By John Vandermosten, CFA
NASDAQ: DYAI
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Dyadic Applied BioSolutions, Inc. (NASDAQ: DYAI) announced 1Q:26 results on May 13th, 2026, and held a conference call providing additional detail after that day’s market close. Dyadic updated investors on the status of their active relationships, indicating initial purchase orders for recombinant bovine transferrin, launch of AlbuFree DX, and the launch of recombinant DNase I, among other initiatives. Dyadic continues its research work executing the Gates Foundation and Coalition for Epidemic Preparedness Innovations (CEPI) infectious disease programs.
1Q:26 Operational & Financial Results
On May 13th, 2026, Dyadic released 1Q:26 operational and financial results in a press release and a Form 10-Q filing with the SEC. Further detail was provided in a conference call held with investors. Below are financial results for the three months ending March 31st, 2026, compared to the same prior year period:
- Revenues were $1.1 million, up 182% from $0.4 million. The change reflected a $220,000 contribution from the Proliant Agreement, along with $277,000 rise in grant income in part related to amounts from the Gates Foundation. These amounts were augmented by another $200,000 from Inzymes’ contract milestone;
- Cost of revenue totaled $792,000, rising 166% from $298,000 on higher research and grant revenue cost;
- Research and development expense was down 4% to $476,000 from $495,000 due to a decrease in the number of active internal research initiatives in support of product development;
- General and administrative expenses were $1.8 million vs. $1.6 million, rising 10%. Higher legal and accounting expenses, incentives, and rebranding and business development expenses contributed. These amounts were partially offset by a decrease in share-based compensation and insurance expenses;
- Foreign currency exchange gains were $10,000 vs. a loss of $7,000 due to fluctuations in the Euro-Dollar exchange rate;
- Total other expenses were $52,000 vs. $25,000 due to reduced interest income;
- Net loss amounted to $2.0 million, nearly unchanged. On a per share basis, net loss was $0.05 and $0.07.
As of March 31st, 2026, cash, equivalents, and short-term securities totaled $6.5 million compared to $8.6 million at the end of 2025. This includes restricted cash of about $900,000 that is earmarked for work associated with the Gates Foundation Grant. Cash burn during 1Q:26 was $2.0 million compared with $1.9 million for 1Q:25. No cash from financing was recorded in the quarter. On March 6th, Dyadic entered into an At-The-Market (ATM) sales agreement with Craig-Hallum. Dyadic believes that it has sufficient cash to support operations until 2Q:27.
Partnerships and Collaborations
The first quarter 2026 financial and operational update reinforced Dyadic’s progress over the past 18 months as it transitions from a research-focused organization to a commercially driven business. During the quarter, the company highlighted continued advancement across the commercialization continuum, including strategic partner recruitment, customer identification, OEM distribution expansion, product launches, initial purchase orders, milestone achievements and product shipments through commercial channels.
Recent developments included Dyadic’s OEM distribution agreement with IBT Bioservices, commercialization activities with Proliant and Fermbox Bio, milestone revenue recognition under the Inzymes agreement, and ongoing funded collaborations with organizations such as the Gates Foundation and CEPI. For IBT in particular, Dyadic inventory was delivered into the support channel and later shipped to customers in the days before the first quarter conference call. Management also emphasized that several recombinant protein products are now moving through global sales channels and reaching end customers, providing additional validation of the scalability and commercial applicability of the company’s C1 and Dapibus platforms. As the year progresses, we are looking to the timing, consistency, and magnitude of collections, revenues and cash flow generation. While the trajectory toward commercialization appears to be strengthening, the pace and scale of future revenue recognition remain uncertain, and we expect additional clarity to emerge over the coming quarters.
Beyond the revenue opportunities, Dyadic also penned agreements with longer term impacts. The first is with Intralink Group for expanding commercial efforts in Japan and Korea. They have made progress with customer engagement in Japan, have shipped samples, and are in the process of identifying product opportunities. This relationship has now expanded to include Europe, where sampling activity is taking place.
Milestones
- Dyadic & Proliant commercial launch of recombinant human albumin – February 2026
- Inzymes’ dairy enzyme (chymosin) milestone completion & planned future commercialization – March 2026
- Dyadic & Fermbox launch recombinant DNase I (RNase free) – March 2026
- Commercial partnership with IBT Bioservices announced – March 2026
- Participation at Sidoti Virtual Investor Conference – May 20th, 2026
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