Data I/O Reports Fourth Quarter 2025 Results
Rhea-AI Summary
Data I/O (NASDAQ: DAIO) reported Q4 2025 net sales of $4.0M and full-year 2025 net sales of $21.5M. Bookings for 2025 were $18.6M (-17% YoY) and backlog was $2.3M at year-end. Gross margin fell to 49.3% for 2025; net loss was $5.0M (-$0.53/share). Cash was $7.9M at year-end. Management outlined a 2026 organic-growth framework, highlighted AI-enabled product progress, a new IAR collaboration for secure provisioning, and ongoing expense reductions targeting an additional $1.0M annual run rate.
Positive
- Recurring revenue mix: 58% consumables and services
- Operating expense reductions of 7% since Nov 2024 with $1.0M additional run-rate target
- Completed AI-assisted production code delivery and IAR collaboration for security provisioning
Negative
- Bookings down 17% YoY to $18.6M in 2025
- Q4 2025 net sales down 23% YoY to $4.0M
- Full-year gross margin declined by 400 bps to 49.3% in 2025
- Net loss widened to $5.0M in 2025 and cash fell to $7.9M
Key Figures
Market Reality Check
Peers on Argus
DAIO was up 2.49% while peers were mixed: SELX -3.39%, REFR -1.77%, MTEK +7.47%, CPSH +3.71%. Momentum scanner shows some peers down sharply, suggesting DAIO’s move is more company-specific than a uniform sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Neutral | -2.9% | Flat sales with ongoing losses and investments in programming platform and IT. |
| Jul 24 | Q2 2025 earnings | Neutral | -2.9% | Sales growth but continued losses and lower gross margin versus prior year. |
| Apr 24 | Q1 2025 earnings | Positive | +9.0% | Sequential sales growth, improved loss, solid cash and working capital position. |
| Feb 27 | Q4 2024 earnings | Negative | +1.4% | Challenging quarter and year with sharp sales declines and widened losses. |
| Oct 24 | Q3 2024 earnings | Negative | +4.5% | Lower sales and higher losses despite stable margins and strong cash balance. |
Earnings releases have produced modest single-digit moves with mixed alignment between fundamentals and price reactions.
Over the last five earnings cycles from Oct 2024 through Oct 2025, Data I/O showed declining or flat sales, recurring net losses, but consistently strong cash and no debt. Management changes in late 2024 and continued investments in programming platforms and AI were recurring themes. Price reactions ranged from a 9% gain on Q1 2025 results to small declines on Q2 and Q3 2025. Today’s Q4 2025 release fits into this period of transformation amid pressured margins and losses.
Historical Comparison
Past earnings releases moved DAIO by an average of 1.83%. Today’s 2.49% reaction is slightly larger but broadly consistent with prior earnings volatility.
Earnings since late 2024 show a transition under new leadership: sales have fluctuated around the low-to-mid single-digit millions per quarter, losses persisted, and cash remained solid with no debt while the company invested in programming platforms and AI initiatives.
Regulatory & Risk Context
An effective S-3 shelf filed on 2026-01-09 allows Data I/O to issue up to $20,000,000 of mixed securities over time, providing flexibility to raise capital for general corporate and strategic purposes.
Market Pulse Summary
This announcement details Q4 and full-year 2025 performance, showing flat-to-down net sales, lower gross margins, and wider losses amid a strategic transformation and AI initiatives. Management highlights cost reductions, entry into services, and goals for organic growth and cash flow improvement in 2026. Investors may watch upcoming quarters for evidence of margin recovery, revenue growth from new offerings, and any capital raises under the $20,000,000 shelf registration.
Key Terms
adjusted ebitda financial
AI-generated analysis. Not financial advice.
A Year of Strategic Progress for New Programming Innovations and Expanding Addressable Market
AI-enabled Transformation Leading to Programming Acceleration and Operational Efficiencies/Expense Reductions;
2026 Business Framework Initiated – Data I/O Returns to Growth
REDMOND, Wash., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO), the leading global provider of data programming and security provisioning solutions for microcontrollers, security ICs and memory devices, today announced financial results for the fourth quarter ended December 31, 2025.
