Free cash flow has turned deeply negative, reaching a -68.8% margin in 2026Q1, while the company continues to utilize capital for share repurchases despite a $2.2M quarterly cash burn.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -4.56M | -2.23M | -995K | 2.43M | -1.05M | 1.41M | 631K | -2.1M | 2.11M | 9.13M | 2.96M | 3.37M | 739K | 335K | -1.27M | 2.83M | 4.33M | 2.83M | 4.64M | 6.53M | -1.17M | -171K | 2.03M | 1.2M | 57K | 1.48M | -7.53M | -5.6M | -6.9M | 1.2M | 4.1M |
| Operating CF Margin % | - | -10.36% | -4.57% | 8.65% | -4.34% | 5.46% | 3.1% | -9.72% | 7.23% | 26.8% | 12.63% | 15.29% | 3.37% | 1.79% | -7.44% | 10.6% | 16.4% | 15.28% | 16.81% | 24.39% | -4.08% | -0.6% | 7.43% | 4.84% | 0.25% | 5.5% | -17.56% | -16.42% | -19.55% | 2.59% | 6.79% |
| Operating CF Growth % | -2331.26% | -123.82% | -140.98% | 330.8% | -174.61% | 123.45% | 130.11% | -199.24% | -76.86% | 208.52% | -12.15% | 355.62% | 120.6% | 126.36% | -144.96% | -34.71% | 52.73% | -38.89% | -28.9% | 655.79% | -586.55% | -108.43% | 69.65% | 1998.25% | -96.14% | 119.58% | -34.52% | 18.84% | -675% | -70.73% | -32.79% |
| Net Income | -8.02M | -4.99M | -3.09M | 486K | -1.12M | -555K | -3.96M | -1.19M | 1.61M | 5.45M | 1.66M | 927K | 1.1M | -2.58M | -6.43M | 1.06M | 3.01M | -811K | 5.13M | 832K | 46K | 582K | -92K | 1.24M | -3.11M | -6.01M | 2M | -400K | -17.6M | 11.5M | -1.1M |
| Depreciation & Amortization | 484K | 495K | 564K | 608K | 560K | 667K | 815K | 867K | 955K | 822K | 602K | 542K | 593K | 613K | 1.26M | 1.17M | 1.12M | 1.01M | 1.02M | 986K | 817K | 1.12M | 623K | 419K | 688K | 1.88M | 1.74M | 1.8M | 1.7M | 1.5M | 4M |
| Stock-Based Compensation | 485K | 697K | 977K | 1.19M | 1.18M | 1.24M | 1.47M | 1.17M | 1.23M | 714K | 520K | 435K | 400K | 425K | 525K | 477K | 319K | 312K | 401K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 250K | 250K | 0 | 0 | 0 | 0 | 943K | 0 | -19K | -366K | -140K | 0 | 0 | 43K | 2.32M | 0 | -13K | -35K | -2.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | 2.7M | -500K | -400K |
| Other Non-Cash Items | 112K | -243K | 260K | 301K | 394K | 220K | 245K | -1K | 423K | 749K | 882K | 192K | 726K | 217K | 150K | 298K | 516K | 13K | 398K | 1.27M | 668K | 273K | 859K | 172K | 11K | 18K | -2.53M | -1.2M | -100K | -7M | -600K |
| Working Capital Changes | 2.13M | 1.56M | 297K | -157K | -2.06M | -160K | 1.13M | -2.95M | -2.08M | 1.76M | -562K | 1.27M | -2.08M | 1.61M | 900K | -181K | -621K | 2.35M | -190K | 3.44M | -2.71M | -2.14M | 639K | -636K | 2.46M | 5.59M | -8.75M | -6.2M | -400K | 1.5M | 2.2M |
| Change in Receivables | 1.53M | 1.21M | 1.71M | -719K | -1.1M | -1.56M | 1.66M | -375K | -78K | 1.22M | -2.05M | 1.2M | -2.27M | 700K | 1.71M | 636K | -1.81M | 2.49M | -467K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -281K | 566K | -358K | 815K | -588K | -750K | -414K | 139K | -1.14M | 59K | -452K | 645K | -754K | 297K | -54K | -380K | 333K | 1.12M | -78K | 163K | -1.48M | 417K | 501K | -129K | 1.9M | 2.78M | -2.93M | -2M | -800K | -600K | 300K |
| Change in Payables | 609K | -76K | -1.26M | 109K | -428K | 1.62M | 255K | 0 | -582K | 1.52M | 869K | 20K | 982K | -193K | -574K | -543K | 929K | -891K | 356K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -510K | -558K | -467K | -1.2M | -1.08M | -623K | -860K | -548K | -888K | -1.79M | -1.98M | -1.04M | -1.4M | -678K | -492K | -3.5M | -1.06M | -569K | 438K | -1.01M | -474K | -1.81M | -1.25M | -1.76M | 1.43M | -2.08M | 6.56M | 5.2M | 3.7M | 2.2M | -2.3M |
