Data I/O (DAIO) Earnings Date & Reports

Key Takeaways

• Data I/O Corporation (DAIO) is expected to report its third quarter 2026 results in the coming weeks, covering the period ended September 30, 2026.
• Wall Street consensus points to revenue of roughly $6.3 million and a near-breakeven loss per share of approximately $0.01.
• Second quarter 2026 delivered a 59% sequential revenue jump to $5.2 million and near-breakeven adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
• The company recently completed its roughly $23 million acquisition of V-TEK and A&J Programming, a deal management says could roughly double its revenue run rate.
• Gross margin reached 57% in the second quarter — its highest since early 2023 — a trend investors will watch closely.

Earnings Context and Why It Matters

Data I/O, a provider of data programming and security provisioning systems for the automotive, Internet-of-Things (IoT), medical, and industrial electronics markets, is navigating a multi-year transformation. After a difficult 2025 marked by declining bookings and softer automotive demand, the company has pivoted toward recurring revenue, services, and artificial intelligence (AI)-driven efficiency. This report matters because it will show whether the sharp sequential rebound seen in the second quarter is translating into durable, year-over-year improvement — and whether management's acquisition strategy is beginning to reshape the revenue base just as investors look toward a larger addressable market.

Earnings Expectations

Analysts currently expect Data I/O to report third quarter 2026 revenue of approximately $6.3 million, with a consensus loss per share near $0.01. That revenue figure would mark meaningful growth from the $5.2 million reported in the second quarter of 2026 and from the $5.39 million delivered in the third quarter of 2025.

The bar has been set partly by the company's own trajectory. Second quarter 2026 net sales rose 59% sequentially, gross margin climbed to 57%, and adjusted EBITDA swung to a small positive $39,000 from a negative $1.75 million in the first quarter. For 2026, management has guided to organic revenue growth over 2025, with a focus on accelerating recurring and services revenue, including its on-site Programming-as-a-Service offering.

Investors will also scrutinize bookings and backlog for signs of sustained demand. Bookings improved to $4.9 million in the second quarter, up from $4.2 million in the first, but backlog declined to $2.1 million — a trend that will draw attention for what it signals about near-term order visibility.

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Market Reaction and Investor Sentiment

Sentiment heading into the third quarter report is cautiously optimistic but mixed. Data I/O's shares have been volatile in 2026 as investors weigh an improving operational picture against persistent bottom-line losses and cash burn. The second quarter's beat on revenue was tempered by a wider net loss, driven largely by a non-cash, non-recurring interest expense tied to convertible debenture accounting — a detail that may have muted the initial positive reaction.

The recently completed V-TEK and A&J Programming acquisition adds a new layer of complexity. While it is expected to meaningfully expand revenue and diversify the customer base beyond automotive, integration costs and purchase accounting could pressure near-term reported results. Key risk factors heading into the print include supply chain tightness — particularly potential memory shortages driven by AI demand — and the possibility that backlog softness translates into lighter forward guidance.

Forward Outlook and Key Factors to Monitor

Following this earnings event, investors will want to track several forward-looking signals. First, watch whether management reaffirms or updates its 2026 framework for organic revenue growth and its progress toward the $22 million annual operating cost run rate target it cited in the second quarter. Continued gross margin expansion would reinforce the case that the company's pricing and product-mix strategy is working.

Second, the integration of V-TEK and A&J Programming will be central. Management has said the acquisition is expected to roughly double revenue and open new security-related and services revenue streams. The timing and pace of that consolidation — and whether it dilutes near-term profitability — will be a focal point for the market.

Finally, keep an eye on bookings, backlog, and deferred revenue as leading indicators of demand. Recurring revenue from consumable adapters, software, and services now represents a majority of sales, and growth in that base would support a more predictable model. Broader industry dynamics, including automotive electronics demand, tariff impacts, and memory supply availability, will also shape the company's ability to sustain momentum through year-end and into 2027.

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