📊 DAIO Key Takeaways
Is Data I/O Corp. (DAIO) a Good Investment?
Data I/O operates with severe structural profitability challenges, posting negative operating margins of -23.8% and net losses of $5.2M on $21.5M revenue. With negative free cash flow of -2.8M and only $5.2M cash on hand, the company faces critical cash runway constraints within 18-24 months without operational turnaround or capital injection.
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.
Why Buy Data I/O Corp. Stock? DAIO Key Strengths
- Strong gross margin of 49.3% indicates viable core product economics
- Zero long-term debt eliminates bankruptcy risk from leverage
- Adequate current liquidity ratio of 3.46x provides near-term operational buffer
- 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
- Negative operating cash flow of -2.2M indicates business is not self-sustaining
- Revenue decline of -1.2% YoY signals weakening market demand
- Negative ROE (-38.7%) and ROA (-26.0%) demonstrate value destruction for shareholders
- Elevated operating expenses far exceed gross profit despite reasonable margin
- Cash depletion risk at current burn rate within 18-24 months
- 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 path to breakeven
- Revenue stabilization and growth recovery
- Operating expense reduction initiatives and cost structure analysis
- Cash burn rate and runway until funding need
- 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 3.46x 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 |
|---|---|---|---|
| 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.
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 Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAIO's key strengths?
Claude: Strong gross margin of 49.3% indicates viable core product economics. Zero long-term debt eliminates bankruptcy risk from leverage. 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: Negative operating cash flow of -2.2M indicates business is not self-sustaining. Revenue decline of -1.2% YoY signals weakening market demand. 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 $21.5M.
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 $-0.56.
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 rating reflects both perspectives for balanced insights.
Is DAIO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Data I/O Corp. has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DAIO stock overvalued or undervalued?
Valuation metrics for DAIO: ROE of -38.7% (sector avg: 10%), net margin of -24.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DAIO stock in 2026?
Our dual AI analysis gives Data I/O Corp. a combined SELL rating 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 $558.0K. FCF margin is -13.0%.
How does DAIO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -24.4% (avg: 12%), ROE -38.7% (avg: 10%), current ratio 3.46 (avg: 0.8).