Data I/O Q2 net loss widens on interest expense from convertible debt

Data I/O

12/08/2026 21:11

Overview
US microcontroller programming firm's Q2 revenue rose 59% sequentially but missed analyst expectations
Company posted a net loss, impacted by interest expense from recent convertible debt
Transformational acquisition plans on track, with exclusivity extended to end of August

Outlook
Company expects organic revenue growth for 2026 over 2025
Data I/O anticipates improved gross margins from operational optimizations in 2026
Planned transformational acquisition expected to nearly double annual revenue and be accretive to earnings

Result Drivers
HIGHER BOOKINGS & SALES MIX - Sequential revenue growth driven by increased bookings and a higher proportion of platform sales
END MARKET DIVERSIFICATION - Growth in bookings from non-traditional markets including edge AI and robotics, alongside favorable automotive bookings
MARGIN IMPROVEMENT - Gross margin rose due to positive mix shift, value-based pricing, and operational efficiencies

Company press release: ID:nGNX8nZMXs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$5.15 mln
$5.34 mln (2 Analysts)
Q2 Loss Per Share
 
$0.17
 
Q2 Net Loss
 
$1.63 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for Data I/O Corp is $5.50, about 88.4% above its August 11 closing price of $2.92

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Aug 10 - inTEST slightly beats Q2 revenue estimates on auto/EV growth, keeps FY revenue  view

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)