Data IO 2025 Q3 Earnings Sharp Loss Widens 343.6% on Revenue Decline

Data I/O (DAIO) reported fiscal 2025 Q3 earnings on November 12, 2025, with revenue declining 0.6% to $5.39 million and a net loss of $1.36 million. The results reflect deteriorating performance despite strategic shifts in supply chain and R&D. Below is a revised analysis of the report.

Revenue

Data I/O’s total revenue for Q3 2025 fell 0.6% year-over-year to $5.39 million, driven by a contraction in automated programming systems. While non-automated systems generated $1.96 million, automated systems accounted for $3.43 million, underscoring a shift in demand. The company’s reliance on legacy product lines remains a vulnerability amid evolving market dynamics.

Earnings/Net Income

Net losses widened to $1.36 million, a 343.6% increase from $307,000 in Q3 2024, with earnings per share (EPS) plummeting to -$0.15 from -$0.03. The sharp deterioration highlights operational inefficiencies and margin pressures, raising concerns about the company’s ability to offset declining sales. This represents a significant setback for profitability.

Post-Earnings Price Action Review

The stock price of Data I/O has experienced a steady decline, dropping 4.11% in the latest trading day, 4.92% over the previous full week, and 9.09% month-to-date. The negative momentum suggests investor skepticism about the company’s near-term prospects, with limited catalysts to reverse the downward trend.

CEO Commentary

Data I/O’s leadership has emphasized strategic initiatives to mitigate supply chain disruptions and accelerate R&D efforts for product innovation. While the CEO acknowledged the challenges in Q3, the focus remains on long-term market expansion and strengthening partnerships with semiconductor firms. The tone reflects a commitment to operational resilience despite the current financial headwinds.

Guidance

The company has not provided explicit forward-looking guidance for future quarters. However, management highlighted ongoing investments in core platform development and diversification into non-automotive sectors. These steps are critical to restoring growth but remain unproven in the short term.

Additional News

1. Market Expansion: Data I/O plans to expand beyond the automotive sector, targeting new markets to diversify revenue streams.

2. Supply Chain Adjustments: Strategic shifts in material sourcing and manufacturing have mitigated inflationary pressures and tariff impacts.

3. R&D Priorities: Increased investment in research and development aims to enhance product innovation and competitive positioning in semiconductor partnerships.