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DYADIC INTERNATIONAL INC (DYAI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue increased 17.6% year over year to $0.394M, driven by $0.210M of grant revenue (Gates/CEPI) offset by fewer paid collaborations; net loss was $2.028M ($0.07 per share), essentially flat year over year .
  • Cash and investment-grade securities were ~$7.3M at March 31, 2025 (down from $9.3M at 12/31/24), with management emphasizing a pivot to near-term, recurring-revenue products (albumin, DNase1, transferrin, alpha-lactalbumin) .
  • Commercial milestones and catalysts: expected Q3 2025 launch of recombinant human serum albumin with Proliant; DNase1 research-grade manufacturing validation underway; initial large purchase order at Fermbox for EN3ZYME with near-term deliveries; transferrin/FGF sampling expected in Q2 2025 .
  • Estimates context: Q3 2024 revenue beat consensus ($1.958M vs $1.100M) and Q4 2024 missed ($0.817M vs $1.600M); no Q1 2025 consensus available. EPS consensus for Q3/Q4 was -$0.07/-$0.04; Q3 actual EPS was -$0.01; Q4 actual EPS not disclosed in releases (see table below; values from S&P Global)* .

What Went Well and What Went Wrong

  • What Went Well

    • Strategic pivot reinforced: “our primary focus is on developing and commercializing scalable products with recurring revenue potential,” targeting high-value life sciences and industrial enzyme markets .
    • Commercial pipeline execution: albumin on track for Q3 2025 launch with Proliant; DNase1 process validation with EU CDMO; transferrin/FGF sampling programs starting Q2 2025 .
    • Non-dilutive funding supports platform validation and visibility (CEPI $4.5M via FBS; Gates $3.0M antibodies project), expanding C1 adoption in vaccines/antibodies and One Health programs .

  • What Went Wrong

    • Collaboration count dropped (4 vs 9 YoY), reducing R&D revenue by $0.152M; cost of revenue rose with grant execution, pressuring operating leverage .
    • Other income turned to a net expense (-$0.025M vs +$0.116M YoY) on higher interest expense from convertible notes and absence of Alphazyme gain recorded in prior year .
    • Investor concern on prioritization: Q&A questioned spend on non-revenue biopharma grants vs near-term commercial products; management affirmed immediate reprioritization to non-pharma commercialization .

Financial Results

  • Q1 2025 year-over-year comparison
MetricQ1 2024Q1 2025
Total Revenue ($USD)$334,617 $393,572
Net Loss ($USD)$(2,009,596) $(2,027,579)
EPS (Basic & Diluted) ($)$(0.07) $(0.07)
Research & Development Expense ($USD)$523,000 $495,000
G&A Expense ($USD)$1,789,000 $1,596,000
Cost of R&D Revenue ($USD)$143,955 $126,480
Cost of Grant Revenue ($USD)$0 $171,178
  • Revenue composition
Revenue BreakdownQ1 2024Q1 2025
Research & Development Revenue ($USD)$334,617 $183,100
Grant Revenue ($USD)$0 $210,472
Total Revenue ($USD)$334,617 $393,572
  • Trend (last three quarters)
MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$1,957,500 $817,376*$393,572
EPS ($)$(0.01) N/A$(0.07)
  • KPIs and balance sheet items
KPIQ1 2024Q1 2025
Paid Collaborations (#)9 4
Cash + Investment-Grade Securities ($USD)$9.3M (12/31/24) ~$7.3M (3/31/25)

Note: Asterisked values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Recombinant Human Serum Albumin launch timingQ3 2025H1 2025 window indicated in prior year-end update Q3 2025 expected launch with Proliant; sampling Q2 2025; third milestone in Q2 2025 Clarified timing; maintained commercialization plan
DNase1 (RNase-free)2025 (research-grade)Pre-orders targeted early 2025 EU CDMO validation and initial manufacture for purchase progressing Execution update; maintained trajectory
Transferrin samplingQ2 2025Sampling underway 2H 2024/Q4 timing Active partner engagement; protein characterization initiated; sampling ongoing Maintained; expanded engagement
FGF samplingQ2 2025“Expected to begin in Q2 2025” Sampling initiatives expected to begin Q2 2025 Maintained
Dairy enzyme launchLate 2025H1/Q4 2025 indications Scale-up and commercialization ongoing; anticipated late 2025 Maintained timeline
Grants/platform programs (CEPI/Gates)2025–2026CEPI $4.5M via FBS; Gates $3.0M (announced) Continued execution; Dyadic to receive up to $2.4M from CEPI program; initiated $3.0M Gates project Execution update

