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DYADIC INTERNATIONAL INC (DYAI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $0.97M, up 150% year over year, driven by a $0.25M milestone (Inzymes) and grant revenue from Gates Foundation and CEPI; net loss narrowed to $1.79M and EPS was $(0.06) .
  • The quarter marked a strategic pivot: rebrand to Dyadic Applied BioSolutions, equity raise of $5.3M on Aug 1, and a shift from R&D to commercial execution with expected product launches of RNase‑free DNase I and recombinant human albumin (Proliant partnership) in 2025 .
  • Versus Wall Street: revenue materially beat consensus ($0.97M actual vs $0.60M consensus*), EPS matched the sole estimate at $(0.06); coverage remains very limited (1 estimate)* .
  • Near-term catalysts: DNase I commercialization steps underway (scale-up, validation, research-grade manufacturing), expected $0.5M Proliant milestone in Q3 2025, and potential initial revenues from bioindustrial enzyme partnerships; management targets cash-flow positive by 2026 .
  • Liquidity strengthened: $7.3M cash/investments at 6/30, plus $5.3M net proceeds post-quarter; OpEx expected at or below last year, supporting runway to commercialization .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line inflection: revenue +$0.58M YoY to $0.97M, with milestone and grant revenue as primary drivers .
  • Strategic execution: rebranding, leadership and operational transformation, and equity raise to advance commercialization; “This is no longer just a platform story, it's a product story… We are now at the commercial inflection point” — Joe Hazelton .
  • Pipeline momentum: DNase I scale-up validated; albumin launch expected in 2025 with milestone and future royalties; transferrin and FGF performing comparably to reference standards and sampling underway .

What Went Wrong

  • Continued operating losses: loss from operations $(1.73)M and net loss $(1.79)M; total other income (expense) was a $(0.06)M headwind in Q2 .
  • Limited estimate coverage: only one sell-side estimate, constraining institutional visibility and potentially contributing to volatility in investor expectations* .
  • Operating leverage not yet realized: Cost of revenue and R&D increased with expanded programs; margin pressure persists until commercial volumes scale .

Financial Results

Summary vs Prior Periods and Estimates

MetricQ2 2024 (YoY base)Q1 2025 (QoQ base)Q2 2025 (Actual)Wall St. Consensus (Q2 2025)*
Revenue ($USD)$385,896 $393,572 $966,630 $600,000*
Loss from Operations ($USD)$(2,042,591) $(2,002,475) $(1,729,068) N/A
Net Loss ($USD)$(2,045,223) $(2,027,579) $(1,793,774) N/A
Diluted EPS ($)$(0.07) $(0.07) $(0.06) $(0.06)*
Other Income (Expense), net ($USD)$(2,632) $(25,104) $(64,706) N/A

Values marked with * retrieved from S&P Global.

Revenue Mix

Revenue ComponentQ2 2024Q2 2025
Research & Development Revenue ($USD)$385,896 $213,449
Grant Revenue ($USD)$0 $503,181
License & Milestone Revenue ($USD)$0 $250,000
Total Revenue ($USD)$385,896 $966,630

Margins and OpEx

MetricQ2 2024Q1 2025Q2 2025
Cost of R&D Revenue ($USD)$301,956 $126,480 $148,457
Cost of Grant Revenue ($USD)$0 $171,178 $465,134
R&D Expense ($USD)$515,629 $494,979 $629,379
G&A Expense ($USD)$1,607,756 $1,596,338 $1,436,630
Total Costs & Expenses ($USD)$2,428,487 $2,396,047 $2,695,698

Balance Sheet Highlights

MetricDec 31, 2024Mar 31, 2025Jun 30, 2025
Cash & Equivalents ($USD)$6,506,750 $5,064,941 $2,140,899
Short-term Investment Securities ($USD)$2,756,577 $2,284,472 $2,842,419
Restricted Cash, Current ($USD)$0 $0 $1,588,384
Total Current Assets ($USD)$9,827,668 $7,805,212 $7,406,739
Total Liabilities ($USD)$7,459,985 $6,971,267 $8,667,747

