Data I/O Q2 Revenue Jumps 59% Sequentially; Acquisition Exclusivity Extended
DAIO sits 38% above its 52-week low of $2.16.
Summary
Data I/O reported Q2 2026 revenue of $5.2 million, up 59% sequentially, with improved gross margins and extended acquisition exclusivity, but net loss widened due to interest expense.
Key Events · Earnings and Guidance · DAIO
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Q2 Revenue Up 59% Sequentially
Revenue of $5.2 million in Q2 2026, up from $3.3 million in Q1 2026, driven by higher bookings and platform sales.
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Gross Margin Expands to 57.0%
Gross margin improved from 49.5% in Q1 2026 to 57.0% in Q2 2026, reflecting positive mix shift and operational efficiencies.
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Net Loss Widens on Interest Expense
Net loss of $1.63 million ($0.17/share) in Q2 2026, compared to $0.74 million loss in Q2 2025, due to $873K interest expense on convertible debt.
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Acquisition Exclusivity Extended
Transformational acquisition exclusivity extended to end of August 2026; expected to nearly double annual revenue and be accretive.
Analysis · DAIO · Industrial Applications And Services
A strong sequential rebound took shape in Q2, with revenue reaching $5.2 million—up 59% from Q1—and gross margin expanding to 57.0%. The company also extended exclusivity on its transformational acquisition to end of August and announced intent to acquire IAR's embedded security IP. However, net loss widened to $1.63 million due to $873K interest expense on convertible debt, and the company remains unprofitable. The balance sheet improved with cash at $10.8 million after the $9 million private placement, and debt was subsequently converted to equity, eliminating the debt overhang.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1644 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DAIO was trading at $2.97 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $28.2M. The 52-week trading range was $2.16 to $4.49. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.