Dyadic International (DYAI) Q2 2026 earnings summary

Executive summary

• Transitioned to a commercially focused biotechnology enterprise, rebranding as Dyadic Applied BioSolutions, with initial product shipments, customer evaluations, and early sales across life sciences, food, nutrition, and bioindustrial markets.

• Expanded distribution through OEM and strategic partners, including Proliant, Fermbox Bio, and Inzymes, leveraging capital-efficient models and positioning for future royalties and milestone payments.

• Advanced global health programs with Gates Foundation and CEPI grants, supporting monoclonal antibody and vaccine antigen development using the C1 platform.

• Improved manufacturing productivity and economics, notably with an 80% productivity increase and 40% cost reduction in recombinant human transferrin.

• Secured recurring revenue through strategic partnerships and OEM agreements, with multiple product launches and shipments in Q2 and after quarter-end.

Financial highlights

• Q2 2026 revenue was $961,138, down 0.6% year-over-year; six-month revenue rose 52.3% to $2,072,094, driven by increased grant revenue.

• Q2 cost of revenue increased 60.4% to $984,165, mainly due to higher grant-related costs.

• R&D expenses decreased 47.2% to $332,621, reflecting fewer internal initiatives and reliance on external funding.

• G&A expenses rose 17.6% to $1,689,863, driven by rebranding, business development, and legal costs.

• Net loss for Q2 2026 was $2,123,884 ($0.06/share), compared to $1,793,774 ($0.06/share) a year ago.

• Cash, equivalents, and investment-grade securities totaled $4,794,798 as of June 30, 2026, down from $8,587,289 at year-end 2025.

Outlook and guidance

• Revenue ramp expected to be lumpy in the near term as recurring orders develop; prioritization based on revenue potential and speed to market.

• Management expects continued losses and negative cash flows as commercialization and development efforts expand.

• Substantial doubt exists about the ability to continue as a going concern without additional financing; mitigation plans include capital raises, grant applications, and commercial pilot sales.

• Focus remains on expanding commercial revenues, leveraging partner funding, and disciplined cash management.