Data I/O (DAIO) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were $5.9 million, up from $5.1 million in Q2 2024 but down from $6.2 million in Q1 2025, with international sales comprising 95% of total revenue.

• Bookings rose to $5.8 million, up 26% sequentially and driven by a $1.4 million order for 10 PSV automated programming systems from a major Chinese EV supplier.

• Automotive electronics accounted for 66% of Q2 2025 bookings, up from 59% in 2024, with Asia (especially China) strong, while Europe and the Americas faced capital spending delays due to tariffs.

• Six major product launches and trade shows are planned for the second half, expected to drive lead generation and customer engagement.

• Investments in the core programming platform and IT infrastructure are ongoing, with a new Universal Platform rollout targeted by end of 2026/early 2027 and the introduction of a Unified Programming Platform Strategy.

Financial highlights

• Gross margin was 49.8% in Q2 2025, down from 51.6% in Q1 2025 and 54.5% in Q2 2024, due to lower margin product mix and configuration.

• Operating expenses were $3.8 million, up from $3.3 million in Q2 2024, including $480,000 in one-time expenses for platform investment and leadership transition.

• Net loss for Q2 2025 was $742,000 or $0.08 per share, compared to $797,000 or $0.09 per share in Q2 2024.

• Adjusted EBITDA loss was $437,000; excluding one-time items, adjusted EBITDA would have been $43,000.

• Cash balance at June 30, 2025 was $10 million, with no debt and working capital of $15.6 million.

Outlook and guidance

• Management expects continued revenue growth through end-market diversification, enhanced consultative sales, and new product launches.

• Product mix is expected to improve in the second half, with new manual system launches anticipated to boost margins and revenue.

• Sufficient liquidity is expected to fund operations and capital requirements for at least the next year.

• Some double spending on CFO transition is expected in Q3 and possibly Q4 2025.

• IT cost reductions of up to $512,000 annually are being implemented, with about half already realized.