flexibility on many components to allow for shifting sourcing.
• Evaluating options like shifting production to a lower-tariff international facility or reshoring production to the U.S., where the bulk of manufacturing-estimated at 80%-currently occurs across its three U.S. facilities.

This focus on supply chain scrubbing is part of a broader effort to drive down product costs.

Consulting Support for Business Transformation

The ongoing business and digital transformation, designed to enhance profitability and achieve targets like 10-12% operating margin, required external expertise. This effort was formalized through an internal Business Transformation Office (BTO) that included senior executives from a leading global strategic and operational consulting firm.

The financial impact of this external support is clearly itemized in the fiscal 2025 results:

• Total one-time expenses excluded from adjusted results for fiscal 2025 related to transformation consultant costs, governance, and management transition totaled $16.5 million.
• For the fourth quarter of fiscal 2025, consultant costs related to business and digital transformation amounted to $7.5 million when calculating adjusted operating income.

The transformation plan is structured to deliver the preponderance of its benefits in the second half of fiscal 2026 and fiscal 2027.

Professional Sports Leagues and Venue Operators

Major projects with professional leagues and venue operators remain a significant driver of large order intake for Daktronics, Inc. These partnerships secure high-value, large-scale contracts.

Recent wins highlight the continued importance of this segment:

• First quarter fiscal 2026 orders were anchored by three major sports wins: two MLB stadiums and an NHL venue.
• The Live Events segment saw orders jump 81.2% year-over-year in Q1 FY2026, totaling $92.3 million in orders.
• Specific recent venue partnerships include the Tennessee Titans' new Nissan Stadium and college installs for institutions like Auburn, Iowa State, Kansas, Nebraska, USC, Utah State, Buffalo and New Mexico ahead of the fall football season.

The Live Events business accounted for roughly 41% of the company's $818.1 million in sales during the record fiscal 2024 year.

Daktronics, Inc. (DAKT) - Canvas Business Model: Key Activities

You're looking at the core engine room of Daktronics, Inc. as of late 2025. These are the things the company absolutely must do well to keep the lights on and grow the business, grounded in their most recent full fiscal year results.

Manufacturing and assembly of large-format LED displays.

This is the fundamental activity. Daktronics, Inc. is the leading U.S.-based designer and manufacturer of these systems. Their fiscal year 2025 net sales totaled $756.5 million. The gross profit as a percentage of net sales for the full fiscal year 2025 was 25.8%. The company operates manufacturing facilities primarily in the U.S., with others in Ireland and Shanghai, with approximately 80% of revenue generated from U.S. facilities.

The operational focus includes efficiency improvements. For instance, in the first quarter of fiscal 2026, gross profit as a percentage of net sales rose to 29.7%, driven by efficiencies in manufacturing capacity and value-based pricing. Warranty as a percent of sales improved to 1.2% in Q1 FY2026 from 2.1% the prior year, which speaks directly to the quality coming off the assembly line.

Here's a quick look at the scale of their output commitment:

They build the hardware. That's step one.

Research and development for new technologies like micro-LED.

Daktronics, Inc. maintains an active R&D pipeline, focusing on the next generation of display technology. They are actively developing their Active Matrix MicroLED solution, which is viewed as the next frontier in display technology. At InfoComm 2025, the company unveiled a preview of its 0.4-millimeter and 0.7-millimeter MicroLED product, which is still in development. This contrasts with their existing Chip-on-Board (COB) technology, where they introduced a 2.5-millimeter pixel spacing option. The company has maintained product development investments at relatively high levels.

Executing the multi-year business and digital transformation plan.

The company embarked on this multi-year program during fiscal 2025 to achieve a higher profit growth trajectory. The investment in this program began to realize benefits in the last four months of the fiscal year. The full fiscal year 2025 operating expenses increased by 20.0% year-over-year, which included $4.4 million related to staffing investments supporting the digital transformation plans. Furthermore, the full-year adjusted operating income of $49.6 million excluded $16.5 million in costs related to business and digital transformation consultants. The transformation is designed to support long-term objectives:

• Targeted Sales Growth (CAGR through FY28): 7-10%
• Targeted Operating Margin (by FY28): 10-12%
• Targeted Return on Invested Capital (ROIC by FY28): 17-20%

The transformation includes initiatives like re-pricing products to their intrinsic value and improving inventory turnover.

