Data I/O (DAIO)
NASDAQ:DAIO
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Data I/O
(NASDAQ:DAIO)
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Rating:55Neutral
Price Target:
$4.00
▲(55.64% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by deteriorating financial performance and ongoing cash burn, with additional valuation risk given losses (negative P/E). Offsetting factors include strong technical momentum and moderately constructive earnings-call outlook (cost reductions and targeted return to positive operating cash flow), while the financing event supports liquidity but brings dilution/overhang risk.
Positive Factors
Low leverage / balance sheet strength
A low debt load and available cash provide durable financial flexibility to fund transformation, absorb ongoing cash burn, and pursue disciplined M&A or R&D. This reduces near-term solvency risk and gives management room to execute multi‑quarter recovery plans without immediate refinancing pressure.
Negative Factors
Declining revenue and bookings
Sustained top-line declines indicate weakening end-market demand and lost production volume. If bookings and sales do not stabilize, capacity under-utilization will persist, limiting gross absorption benefits and making multi‑quarter margin recovery and cash flow improvement harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / balance sheet strength
A low debt load and available cash provide durable financial flexibility to fund transformation, absorb ongoing cash burn, and pursue disciplined M&A or R&D. This reduces near-term solvency risk and gives management room to execute multi‑quarter recovery plans without immediate refinancing pressure.
Read all positive factors
Data I/O (DAIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.48M
Dividend YieldN/A
Average Volume (3M)28.89K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-14.98%
EPS Growth-185.63%
CountryUS
Employees88
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.84
Shares Outstanding9,394,422
10 Day Avg. Volume25,124
30 Day Avg. Volume28,890
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)2.15
Price to Sales (P/S)1.38
P/FCF Ratio-10.62
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda-4.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$21.60M
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...
How the Company Makes Money
Data I/O makes money primarily by selling its hardware programming/provisioning platforms and the associated software and accessories used by electronics manufacturers and their supply chains. Key revenue streams include: (1) system sales (capital...
Data I/O Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: near-term financial results were weak with notable declines in quarterly revenue, bookings, gross margin compression, larger net losses and reduced cash balances. Offsetting these negatives are substantial strategic initiatives — accelerated transformation, broad AI adoption driving productivity and cost savings, a new security partnership to expand addressable markets, a healthy recurring revenue mix (58%), no debt, inventory reductions, and an active, disciplined M&A pipeline. Management outlined clear remediation actions (cost savings target, margin recovery via absorption, and organic growth focus tied to Edge AI demand) and expects positive operating cash flow by end of 2026. Overall, the company faces material short-term financial headwinds but has several credible strategic levers to drive recovery over the next 12–18 months.Positive Updates
Transformation Progress Ahead of Schedule
Management reports the company is approximately one year ahead of its multi-year transformation plan, having executed six strategic priorities (modernizing go-to-market, platform investment, customer engagement, operations/IT optimization, cloud migration, and company-wide AI deployment). Leadership changes and executive/board refresh completed to support execution.
Negative Updates
Quarterly Revenue Decline
Q4 net sales were $4.0M, down from $5.2M in Q4 2024 — a decline of ~23.1% year-over-year; full year 2025 net sales were $21.5M versus $21.8M in 2024 (-~1.4%).
Read all updates
Q4-2025 Updates
Positive
Negative
Transformation Progress Ahead of Schedule
Management reports the company is approximately one year ahead of its multi-year transformation plan, having executed six strategic priorities (modernizing go-to-market, platform investment, customer engagement, operations/IT optimization, cloud migration, and company-wide AI deployment). Leadership changes and executive/board refresh completed to support execution.