Note: Additional $5.3M net offering proceeds post quarter on 8/1/2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Human Serum Albumin launch timing2025Q2–Q3 2025 expected (Q4’24/Q1’25 narratives) 2025 expected (Proliant partner-led) Maintained (timing broadened)
Proliant milestoneQ3 2025Anticipated third milestone in Q3 2025 $500,000 milestone anticipated in Q3 2025 Maintained
DNase I commercialization status2025Scale-up/validation progressing; initial research-grade manufacturing expected Scale-up successful; validation complete; research-grade manufacturing underway; sampling active Raised (execution progress)
Operating Expenses2H 2025Not specifiedExpect OpEx (G&A/R&D) at or below last year’s level New qualitative guidance
Cash Burn2025Not providedNo specific burn guidance; expect similar or lower vs 2024 depending on product sales New qualitative guidance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Commercial pivot & rebrandingFocus on non‑pharma commercialization; product targets outlined Rebrand to Dyadic Applied BioSolutions; “commercial inflection point” Accelerating execution
Life sciences products (Albumin, Transferrin, FGF)Albumin launch expected Q2–Q3’25; early validation for transferrin and FGF Albumin expected 2025 with royalties; transferrin equivalent performance; FGF comparable; sampling underway Advancing toward commercialization
DNase I & enzyme portfolioDNase I progressing with EU CDMO; expanded enzyme prototypes Scale-up successful; validation complete; research-grade manufacturing; OEM/supply talks Near-term revenue visibility
Grants & global healthCEPI/FBS $4.5M program; Gates $3M mAbs program; EVH participation $1.5M Gates installment; CEPI/FBS work ongoing; EVH engagement continues Funding supports R&D and credibility
Bioindustrial enzymes (Fermbox EN3ZYME)Launch announced; initial PO expected; sampling initiated Initial delivery completed; 50/50 profit share; broader sampling/negotiations Commercial traction building
Liquidity & capital strategyYE cash/investments $9.3M $7.3M at 6/30; $5.3M net raise on 8/1 Strengthened runway
Profitability targetNot specifiedAim for cash-flow positive by 2026; increasing profitability by 2027 and beyond Defined medium-term path

Management Commentary

  • “This is no longer just a platform story, it's a product story. We are now at the commercial inflection point and Dyadic is built to compete and win in these markets.” — Joe Hazelton, President & COO .
  • “We have successfully scaled up production at our European CDMO partner with validation completed and research grade manufacturing underway [for RNase‑free DNase‑I]. Sampling is in progress and we're in active discussions with potential commercial partners.” — Joe Hazelton .
  • “We anticipate achieving our third and last milestone of $500,000 in revenue from Proliant along with additional income from DNase‑1 and other products, while maintaining our operating expenses at or below last year's level.” — Ping Rawson, CFO .
  • “The goal is that we're cash flow positive by 2026, and then we start to see increased profitability in 2027 and beyond.” — Joe Hazelton .
  • “We recently strengthened our balance sheet by completing a $5.3 million equity raise on August 1. This provides the resources to fund late-stage product development, scale-up and multiple upcoming product launches.” — Joe Hazelton .

Q&A Highlights

  • Cash burn and profitability timeline: CFO expects equivalent or lower burn vs 2024 depending on product sales; goal for cash-flow positive by 2026, profitability thereafter .
  • Commercialization sequencing: DNase I is closest to revenue (scale-up and research-grade manufacturing done; OEM/supply negotiations underway); transferrin likely next (validation ongoing; scale-up options evaluated) .
  • Bioindustrial opportunity: ~$10B market; early adopters in India/Asia-Pacific; US interest growing; evaluating US manufacturing and cross-industry applications (pulp/paper, textiles) .
  • Corporate mechanics: No DuPont conflict under current strategy; ~36M fully diluted shares post offering; no warrants issued in the raise .
  • Infrastructure & TAM: Systems sufficient for bulk orders; considering distribution/logistics; investor presentation contains TAM estimates; cell culture media ~$5–6B with albumin/transferrin/growth factors driving share .

Estimates Context

  • Revenue beat: Actual $0.97M vs consensus $0.60M; EPS inline at $(0.06); only one estimate for both EPS and revenue, limiting visibility and increasing dispersion risk* .
  • Forward look: Coverage is sparse; initial product revenues in 2H 2025 (DNase I, Proliant albumin milestones) may necessitate upward adjustments to revenue trajectories as commercialization advances* .
MetricQ2 2025 Consensus*Q2 2025 Actual
Revenue ($USD)$600,000*$966,630
EPS ($)$(0.06)*$(0.06)
EPS – # of Estimates1*N/A
Revenue – # of Estimates1*N/A

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Execution inflection: Strong YoY revenue growth and tangible commercialization steps (DNase I, albumin) support the narrative shift from R&D to product revenue .
  • Near-term catalysts: $0.5M Proliant milestone (Q3), DNase I OEM/supply agreements, and initial bioindustrial revenue sampling could drive sentiment and estimate revisions .
  • Operating discipline: G&A reduction YoY and stated OpEx control at/below last year enhance runway to 2026 cash-flow positivity .
  • Funding de-risking: $5.3M net capital raise post-quarter bolsters liquidity for scale-up and market entry .
  • Coverage gap: With only one estimate, incremental disclosures (TAM, pricing, volume, margin scalability) and partner announcements can meaningfully move the stock as the commercialization story broadens* .
  • Strategic focus areas with defensible advantages: Animal-free cell culture media components (albumin, transferrin, FGF) and high-purity enzymes (DNase I) where C1/Dapibus platforms offer cost, scale, and speed advantages .
  • Watch list: Timing clarity on albumin commercial launch, DNase I commercial agreements, and converting bioindustrial sampling into recurring revenue in 2026 .