Providing post-sale service, maintenance, and technical support.

While the core is manufacturing, service is a critical component for recurring engagement and customer satisfaction. A major milestone in this area was the rollout of the Service software system in the first quarter of fiscal 2026, aimed at streamlining processes and enabling self-service options. The focus on product quality and service is reflected in the warranty expense improvement, dropping from 2.1% of sales in Q1 FY2025 to 1.2% in Q1 FY2026.

Managing a $342 million year-end product backlog (FY2025).

This backlog represents committed future revenue. At the end of fiscal year 2025 (April 26, 2025), the product order backlog stood at $342 million, which was an 8% increase from the prior year. This robust figure was built on strong fourth-quarter orders, which increased 17% year-over-year. Managing this pipeline is key to converting future sales.

Finance: draft 13-week cash view by Friday.

Daktronics, Inc. (DAKT) - Canvas Business Model: Key Resources

You're looking at the core assets Daktronics, Inc. (DAKT) relies on to execute its business strategy as of late 2025. These aren't just line items on a balance sheet; they are the tangible and intangible foundations of their market position.

The physical infrastructure supporting production is spread globally, which helps manage supply chain risks, a defintely smart move given recent global logistics challenges. This footprint allows Daktronics, Inc. to serve international markets more directly.

• U.S. manufacturing presence, including facilities in Brookings, South Dakota, Sioux Falls, and Redwood Falls, Minnesota.
• International manufacturing and operational subsidiaries in Shanghai, China, and Ennistymon, Ireland, supporting global market reach.

Control over the user experience is paramount in display technology, so their proprietary software is a critical resource. The Venus Control Suite is the primary tool here; it's a cloud-hosted, subscription-based platform that lets operators manage content across their entire network of displays.

Here's a quick look at the software's structure, which drives recurring revenue potential:

Also, the software offers specialized options like Live, tailored for live event customers, showing a direct link between this resource and a key market segment.

Brand recognition is a powerful, though less quantifiable, asset, especially within the U.S. live events space. This is evidenced by the strong demand signals we see; for instance, in the first quarter of fiscal 2026, order volume growth was noted in the Live Events business unit, which speaks volumes about their established reputation in that sector.

Finally, the balance sheet strength provides operational flexibility and a buffer against unexpected headwinds. You want to see solid liquidity, and Daktronics, Inc. delivered that at the close of the last fiscal year.

The financial resources available at the end of Fiscal Year 2025 were substantial:

• Cash, restricted cash, and marketable securities totaled $127.5 million as of April 26, 2025.
• The reported year-end cash balance was $128 million.
• Operating Cash Flow for FY2025 surged by 55% to reach $98 million.
• Total current and long-term debt outstanding as of that April date was only $12.0 million.

This liquidity position, coupled with an available credit facility of $32.9 million, means Daktronics, Inc. has significant dry powder to fund operations or strategic initiatives. Finance: draft 13-week cash view by Friday.

Daktronics, Inc. (DAKT) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Daktronics, Inc., especially as they push through their business transformation. It really boils down to quality, customization, and long-term reliability, which you can see reflected in their order book.

Best-in-class dynamic video displays and integrated control systems.

Daktronics, Inc. positions itself as the leading U.S.-based designer and manufacturer of these systems for customers globally. The market demand for their offering is clearly visible in their order intake, even with revenue fluctuations. For instance, in the first quarter of fiscal 2026, which ended August 2, 2025, product and service orders hit $238.5 million, a significant jump of 35.4% year-over-year from the first quarter of fiscal 2025. This robust demand translated into a product order backlog of $360.3 million as of August 2, 2025. This backlog is up from $341.6 million at the end of the prior fiscal year 2025.

U.S.-based design and manufacturing for quality and reliability.

The company emphasizes its roots as a U.S.-based designer and manufacturer. This domestic presence is a key part of their value proposition, particularly when dealing with supply chain uncertainty and tariffs. Management noted that one measure to mitigate tariff impacts includes potentially reshoring production to the U.S. This focus on domestic quality underpins their reliability promise, which is critical for high-stakes installations.

Tiered product strategy aligning pricing with value delivered.

