Data I/O Sees Q4 Sales Fall to $4M, Cuts Expenses 7%
Data I/O’s Q4 2025 net sales fell to $4.0M from $5.2M a year earlier, while full-year sales dipped to $21.5M. Operating expenses have been reduced 7% to $24.8M with a further $1M cut planned, and 2026 will emphasize organic revenue growth, AI services expansion and positive operating cash flow.
1. Fourth Quarter 2025 Financial Results
Data I/O reported Q4 net sales of $4.0 million, down from $5.2 million in Q4 2024, and bookings fell 25% to $3.1 million from $4.1 million. Full-year net sales totaled $21.5 million versus $21.8 million in 2024.
2. Cost Reductions and Operational Efficiency
Operating expenses decreased by 7% from $26.7 million to $24.8 million since November 2024, with plans for an additional $1 million annualized reduction in the first half of 2026.
3. Strategic Transformation and AI Initiatives
The company accelerated its strategic transformation with investments in its core programming roadmap and expanded into Programming Services and Programming at Test markets. Collaborations with IAR enhance secure provisioning, and the release of the first AI-assisted production code showcases deeper AI integration across functions.
4. 2026 Business Framework
Data I/O aims for organic revenue growth over 2025, improved gross margins through increased labor absorption, further cost savings, and line of sight to near-term positive operating cash flow, underpinned by deep AI deployment across departments.