Data I/O Q3 loss widens to $2.7M as sales fall
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Data I/O Corporation (DAIO) reported third-quarter 2026 net sales of $4.874 million, compared with $5.393 million a year earlier, and a net loss of $2.702 million, or $0.27 per share, versus a $1.362 million loss, or $0.15 per share. Gross margin was 58.0%, compared with 50.7%; Adjusted EBITDA loss was $71,000, versus $563,000.
Bookings were $5.0 million, compared with $4.9 million in the second quarter. Platform sales were 52% of quarterly revenue and consumable adapters and services were 48%. Operating expenses were $4.866 million, including approximately $1.5 million in one-time expenses.
Data I/O completed the V-TEK acquisition for total consideration of $23 million, including $3 million paid in Data I/O common stock; the company said the acquisition is anticipated to double revenues and be accretive to earnings. Cash was $9.397 million and the company had no debt at September 30, 2026, after converting $6.2 million of convertible debt into preferred shares following the June 2026 private placement. Subsequent to quarter-end, Data I/O completed a private placement for approximately $13.25 million in gross proceeds.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.V-TEK acquisition: $23 million total consideration; revenues are anticipated to double. 89% of market cap
- Moderate pointAdjusted EBITDA loss narrowed to $71,000 from $563,000 a year earlier.
Negative
- Moderate pointThird-quarter net sales were $4.874 million, versus $5.393 million a year earlier.
- Moderate pointThird-quarter net loss was $2.702 million, versus $1.362 million a year earlier.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Deferred revenue financial
Series B Convertible Preferred Stock financial
working capital financial
Programming-as-a-Service technical
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were DAIO’s third-quarter 2026 sales and net loss?
What was the total consideration for Data I/O’s V-TEK acquisition?
What one-time expenses affected DAIO’s third-quarter operating expenses?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter) |
| | |||
(State or other jurisdiction | (Commission | (IRS Employer |
(Address of principal executive offices, including zip code)
(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Items reported in this filing:
Item 2.02 Results of Operation and Financial Condition.
Item 7.01 Regulation FD Disclosure
Item 9.01 Financial Statements and Exhibits.
Item 2.02 Results of Operations and Financial Condition.
On November 12, 2026, Data I/O Corporation (the “Company”) issued a press release announcing Third Quarter 2026 results and a copy of the release is being furnished as Exhibit 99.1 in this Current Report on Form 8-K.
Item 7.01 Regulation FD Disclosure
Company Investor Presentation
The Company has prepared an investor presentation that management intends to use at the earnings call, scheduled for 8:00 am EST on November 12, 2026. The presentation addresses the Company’s acquisition of V-TEK, Inc., including Royce Instruments and A&J Programming, Inc., and how the acquisition is expected to transform the Company.
A copy of the presentation is furnished as Exhibit 99.2 to this report and is posted on the Company’s website: https://dataio.com/investor-relations/news/events/.
The information contained in the Item 2.02, Item 7.01 and Exhibits 99.1 and 99.2 attached hereto is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. | | Description |
99.1 | Press Release: Data I/O Reports Third Quarter 2026 Results | |
99.2 | Investor Presentation, dated November 12, 2026, titled Third Quarter 2026 Financial Results | |
104 | Cover Page Interactive Data File (embedded withing the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Data I/O Corporation | ||
November 12, 2026 | By: | /s/ Charles J. DiBona |
Charles J. DiBona | ||
Chief Financial Officer | ||
Exhibit 99.1
Data I/O Reports Third Quarter 2026 Results
October Transformational Acquisition Doubles Revenues and Expands into Diverse High-Growth Markets
Redmond, WA – November 12, 2026 -- Data I/O Corporation (NASDAQ: DAIO), the leading global provider of data programming equipment, provisioning services and security provisioning for Flash-based microcontrollers, and high-density memory devices, today announced financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Highlights
| ● | Revenues of $4.9 million with bookings of $5.0 million |
| ● | Gross margin as a percentage of sales was 58.0%, as compared to 57.0% in Q2 |
| ● | EBITDA adjusted for equity compensation and one-time expenses improved sequentially and versus prior year period* |
| ● | Restructurings and expense optimizations support breakeven adjusted EBITDA for the quarter |
| ● | Cash on September 30, 2026 was $9.4 million as compared to $10.8 million on June 30, 2026 |
| ● | Secured $13.25 million direct investment and $7.5 million bank line of credit in October 2026 |
| ● | Closed on transformational acquisition of V-TEK, Inc. and A&J Programming, Inc. (collectively, “V-TEK”) |
| ● | Expansion into services and high-growth end markets including data center, AI, photonics, industrial automation, and robotics |
* See EBITDA and Adjusted EBITDA reconciliation in schedules following this release.