Daktronics, Inc. advanced a tiered product offering strategy as part of its business transformation, making sure pricing matches what the customer actually gets in terms of features and performance. This focus on value-based selling and product mix is showing up in the gross margin. For the first quarter of fiscal 2026, the gross profit as a percentage of net sales rose to 29.7%, a clear improvement from the 26.4% seen in the first quarter of fiscal 2025. This margin expansion reflects the success of value-based pricing and better alignment of manufacturing capacity to demand.

Comprehensive service and support for long-term system operation.

The value proposition extends well beyond the initial sale, covering the entire lifecycle of the display system. You see this commitment in the combined order metrics. For the first quarter of fiscal 2026, total product and service orders were $238.5 million. Furthermore, the company has been working on upgrades to service and systems maintenance solutions, aiming to enhance customer interaction and support quality.

Custom, large-scale video solutions for major venues.

For the biggest projects, the value is in the custom engineering and scale. You have to look at the wins to see this in action. For example, during the third quarter of fiscal 2025, which ended January 25, 2025, the company secured a major NFL stadium order, demonstrating their capability to handle large, complex, and high-profile installations.

Here's a quick look at how the financials from the end of the last fiscal year and the start of the current one frame this value delivery:

The company is actively working toward its three-year financial objectives, which include achieving 7-10% sales growth and a 10-12% operating margin. Finance: review the Q1 FY2026 order-to-revenue conversion rate by next Tuesday.

Daktronics, Inc. (DAKT) - Canvas Business Model: Customer Relationships

Daktronics, Inc. (DAKT) structures its customer engagement across direct engagement for complex needs and partner enablement for broader market reach.

Dedicated direct sales team for large, complex projects.

The focus on large, complex projects is supported by the overall financial scale of the business, with Fiscal Year 2025 sales reaching $756.5 million. The operational performance, which directly impacts customer confidence, resulted in a full-year operating profit of $33 million for Fiscal Year 2025.

Channel partner management for standard product sales.

Daktronics, Inc. (DAKT) actively manages its channel relationships, evidenced by the annual Sales Expo event. The Sales Expo 2025 welcomed 51 professionals from 28 sign companies. This event is designed to arm partners with the knowledge to sell digital signage effectively. The company's commitment to these partners is a core part of its strategy for standard product sales.

Self-service options enabled by the new Service software system.

A significant step in enabling self-service and streamlining processes was the rollout of the Service software system in the first quarter of fiscal 2026. This system is intended to enhance customer experiences through better service management and the enablement of self-service options. The company's year-end product order backlog stood at $341.6 million as of April 26, 2025, indicating a substantial base of future service opportunities.

Long-term service contracts for recurring revenue.

Recurring revenue potential is reflected in the balance sheet figures related to future obligations. Long-term contract liabilities were reported at $18,421 thousand at the end of Fiscal Year 2025 (April 26, 2025). This figure increased slightly to $18,497 thousand by August 2, 2025. These figures represent the financial commitment from customers for future services or contract fulfillment.

The relationship between sales execution and financial outcomes for the period ending April 26, 2025, can be viewed through these key metrics:

Building strong, lasting relationships with key customers.

The emphasis on partnership is a recurring theme in Daktronics, Inc. (DAKT) engagement strategy.

• Sales Expo 2025 featured 29 first-time attendees among the sign company professionals.
• The event included small group sessions for attendees to discuss business strategies and share experiences.
• The company is focused on supporting sign company partners through innovation, education, and collaboration.
• The three-year forward objectives include achieving 7-10% Sales Growth.

Daktronics, Inc. (DAKT) - Canvas Business Model: Channels

You're looking at how Daktronics, Inc. gets its products and services into the hands of customers, and it's a mix of direct engagement and partner networks. This is crucial because the channel strategy directly impacts how quickly they can convert that order backlog into recognized revenue.

The company structures its sales around distinct domestic business units-Live Events, Commercial, High School Park and Recreation, and Transportation-plus one International business unit. This segmentation is key to deploying the dedicated direct sales force for major projects within the Live Events and Transportation verticals. For fiscal 2025, the year-end product order backlog stood at $342 million, up from $316.9 million at the end of fiscal 2024, showing that order capture is a primary focus for these direct teams.

The reach extends significantly through a network of sign company resellers and AV integrators. Daktronics, Inc. has been actively working to deepen relationships with AV integrators to penetrate growing markets, as noted in their fiscal 2024 review. This channel is also a focus for expanding digital sales channels.

