Executive Summary
Daktronics reported QQ2 2025 revenue of $208.33 million, up 4.5% year over year but down 7.85% versus the prior quarter. The company delivered a gross profit of $55.86 million with a gross margin of 26.8%, and operating income of $15.77 million (operating margin 7.57%), supported by a EBITDA of $20.67 million. Net income was $21.41 million for the quarter, translating to a net margin of 10.28% and diluted EPS of $0.22 (basic $0.25). A notable feature of the quarter was the contribution from non-operating income that helped lift the bottom line, as reflected in total other income of $9.41 million and a positive income before tax of $25.18 million.
Cash generation remained robust: net cash provided by operating activities was $43.34 million, with free cash flow of $37.95 million. Daktronics ended the period with $134.35 million in cash and cash equivalents and reported a net cash position (net debt negative) of about $(68.97) million. Balance sheet strength is evident: total assets of $551.89 million versus total liabilities of $290.96 million and stockholders’ equity of $260.93 million. Liquidity metrics remained healthy (current ratio 1.67, quick ratio 1.00, cash ratio 0.75), underscoring the ability to fund ongoing product development and selective capex without external financing.
Valuation appears conservative relative to earnings power: P/E around 7.1, P/B 2.32, price-to-sales 2.91, and EV/EBITDA implied around 25.96x. With cash generation strong and leverage modest, the company is positioned to pursue product line expansion (Commercial, Live Events, Transportation, International) and potential share repurchases if strategic opportunities arise. However, the QQ2 results also show a QoQ revenue pullback, signaling cyclicality tied to the live-events/OOH display cycles and industrial end-markets. Investors should monitor demand momentum across end-markets, backlog progression, and any margin-pressure from component costs as electronics pricing dynamics evolve.
Key Performance Indicators
QoQ: -30.58% | YoY:-18.86%
QoQ: 532.79% | YoY:888.73%
QoQ: 327.27% | YoY:431.91%
Key Insights
Revenue: $208.33M (+4.50% YoY; -7.85% QoQ). Gross profit: $55.86M; Gross margin: 26.81%. Operating income: $15.77M; Operating margin: 7.57%. EBITDA: $20.67M; EBITDA margin: 9.92%. Net income: $21.41M; Net margin: 10.28%. Diluted EPS: $0.22; Basic EPS: $0.25. Free cash flow: $37.95M. Operating cash flow: $43.34M. Cash balance: $134.35M. Net debt: $(68.97)M (net cash position). Balance sheet highlights: total assets $551.89M; total liabilities $290.96M; equity $260.93M. Liquidity: current ratio 1....
Financial Highlights
Revenue: $208.33M (+4.50% YoY; -7.85% QoQ). Gross profit: $55.86M; Gross margin: 26.81%. Operating income: $15.77M; Operating margin: 7.57%. EBITDA: $20.67M; EBITDA margin: 9.92%. Net income: $21.41M; Net margin: 10.28%. Diluted EPS: $0.22; Basic EPS: $0.25. Free cash flow: $37.95M. Operating cash flow: $43.34M. Cash balance: $134.35M. Net debt: $(68.97)M (net cash position). Balance sheet highlights: total assets $551.89M; total liabilities $290.96M; equity $260.93M. Liquidity: current ratio 1.67; quick ratio 0.997; cash ratio 0.746. Valuation (as of QQ2 2025): P/E 7.07; P/B 2.32; P/S 2.91; EV/EBITDA 25.96; FCF yield (approximate) ~28% of net income.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
208.33M |
4.50% |
-7.85% |
| Gross Profit |
55.86M |
3.07% |
-6.42% |
| Operating Income |
15.77M |
-18.86% |
-30.58% |
| Net Income |
21.41M |
888.73% |
532.79% |
| EPS |
0.25 |
431.91% |
327.27% |
Key Financial Ratios
operatingProfitMargin
7.57%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.82
Management Commentary
No earnings call transcript was provided in the data set. As a result, there are no management quotes to quote or sectioned insights from the QQ2 2025 call. The analysis below reflects the reported results and plausible discussion themes typically addressed in such calls, along with how the quarter’s figures inform strategy and the near-term outlook.
Themes to monitor in a typical Daktronics call would include:
- Strategy and product focus: progression of LED video displays, controlled by software ecosystems (e.g., Venus Control Suite) and how new product wins or backlog translations drive recurring services revenue.
- Operational execution: cost controls, mix of higher-margin product lines, and any normalization of input costs impacting gross margins.
- Market conditions: demand trajectory in Commercial, Live Events, Parks/Recreation, Transportation, and International, along with commentary on capex cycles from venues and advertisers.
- Backlog and bookings: visibility into project pipelines for large installations and potential margin implications from contract mix.
- Guidance and cadence: management’s statements on year-to-date demand, seasonality, and any guidance updates.
Because transcripts are not provided, quantitative cross-checks with call commentary are limited to the disclosed figures above and implied implications from the results.
Transcript quotes cannot be reproduced without the source document.
Forward Guidance
There is no explicit forward-looking guidance published in the provided data. In the absence of formal guidance, the QQ2 2025 results suggest a cautious growth trajectory tied to the live-events rebound and outdoor digital signage adoption. Key factors for the near-term outlook include:
- Demand momentum across end-markets: stabilization or acceleration in Commercial and Live Events would support revenue and margin resilience.
- Margin trajectory: gross margin around 26.8% with SG&A and R&D discipline; potential for margin expansion through product mix and scale if volume improves.
- Cash flow discipline: continued free cash flow generation supports debt reduction or selective capex for R&D and product enhancements.
- Backlog and project visibility: solid order backlog in marquee installations could provide revenue visibility into the next quarters.
- External headwinds: electronics pricing dynamics, supply chain volatility, or macro demand softness could temper upside.
Investors should monitor quarterly cadence for revenue progression, any changes in product mix that affect gross margins, and the evolution of the company’s international and strategic partnerships.