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
Management Comments
Commenting on the financial results for the third quarter ended September 30, 2026 and recent developments, William Wentworth, President and CEO of Data I/O Corporation, said, “The most important measure of our recent performance and our prospects for the future is the completion of the transformational acquisition of V-TEK.
“As Data I/O’s first acquisition in decades, we’re proud to have completed the transaction and the required recapitalization following several years of a cyclical downturn in automotive. Total consideration was $23 million, with $3 million paid in Data I/O common stock. This displays the conviction of bringing these two companies together and the future value of the combined global business.
“The acquisition is anticipated to double revenues and be accretive to earnings. The integration plan has kicked off across multiple functional departments. Over the last two years we have used AI to optimize the business, and we will apply AI to the integration and ongoing operations at V-TEK. We will follow our mandate of best people and best practices.
“The NEW Data I/O has become a reality. With the V-TEK acquisition, our expanded products and services now address multibillion-dollar markets. The NEW Data I/O serves industries such as data centers, AI, photonics, industrial automation, robotics, medical, military, aerospace and defense, significantly reducing our reliance on automotive.
“We are shifting our mix towards software and services, diversifying our revenue streams and reducing our exposure to the capital equipment cycle. At the same time, we continue to invest in our programming platform, including new automation, programming technology and security provisioning. V-TEK’s existing programming business, A&J Programming, accelerates our strategic plan to provide Programming-as-a-Service.
“Data I/O will remain focused on optimizing the business, using technology and realigning costs to our new go-to-market strategy, and we continue to review expense reductions that will improve profitability. At the same time, we are investing in our core business to strengthen our capital equipment business and support our growing programming services business. The consolidation of V-TEK expands our ability to scale, enter new markets, increase operating leverage, and generate cash.”
Third Quarter 2026 Financial Results
Net sales in the third quarter 2026 were $4.9 million, as compared with $5.2 million in the second quarter 2026 and $5.4 million in the prior year period. Sales in the current quarter reflect continued revenue recovery and stable bookings in the platform business offset by timing-related softness in adapters. Demand for platform equipment appears to have inflected over the past two quarters following a prolonged downward cycle that had been negatively impacted by a realignment of technology spending, with AI-related investments at the forefront and a reassessment of EV capacity and related automotive manufacturing.
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
Third quarter 2026 bookings were $5.0 million, as compared with $4.9 million in the second quarter 2026. Bookings through the first six months of the year are indicative of the current market for programmable devices which has been accelerating within end markets not traditionally targeted by the Company, including edge AI and robotics. Bookings within the automotive electronics market was favorable for platform sales during the second quarter but softer for consumable adapter sales.
For the third quarter 2026, consumable adapters and services represented 48% of total revenue, providing a stable base of re-occurring revenue. This compares with 55% in the second quarter and 81% in the first quarter when total sales were lower. Platform sales represented 52% of total revenue in the third quarter, up from 45% in the second quarter and 19% in the first quarter. Backlog on September 30, 2026 was $1.5 million, down from $2.1 million at June 30, 2026 and $2.6 million at March 31, 2026. Deferred revenue was $0.9 million on September 30, 2026, as compared to $1.1 million at June 30, 2026 and $1.5 million at March 31, 2026.
Gross margin as a percentage of sales was 58.0% in the third quarter 2026, as compared to 57.0% in the second quarter 2026 and 50.7% in the third quarter 2025. The increased gross margin reflects the sale of several lower-cost units during the quarter, an increased focus on value-based pricing, and incremental efficiencies in operations. Aside from the low-cost platforms sold in the third quarter, direct material costs improved slightly compared to prior periods as the Company continued actively to mitigate the impact of tariffs and other inflationary pressures.
Operating expenses for the third quarter 2026 were $4.9 million, which included approximately $1.5 million in one-time expenses primarily related to debt and financing expenses, the IT/ERP transition, non-cash inventory reserve adjustments and other one-time charges. This compares to operating expenses of $4.1 million in the third quarter 2025 which included approximately $0.6 million in one-time expenses related to the investigation and remediation of a cybersecurity incident, the Company’s leadership transition as well as investments in the core programming platform and information systems.*
Operating loss in the third quarter 2026 was ($2.0) million on revenues of $4.9 million compared to the loss of ($1.4) million on revenues of $5.4 million in the third quarter of 2025.