| Capital Expenditures | -510K | -558K | -467K | -1.2M | -1.08M | -623K | -860K | -612K | -907K | -2.15M | -2.12M | -1.04M | -1.4M | -678K | -492K | -3.5M | -1.07M | -611K | -1.68M | -1.01M | -1.28M | -1.85M | -2.53M | -486K | -726K | -785K | -1.11M | -1.2M | -5.7M | -1.2M | -2.3M |
| CapEx % of Revenue | 2.75% | 2.6% | 2.15% | 4.26% | 4.46% | 2.41% | 4.23% | 2.84% | 3.1% | 6.33% | 9.06% | 4.75% | 6.39% | 3.62% | 2.88% | 13.11% | 4.05% | 3.29% | 6.08% | 3.79% | 4.44% | 6.52% | 9.26% | 1.97% | 3.18% | 2.93% | 2.59% | 3.52% | 16.15% | 2.59% | 3.81% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19K | 366K | 140K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64K | 19K | 366K | 140K | 0 | 0 | 0 | 0 | -2.09M | 13K | 42K | 2.12M | 0 | 0 | -203K | -30K | 0 | 0 | 0 | 0 | 1M | -1M | 29M | 0 |
| Cash from Financing | -122K | -107K | -232K | -356K | -165K | -423K | -144K | -1.68M | -966K | -939K | -354K | -73K | -35K | -10K | -6.01M | -327K | -35K | -6K | 94K | 252K | 242K | 407K | 204K | 159K | 138K | 209K | 479K | 200K | -800K | 700K | -2.3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -92K | -130K | -121K | -112K | -103K | -33K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.4M | 400K | 0 |
| Equity Issued (Net) | -110K | -107K | -232K | -356K | -165K | -423K | -144K | -1.68M | -966K | -939K | -354K | -73K | -35K | -10K | -6.01M | -235K | 95K | 115K | 206K | 355K | 275K | 407K | 204K | 159K | 138K | 209K | 479K | 200K | 600K | 1.2M | -2.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -13K | -107K | -232K | -356K | -165K | -423K | -144K | -1.68M | -966K | -939K | -354K | -73K | -35K | -10K | -6.03M | -253K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3M |
| Other Financing | -12K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -900K | 0 |
| Net Change in Cash | -4.78M | -2.42M | -2.02M | 831K | -2.68M | 23K | 231K | -4.41M | -198K | 6.97M | 303K | 1.91M | -1.06M | -102K | -7.59M | -822K | 3.3M | 2.34M | 5.67M | 5.16M | -1.88M | -1.17M | 1.15M | -3K | 1.73M | -477K | -464K | -400K | -800K | 700K | -500K |
| Free Cash Flow | -5.07M | -2.79M | -1.46M | 1.23M | -2.13M | 787K | -229K | -2.71M | 1.21M | 6.97M | 836K | 2.32M | -663K | -343K | -1.76M | -668K | 3.26M | 2.22M | 2.96M | 5.51M | -2.45M | -2.02M | -499K | 710K | -669K | 690K | -8.64M | -6.8M | -12.6M | 0 | 1.8M |
| FCF Margin % | -27.31% | -12.95% | -6.72% | 4.39% | -8.8% | 3.05% | -1.13% | -12.56% | 4.12% | 20.48% | 3.57% | 10.55% | -3.02% | -1.83% | -10.32% | -2.51% | 12.35% | 11.99% | 10.73% | 20.6% | -8.52% | -7.12% | -1.83% | 2.88% | -2.93% | 2.57% | -20.14% | -19.94% | -35.69% | - | 2.98% |
| FCF Growth % | -312.77% | -90.49% | -218.57% | 157.83% | -370.9% | 443.67% | 91.54% | -324.73% | -82.72% | 733.97% | -64% | 450.23% | -93.29% | 80.54% | -163.92% | -120.49% | 46.58% | -24.92% | -46.24% | 324.71% | -21.57% | -304.21% | -170.28% | 206.13% | -196.96% | 107.98% | -27.12% | 46.03% | - | -100% | -47.06% |
| FCF per Share | -0.54 | -0.30 | -0.16 | 0.14 | -0.24 | 0.09 | -0.03 | -0.33 | 0.14 | 0.83 | 0.10 | 0.29 | -0.08 | -0.04 | -0.22 | -0.07 | 0.36 | 0.25 | 0.33 | 0.62 | -0.28 | -0.24 | -0.06 | 0.09 | -0.09 | 0.09 | -1.17 | -0.94 | -1.76 | - | 0.26 |
