Data I/O (NASDAQ:DAIO) Announces Earnings Results, Misses Estimates By $0.07 EPS

Data I/O (NASDAQ:DAIO) released its quarterly earnings results on Wednesday. The electronics maker reported ($0.17) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.07), Zacks reports. Data I/O had a negative return on equity of 54.33% and a negative net margin of 41.85%.The company had revenue of $5.15 million for the quarter.

Here are the key takeaways from Data I/O’s conference call:

• Q2 revenue rose 59% sequentially to $5.2 million, while gross margin improved to 57% from approximately 50% in the prior-year quarter. Management attributed the gains to stronger capital-equipment demand, improved product mix, value-based pricing, and operational efficiencies.
• The company reached its goal of reducing annualized costs below $22 million, bringing its estimated break-even revenue level to approximately $5.25 million–$5.5 million. Adjusted EBITDA was essentially break-even, and preliminary July results were near cash-flow neutrality.
• Data I/O ended the quarter with $10.8 million in cash and no debt after the convertible debentures converted to preferred shares in July. Management reaffirmed its 2026 framework for organic growth, increased recurring and services revenue, and improved margins.
• Two strategic transactions are progressing, including a transformational acquisition expected to nearly double the company’s annual revenue run rate and the planned purchase of IAR’s embedded-security assets. The security platform could add licensing, support, token-based, and provisioning-as-a-service revenue while addressing emerging European cybersecurity mandates.
• Management did not provide specific Q3 revenue guidance, although it said the quarter was off to a strong start and reaffirmed its broader 2026 outlook. The transformational acquisition remains subject to due diligence and definitive documentation, with exclusivity extended through August 31.

Data I/O Stock Up 2.2%

Data I/O stock traded up $0.07 during trading hours on Thursday, hitting $3.07. The stock had a trading volume of 23,812 shares, compared to its average volume of 51,812. Data I/O has a fifty-two week low of $2.16 and a fifty-two week high of $4.49. The company has a market cap of $28.80 million, a PE ratio of -3.65 and a beta of 1.30. The company has a 50-day moving average of $3.46 and a two-hundred day moving average of $3.06.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DAIO. Zacks Research raised Data I/O from a “strong sell” rating to a “hold” rating in a report on Friday, May 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Data I/O in a report on Friday, July 17th. Finally, LADENBURG THALM/SH SH upgraded shares of Data I/O to a “strong-buy” rating in a report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $5.11.

Institutional Trading of Data I/O

A number of institutional investors and hedge funds have recently modified their holdings of DAIO. NewEdge Advisors LLC increased its position in shares of Data I/O by 45.4% in the 2nd quarter. NewEdge Advisors LLC now owns 22,402 shares of the electronics maker’s stock valued at $69,000 after buying an additional 7,000 shares in the last quarter. Kovack Advisors Inc. grew its position in shares of Data I/O by 2.2% in the 4th quarter. Kovack Advisors Inc. now owns 268,906 shares of the electronics maker’s stock valued at $871,000 after purchasing an additional 5,675 shares during the period. Steward Partners Investment Advisory LLC increased its stake in Data I/O by 24.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 43,472 shares of the electronics maker’s stock worth $138,000 after purchasing an additional 8,555 shares in the last quarter. Finally, DRW Securities LLC acquired a new stake in Data I/O during the 4th quarter worth approximately $37,000. 36.95% of the stock is owned by institutional investors.

Data I/O Company Profile

Data I/O Corporation is a provider of device programming solutions for semiconductor and microcontroller manufacturers, test houses, contract manufacturers and electronics design engineers. The company’s product portfolio includes universal and site-specific programmers, automated programming systems and software tools that enable high-volume production, development and field programming of non-volatile memories and microcontrollers. Data I/O’s solutions are designed to support a wide range of programmable devices, including Flash, EPROM, EEPROM, PLDs, FPGAs and automotive-grade microcontrollers.

The company’s flagship technologies include its high-speed FlashCORE III programming engines and the SB-OS-A automated handling system, which together streamline production workflows by providing scalable, multi-site programming capabilities.