Net loss in the third quarter 2026 was ($2.7) million or ($0.27) per share, compared to net loss of ($1.4) million or ($0.15) per share in the third quarter 2025. The increased loss reflects higher operating expenses due to one-time items, partially offset by higher gross margins.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which excludes equity compensation and one-time expenses, was ($71,000) in the third quarter 2026, compared to ($563,000) in the third quarter 2025. Third quarter 2026 Adjusted EBITDA includes $1.4 million of one-time expenses, as compared to approximately $585,000 of one-time expenses in the prior year period.*
The Company’s cash balance remained strong at the end of the third quarter 2026 with $9.4 million as compared to $10.8 million on June 30, 2026. Data I/O’s net working capital increased to $14.7 million on September 30, 2026 from $10.8 million on June 30, 2026 and $12.3 million on December 31, 2025. The Company had no debt on September 30, 2026 after converting $6.2 million of convertible debt into preferred shares following the June 2026 private placement. These debentures had been classified as short-term debt and included in the balance sheet and for the working capital calculation at June 30, 2026. Subsequent to the end of the third quarter, the Company completed a private placement of securities for approximately $13.25 million in gross proceeds.
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
Conference Call and Webcast with Accompanying Slideshow Presentation Information
A conference call and webcast with accompanying slideshow presentation discussing financial results for the third quarter ended September 30, 2026 will follow this release today at 5 a.m. Pacific Time/8 a.m. Eastern Time. To listen to the conference call, please dial 412-317-5788. The conference call will be simultaneously webcast with an accompanying slideshow presentation over the Internet which may be accessed via this webcast link. Alternatively, investors may visit the Events & Webcasts section of the Data I/O Corporation website at https://www.dataio.com/investor-relations/news/events/ to access the webcast from the site. A replay of the conference call will be made available approximately one hour after the conclusion of the call and will remain available until November 26, 2026. To access the replay, please dial 412-317-0088, access code 1665712. The webcast will be recorded and available for replay on the Data I/O Corporation website approximately one hour after the conclusion of the event.
About Data I/O Corporation
Since 1972, Data I/O Corporation (NASDAQ: DAIO) has been the global leader in device programming. In 2026, Data I/O united three industry leaders with the transformational acquisition of V-TEK, Inc. and A&J Programming, Inc. The combination enables Data I/O to provide the world’s most comprehensive solutions to support the entire data provisioning supply chain. These solutions include data programming and security provisioning, semiconductor handling automation for test, inspection and packaging, and Programming-as-a-Service. The Company serves customers in the automotive, industrial automation, data center, AI, photonics, medical, military, aerospace and defense, IoT, and consumer electronics markets. OEMs and manufacturers of any size can program, securely provision, test and package devices from early samples through high-volume production, using modular and customized systems and flexible service options. Data I/O’s solutions are backed by a portfolio of patents (dataio.com/Company/Patents) and a global network of distribution partners and support and service professionals, ensuring success for customers.
Learn more at www.dataio.com, www.vtekusa.com, and www.ajprogram.com.
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
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, recent acquisitions and their benefits to revenues and operations, the company’s focus on optimizing the business, anticipated benefits from AI, 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 contributions of acquisitions, acquisition synergies, the demand for the Company’s products, the impact from geopolitical conditions including any related international trade restrictions, supply chain constraints, 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, integration of recent acquisitions, market acceptance of existing and new products/services, shipping availability, installations and acceptance, accrual of expenses, internally or externally induced 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 | |