2025 and Recent Highlights
- Strategic transformation approximately one year ahead of schedule
- Investments in core product roadmap for programming and automation
- Focused on expanding revenues with entry into Programming Services and Programming at Test
- IAR collaboration for secure provisioning
- Edge AI build-outs presenting new revenue opportunities
- First AI production code released
- Operating expense reductions of
7% , from$26.7 million to$24.8 million since November 2024, with plans of an additional$1 million annual run rate within first half of 2026
2026 Business Framework
Following significant progress with the Company’s strategic transformation in 2025, Data I/O is providing a business framework for 2026 which is solely based on organic growth. Inorganic initiatives may be incremental to the framework provided herein.
- Organic revenue growth for 2026 over 2025
- Pipeline for entry into Programming Services and Programming at Test markets
- Revenue increases drive labor and overhead absorption yielding improved gross margins
- Expense reductions of an additional
$1 million run rate beyond the benefit of previously implemented structural and operational cost improvements - AI deeply engrained across all functional departments
- Line of sight to near term positive operating cash flow
Management Comments
Commenting on the financial results for the year ended December 31, 2025, William Wentworth, President and CEO of Data I/O Corporation, said, “Our mission throughout 2025 was to transform Data I/O for long-term growth. As we enter 2026, our plan is proving to be about one year ahead of schedule and poised to deliver revenue growth this year. We have increasing confidence in the demand environment, with very encouraging customer activity in the fourth quarter and into 2026.
“The shift Data I/O is making towards servicing the overall data provisioning market represents a significantly larger opportunity than the market we serve today. Leveraging our platform will allow us to reach into services and provisioning at test.
“As part of our expanding suite of programming technologies, yesterday we announced a collaboration with IAR to combine their leading security expertise with Data I/O’s provisioning expertise to create a frictionless solution reducing the complexity that exist with today’s security provisioning process. We believe this combination creates the most comprehensive device support model for security provisioning in the industry.
“The progress we made in 2025 would not have been possible without the strengthening of our leadership team. Over the past 18 months, we have made deliberate changes to the Board and executive suite to ensure we have the right team in place. Based on our rapid progress, we are confident that 2026 will be a year of growth for Data I/O that leads to positive operating cash flow.
“The Company’s transformation was designed around executing against six priorities: modernizing our go-to-market strategy, investing in our core technology platform, strengthening our customer relationships, optimizing our business operations and IT infrastructure, improving our operational processes, and deploying AI across the Company. Executing this transformation has not been without difficulty. The broader semiconductor market has been in a multi-year cyclical downturn, driven primarily by softness in automotive electronics, historically, Data I/O’s largest end market. Revenue was essentially flat and we incurred losses in 2025 as a result. Nevertheless, we remain committed to our investment plan and optimizing the organization overall. We believe these initiatives position Data I/O to deliver sustainable growth and create long-term shareholder value.
“New and existing customers are confirming that Edge AI is driving a major technology build-out. Areas such as autonomous transportation, robotics, industrial automation, and connected devices require more intelligent and secure edge deployments which are expected to drive a multi-year growth cycle.
“Beyond driving growth opportunities for Data I/O’s solutions, we have deployed AI broadly across the Company. Our teams are applying AI tools to software development, strategy, market research, finance, marketing, and engineering functions to optimize business processes. We recently achieved a meaningful milestone: our software team used AI-assisted development to deliver production-ready code end to end for the first time.
“Early evidence of customer alignment and interest validates our strategy and reinforces our confidence that the convergence of our platform investments, expanding market opportunities, strategic transformation, and improved operational capabilities positions Data I/O for growth in 2026 and beyond.”