| FCF Conversion (FCF/Net Income) | 0.63x | 0.43x | 0.32x | 5.00x | 0.94x | -2.54x | -0.16x | 1.77x | 1.32x | 1.67x | 1.79x | 3.63x | 0.67x | -0.13x | 0.20x | 2.66x | 1.44x | -3.50x | 0.90x | 7.84x | -25.52x | -0.29x | -22.05x | 0.96x | -0.02x | -0.25x | 14.24x | 14.00x | 0.39x | 0.10x | -3.73x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K | 13K | 23K | 32K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -11K | 10K | 459K | 171K | 556K | 415K | 137K | 307K | 463K | 127K | 7K | 13K | 16K | 85K | 215K | 303K | 305K | 165K | 23K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Cash Burn Rate
As reported in financial statements, DAIO's operating cash flow frequently decouples from net income, with the 2026Q1 OCF/NI ratio of 0.70 highlighting a persistent inability to convert accounting losses into cash generation, suggesting that accruals are failing to provide a meaningful buffer for the underlying business.
The consistent gap between net income and operating cash flow indicates that the company's reported losses are not merely accounting artifacts but reflect genuine cash outflows. Investors should monitor whether the reliance on non-cash adjustments, such as stock-based compensation, masks a deeper erosion of the company's core cash-generating capacity.
Based on recent quarterly filings, DAIO's free cash flow trajectory has turned sharply negative, culminating in a -68.8% FCF margin in 2026Q1, which underscores the severe pressure on liquidity as the company struggles to align its capital expenditures with a shrinking revenue base.
The transition from positive FCF in 2024Q3 to sustained negative territory suggests that the current business model is unable to self-fund its operations. This trend warrants further investigation into whether the company can sustain its current R&D and operational footprint without resorting to external financing.
According to the provided cash flow data, working capital changes have been highly volatile, with a $751.0K inflow in 2026Q1 providing a temporary, artificial boost to cash flow that obscures the underlying structural decline in the company's ability to manage its operational cycle efficiently.
The reliance on working capital fluctuations to mitigate cash burn suggests that the company is pulling levers that are not sustainable in the long term. Analysts should be wary of interpreting these inflows as a sign of operational improvement, as they likely reflect timing differences rather than fundamental efficiency gains.
Based on the reported figures, DAIO has continued to engage in share repurchases despite persistent negative free cash flow, with $13.0K utilized for buybacks in 2026Q1, a decision that appears questionable given the company's urgent need to preserve liquidity for core operational requirements.
The allocation of capital toward share repurchases while the company is burning cash suggests a potential misalignment between management's capital allocation strategy and the firm's current financial reality. This practice may indicate an attempt to signal confidence to the market that is not supported by the underlying cash flow performance.
Quick answers to the most common questions about buying DAIO stock.
Data I/O Corporation (DAIO) generated $-2.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Data I/O Corporation (DAIO) reported negative free cash flow of $2.8M in 2025, indicating capital requirements exceeded cash from operations.
Data I/O Corporation (DAIO) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Data I/O Corporation (DAIO) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.