For standard product sales, the company utilizes an e-commerce platform. The outline suggests this channel contributed approximately ~15% of fiscal 2024 revenue, targeting smaller, more standardized transactions outside the large, custom projects handled by the direct sales force.

The International business unit maintains its own dedicated sales team to manage global markets. While fiscal 2025 net sales of $756.5 million represented a 7.5 percent decrease from the record $818.1 million in fiscal 2024, the International unit contributed to order growth in fiscal 2024, indicating its ongoing importance to the channel mix.

The effectiveness of these channels is reflected in the cash generation, which is a direct result of successful fulfillment. Operating cash flow for fiscal 2025 reached $97.7 million, a substantial increase over the $63.2 million generated in fiscal 2024.

Here's a quick look at the financial performance tied to the business structure, which informs resource allocation across these channels:

The company is also focused on improving sales effectiveness through digital transformation initiatives, which includes automating quoting and sales processes. This suggests an ongoing effort to enhance the efficiency of all channels, from direct sales to partner-driven sales.

You can see the different ways Daktronics, Inc. touches the market:

• Direct sales engagement for major Live Events and Transportation projects.
• Leveraging a partner network of sign company resellers and AV integrators.
• Using an e-commerce platform for standard product sales.
• A dedicated sales team managing the International business unit.

Finance: draft 13-week cash view by Friday.

Daktronics, Inc. (DAKT) - Canvas Business Model: Customer Segments

You're looking at the core groups Daktronics, Inc. sells its dynamic video communication displays and control systems to. These segments drive the business, and looking at the numbers from late 2025, you can see where the momentum is building.

The company operates across five main areas: Live Events, Commercial businesses, High School Park and Recreation (HSPR), Transportation, and International customers. For the full fiscal year 2025 (FY2025), which ended April 26, 2025, total net sales were $756.48 million, representing a decrease of 7.53% compared to the prior year. However, order momentum was strong heading into the next fiscal year, with the year-end product backlog reaching $342 million, an 8% rise. Overall orders for FY2025 increased 5.6% compared to fiscal 2024.

Live Events

This segment, which historically contributes the majority of revenue, saw project timing impact its sales in the most recent full fiscal year. Despite this, demand remains a key driver, as evidenced by winning three major league stadium projects in the first quarter of fiscal 2026.

Commercial Businesses

This segment, covering retail, casinos, and quick-serve restaurants, showed significant strength in the most recent reporting period. For the first quarter of fiscal 2026, Commercial segment revenue surged by 35.0% year-over-year.

High School Park and Recreation (HSPR) Market

The HSPR market is a reliable source of business, often providing consistent order flow. In the first quarter of fiscal 2026, this segment experienced revenue growth of 23.6% compared to the prior year, and the company noted a record quarter for orders in this market.

Transportation

The Transportation segment, which includes airports and Intelligent Transportation Systems, experienced lower sales in the first quarter of fiscal 2026 compared to the prior year, reflecting the timing of project completions and customer deliveries.

International Customers

The International segment is clearly a growth engine, showing strong order momentum. In the first quarter of fiscal 2026, International net sales increased by 33.6% compared to the prior year, with notable contributions coming from the Middle East and Australia.

You can see the segment performance trends in the table below, using the latest available quarterly revenue comparison:

The overall financial health at the end of FY2025 supported these segments, with Operating Cash Flow surging by 55% to $98 million, and the company ending the fiscal year with $128 million in cash on hand.

• FY2025 Full Year Net Sales: $756.48 million.
• FY2025 Full Year Operating Profit: $33 million (Adjusted: $50 million).
• Year-End Product Backlog (April 26, 2025): $342 million.
• Q1 FY2026 Total Orders: $238.5 million, a 35.4% increase year-over-year.

Daktronics, Inc. (DAKT) - Canvas Business Model: Cost Structure

You're looking at the core expenses for Daktronics, Inc. as of late 2025, based on the recently closed fiscal year 2025 results. Here's the quick math on where the money went to produce and sell their displays.

Manufacturing costs, including raw materials and labor.

The cost directly tied to making the products-your Cost of Revenue-was substantial in fiscal year 2025. With total revenue at $756.5 million, the total cost of revenue, which covers raw materials and direct labor, amounted to $561.0 million. This resulted in a full-year gross profit of $195.5 million. Consequently, the gross profit as a percentage of net sales for the full fiscal year 2025 settled at 25.8%, a decrease from 27.2% in fiscal 2024.