Jordan Darrow | |
(512) 551-9296 | |
- tables follow -
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
DATA I/O CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)
| | Three Months Ended | | Nine Months Ended | ||||||||
| | September 30, | | September 30, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Net sales | | $ | 4,874 | | $ | 5,393 | | $ | 13,273 | | $ | 17,516 |
Cost of goods sold | | | 2,046 | | | 2,659 | | | 5,900 | | | 8,634 |
Gross margin | | | 2,828 | | | 2,734 | | | 7,373 | | | 8,882 |
Operating expenses: | | | | | | | | | | | | |
Research and development | | | 1,596 | | | 1,709 | | | 4,267 | | | 4,886 |
Selling, general and administrative | | | 3,270 | | | 2,418 | | | 9,012 | | | 6,609 |
Total operating expenses | | | 4,866 | | | 4,127 | | | 13,279 | | | 11,495 |
Operating income (loss) | | | (2,038) | | | (1,393) | | | (5,906) | | | (2,613) |
Non-operating income (loss): | | | | | | | | | | | | |
Interest income | | | 17 | | | 34 | | | 43 | | | 107 |
Interest expense | | | (624) | | | — | | | (1,497) | | | — |
Foreign currency transaction gain (loss) | | | 18 | | | (3) | | | (66) | | | 22 |
Total non-operating income (loss) | | | (589) | | | 31 | | | (1,520) | | | 129 |
Income (loss) before income taxes | | | (2,627) | | | (1,362) | | | (7,426) | | | (2,484) |
Income tax (expense) benefit | | | (75) | | | — | | | (75) | | | (2) |
Net income (loss) | | $ | (2,702) | | $ | (1,362) | | $ | (7,501) | | $ | (2,486) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Basic earnings (loss) per share | | $ | (0.27) | | $ | (0.15) | | $ | (0.77) | | $ | (0.27) |
Diluted earnings (loss) per share | | $ | (0.27) | | $ | (0.15) | | $ | (0.77) | | $ | (0.27) |
Weighted-average basic shares | | | 10,404 | | | 9,389 | | | 9,793 | | | 9,308 |
Weighted-average diluted shares | | | 10,404 | | | 9,389 | | | 9,793 | | | 9,308 |
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
DATA I/O CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(UNAUDITED)
| | September 30, | | December 31, | ||
| | 2026 | | 2025 | ||
ASSETS |
| | |
| | |
CURRENT ASSETS: |
| | |
| | |
Cash and cash equivalents | | $ | 9,397 | | $ | 7,901 |
Trade accounts receivable, net of allowance for credit losses of $19 and $29, respectively | |
| 4,472 | |
| 2,841 |
Inventories | |
| 5,951 | |
| 5,710 |
Other current assets | |
| 975 | |
| 799 |
TOTAL CURRENT ASSETS | |
| 20,795 | |
| 17,251 |
| | | | | | |
Property and equipment – net | |
| 964 | |
| 807 |
Other assets | |
| 1,612 | |
| 2,118 |
TOTAL ASSETS | | $ | 23,371 | | $ | 20,176 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | |
| |
CURRENT LIABILITIES: | |
| | |
| |
Accounts payable | | $ | 1,555 | | $ | 1,227 |
Accrued compensation | |
| 1,083 | |
| 958 |
Deferred revenue | |
| 937 | |
| 1,464 |
Other accrued liabilities | |
| 2,473 | |
| 1,328 |
Income taxes payable | |
| 9 | |
| 4 |
TOTAL CURRENT LIABILITIES | | | 6,057 | | | 4,981 |
| | | | | | |
Deferred foreign income tax | |
| 250 | |
| 250 |
Operating lease liabilities | |
| 884 | |
| 1,411 |
Long-term other payables | |
| 21 | |
| 20 |
| | | | | | |
STOCKHOLDERS’ EQUITY | |
| | |
| |
| | | | | | |
Preferred stock - Authorized, 5,000,000 shares, including 200,000 shares designated Series A Junior Participating Preferred Stock and 8,000 shares designated Series B Convertible Preferred Stock; Series A Junior Participating Preferred Stock issued and outstanding, none | |
| — | |
| — |
Series B Convertible Preferred Stock, $1,000 stated value - Issued and outstanding, 6,841.33 shares as of September 30, 2026 and none as of December 31, 2025 | |
| 6,841 | |
| — |
Common stock, at stated value - Authorized, 30,000,000 shares Issued and outstanding, 10,419,364 shares as of September 30, 2026 and 9,391,922 shares as of December 31, 2025 | |
| 26,019 | |
| 24,062 |
Additional paid in capital | |
| 1,165 | |
| — |
Accumulated deficit | |
| (18,475) | |
| (10,974) |
Accumulated other comprehensive income (loss) | |
| 609 | |
| 426 |
TOTAL STOCKHOLDERS’ EQUITY | |
| 16,159 | |
| 13,514 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 23,371 | | $ | 20,176 |
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
DATA I/O CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION
