Data I/O Corp (DAIO)
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$2.840.00%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Data I/O aims to grow revenue to about $5.2M in Q2 2026. This is a 60% rise from Q1 2026's $3.25M. The company is working to fix recent earnings misses. A deal signed in June could help growth.
Revenue fell from $6.18M in 2025-Q1 to $3.25M in 2026-Q1. The company lost money last year and has weak cash flow. Recent earnings misses and equity sales show ongoing problems.
The market expects about 31% revenue growth next year. Our fair value is $10.38, showing the stock is cheap versus peers. We see risk in meeting growth and profit targets.
Breaks if: Earnings miss recurs in next 4 quarters
Breaks if: Free cash flow yield remains below 0% in FY26
Breaks if: Q2 2026 revenue falls below $5.0M
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround scenario. The company is currently loss-making and has shown volatile management performance, which adds to the uncertainty in the near-term outlook.
The market appears to have priced in a low expectations gap, suggesting that investors are aware of the company's struggles. Valuation is considered cheap compared to peers, but the fundamentals have not yet aligned with this pricing.
Management has prioritized organic revenue growth and has made some progress, but recent financial performance has been weak. There is an elevated risk of another earnings miss, which could further impact investor sentiment.
The future of DAIO will depend on whether management can successfully complete its transformational acquisition and achieve organic revenue growth. Additionally, external factors like Federal Reserve rate cuts and performance of sector leaders will play a significant role.
In the next 1 to 3 years, DAIO's performance will largely depend on management's execution and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. Significant revenue growth supports the goal of organic revenue growth in 2026. The company also aims to complete a transformational acquisition by the end of Q3 2026.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.