Data I/O Reports Second Quarter 2026 Results
Rhea-AI Summary
Data I/O (NASDAQ: DAIO) reported second quarter 2026 net sales of $5.2 million, up 59% sequentially from Q1 2026 but below $5.9 million a year earlier. Bookings were $4.9 million, and consumables and services contributed 55% of revenue, with platform sales at 45%.
Gross margin rose to from 49.5% in Q1 2026 and 49.8% in Q2 2025. Operating loss narrowed to $724,000, while net loss widened to $1.63 million, or ($0.17) per share, mainly due to $873,000 of interest expense from a new convertible debenture. Adjusted EBITDA was ($488,000). Cash increased to $10.8 million at June 30, 2026, supported by $8.3 million net proceeds from a $9 million private placement, and quarter-end debt was $6.2 million, subsequently converted to preferred equity. The company highlighted a transformational acquisition announced in May 2026, and its intent to acquire IAR’s embedded software security IP, as part of a 2026 framework focused on organic growth, higher recurring revenues, and AI-enabled operational improvements.
Positive
- Q2 2026 revenue $5.2M, up 59% sequentially from Q1 2026
- Gross margin 57.0%, up from 49.5% in Q1 2026 and 49.8% in Q2 2025
- Bookings $4.9M in Q2 2026, up from $4.2M in Q1 2026
- Operating loss $724K improved versus $844K loss in Q2 2025
- Cash $10.8M at June 30, 2026, boosted by $8.3M net private placement proceeds
- Convertible debt $6.2M issued in Q2 was converted into preferred equity after quarter-end, eliminating debt
Negative
- Q2 2026 revenue $5.1M declined from $5.9M in Q2 2025
- Net loss $1.63M in Q2 2026 versus $742K loss in Q2 2025
- Interest expense $873K in Q2 2026 from new convertible debenture
- Adjusted EBITDA ($488K) in Q2 2026, slightly worse than ($437K) in Q2 2025
- Working capital $10.8M at June 30, 2026, down from $12.3M at December 31, 2025
- Shares outstanding 10.4M at June 30, 2026, up from 9.4M at December 31, 2025, reflecting equity issuance
News Explained
Data I/O reports that its transformational acquisition remains in progress under exclusivity extended through the end of August, while the separate IAR asset transaction remains an intent; neither is reported closed, so no acquired ownership or transaction consideration is established here.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 30 | Preliminary earnings | Neutral | -1.7% | Preliminary Q2 results were released while the full release was postponed. |
| May 14 | Q1 earnings report | Negative | +10.0% | Q1 sales declined year over year while the company outlined acquisitions and financing. |
| Feb 26 | Q4 earnings report | Negative | -1.4% | Annual sales and bookings declined alongside lower margins and a full-year loss. |
| Oct 30 | Q3 earnings report | Negative | -2.9% | The company reported a net loss despite higher bookings and improved gross margin. |
| Jul 24 | Q2 earnings report | Negative | -2.9% | The company reported a net loss and lower gross margin despite higher sales. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The tag-specific earnings record showed mostly negative reactions, with one positive outlier.
Key Terms
adjusted ebitda financial
convertible debt financial
private placement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Revenue Tops Guidance with
Transitional Acquisition on Track with Exclusivity Extended to the End of August
REDMOND, Wash., Aug. 12, 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 second quarter ended June 30, 2026.
Second Quarter 2026 and Recent Highlights
- Revenues of
$5.2 million increase59% sequentially from the first quarter - Bookings of
$4.9 million - Gross margin as a percentage of sales was
57.0% , as compared to49.5% in the first quarter 2026 - Operating expenses excluding 1x items decline sequentially and from prior year period*
- Operating loss declines from prior and sequential quarters
- Restructurings and expense optimizations support breakeven adjusted EBITDA for the quarter*
- In April achieved cost reductions below
$22 million run-rate for COGS and operating expenses - Launch of on-site Programming-as-a-Service (PaaS) gaining traction
- Closed on
$9 million direct investment in May 2026 to strengthen balance sheet - Cash at June 30, 2026 was
$10.8 million as compared to$5.7 million on March 31, 2026 - Transformational acquisition on track with exclusivity extended to the end of August
- Announced intent to acquire IAR’s embedded software security IP and related assets
* See EBITDA and Adjusted EBITDA reconciliation in schedules following this release.
