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EarningsQ2 2026 Earnings Report
DAIO Q2 2026 EPS Results
Actual EPS-$0.17
Consensus EPS-$0.04
Beat/MissMissed by -$0.13
One Year Ago EPS-$0.08
DAIO Q2 2026 Revenue Results
Actual Revenue$5.15M
Expected Revenue$5.20M
Beat/MissMissed by -$51.00K
YoY Revenue Growth-13.43%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeAfter Close
Conference CallWednesday, August 12, 2026
DAIO Upcoming Earnings
Data I/O's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DAIO Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a mix of strong operational progress (59% sequential revenue growth, gross margin expansion to 57%, adjusted EBITDA roughly breakeven, cash up to $10.8M, cost run-rate below $22M, and strategic M&A that could materially scale revenue) alongside near-term accounting and timing headwinds (a nonrecurring $873K convertible note-related charge that increased reported net loss, YoY revenue decline, reduced backlog/deferred revenue, one-time restructuring costs, and acquisition timing risk). On balance, the improvements in margins, sequential revenue, cash position, and strategic deals outweigh the transitory accounting and timing negatives, though execution and closing risks remain.Company Guidance
Revenue and Guidance Execution
Net sales of $5.2M in Q2, achieved at the midpoint of guidance ($5.1M-$5.4M). Revenue was up 59% sequentially from $3.3M in Q1.
Material Gross Margin Improvement
Gross margin expanded to 57% in Q2, up from 49.5% in Q1 and 49.8% in Q2 last year (improvement of ~7.5 percentage points vs Q1).
Adjusted EBITDA Turnaround
Adjusted EBITDA (excluding equity compensation and one-time items) was roughly breakeven at +$39K in Q2 versus -$1.75M in Q1, reflecting operational progress.
Stronger Cash Position
Cash balance increased to $10.8M at quarter-end from $5.7M on March 31, driven by $8.3M net proceeds from a June private placement (cash up ~89%).
Cost Reduction Milestone Achieved
Reached target of reducing annualized cost of running the business to under $22M (achieved by April), which management estimates implies breakeven revenue of roughly $5.25M-$5.5M.
Bookings, Mix Shift and Faster Fulfillment
Bookings were $4.9M (up from $4.2M in Q1). Consumables/adapters/software comprised 55% of revenue vs platform 45% (shift from 81/19 in Q1). Backlog fell due to faster order-to-ship performance.
Customer Wins and Pipeline Diversification
Signed 6 new logos year-to-date (3 automotive, 2 robotics, 1 global communications) and management reports an expanding sales funnel and strong active pipeline entering Q3.
Progress on Strategic Transactions and New Revenue Streams
Transformational acquisition diligence tracking to plan (exclusivity extended to Aug 31) and intent to acquire IAR security/IT assets to create an end-to-end security provisioning solution with four new revenue streams (software platform, annual support, licensing fees, token charges) and PaaS opportunities.
Preliminary July Operating Improvement
Preliminary July results approached cash flow neutrality for the month, indicating immediate operational leverage from cost reductions and mix improvements.
Debt Converted; No Debt on Balance Sheet Post-Quarter
Convertible debentures recorded at quarter-end converted to Series B preferred on July 8; company reported having no debt outstanding after conversion.
DAIO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed