Data I/O AI Stock Analysis
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Data I/O (DAIO) AI Stock Analysis
Data I/O
(NASDAQ:DAIO)
The score is held down primarily by weak financial performance, driven by deep TTM losses and significant cash burn, despite a relatively low-leverage balance sheet. Technicals also remain soft with the stock below key longer-term moving averages and negative MACD. Positives from the earnings call and corporate events (sequential revenue growth, margin improvement, near-breakeven adjusted EBITDA, and a completed acquisition with financing) help, but are not yet sufficient to outweigh the recent deterioration in profitability and cash generation.
Data I/O (DAIO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $25.78M
- Dividend Yield
- ―
- Average Volume (3M)
- 26.96K
- Price to Earnings (P/E)
- -2.7
- Beta (1Y)
- 0.84
- Revenue Growth
- -21.81%
- EPS Growth
- -225.39%
- Country
- US
- Employees
- 94
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
Data I/O Business Overview & Revenue Model
Company Description
Data I/O Corporation specializes in developing, manufacturing, and distributing sophisticated systems and services for programming and securely managing data for electronic devices. These solutions serve electronics manufacturers across the United St...
Data I/O Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reaffirmed its 2026 framework but gave no specific Q3 revenue guidance; instead they pointed to Q2 results and near‑term targets that underpin their outlook: Q2 net sales were $5.2M (midpoint of prior $5.1–$5.4M guidance), up 59% sequentially from $3.3M, with $4.9M bookings (vs $4.2M Q1), backlog $2.1M (down from $2.6M), deferred revenue $1.1M, and gross margin improving to 57% (from 49.5% in Q1); operating expenses were $3.7M including $527K of one‑time items (ex‑one‑time ~$3.1M), adjusted EBITDA was essentially breakeven at +$39K (vs -$1.75M Q1), operating loss $724K, net loss $1.6M or $0.17/share (driven by a $873K noncash debenture charge), cash was $10.8M (up from $5.7M) and the company has no debt after the July 8 conversion; forward targets include sustaining operating costs below a $22M annual run rate (achieved in April), an implied breakeven range of roughly $5.25M–$5.5M, July preliminary cash‑flow neutrality, PaaS proposals by end‑Q3 with a goal to book 1–3 contracts in Q4, and two acquisitions (exclusivity extended to Aug. 31) expected to materially expand recurring revenue and nearly double the annual revenue run rate upon close.
Data I/O Financial Statement Overview
Summary
Overall fundamentals are pressured by a sharp profitability and cash-flow downturn. The income statement shows meaningful deterioration (TTM revenue down ~4.3% and net margin around ~-50%), and cash flow is weak with negative operating cash flow (~-$7.2M) and negative free cash flow (~-$7.6M). The key offset is a relatively conservative balance sheet with low leverage (debt-to-equity ~0.09), providing some financial flexibility despite ongoing losses.
Income Statement
28NegativeBalance Sheet
62PositiveCash Flow
22Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.26M | 21.50M | 21.77M | 28.06M | 24.22M | 25.84M |
| Gross Profit | 9.09M | 10.60M | 11.61M | 16.19M | 13.21M | 14.72M |
| EBITDA | -8.13M | -4.50M | -2.14M | 1.29M | 123.00K | 224.00K |
| Net Income | -10.25M | -5.24M | -3.09M | 486.00K | -1.12M | -555.00K |
Balance Sheet | ||||||
| Total Assets | 23.37M | 20.18M | 24.97M | 27.40M | 27.16M | 29.06M |
| Cash, Cash Equivalents and Short-Term Investments | 9.40M | 7.90M | 10.33M | 12.34M | 11.51M | 14.19M |
| Total Debt | 884.00K | 2.82M | 2.80M | 1.57M | 2.30M | 2.88M |
| Total Liabilities | 7.21M | 6.41M | 7.34M | 7.08M | 8.06M | 9.20M |
| Stockholders Equity | 16.16M | 13.76M | 17.63M | 20.32M | 19.11M | 19.85M |
Cash Flow | ||||||
| Free Cash Flow | -7.25M | -2.79M | -1.46M | 1.23M | -2.13M | 787.00K |
| Operating Cash Flow | -6.82M | -2.23M | -995.00K | 2.43M | -1.05M | 1.41M |
| Investing Cash Flow | -427.00K | -558.00K | -467.00K | -1.20M | -1.08M | -623.00K |
| Financing Cash Flow | 8.21M | -107.00K | -232.00K | -356.00K | -165.00K | -423.00K |
Data I/O Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Neutral. The current price of 2.48 is above the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.70, and below the 200-day MA of 2.96, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 60.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAIO.
Data I/O Risk Analysis
Data I/O disclosed 2 risk factors in its most recent earnings report. Data I/O reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksData I/O Peers Comparison
Overall Rating
NSYS61.7Neutral
WATT53Neutral- DAIO47Neutral
LGL45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NSYS | 62Neutral | $30.51M | 29.12 | 2.99% | ― | 6.00% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| WATT | 53Neutral | $48.86M | -3.13 | -29.36% | ― | 430.52% | 90.43% |
| DAIO | 47Neutral | $25.26M | -2.67 | -68.36% | ― | -21.81% | -225.39% |
| LGL | 45Neutral | $83.25M | -345.00 | -0.53% | ― | 26.35% | -130.90% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DAIO | Data I/o | 2.48 | -0.24 | -8.82% | |
| LGL | LGL Group | 6.90 | 0.70 | 11.27% | |
| NSYS | Nortech | 10.71 | 3.44 | 47.32% | |
| WATT | Energous Corp. | 8.99 | 2.14 | 31.24% | |
| FCUV | Focus Universal | 3.05 | -120.15 | -97.52% |
Data I/O Corporate Events
Data I/O Expands Through V-TEK Acquisition and New Financing
PositiveData I/O reported third-quarter 2026 revenue of $4.9 million and bookings of $5.0 million for the period ended September 30, 2026. Gross margin was 58.0%, adjusted EBITDA was a loss of $71,000, and net loss was $2.7 million, or $0.27 per share; cash...
Data I/O Secures New $7.5 Million Credit Facility
PositiveData I/O Corporation operates in the electronics and semiconductor programming industry, providing device programming systems and related solutions, with a focus on serving customers that require specialized handling, programming and inventory manage...
Data I/O Completes Transformational Acquisition of V-TEK, A&J
PositiveIn October 2026, Data I/O completed the acquisition of V-TEK, Inc. and A&J Programming, Inc., semiconductor handling automation and programming service providers based in Minnesota, in a transaction valued at about $23 million, paid in $20 million ca...
Data I/O announces new convertible debenture financing round
PositiveOn October 19, 2026, Data I/O announced it had entered into a securities purchase agreement for a private placement of approximately $13.25 million in convertible subordinated debentures and common shares, with closing expected within days subject to...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 12, 2026