2026 Business Framework
Following strong second quarter results and significant progress with the Company’s strategic plan including two planned acquisitions, Data I/O is providing an update to its business framework for 2026. The update is solely based on organic growth and the consolidation of anticipated results for the acquisition in the second half of 2026.
- Organic revenue growth for 2026 over 2025
- Acceleration of re-occurring and other services revenues
- Continued funnel expansion within Programming Services market
- Operational optimizations driving improved gross margins
- AI deeply engrained across all functional departments
Management Comments
Commenting on the financial results for the second quarter ended June 30, 2026 and recent developments, William Wentworth, President and CEO of Data I/O Corporation, said, “The second quarter marks a clear inflection point in our financial performance and transformation. Revenue of
“During the first half of the year, we signed six new logos — three from automotive and three from other diversified technology markets, such as robotics and space communications— which shows our platform is resonating well beyond our historical customer base. Our launch of on-site Programming-as-a-Service is gaining traction with strong demand from existing customers. This progress underscores the successful execution of our strategy for top-line diversification and a shift toward higher-value, re-occurring revenue rather than one-time equipment sales.
“We also continued to execute on the strategic plan we laid out at the start of the year. Our expense reduction and improvements to our organic revenue profile are meaningfully lowering our break-even threshold and put profitability within closer reach organically.
“In June we closed a
“In July, on the heels of our planned transformational acquisition, we made another important announcement of our intent to acquire IAR’s embedded software security IP and related assets. This builds on our existing collaboration with IAR and will provide Data I/O with full ownership of the embedded security software and technology, creating an end-to-end security platform for our customers. With regulations such as the EU Cyber Resilience Act increasingly mandating security for all technology devices, this positions Data I/O to extend our value and offer complete and differentiated security provisioning solutions.
"Overall our transformation is moving as planned. The combination of organic business momentum, expense reductions, and progress on two important acquisitions puts Data I/O in position to deliver on our 2026 business framework, which accelerates our growth through greater scale, operational and revenue synergies, and programming platform expansion."
Second Quarter 2026 Financial Results
Net sales in the second quarter 2026 were
Second quarter 2026 bookings were
For the second quarter 2026, consumable adapters and services represented
Gross margin as a percentage of sales was
Operating expenses for the second quarter 2026 were
Operating loss in the second quarter 2026 of (
Net loss in the second quarter 2026 was (
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which excludes equity compensation and one-time expenses, was (
The Company’s balance sheet and liquidity strengthened with cash at the end of the second quarter 2026 at
Conference Call Information
A conference call discussing financial results for the second quarter ended June 30, 2026 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 5307983. The conference call will also be simultaneously webcast over the Internet; visit the Events & Webcasts section of the Data I/O Corporation website at https://www.dataio.com/investor-relations/news/events/ 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 programming solutions and security deployment platform to secure the global electronics supply chain and protect IoT 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 Statements, Disclosure Information and Non-GAAP financial Measures
The Company cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. Such forward-looking statements include, but are not limited to, acquisitions and their benefits and timing, the ability to execute definitive agreements and to obtain regulatory approval and meet other closing conditions for planned acquisitions, and any such forward-looking statements involving risks, assumptions and uncertainties. Statements in this news release may be construed as a prediction of future operations and 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 timing and contributions of acquisitions, acquisition synergies, the demand for the Company’s products, the impact from geopolitical conditions including any related international trade restrictions, and cybersecurity incidents 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.
*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. Reconciliations are provided in the tables of this press release. 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.
