By John Vandermosten, CFA
NASDAQ: DYAI
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Dyadic Applied BioSolutions, Inc. (NASDAQ: DYAI) announced 2025 results on March 25th, 2026, and held a conference call providing additional detail after that day’s market close. An exciting development is the February introduction of AlbuFree DX, a recombinant human albumin product developed with Proliant. AlbuFree DX is the result of the twenty-month partnership between the two. Dyadic expects a share of the profits from this partnership in 2026. An expanded strategic collaboration was signed with Fermbox Bio, building on the EN3ZYME platform announced in May 2024. The new initiative will launch the first commercial product for the duo with animal-origin-free recombinant DNase I (RNase-free). Dyadic also signed an original equipment manufacturer (OEM) distribution agreement with IBT Bioservices to commercialize Dyadic’s recombinant DNase I and transferrin products for research and cell culture applications. There were also agreements with BRIG Bio, Inzymes, and Opes Diagnostics to commercialize other recombinant proteins throughout the world that are active and advancing.
2025 Operational & Financial Results
On March 25th, 2026, Dyadic published 2025 operational and financial results in a press release and a Form 10-K filing with the SEC. Further detail was provided in a conference call held with investors. Below are financial results for the twelve months ending December 31st, 2025, compared to the same prior year period:
- Revenues were $3.1 million, down 12% from $3.5 million. The decrease is attributed to a reduction in the number of active collaborations as well as license and milestone revenue. BRIG Bio and Inzymes contributed to the license and milestone revenue compared to prior year contributions from Proliant and Inzymes. These declines were only partially replaced by grant revenue from the Gates Foundation and the Coalition for Epidemic Preparedness Innovations (CEPI). We note that the $500,000 milestone cash flow from Proliant in 2025 was not recognized as milestone revenue but only partially recognized as research and development revenue. The deferred revenues will be further recognized as the required work is completed;
- Cost of revenue totaled $2.3 million, rising 94% from $1.2 million due to the higher cost of grant revenue;
- Research and development expense was up 5% to $2.2 million from $2.0 million due to an increase in the number of active internal research initiatives in support of product development;
- General and administrative expenses were $5.8 million vs. $6.1 million, falling 6%. Reductions in management incentive expenses, share-based compensation expenses, and insurance expenses contributed to the change. The decline was partially offset by increases in professional services and other expenses;
- Foreign currency exchange losses were $47,000 vs. $23,000 due to fluctuations in the Euro-Dollar exchange rate;
- Total other expenses were $172,000 vs. total other income of $92,000 due to an increase in interest expense related to the convertible notes and the absence of the gain related to the sale of the Alphazyme interest in the prior year;
- Net loss amounted to $7.4 million versus $5.8 million. On a per share basis, net loss was $0.23 compared with $0.20.
As of December 31st, 2025, cash, equivalents and short-term securities totaled $8.6 million compared to $9.3 million at the end of 2024. Cash burn during 2025 was $5.7 million compared with $4.0 million for 2024. Cash from financing in 2025 was $5.0 million mostly from an equity raise in the third quarter. Dyadic believes that it has sufficient cash to support operations for the next 12 months.
Partnerships and Collaborations
The 2025 financial and operational update further demonstrates Dyadic’s diversified set of revenue opportunities that are expected to contribute to the topline this year. Customers have submitted purchase orders for C1- and Dapibus-produced proteins, including cell culture media and molecular biology reagents, recombinant growth factors, and fibroblast growth factors. Fermbox’s first orders of cellulosic enzymes have been fulfilled, and sampling activity for new products is taking place in the Asia Pacific region. Both Proliant and Fermbox have commercially launched recombinant serum albumin and DNase I (RNase free), respectively.
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. Dyadic management will be visiting Japan in the second quarter to firm up the relationship with the prospects and potentially close new business. The arrangement with Intralink will introduce DNase I and human transferrin to partners throughout the value chain, including gene therapy manufacturers, suppliers, and distributors. The deal with ERS Genomics offers licensing of a broad range of CRISPR/Cas9 gene editing technologies, which can help Dyadic develop desired strains for customers more quickly and improve optimization yields.
Dyadic’s research-focused efforts continue with the Gates Foundation collaboration, which achieved key milestones resulting in the receipt of $2.4 million of a $3.1 million grant. Dyadic is developing low-cost monoclonal antibodies targeting respiratory syncytial virus (RSV) and malaria, with early data demonstrating output comparability to that of traditional Chinese Hamster Ovary (CHO) cell lines. The CEPI/Fondazione Biotecnopolo di Siena program provides up to $2.4 million for Dyadic to support antigen design, cell line development, and cGMP scale-up for vaccines and antibodies. Other biopharmaceutical program work with the European Vaccines Hub, Uvax Bio, and the AdaptVac Consortium may also contribute several million dollars to Dyadic’s research efforts in vaccines.
Product Revenue Recognition and Cash Receipts
With a portfolio of collaborations and partnerships, Dyadic is a party to a number of arrangements that may have long lead times between Dyadic’s performance of its obligations, revenue recognition and receipt of cash flows.
Some counterparties will pay half up front and half on delivery, others use C1 or Dapibus technology to manufacture product themselves and then sell it. In these circumstances, there will be a revenue, receivables, and receipts (RRR) cycle for the manufacturer and then a receivables and receipt cycle for Dyadic. In other cases, such as that with IBT, Dyadic will ship unfinished product, the partner will finish it, and make it available for sale. Each party will then have an RRR cycle to bear. Proliant manufactures products for the partners and shares a proportion of the gross margin with Dyadic. In this arrangement, low volumes of production have depressed and potentially even negative margins in the early days, which may lead to a delay between when product is sold and when Dyadic receives cash flows. We estimate that it could take up to two quarters in some cases for Dyadic to receive the cash for a product it has transferred to another party.
These are realities for any emerging business, and we expect that as Dyadic builds upon a small base and begins to generate positive free cash flows, it will be able to accelerate its growth. With sufficient capital, Dyadic plans to build inventory and provide finished product to customers. We anticipate that the RRR cycle will be shorter when the company is able to scale up its activities.
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