Data I/O Corporation (DAIO) AI Stock Analysis
DAIO AI stock analysis summary
AI ResearchData I/O Corporation provides programming and security deployment systems for electronic device manufacturers. In FY2025, revenue was $21.5M with a net loss of -$5.2M, while trailing twelve month revenue stands at $17.8M. The company maintains a net cash position of $9.8M as of June 30, 2026.
- Market cap
- $26.8M
- Revenue (TTM)
- $17.8M
- P/E
- — fwd 9.9x
- 1Y return
- -16.1% S&P 500 16.8%
- Avg. target
- $5.50 113.2% vs last close
Bull case
- Data I/O maintains liquidity support with net cash of $9.8M and total cash of $10.8M as of June 30, 2026.
- Consensus forecasts anticipate next fiscal year revenue to grow 25.0% to $27.8M alongside an eps estimate of $0.15.
- The stock trades at a forward P/E of 9.9x, below the US-listed Technology peer median of 18.8x.
Bear case
- Annual net losses widened to -$5.2M in FY2025 with an operating margin of -23.8%.
- Trailing twelve month profit margin dropped to -50.1% alongside a quarterly revenue decline of 13.4% as of June 30, 2026.
- Free cash flow remained negative at -$2.8M in FY2025 compared to -$1.5M in FY2024.
What Data I/O does
Data I/O Corporation develops, manufactures, and distributes programming and security deployment systems and services for electronic device manufacturers globally. Its core hardware products program integrated circuits with precise operational data. Flagship offerings include PSV offline automated handlers, the SentriX security deployment system, RoadRunner and RoadRunner3 in-line automated systems, LumenX programmers, and non-automated FlashPAK III systems. The company also provides support services like hardware maintenance, installation, repairs, and programming services. Based in Redmond, Washington, Data I/O serves original equipment manufacturers and electronic manufacturing service contract manufacturers in automotive, consumer electronics, and IoT markets.
Growth and profitability
Data I/O grew revenue from $25.8M in FY2021 to $28.1M in FY2023, before sales dropped 22.4% to $21.8M in FY2024 and fell 1.2% to $21.5M in FY2025. Gross margin contracted from 57.0% in FY2021 to 49.3% in FY2025. Operating margin shifted from 1.6% in FY2023 to -23.8% in FY2025, resulting in a net loss of -$5.2M and an eps of -$0.54. Research and development expense totaled $6.5M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 13.4% year-over-year, quarterly earnings dropped 82.7%, and trailing twelve month revenue was $17.8M with a profit margin of -50.1%.
Balance sheet and cash flow
As of June 30, 2026, Data I/O held $10.8M in cash and short-term investments against total debt of $1.1M, yielding net cash of $9.8M. The company reported a current ratio of 1.94, total assets of $24.6M, and shareholders equity of $11.9M with a debt-to-equity ratio of 0.09. Operating cash flow was -$2.2M and free cash flow was -$2.8M in FY2025. Capital expenditures reached $558,000 and share buybacks totaled $107,000 for FY2025.
Valuation and performance
At a share price of $2.58 on October 16, 2026, Data I/O had a market cap of $26.8M and an enterprise value of $26.9M. Its forward P/E ratio of 9.9x sits below the 18.8x median of its US-listed Technology peers. The company trades at a price-to-sales multiple of 1.5x compared to the peer median of 2.8x, and an EV-to-EBITDA multiple of 203.8x versus the peer median of 16.6x. Over the past 1 year, the stock fell 16.1%, trailing the S&P 500 (SPY) return of 16.8%, and dropped 59.8% over 5 years versus an 83.0% gain for SPY.
What analysts expect
Wall Street coverage includes 1 Strong Buy rating, 0 Buy, 0 Hold, and 0 Sell ratings. The mean price target is $5.50, representing a 113.2% premium over the last close of $2.58. For the fiscal year ending December 31, 2026, the analyst consensus projects an eps of -$0.30 on revenue of $22.2M. For next fiscal year, 1 analyst estimates revenue of $27.8M and an eps of $0.15. The company achieved 0 eps beats over the last 4 quarters. The next earnings date is October 29, 2026.
Key risks and what to watch
- Operating cash flow stood at -$2.2M in FY2025, which drains reserves if operating losses continue.
- The company recorded 0 eps beats over the last 4 quarters, highlighting recent execution challenges against forecasts.
- Gross margin contracted from 57.0% in FY2021 to 49.3% in FY2025, showing ongoing product margin erosion.
- The stock exhibits heightened volatility with a beta of 1.43 and a 1-year return of -16.1%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DAIO AI stock analysis
This page is an AI-written research summary of Data I/O Corporation (DAIO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DAIO income statement, DAIO balance sheet, DAIO key metrics, DAIO analyst forecast, DAIO chart. See the DAIO stock overview for the latest quote and news.
DAIO AI stock analysis FAQ
When does Data I/O report its next earnings?
Data I/O Corporation is scheduled to report earnings on October 29, 2026.
Does Data I/O pay a dividend?
Data I/O does not pay a regular dividend, though it executed $107,000 in share buybacks in FY2025.
What is Data I/O's cash position?
As of June 30, 2026, Data I/O held $10.8M in cash and short-term investments against $1.1M of debt, resulting in net cash of $9.8M.
What are analyst estimates for Data I/O?
For the fiscal year ending December 31, 2026, analysts estimate revenue of $22.2M and an eps of -$0.30, followed by $27.8M in revenue and an eps of $0.15 next fiscal year.