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 June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | ||||||||||||||||
| Cost of goods sold | 2,214 | 2,988 | 3,854 | 5,976 | ||||||||||||
| Gross margin | 2,935 | 2,960 | 4,545 | 6,148 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,380 | 1,662 | 2,671 | 3,177 | ||||||||||||
| Selling, general and administrative | 2,279 | 2,142 | 5,743 | 4,192 | ||||||||||||
| Total operating expenses | 3,659 | 3,804 | 8,414 | 7,369 | ||||||||||||
| Operating income (loss) | (724) | (844) | (3,869) | (1,221) | ||||||||||||
| Non-operating income (loss): | ||||||||||||||||
| Interest income | 11 | 35 | 26 | 73 | ||||||||||||
| Interest expense | (873) | - | (873) | - | ||||||||||||
| Foreign currency transaction gain (loss) | (43) | 47 | (84) | 26 | ||||||||||||
| Total non-operating income (loss) | (905) | 82 | (931) | 99 | ||||||||||||
| Income (loss) before income taxes | (1,629) | (762) | (4,800) | (1,122) | ||||||||||||
| Income tax (expense) benefit | - | 20 | - | (2) | ||||||||||||
| Net income (loss) | ( | ( | ( | ( | ||||||||||||
| Basic earnings (loss) per share | ( | ( | ( | ( | ||||||||||||
| Diluted earnings (loss) per share | ( | ( | ( | ( | ||||||||||||
| Weighted-average basic shares | 9,572 | 9,296 | 9,483 | 9,267 | ||||||||||||
| Weighted-average diluted shares | 9,572 | 9,296 | 9,483 | 9,267 | ||||||||||||
| DATA I/O CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (UNAUDITED) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | |||||||
| Trade accounts receivable, net of allowance for | |||||||
| credit losses of | 4,302 | 2,841 | |||||
| Inventories | 6,189 | 5,710 | |||||
| Other current assets | 856 | 799 | |||||
| TOTAL CURRENT ASSETS | 22,190 | 17,251 | |||||
| Property, plant and equipment – net | 678 | 807 | |||||
| Other assets | 1,774 | 2,118 | |||||
| TOTAL ASSETS | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | |||||||
| Accrued compensation | 725 | 958 | |||||
| Deferred revenue | 1,093 | 1,464 | |||||
| Other accrued liabilities | 2,049 | 1,328 | |||||
| Income taxes payable | 4 | 4 | |||||
| Convertible debenture net of debt issuance costs | 6,208 | - | |||||
| TOTAL CURRENT LIABILITIES | 11,429 | 4,981 | |||||
| Deferred foreign income tax | 250 | 250 | |||||
| Operating lease liabilities | 1,056 | 1,411 | |||||
| Long-term other payables | - | 20 | |||||
| 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, 10,395,627 shares as of June 30, | |||||||
| 2026 and 9,391,922 shares as of December 31, 2025 | 25,972 | 24,062 | |||||
| Additional paid in capital - Warrants | 1,165 | - | |||||
| Accumulated deficit | (15,774) | (10,974) | |||||
| Accumulated other comprehensive income (loss) | 544 | 426 | |||||
| TOTAL STOCKHOLDERS’ EQUITY | 11,907 | 13,514 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| DATA I/O CORPORATION NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net Income (loss) | ( | ( | ( | ( | ||||||||||||
| Interest (income) | 11 | (35) | 26 | (73) | ||||||||||||
| Interest expense | 873 | - | 873 | - | ||||||||||||
| Taxes | - | (20) | - | 2 | ||||||||||||
| Depreciation and amortization | 102 | 110 | 217 | 237 | ||||||||||||
| EBITDA | ( | ( | ( | ( | ||||||||||||
| Equity compensation | 155 | 250 | 232 | 424 | ||||||||||||
| Adjusted EBITDA, excluding equity compensation | ( | ( | ( | ( | ||||||||||||
| EBITDA One-time expense adjustments | ||||||||||||||||
| Restructuring | - | |||||||||||||||
| Consulting and placement | 159 | 145 | ||||||||||||||
| IT and other | 23 | 335 | ||||||||||||||
| Total | ||||||||||||||||
| Adjusted EBITDA, excluding equity compensation and one-time expenses/investments | ||||||||||||||||