Operating expenses, including investment in digital transformation.

Total operating expenses for the full fiscal year 2025 reached $162.4 million, marking a 20.0% increase from the $135.3 million reported in fiscal 2024. A portion of this increase, specifically $4.4 million, was attributed to investments in staffing resources aimed at supporting information technology and digital transformation plans. Furthermore, the company incurred significant one-time consultant costs related to these strategic initiatives; for instance, $16.5 million in total consultant costs were excluded from the reported operating income to arrive at the adjusted figure for the full year. The third quarter alone saw $2.1 million in consultant expenses for transformation initiatives, and the second quarter included $3.3 million for the same purpose.

Costs associated with navigating the uncertain tariff environment.

Daktronics, Inc. manufactures the bulk of its products, estimated at 80%, in its three U.S. facilities, with additional work done in China and Ireland. However, its supply chain sources components from over 40 countries, placing many inputs in the tariff target zone. Reciprocal tariffs announced on April 2, 2025, added to the cost uncertainty, though the ultimate financial impact could not be reliably determined at the time of reporting. The company is actively deploying several strategies to mitigate potential cost increases:

• Selective price adjustments and escalation clauses built into contracts.
• Leveraging supply chain flexibility on many components.
• Evaluating shifting international manufacturing to stateside facilities.
• Early purchasing of assets for future projects to negate some tariff impact.

R&D investment in new display technologies like narrow pixel pitch.

Specific R&D investment figures for fiscal year 2025 are not explicitly itemized separately from other operating expenses in the primary reports. However, the focus on future growth is evident in subsequent periods; for example, operating expenses in the first quarter of fiscal 2026 increased due to investments supporting product efficiency initiatives. The company's stated three-year forward objective includes achieving a 17-20% Return on Invested Capital (ROIC), which necessitates continued investment in technology like narrow pixel pitch displays.

Selling, General, and Administrative (SG&A) expenses.

The Selling, General, and Administrative expenses are aggregated within the total Operating Expenses figure of $162.4 million for fiscal year 2025. A separate, granular breakdown isolating SG&A from other operating line items like R&D or general overhead is not provided in the publicly released summary data. The total operating income for the year was $33.1 million, which adjusted to $49.6 million after excluding $16.5 million in specific non-recurring consultant and governance costs.

Here are the key cost and expense metrics for Daktronics, Inc. for the fiscal year ended April 26, 2025 (amounts in millions USD):

Finance: draft 13-week cash view by Friday.

Daktronics, Inc. (DAKT) - Canvas Business Model: Revenue Streams

You're looking at how Daktronics, Inc. actually brings in the money, and the numbers for the most recent full fiscal year give a clear picture of their scale. For the fiscal year ended April 26, 2025, the company reported total net sales of $756.5 million. That's the revenue actually recognized in the books for the year. However, looking at the top of the funnel, the total product and service orders booked during FY2025 reached $781.3 million, which was actually an increase of 5.6% from the $740.2 million in orders booked in fiscal year 2024. This difference between orders and sales reflects revenue that will be recognized in future periods, which is important for forecasting their near-term top line.

Here's a quick look at those key top-line figures for the fiscal year 2025:

The revenue streams themselves are fundamentally tied to their core business of manufacturing and installing large-format video displays and scoreboards. While the exact split between the specific categories you mentioned isn't always itemized in the headline releases, we know the revenue is generated across these distinct channels. The backlog at year-end, which represents future revenue, stood at $341.6 million as of April 26, 2025.

The streams that feed into those totals are:

• Product sales from large-format video displays and scoreboards.
• Service and maintenance contracts for installed systems.
• Recurring revenue from Software as a Service (SaaS) solutions, such as Venus Live.

To be fair, the vast majority of the $781.3 million in orders is driven by the initial product sales, but the service and software components are critical for long-term customer stickiness and margin stability. The gross profit as a percentage of net sales for the full year 2025 was 25.8 percent, which shows the margin profile across this entire revenue mix.

You should keep an eye on the order backlog growth, which was $341.6 million at the end of FY2025, up 8% from the prior year-end backlog of $316.9 million. That backlog is the clearest indicator of future revenue from those product and service contracts.

Finance: draft 13-week cash view by Friday.