📊 DAIO Key Takeaways
Is Data I/O Corp. (DAIO) a Good Investment?
DATA I/O CORP is operationally distressed with operating losses of -$3.1M against $3.2M revenue and deteriorating EPS (-64.7% YoY). The company is burning cash operationally (-$2.2M FCF) with declining revenue, indicating fundamental business challenges. While near-term survival is supported by $5.7M cash and zero debt, the burn rate and negative growth trajectory point toward unsustainability without major operational restructuring.
DATA I/O’s fundamentals are weak: revenue is contracting sharply, profitability has turned negative across operating and net levels, and returns on equity and assets are both negative. The balance sheet is a meaningful offset, with strong liquidity, net cash, and no long-term debt, but current financial performance suggests the business needs a clear revenue stabilization and margin recovery before fundamentals improve materially.
Data I/O Corp. Key Strengths (DAIO)
- Strong liquidity position with 2.64x current ratio and 1.55x quick ratio
- Minimal leverage with 0.00x debt-to-equity and no long-term debt obligations
- Adequate cash runway of $5.7M provides 2.5+ years at current burn rate
- Strong liquidity with a 3.84x current ratio and $9.66M in cash
- Debt-free capital structure provides financial flexibility
- Gross margin of 50.7% suggests the core product mix still has underlying value if volume recovers
DAIO Stock Risks: Data I/O Corp. Investment Risks
- Severe operating losses with -96.7% operating margin and -$3.1M operating income on $3.2M revenue
- Negative free cash flow of -$2.2M and declining revenue (-1.2% YoY) with accelerating losses (EPS -64.7% YoY)
- Zero insider Form 4 filings in 90 days signaling lack of management confidence
- Gross margin of 49.5% insufficient to cover SG&A and operating expenses, indicating structural unprofitability
- Unsustainable burn rate with no path to profitability evident in current business model
- Revenue declined 22.4% YoY, indicating meaningful demand or execution pressure
- Operating and net margins are deeply negative, showing poor cost absorption at current sales levels
- Free cash flow and operating cash flow are negative, which could erode the cash cushion if losses persist
Key Metrics to Watch
- Operating cash flow trend and cash depletion rate
- Revenue stabilization and gross margin sustainability
- Quarterly operating loss magnitude and management actions toward cost restructuring
- Revenue growth trend and order recovery
- Operating margin and free cash flow improvement
Data I/O Corp. (DAIO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.64x current ratio provides a solid financial cushion.
DAIO Profit Margin, ROE & Profitability Analysis
DAIO vs Utilities Sector: How Data I/O Corp. Compares
How Data I/O Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Data I/O Corp. Stock Overvalued? DAIO Valuation Analysis 2026
Based on fundamental analysis, Data I/O Corp. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Data I/O Corp. Balance Sheet: DAIO Debt, Cash & Liquidity
DAIO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Data I/O Corp.'s revenue has declined by 16% over the 5-year period, indicating business contraction. The most recent EPS of $-0.34 indicates the company is currently unprofitable.
DAIO Revenue Growth, EPS Growth & YoY Performance
DAIO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.3M | -$382.0K | $-0.04 |
| Q3 2025 | $5.4M | -$307.0K | $-0.03 |
| Q2 2025 | $5.1M | -$382.0K | $-0.08 |
| Q1 2025 | $6.1M | -$382.0K | $-0.04 |
| Q3 2024 | $5.4M | -$53.0K | $-0.01 |
| Q2 2024 | $5.1M | $95.0K | $0.03 |
| Q1 2024 | $6.1M | $95.0K | $0.01 |
| Q3 2023 | $6.6M | -$53.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Data I/O Corp. Dividends, Buybacks & Capital Allocation
DAIO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Data I/O Corp. (CIK: 0000351998)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DAIO
What is the AI rating for DAIO?
Data I/O Corp. (DAIO) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAIO's key strengths?
Claude: Strong liquidity position with 2.64x current ratio and 1.55x quick ratio. Minimal leverage with 0.00x debt-to-equity and no long-term debt obligations. ChatGPT: Strong liquidity with a 3.84x current ratio and $9.66M in cash. Debt-free capital structure provides financial flexibility.
What are the risks of investing in DAIO?
Claude: Severe operating losses with -96.7% operating margin and -$3.1M operating income on $3.2M revenue. Negative free cash flow of -$2.2M and declining revenue (-1.2% YoY) with accelerating losses (EPS -64.7% YoY). ChatGPT: Revenue declined 22.4% YoY, indicating meaningful demand or execution pressure. Operating and net margins are deeply negative, showing poor cost absorption at current sales levels.
What is DAIO's revenue and growth?
Data I/O Corp. reported revenue of $3.3M.
Does DAIO pay dividends?
Data I/O Corp. does not currently pay dividends.
Where can I find DAIO SEC filings?
Official SEC filings for Data I/O Corp. (CIK: 0000351998) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DAIO's EPS?
Data I/O Corp. has a diluted EPS of $-0.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DAIO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Data I/O Corp. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DAIO stock overvalued or undervalued?
Valuation metrics for DAIO: ROE of -30.3% (sector avg: 10%), net margin of -97.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is DAIO's AI grade for 2026?
Our dual AI analysis gives Data I/O Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DAIO's free cash flow?
Data I/O Corp.'s operating cash flow is $-2.2M, with capital expenditures of $8.0K. FCF margin is -68.8%.
How does DAIO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -97.5% (avg: 12%), ROE -30.3% (avg: 10%), current ratio 2.64 (avg: 0.8).