Data I/O (DAIO) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were $5.4 million, flat year-over-year and down from $5.9 million in Q2 2025.

• Bookings increased over 7% year-over-year, with automotive electronics accounting for 78% of Q3 bookings, up from 59% in 2024.

• Strategic focus on recurring revenue, diversification beyond automotive, and expansion into adjacent markets and services.

• Progress in operational efficiency, product innovation, and IT infrastructure, including remediation of a ransomware incident in August 2025.

• Leadership changes included a new CFO and engagement of an investment bank for M&A activities.

Financial highlights

• Gross margin was 50.7% in Q3 2025, up from 49.8% in Q2 2025 but down from 53.9% in Q3 2024.

• Net loss for Q3 2025 was $1.36 million or $0.15 per share, compared to $0.31 million or $0.03 per share in Q3 2024.

• Adjusted EBITDA was ($1.15 million) in Q3 2025, or ($0.56 million) excluding one-time expenses.

• Cash at quarter-end was $9.7 million, with no debt and working capital of $14.4 million.

• Operating expenses were $4.1 million, including $585,000 in one-time expenses.

Outlook and guidance

• New product launches, platform refreshes, and R&D investments are expected to drive growth in 2026.

• Margin expansion targeted through pricing, cost efficiencies, and supply chain optimization.

• Management expects revenue growth through market diversification and enhanced sales processes.

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

• Bookings for PSV7000 systems strong, with backlog of $2.7 million as of September 30, 2025.