Fourth Quarter 2025 Financial Results
Net sales in the fourth quarter 2025 were
Fourth quarter 2025 bookings were
For 2025, consumable adapters and services represented
Gross margin as a percentage of sales was
Operating expenses for the fourth quarter 2025 were
Net loss in the fourth quarter 2025 was (
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which excludes equity compensation, was (
The Company’s balance sheet and liquidity remained solid with cash at the end of the fourth quarter 2025 at
Conference Call Information
A conference call discussing financial results for the fourth quarter ended December 31, 2025 will follow this release today at 2 p.m. Pacific Time/5 p.m. Eastern Time. To listen to the conference call, please dial 412-317-5788. A replay will be made available approximately one hour after the conclusion of the call. To access the replay, please dial 412-317-0088, access code 9383984. The conference call will also be simultaneously webcast over the Internet; visit the Webcasts and Presentations section of the Data I/O Corporation website at www.dataio.com to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately one hour after the conclusion of the conference call.
About Data I/O Corporation
Since 1972, Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, Internet-of-Things, medical, wireless, consumer electronics, industrial controls and other electronics devices. Today, our customers use Data I/O’s data provisioning solutions to manage device intellectual property from point of inception to deployment in the field. OEMs of any size can program and securely provision devices from early samples all the way to high volume production prior to shipping semiconductor devices to a manufacturing line. Data I/O enables customers to reliably, securely, and cost-effectively bring innovative new products to life. These solutions are backed by a portfolio of patents and a global network of Data I/O support and service professionals, ensuring success for our customers. Learn more at dataio.com/Company/Patents.
Learn more at dataio.com
Safe Harbor/Forward Looking Statement, Disclosure Information and Non-GAAP financial Measures
Statements in this news release concerning financial results, 2026 business framework, expectations for Edge AI, economic outlook, expected revenue, expected margins, expected savings, expected results, expected expenses, orders, deliveries, backlog and financial positions, semiconductor chip supplies, supply chain expectations, as well as any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements.
Forward-looking statement disclaimers also apply to the demand for the Company’s products and the impact from geopolitical conditions including any related international trade restrictions as well as the ongoing investigation of the August 2025 cybersecurity incident and the possibility that the Company’s containment and remediation efforts may be unsuccessful or becomes a challenging force in maintaining market share. Factors that may impact the Company’s operations and finances include uncertainties as to the ability to record revenues based upon the timing of product deliveries, market acceptance of Edge AI, shipping availability, installations and acceptance, accrual of expenses, coronavirus or other business interruptions, changes in economic conditions, part shortages, business disruptions and other risks including those described in the Company’s 10-K, 10-Q and other periodic filings with the Securities and Exchange Commission (SEC), press releases and other communications.
Data I/O may use its website (www.dataio.com) and investor relations page (www.dataio.com/Company/Investor-Relations), its X account (@DataIO_Company), and its LinkedIn page (linkedin.com/company/data-io) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors and other interested parties should monitor these sites, in addition to following Data I/O’s press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public presentations/webcasts.
Non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, excluding equity compensation, and other one-time investments/expenses should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s results and facilitate the comparison of results.
*References in this press release are made to non-GAAP (Generally Accepted Accounting Principles) financial measures, including profitability and operating/net income excluding one-time items, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA (AEBITDA), which excludes equity compensation, and AEBITDA excluding one-time items. These measures are provided as a supplement to GAAP results and offer additional insights into the Company's results and facilitate the comparison of results. Reconciliations are provided in the tables of this press release.