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Pivot to product commercializationEmphasized dual-track; albumin, DNase1, transferrin near-term Reinforced near-term product revenue while advancing biopharma “Primary focus…recurring revenue products” in life sciences/industrial Strengthening
Cell culture media products (albumin, transferrin, FGF)Certificates of analysis, sampling underway Continued development; FGF sampling targeted Albumin launch in Q3; transferrin comparable performance; FGF sampling Q2 Advancing to commercialization
DNA/RNA enzymes (DNase1, RNase inhibitors, T7)DNase1 ready for pre-orders; portfolio expansion Validation/manufacture plan; four prototypes by YE 2025 DNase1 process validation with EU CDMO; expanded enzyme portfolio Operational progress
Bioindustrial enzymes (Fermbox EN3ZYME)Launch and sampling; multi-industry pipeline Continued sampling; industrial opportunities Large PO received; deliveries expected in months Commercial traction
Tariffs/macro/onshoringNot highlightedNot highlightedOnshoring viewed as opportunity; key products produced in U.S. Emerging positive narrative
Grants/platform validation (CEPI/Gates)Submitted multiple NGO grants CEPI $4.5M via FBS; Gates $3.0M programs underway CEPI program execution; participation in EVH; Uvax grant mentions Ongoing validation

Management Commentary

  • “Our primary focus is on developing and commercializing scalable products with recurring revenue potential…utilizing our proprietary microbial protein production platforms, like C1 and Dapibus, to drive revenue growth in high-value life sciences, bioactives, ingredients, and industrial markets” — Mark Emalfarb, CEO .
  • “Our top commercialization priority lies in the cell culture media space…we expect the launch of recombinant human serum albumin in Q3 2025…we’re advancing recombinant transferrin and FGFs…DNase1 RNase-free enzyme…with a European CDMO” — Joe Hazelton, COO .
  • “Total revenue…increased to approximately $394,000…net loss…was $2,028,000 or $0.07 per share…we continue to strengthen our balance sheet to support our near-term revenue growth” — Ping Rawson, CFO .

Q&A Highlights

  • Fermbox economics: revenue sharing is immediate; profit split between Dyadic and Fermbox, with potential expansion beyond initial bid/government contracts .
  • Albumin launch sequencing: no advance orders before sampling; Q2 sampling, Q3 order intake/fulfillment targeted; U.S. production mitigates tariff risk .
  • Resource prioritization: Board and management “now” reprioritizing toward non-pharmaceutical commercialization; partners drive human/animal health programs .
  • Margin outlook: lactoferrin highest margin potential; alpha‑lactalbumin offers larger/quickest opportunity given productive strain and promising food application tests .

Estimates Context

  • Revenue vs consensus: Q3 2024 actual $1.958M beat $1.100M consensus; Q4 2024 actual $0.817M missed $1.600M consensus; Q1 2025 had no available consensus (S&P Global)* .
  • EPS vs consensus: Q3 2024 actual EPS -$0.01 vs -$0.07 consensus; Q4 2024 consensus -$0.04; actual EPS not disclosed in releases (S&P Global)* .
MetricQ3 2024Q4 2024Q1 2025
Revenue Consensus Mean ($USD)1,100,000*1,600,000*N/A
Actual Revenue ($USD)1,957,500 817,376*393,572
Primary EPS Consensus Mean ($)-0.07*-0.04*N/A
Actual EPS ($)-0.01 N/A-0.07

Note: Values with asterisks are retrieved from S&P Global.*

Key Takeaways for Investors

  • Near-term commercialization pipeline is the central narrative: albumin Q3 2025 launch, DNase1 manufacturing validation, and imminent enzyme deliveries at Fermbox are tangible catalysts for revenue inflection .
  • Recurring-revenue focus should ease reliance on grants; collaboration count fell (4 vs 9) but management is reallocating resources to products with clearer revenue pathways .
  • Cash of ~$7.3M provides runway, but higher interest expense from convertibles and shrinking cash balance warrant close monitoring until product revenues materialize .
  • The CEPI/Gates programs enhance platform credibility and potential optionality in biopharma, while the core execution focus remains on non-therapeutic products .
  • Onshoring and domestic manufacturing (albumin, dairy enzymes) reduce tariff/supply risk and align with macro tailwinds; this could improve adoption velocity with U.S. customers .
  • Trading lens: watch for Q2 milestone receipt (Proliant) and Q2 sampling/validation updates (transferrin, FGF, DNase1), plus confirmation of EN3ZYME deliveries—each event validates the commercial pivot and could drive sentiment .