Data I/O Corporation reported its fourth‑quarter 2025 results on February 26, 2026, with revenue of $3.98 million and a non‑GAAP earnings per share of $‑0.27. Both figures fell short of consensus estimates of $5.52 million in revenue and $‑0.11 in EPS, marking a miss on both top‑line and bottom‑line metrics.
The quarter’s performance was a decline from the same period a year earlier. Q4 2024 revenue was $5.20 million, and the company posted a net loss of $2.50 million, or $‑0.27 per share. Gross margin contracted to 43.0% from 52.2% in Q4 2024. On an annual basis, 2025 net sales totaled $21.5 million versus $21.8 million in 2024, while the full‑year net loss widened to $5.00 million, or $‑0.53 per share, compared with a $3.10 million loss ($‑0.34 per share) in 2024. Full‑year gross margin fell to 49.3% from 53.3% the prior year.
Revenue erosion was driven largely by a slowdown in the automotive electronics segment, which accounted for 52% of 2025 bookings compared with 59% in 2024. Management cited weaker demand in that segment, a realignment of technology spending toward AI investments, a reassessment of electric‑vehicle capacity, and a broader slowdown in capital‑equipment demand as key factors. The mix shift toward lower‑margin products and a lower absorption of labor and overhead costs further compressed gross margin, while direct material costs remained steady.
Management emphasized that the company is in the midst of a platform reset and a strategic pivot toward new revenue streams such as programming services and programming at test. CEO William Wentworth said the transformation is “approximately one year ahead of schedule” and that the firm is “poised to deliver revenue growth this year.” He highlighted the company’s focus on AI‑enabled products and the expansion into new markets as the foundation for a 2026 framework aimed at organic growth and near‑term positive operating cash flow.
Guidance for the first quarter of 2026 projects revenue of $5.73 million and an EPS loss of $‑0.09, while full‑year 2026 guidance estimates revenue of $23.67 million and an EPS loss of $‑0.31. The guidance reflects management’s confidence in the company’s strategic initiatives, despite the current earnings miss and margin compression.
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