| | Three Months Ended September 30, | | Nine Months Ended September 30, | ||||||||
| | 2026 | | | 2025 | | 2026 | | 2025 | |||
(in thousands) | | | | | | | | | | | | |
Net Income (loss) | | $ | (2,702) | | $ | (1,362) | | $ | (7,501) | | $ | (2,486) |
Interest (income) | | | (17) | | | (34) | | | (43) | | | (107) |
Interest expense | | | 624 | | | — | | | 1,497 | | | — |
Taxes | | | 75 | | | — | | | 75 | | | 2 |
Depreciation and amortization | | | 381 | | | 133 | | | 598 | | | 369 |
EBITDA | | $ | (1,639) | | $ | (1,263) | | $ | (5,374) | | $ | (2,222) |
Equity compensation | | | 134 | | | 115 | | | 367 | | | 539 |
Adjusted EBITDA, excluding equity compensation | | $ | (1,505) | | $ | (1,148) | | $ | (5,007) | | $ | (1,683) |
| | | | | | | | | | | | |
EBITDA One-time expense adjustments | | | | | | | | | | | | |
Deal & Financing Expenses | | $ | 802 | | $ | 52 | | $ | | | $ | |
IT & ERP Transition | | | 238 | | | 69 | | | | | | |
Non-Cash Inventory Reserve Adj. | | | 298 | | | | | | | | | |
Outside Consulting on Tech Platform | | | 61 | | | 66 | | | | | | |
Restructuring Expenses | | | 35 | | | | | | | | | |
Recruiting & Consulting | | | 168 | | | | | | | | | |
Cyber Security Incident | | | 230 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total | | $ | 1,434 | | $ | 585 | | $ | | | $ | |
| | | | | | | | | | | | |
Adjusted EBITDA, excluding equity compensation and one-time expenses/investments | | $ | (71) | | $ | (563) | | $ | | | $ | |
Data I/O Corporation
6645 185th Avenue NE, Suite 100, Redmond, WA 98052
Exhibit 99.2
| Bringing Electronic Devices to Life NA S D A Q : D A IO Data I/O Corporation · Nasdaq: DAIO HIGHLIGHTING THE V-TEK TRANSACTION 3Q26 Conference Call & Webcast Presentation November 12, 2026 · 8:00 am Eastern Time D A T A I / O Programming and Secure Provisioning Solutions V - T E K · R O Y C E · A & J Tape & Reel, Die test & inspection, Wire Bonding, Programming Services 1 |
| Bringing Electronic Devices to Life NA S D A Q : D A IO Data I/O Corporation · Nasdaq: DAIO IMPORTANT NOTICE Safe harbor statement Statements in this presentation concerning economic outlook, expected revenue, expected margins, expected savings, expected results, orders, deliveries, backlog and financial positions, supply chain expectations, the expected benefits, synergies and integration of acquired businesses, 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 impact of global and geopolitical events. These factors include uncertainties as to the ability to record revenues based upon the timing of product deliveries, shipping availability, installations and acceptance, accrual of expenses, business interruptions, changes in economic conditions, part shortages, the integration of acquisitions, and other risks including those described in the Company’s filings on Forms 10-K and 10-Q with the Securities and Exchange Commission, press releases and other communications. We encourage you to review those filings for a complete description. Forward-looking statements are made as of today, and we take no obligation to update them. This presentation includes non-GAAP financial measures, including Adjusted EBITDA; a reconciliation is available in our earnings releases and herein. Data I/O, LumenX, ConneX® and FlashCORE are trademarks of Data I/O Corporation. All rights reserved. |
| Data I/O Corporation · Nasdaq: DAIO V - T E K A C Q U I S I T I O N New Businesses. New Products. New Markets. NEW Data I/O. V-TEK Mankato, Minnesota Precision tape & reel systems that place and seal components for the assembly line, plus recurring revenue from replacement carrier tape. Small-parts engineering feeds our roadmap. Royce Instruments Napa, California High-precision bond testers and die sorting systems that ensure only good die enter the assembly line. A&J Programming San Jose, California Off-site programming services for leading U.S. tech companies during prototyping. Already a Data I/O customer and a ready-made services brand for PaaS. Accretive Acquisition Anticipated to Double Revenue 3 |
