Data I/O Corporation filed its Form 10-Q for the quarterly period ended September 30, 2026 with the SEC on November 13, 2026, reporting financial results for the three and nine months ended on that date.

Key Highlights

  • Nine-month net loss of $7,501 thousand compared to a net loss of $2,486 thousand in the same period of 2025, according to the filing.
  • Third-quarter net sales of $4,874 thousand, down from $5,393 thousand in the third quarter of 2025, as reported.
  • Interest expense of $1,497 thousand for the nine months ended September 30, 2026, with no comparable expense in the prior-year period.
  • Series B Convertible Preferred Stock issued: 6,841.33 shares at $1,000 stated value, totaling $6,841 thousand, were outstanding as of September 30, 2026; none were outstanding as of December 31, 2025.
  • Common shares outstanding increased to 10,419,364 as of September 30, 2026 from 9,391,922 as of December 31, 2025.
  • Cash and cash equivalents of $9,397 thousand as of September 30, 2026, up from $7,901 thousand at December 31, 2025.
  • Accumulated deficit widened to $18,475 thousand as of September 30, 2026, from $10,974 thousand at December 31, 2025.

Data I/O's Q3 2026 Results: Rising Losses and New Preferred Stock Issuance

Data I/O Corporation (NASDAQ:DAIO) reported a net loss of $2,702 thousand for the three months ended September 30, 2026, compared with a net loss of $1,362 thousand in the same quarter of 2025, according to the filing. For the nine-month period, the net loss totaled $7,501 thousand versus $2,486 thousand in the prior-year nine months. The company attributed part of the increased loss to $1,497 thousand in interest expense recorded over the nine-month period, an item that did not appear in the comparable 2025 period.

Net sales for the third quarter of 2026 were $4,874 thousand, down from $5,393 thousand in the third quarter of 2025. For the nine months ended September 30, 2026, net sales were $13,273 thousand, compared with $17,516 thousand in the same period of 2025. Gross margin for the nine-month period was $7,373 thousand versus $8,882 thousand a year earlier. Total operating expenses for the nine months rose to $13,279 thousand from $11,495 thousand, with selling, general and administrative expenses increasing to $9,012 thousand from $6,609 thousand, as disclosed in the filing.

The balance sheet reflected the issuance of 6,841.33 shares of Series B Convertible Preferred Stock at a $1,000 stated value, contributing $6,841 thousand to stockholders' equity as of September 30, 2026. No such shares were outstanding at December 31, 2025. Total stockholders' equity was $16,159 thousand at September 30, 2026, compared with $13,514 thousand at year-end 2025. Total assets were $23,371 thousand versus $20,176 thousand at December 31, 2025. As of November 12, 2026, the filing stated that 12,285,032 shares of common stock were outstanding.

What Was Disclosed

Data I/O's 10-Q for the quarter ended September 30, 2026 disclosed a deepening net loss year over year, new interest expense tied to financing activity, the issuance of Series B Convertible Preferred Stock, and an expanded accumulated deficit of $18,475 thousand.