<span item_type="fundamental" item_id="fb57242e6da7028b23eefcb2dc2100e9" counter_id="ST/US/DAIO" env="prod"></span><span item_type="announcement" item_id="620865670961436801" env="prod"></span><p>Revenue: As of FY2025 Q4, the actual value is USD 3.983 M.</p><p>EPS: As of FY2025 Q4, the actual value is USD -0.27.</p><p>EBIT: As of FY2025 Q4, the actual value is USD -2.525 M.</p><p></p><h4>Net Sales</h4><p>Net sales for the fourth quarter of 2025 were $4.0 million, a decrease from $5.2 million in the fourth quarter of 2024. For the full year 2025, net sales were $21.5 million, compared to $21.8 million for 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Bookings</h4><p>Bookings in the fourth quarter of 2025 were $3.1 million, a 25% decrease from $4.1 million in the prior year period. Total bookings for 2025 were $18.6 million, down 17% from $22.5 million in 2024. Automotive sector electronics accounted for 52% of 2025 bookings, a decrease from 59% in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Revenue Composition</h4><p>For 2025, consumable adapters and services represented 58% of total revenue, while capital equipment sales accounted for 42% of total revenue.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Deferred Revenue and Backlog</h4><p>Deferred revenue increased to approximately $1.5 million on December 31, 2025, from $1.4 million on September 30, 2025. Backlog on December 31, 2025, was $2.3 million, down from $2.7 million on September 30, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Gross Margin</h4><p>Gross margin as a percentage of sales was 43.0% in the fourth quarter of 2025, compared to 52.2% in the fourth quarter of 2024. The full year gross margin was 49.3% for 2025, down from 53.3% for 2024. In absolute terms, gross margin was $1,714 thousand for Q4 2025 and $10,596 thousand for the full year 2025, compared to $2,705 thousand for Q4 2024 and $11,606 thousand for the full year 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Operating Expenses</h4><p>Operating expenses for the fourth quarter of 2025 were $4.2 million, which included approximately $312,000 in one-time expenses, compared to $4.0 million in the fourth quarter of 2024. Full year 2025 operating expenses were $15.7 million, including $1.4 million in one-time expenses, compared to $14.6 million in 2024, which had no one-time expenses. Operating expense reductions were 7%, moving from $26.7 million to $24.8 million since November 2024. Research and development expenses were $1,645 thousand for Q4 2025 and $6,531 thousand for the full year 2025, compared to $1,701 thousand for Q4 2024 and $6,240 thousand for the full year 2024. Selling, general and administrative expenses were $2,571 thousand for Q4 2025 and $9,181 thousand for the full year 2025, compared to $2,291 thousand for Q4 2024 and $8,404 thousand for the full year 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Operating Income (Loss)</h4><p>Operating loss was - $2,502 thousand in the fourth quarter of 2025, compared to an operating loss of - $1,287 thousand in the fourth quarter of 2024. For the full year 2025, operating loss was - $5,116 thousand, compared to an operating loss of - $3,038 thousand in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Net Income (Loss)</h4><p>Net loss in the fourth quarter of 2025 was - $2.5 million, compared to a net loss of - $1.2 million in the fourth quarter of 2024. For the full year 2025, net loss was - $5.0 million, compared to a net loss of - $3.1 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA was - $2.5 million in the fourth quarter of 2025, compared to - $1.1 million in the fourth quarter of 2024. Excluding one-time expenses of approximately $312,000, fourth quarter 2025 Adjusted EBITDA would have been - $1.9 million. For the full year, Adjusted EBITDA was - $3.9 million in 2025, compared to - $1.4 million in 2024. Excluding one-time expenses of approximately $1.4 million, Adjusted EBITDA for 2025 would have been - $2.6 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>Cash and Liquidity</h4><p>Cash and cash equivalents at the end of the fourth quarter of 2025 were $7.9 million, down from $10.3 million on December 31, 2024. Data I/O Corporation had net working capital of $12.3 million on December 31, 2025, compared with $16.1 million on December 31, 2024, and continues to have no debt.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p><h4>2026 Business Framework and Outlook</h4><p>Data I/O Corporation anticipates organic revenue growth for 2026 over 2025, driven by entry into Programming Services and Programming at Test markets. The company expects revenue increases to improve gross margins through better labor and overhead absorption, alongside an additional $1 million annual run rate in expense reductions beyond previously implemented cost improvements. Data I/O Corporation also projects a line of sight to near-term positive operating cash flow in 2026, with AI deeply integrated across all functional departments.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/351998/000165495426001683/daio_ex990.htm"></span></p>

Data I/O | 8-K: FY2025 Q4 Revenue: USD 3.983 M