| Data I/O Corporation · Nasdaq: DAIO V - T E K A C Q U I S I T I O N Why V-TEK? Four Sources of Value 1 Accelerates Programming Services A&J Programming brings an established U.S. services platform and blue-chip customers, plus capacity and lower material costs to scale faster. 2 model: on-site and regional. 2 Consolidates Supply Chain & Manufacturing Tape & reel and vision inspection sit right beside programming. Small-parts handling expertise supports platforms for new chips. Lower cost manufacturing in U.S. 3 Access to Larger High-Growth Markets Adds Data Center, AI, Photonics, Aerospace and Defense, Satellite Communications, Industrial Automation, and Semiconductor Package and Test (OSAT). 4 Financial Upside Anticipated to double revenues; potential for double digit sales growth. Material synergies identified; 50% to be actioned before end of 2026. 4 |
| Data I/O Corporation · Nasdaq: DAIO V - T E K A C Q U I S I T I O N Acquisition Highlights -- Data I/O Transformed + Programming services Data I/O adds programming services, now a core offering, larger market, higher margins, improved cash flows. Largest names in technology, significant opportunity to expand existing revenues. Increased value to overall semiconductor supply chain with two platforms in Programming and Test Larger combined addressable markets now in the billions. Stronger, more diversified revenue profile Expanded geographic footprint; Automotive exposure reduced from 70% to estimated 35% led by growth in new segments which continue to reduce reliance on any single end market. Significant near-term cost synergies identified for first 60-90 days Improved vendor pricing, use of excess manufacturing capacity and personnel realignment. Total raised $22.25M through 2026 Acquisition and growth capital. Supportive new shareholder base. Seasoned leadership team With deep industry knowledge, global scale and scope, over 100 years combined experience in delivering programming services. 5 |
| Data I/O Corporation · Nasdaq: DAIO V - T E K A C Q U I S I T I O N Business/Transaction Summary -- Q3 Combined Snapshot Q3-2026 revenues combined of $10M from semiconductor capital equipment in Programming and Test, recurring consumables and A&J programming services Revenue Backlog Backlog of ~$9M as of Oct. 2026 Q3-2026 EBITDA of >$2M; high-margin programming services, secure provisioning services consumables, support Data I/O’s gross margin targets Margin Profile Acquisition of V-TEK (Mankato, MN), including Royce Instruments (Napa, CA) and A&J Programming (San Jose, CA) Acquisition Structure Consideration $23M Total Consideration : $20M cash and $3M in Data I/O shares, all paid at close Funding $22.25M in FY26 with two private placements; $7.5M line of credit from Western Alliance Bank Accretion Expected to be immediately accretive 6 |
| Data I/O Corporation · Nasdaq: DAIO N A S D A Q : D A I O Thank you Bill Wentworth President & Chief Executive Officer Charles DiBona Chief Financial Officer Investor relations: dataio.com/Company/Investor-Relations 7 |
| Data I/O Corporation · Nasdaq: DAIO A P P E N D I X Financial snapshot Nasdaq DAIO Headquarters Redmond, WA Recent stock price $2.43 Market cap $25.3M Diluted shares 10.4M 3-month avg. daily volume 29,300 Net operating losses (12/31/25) $19.3M Sales (TTM) $17.3M Net income (TTM) ($9.1M) Diluted EPS (TTM) ($0.96) Adj. EBITDA (TTM) ($7.2M) Cash & securities (9/30/26) $9.4M Debt (9/30/26) $0.0 Enterprise value (9/30/26) $15.9M Stock price, market cap and volume as of 11/10/26 after market close (source: Yahoo); market cap uses common stock outstanding at 9/30/26. Financials for the TTM period ended 9/30/26 unless noted; pre-acquisition, Data I/O standalone. Adjusted EBITDA is a non-GAAP measure excluding one-time items and equity compensation; see reconciliation in this presentation. 8 |
| Data I/O Corporation · Nasdaq: DAIO A P P E N D I X EBITDA reconciliation $ thousands Q3 2026 Q3 2025 9M 2026 9M 2025 Net income (loss) ($2,702) ($1,362) ($7,501) ($2,486) Interest (income) (17) (34) (43) (107) Interest expense 624 – 1,497 – Taxes 75 – 75 2 Depreciation and amortization 381 133 598 369 EBITDA ($1,639) ($1,263) ($5,374) ($2,222) Equity compensation 134 115 367 539 Adj. EBITDA, excl. equity comp ($1,505) ($1,148) ($5,007) ($1,683) One-time expense adjustments 1,434 585 ($71) ($563) Adj. EBITDA, excl. equity comp and one-time items O N E - T I M E I T E M S $ thousands Q3 26 Q3 25 802 52 Deal & financing expenses IT & ERP transition 238 69 298 – Non-cash inventory reserve adj. Outside consulting/Tech 61 66 Restructuring expenses 35 – Recruiting & consulting – 168 Cyber security incident – 230 Total $1,434 $585 Non-GAAP financial measure reconciliation. Unaudited; Data I/O standalone, before the V-TEK acquisition. Source: Data I/O Investor Relations, November 2026. 9 |