Contact:
| Investor Relations | |
| Darrow Associates, Inc. | |
| Jordan Darrow | |
| (512) 551-9296 | |
| jdarrow@darrowir.com |
- tables follow -
| DATA I/O CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Sales | ||||||||||||||||
| Cost of goods sold | 2,269 | 2,480 | 10,904 | 10,163 | ||||||||||||
| Gross margin | 1,714 | 2,705 | 10,596 | 11,606 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,645 | 1,701 | 6,531 | 6,240 | ||||||||||||
| Selling, general and administrative | 2,571 | 2,291 | 9,181 | 8,404 | ||||||||||||
| Total operating expenses | 4,216 | 3,992 | 15,712 | 14,644 | ||||||||||||
| Operating income (loss) | (2,502) | (1,287) | (5,116) | (3,038) | ||||||||||||
| Non-operating income (loss): | ||||||||||||||||
| Interest income | 23 | 49 | 130 | 273 | ||||||||||||
| Foreign currency transaction gain (loss) | (32) | 48 | (10) | 58 | ||||||||||||
| Total non-operating income (loss) | (9) | 97 | 120 | 331 | ||||||||||||
| Income (loss) before income taxes | (2,511) | (1,190) | (4,996) | (2,707) | ||||||||||||
| Income tax (expense) benefit | 11 | 8 | 10 | (386) | ||||||||||||
| Net income (loss) | ( | ( | ( | ( | ||||||||||||
| Basic earnings (loss) per share | ( | ( | ( | ( | ||||||||||||
| Diluted earnings (loss) per share | ( | ( | ( | ( | ||||||||||||
| Weighted-average basic shares | 9,392 | 9,236 | 9,329 | 9,150 | ||||||||||||
| Weighted-average diluted shares | 9,392 | 9,236 | 9,329 | 9,150 | ||||||||||||
| DATA I/O CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (UNAUDITED) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | |||||||
| Trade accounts receivable, net of allowance for | |||||||
| doubtful accounts of | 2,841 | 3,960 | |||||
| Inventories | 5,710 | 6,212 | |||||
| Other current assets | 799 | 659 | |||||
| TOTAL CURRENT ASSETS | 17,251 | 21,157 | |||||
| Property, plant and equipment – net | 807 | 1,001 | |||||
| Other assets | 2,118 | 2,812 | |||||
| TOTAL ASSETS | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | |||||||
| Accrued compensation | 958 | 1,517 | |||||
| Deferred revenue | 1,464 | 1,535 | |||||
| Other accrued liabilities | 1,328 | 1,161 | |||||
| Income taxes payable | 4 | 39 | |||||
| TOTAL CURRENT LIABILITIES | 4,981 | 5,072 | |||||
| Operating lease liabilities | 1,411 | 2,160 | |||||
| Long-term other payables | 20 | 112 | |||||
| COMMITMENTS | - | - | |||||
| STOCKHOLDERS’ EQUITY | |||||||
| Preferred stock - | |||||||
| Authorized, 5,000,000 shares, including | |||||||
| 200,000 shares of Series A Junior Participating | |||||||
| Issued and outstanding, none | - | - | |||||
| Common stock, at stated value - | |||||||
| Authorized, 30,000,000 shares | |||||||
| Issued and outstanding, 9,391,922 shares as of December 31, | |||||||
| 2025 and 9,236,040 shares as of December 31, 2024 | 24,062 | 23,475 | |||||
| Accumulated earnings (deficit) | (10,724) | (5,738) | |||||
| Accumulated other comprehensive income | 426 | (111) | |||||
| TOTAL STOCKHOLDERS’ EQUITY | 13,764 | 17,626 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| DATA I/O CORPORATION NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net Income (loss) | ( | ( | ( | ( | ||||||||||||
| Interest (income) | (23) | (49) | (130) | (273) | ||||||||||||
| Taxes | (12) | (8) | (10) | 386 | ||||||||||||
| Depreciation and amortization | 126 | 115 | 495 | 565 | ||||||||||||
| EBITDA earnings | ( | ( | ( | ( | ||||||||||||
| Equity compensation | 158 | 9 | 697 | 976 | ||||||||||||
| One-time expenses | 312 | --- | 1,377 | --- | ||||||||||||
| Adjusted EBITDA, excluding equity compensation and one-time expenses | ( | ( | ( | ( | ||||||||||||
FAQ
What were Data I/O's Q4 2025 sales and how did they compare to Q4 2024 (DAIO)?
How did Data I/O's full-year 2025 bookings and backlog look (DAIO)?
What did Data I/O report about profitability and cash at year-end 2025 (DAIO)?
What cost savings and operational targets did Data I/O announce for 2026 (DAIO)?
How is Data I/O positioning itself around AI and partnerships in 2026 (DAIO)?
What drove the gross margin decline at Data I/O in 2025 (DAIO)?
