Data I/O Secures $9M Investment, Guides Q2 to $5–5.4M After $3.3M Q1
Data I/O reported Q1 revenue of $3.3 million with bookings of $4.2 million and implemented $1.8 million in annualized cost savings, narrowing operating losses excluding one-time items. The company secured a $9 million equity investment, announced a $23 million transformational acquisition set to double revenues, and guided Q2 sales to $5.0–5.4 million (+20% sequential growth).
1. First Quarter Financial Performance
In the first quarter ended March 31, 2026, Data I/O generated $3.3 million in revenue and achieved $4.2 million in bookings, while reducing operating expenses by $1.8 million on an annualized basis. Excluding one-time items, the operating loss narrowed as the company launched its Programming-as-a-Service model and unveiled The NEW Data I/O digital platform.
2. Transformational Acquisition and Direct Investment
Data I/O announced a $23 million acquisition expected to nearly double its annual revenues upon closing by the end of Q3, and secured a $9 million strategic investment through the issuance of 869,840 shares, $6.8 million in convertible debentures, and warrants for 1,080,000 shares. This financing strengthens the balance sheet, underscores investor confidence, and expands the company’s addressable market beyond $1 billion.
3. Second Quarter Outlook and Growth Initiatives
The company set second-quarter revenue guidance at $5.0–5.4 million, implying a minimum 20% sequential increase driven by accelerating demand for edge AI infrastructure and security provisioning solutions. Continued AI integration across operations, the roll-out of PaaS, and an additional $1 million of cost savings further support improved gross margins and a path to profitability.