Read all positive updates
Company Guidance
Management is targeting organic revenue growth in 2026 versus 2025 (FY2025 net sales $21.5M; full‑year bookings $18.6M, down 17% vs $22.5M in 2024) and said higher revenue should improve absorption of labor/overhead and drive gross‑margin recovery (FY2025 gross margin 49.3% vs 53.3% in 2024; Q4‑2025 GM 43% vs Q4‑2024 52.2%); they are planning at least $1.0M of additional run‑rate cost reductions beginning early 2026, expect AI to boost company‑wide efficiency and software attach/recurring revenue (consumables/adapters/services = 58% of 2025 revenue; capital equipment = 42%; deferred revenue ≈ $1.5M), and have “line of sight” to positive operating cash flow by the end of 2026 (CEO also referenced returning to cash‑flow neutral/positive during the year); balance‑sheet context includes Q4 cash $7.9M (vs $10.3M a year prior), net working capital $12.3M (vs $16.1M), inventory down ≈ $0.5M, backlog $2.3M (vs $2.7M), no debt, and the guidance excludes inorganic M&A activity the company is pursuing.Data I/O Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
63
Positive
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.57M | 21.50M | 21.77M | 28.06M | 24.22M | 25.84M |
| Gross Profit | 9.02M | 10.60M | 11.61M | 16.19M | 13.21M | 14.72M |
| EBITDA | -7.32M | -4.50M | -2.14M | 1.29M | 123.00K | 224.00K |
| Net Income | -8.02M | -5.24M | -3.09M | 486.00K | -1.12M | -555.00K |
Balance Sheet | ||||||
| Total Assets | 17.62M | 20.18M | 24.97M | 27.40M | 27.16M | 29.06M |
| Cash, Cash Equivalents and Short-Term Investments | 5.71M | 7.90M | 10.33M | 12.34M | 11.51M | 14.19M |
| Total Debt | 1.93M | 2.82M | 2.80M | 1.57M | 2.30M | 2.88M |
| Total Liabilities | 7.16M | 6.41M | 7.34M | 7.08M | 8.06M | 9.20M |
| Stockholders Equity | 10.46M | 13.76M | 17.63M | 20.32M | 19.11M | 19.85M |
Cash Flow | ||||||
| Free Cash Flow | -5.07M | -2.79M | -1.46M | 1.23M | -2.13M | 787.00K |
| Operating Cash Flow | -4.56M | -2.23M | -995.00K | 2.43M | -1.05M | 1.41M |
| Investing Cash Flow | -510.00K | -558.00K | -467.00K | -1.20M | -1.08M | -623.00K |
| Financing Cash Flow | -122.00K | -107.00K | -232.00K | -356.00K | -165.00K | -423.00K |
Data I/O Technical Analysis
Positive
2.57
Price Trends
2.97
Positive
2.91
Positive
3.00
Positive
Market Momentum
0.26
Positive
65.11
Neutral
39.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Positive. The current price of 2.57 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 2.97, and below the 200-day MA of 3.00, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 39.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Data I/O Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $27.20M | 105.91 | 2.80% | ― | 11.89% | -31.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $46.39M | 44.52 | 3.03% | ― | 0.81% | ― | |
55 Neutral | $37.48M | -4.72 | -55.84% | ― | -14.98% | -185.63% | |
55 Neutral | $90.78M | 611.64 | 0.17% | ― | 13.08% | -55.05% | |
49 Neutral | $132.96M | -4.47 | -40.55% | ― | 699.33% | 90.06% |
* Technology Sector Average
DAIO
Data I/O
4.03
1.23
43.93%
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WATT
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FCUV
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0.83
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-97.69%
Data I/O Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Data I/O Announces $9 Million Structured Private Placement
Positive
May 19, 2026
On May 15, 2026, Data I/O Corporation disclosed that it had entered into a Securities Purchase Agreement with the Lytton-Kambara Foundation and the Alice W. Lytton Family LLC for a $9 million private placement. The transaction includes 869,840 com...
Business Operations and StrategyShareholder Meetings
Data I/O Revises Bylaws and Reschedules 2026 Meeting
Neutral
May 5, 2026
On April 29, 2026, Data I/O Corporation’s Board amended the company’s bylaws to remove the requirement that its annual shareholder meeting be held specifically in May, giving the company greater flexibility in scheduling these key gove...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.