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DAIO Stock Analysis - DATA I/O CORP AI Rating

DAIO Nasdaq Instruments For Meas & Testing of Electricity & Elec Signals WA CIK: 0000351998
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
85% Confidence

📊 DAIO Key Takeaways

Revenue: $17.5M
Net Margin: -14.2%
Free Cash Flow: $-928.0K
Current Ratio: 3.84x
Debt/Equity: 0.00x
EPS: $-0.27
AI Rating: STRONG SELL with 85% confidence

Investment Thesis

Data I/O Corp is experiencing severe operational deterioration with negative operating income, negative free cash flow, and declining revenue (-22.4% YoY). The company is burning cash despite maintaining adequate liquidity, and profitability metrics show substantial losses across all measures. Without clear evidence of operational turnaround or demand stabilization, the company faces significant financial distress.

DAIO Strengths

  • + Strong liquidity position with current ratio of 3.84x and $9.7M cash
  • + Healthy gross margin of 50.7% indicates pricing power and cost control at product level
  • + Zero debt/equity ratio eliminates financial leverage risk

DAIO Risks

  • ! Operating cash flow is negative (-$576K) with worsening free cash flow (-$928K), indicating inability to fund operations from business
  • ! Revenue declining 22.4% YoY while company is unprofitable, suggesting lost market share or demand destruction
  • ! Operating margin of -14.9% and net margin of -14.2% with negative ROE (-15.5%) and ROA (-11.0%) indicate systematic unprofitability

Key Metrics to Watch

DAIO Financial Metrics

Revenue
$17.5M
Net Income
$-2.5M
EPS (Diluted)
$-0.27
Free Cash Flow
$-928.0K
Total Assets
$22.7M
Cash Position
$9.7M

💡 AI Analyst Insight

Strong liquidity with a 3.84x current ratio provides a solid financial cushion.

DAIO Profitability Ratios

Gross Margin 50.7%
Operating Margin -14.9%
Net Margin -14.2%
ROE -15.5%
ROA -11.0%
FCF Margin -5.3%

DAIO vs Default Sector

How DATA I/O CORP compares to Default sector averages

Net Margin
DAIO -14.2%
vs
Sector Avg 12.0%
DAIO Sector
ROE
DAIO -15.5%
vs
Sector Avg 15.0%
DAIO Sector
Current Ratio
DAIO 3.8x
vs
Sector Avg 1.8x
DAIO Sector
Debt/Equity
DAIO 0.0x
vs
Sector Avg 0.7x
DAIO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DAIO Balance Sheet & Liquidity

Current Ratio
3.84x
Quick Ratio
2.70x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A

DAIO 5-Year Financial Trend

DAIO 5-year financial data: Year 2020: Revenue $21.6M, Net Income -$1.2M, EPS $-0.14. Year 2021: Revenue $25.8M, Net Income -$4.0M, EPS $-0.48. Year 2022: Revenue $25.8M, Net Income -$555.0K, EPS $-0.06. Year 2023: Revenue $28.1M, Net Income -$1.1M, EPS $-0.13. Year 2024: Revenue $28.1M, Net Income $486.0K, EPS $0.05.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: DATA I/O CORP's revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.05 reflects profitable operations.

DAIO Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-5.3%
Free cash flow / Revenue

DAIO Quarterly Performance

Quarterly financial performance data for DATA I/O CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $4.8M $95.0K $0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DAIO Capital Allocation

Operating Cash Flow
-$576.0K
Cash generated from operations
Capital Expenditures
$352.0K
Investment in assets
Dividends
None
No dividend program

DAIO SEC Filings

Access official SEC EDGAR filings for DATA I/O CORP (CIK: 0000351998)

📋 Recent SEC Filings

Date Form Document Action
Mar 9, 2026 8-K daio_8k.htm View →
Feb 27, 2026 8-K daio_8k.htm View →
Dec 5, 2025 4 xslF345X05/section16.xml View →
Dec 5, 2025 4 xslF345X05/section16.xml View →
Dec 5, 2025 8-K daio_8k.htm View →

Frequently Asked Questions about DAIO

What is the AI rating for DAIO?

DATA I/O CORP (DAIO) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DAIO's key strengths?

Strong liquidity position with current ratio of 3.84x and $9.7M cash. Healthy gross margin of 50.7% indicates pricing power and cost control at product level.

What are the risks of investing in DAIO?

Operating cash flow is negative (-$576K) with worsening free cash flow (-$928K), indicating inability to fund operations from business. Revenue declining 22.4% YoY while company is unprofitable, suggesting lost market share or demand destruction.

What is DAIO's revenue and growth?

DATA I/O CORP reported revenue of $17.5M.

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 $-0.27.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-09-30 | Powered by Claude AI