Monitor acquisition closing (target Q3) and Q2 revenue print in August. The $9M investment provides runway, but dilution is significant (869,840 shares + up to 1,080,000 warrants + conversion of $6.8M debentures). The Q1 miss was severe, but the strategic pivot could re-rate the stock if acquisition delivers.
Price Chart
Executive Summary
Data I/O reported Q1 2026 results with a significant miss: EPS -$0.34 vs consensus -$0.14 and revenue $3.3M vs $4.8M. However, the company simultaneously announced a transformational $23M acquisition expected to nearly double revenue and a $9M direct investment. Management guided Q2 revenue of $5.0-5.4M, implying ~20% sequential growth.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $3.3M, down 47% YoY from $6.2M
- EPS of -$0.34 missed consensus of -$0.14 by 143%
- Acquisition LOI signed for $23M to buy a semiconductor handling company; expected to close by end of Q3
- Private placement of $9M including common stock, convertible debentures, and warrants
- Q2 2026 revenue guidance of $5.0-$5.4M, representing ~20% sequential growth
- Material weakness in internal controls over disaggregated revenue reporting disclosed
Financial Impact
Revenue miss of $1.5M vs consensus; acquisition valued at $23M (85% of market cap), $9M investment adds 33% dilution to current shares
Risk Factors
- Acquisition may fail to close or not achieve expected synergies
- Significant dilution from the $9M investment (warrants and convertible debentures)
- Continued revenue decline and cash burn; cash dropped to $5.7M from $7.9M
- Material weakness in internal controls may delay reporting or cause restatements
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001654954-26-005003 |
| Document: daio_8k.htm | 0001654954-26-005003 |
| Document: daio_ex991.htm | 0001654954-26-005003 |
| Document: daio_ex992.htm | 0001654954-26-005003 |
| Document: 0001654954-26-005003-index-headers.html | 0001654954-26-005003 |
| Document: 0001654954-26-005003-index.html | 0001654954-26-005003 |
| Document: 0001654954-26-005003.txt | 0001654954-26-005003 |
| 8-K Data (Synthetic) | 0001654954-26-005003 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 3 | $2.45 | awaiting T+20 | — | $2.44 (−0.41%) |
Oct 27, 2026 today | SC 13G | $2.45 | awaiting T+20 | — | $2.44 (−0.41%) |
Oct 22, 2026 5d ago | 8-K | $2.49 | awaiting T+20 | — | $2.44 (−2.01%) |
Oct 19, 2026 8d ago | 8-K | $2.52 | awaiting T+20 | — | $2.44 (−3.17%) |
Oct 19, 2026 8d ago | Press Release | $2.52 | awaiting T+20 | — | $2.44 (−3.17%) |
Oct 19, 2026 8d ago | Press Release | $2.52 | awaiting T+20 | — | $2.44 (+3.17%) |
Aug 13, 2026 10w ago | EFFECT | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.44 (+24.22%) |
Aug 12, 2026 10w ago | Press Release | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.44 (+24.22%) |
Aug 11, 2026 11w ago | S-1/A | $2.92 $2.78 | ▲ +4.79% | ▲ +3.74% | $2.44 (+16.44%) |
Jul 30, 2026 12w ago | 8-K | $2.84 $2.93 | ▲ +3.17% | ▲ +0.18% | $2.44 (−14.08%) |
US Market Status
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