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

Posted by George Bondi on Aug 12th, 2026

Data I/O (NASDAQ:DAIO – Get Free Report) announced its quarterly earnings data on Wednesday. The electronics maker reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.07), Zacks reports. The firm had revenue of $5.15 million during the quarter. Data I/O had a negative return on equity of 54.33% and a negative net margin of 41.85%.

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 2.7%

Shares of NASDAQ DAIO traded up $0.08 during trading hours on Wednesday, hitting $3.00. 113,754 shares of the stock were exchanged, compared to its average volume of 51,978. Data I/O has a 12 month low of $2.16 and a 12 month high of $4.49. The firm has a fifty day moving average price of $3.48 and a 200-day moving average price of $3.06. The company has a market cap of $28.17 million, a PE ratio of -3.57 and a beta of 1.30.

Institutional Trading of Data I/O

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Kovack Advisors Inc. grew its stake in Data I/O by 2.2% during the 4th quarter. Kovack Advisors Inc. now owns 268,906 shares of the electronics maker’s stock worth $871,000 after buying an additional 5,675 shares during the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Data I/O by 24.5% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 43,472 shares of the electronics maker’s stock worth $138,000 after acquiring an additional 8,555 shares in the last quarter. NewEdge Advisors LLC grew its stake in shares of Data I/O by 45.4% during the second quarter. NewEdge Advisors LLC now owns 22,402 shares of the electronics maker’s stock worth $69,000 after acquiring an additional 7,000 shares during the last quarter. Finally, DRW Securities LLC purchased a new stake in shares of Data I/O during the fourth quarter worth about $37,000. Hedge funds and other institutional investors own 36.95% of the company’s stock.

Analyst Ratings Changes

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

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Data I/O Company Profile

(Get Free Report)

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.