Dyadic International 2025 Q3 Earnings Net Loss Widens 871.2% Despite Revenue Beat

Dyadic International (DYAI) reported Q3 2025 earnings that missed revenue estimates but saw a significant widening of net losses. The company’s revenue of $1.16 million beat expectations by $0.04 million, while GAAP EPS of -$0.06 fell short by $0.02. Management highlighted strategic progress in commercialization but cautioned ongoing financial challenges.

Revenue

Dyadic’s total revenue declined 40.5% year-over-year to $1.16 million, driven by reduced research and licensing income. Grant revenue from the Gates Foundation and CEPI offset part of the decline. The company attributed the drop to fewer active collaborations and lower milestone payments.

Earnings/Net Income

The net loss expanded to $1.98 million ($0.06 per share) in Q3 2025, a 871.2% increase from $203,460 in the prior-year period. This marked the 8th consecutive quarter of losses, underscoring persistent operational challenges. The EPS result, while consistent with estimates, reflects deteriorating profitability.

Post-Earnings Price Action Review

The strategy of buying DYAI shares on revenue-raise announcements historically yielded mixed results. While Q3’s revenue beat drove a 12.5% average gain over 30 days, Q2’s revenue outperformance failed to prevent a 5.5% loss. This inconsistency highlights the stock’s susceptibility to market sentiment shifts, unrelated to earnings outcomes.

CEO Commentary

Mark Emalfarb emphasized progress in biopharma programs, including malaria and RSV monoclonal antibodies, and collaborations with the Gates Foundation and CEPI. He cited the C1 platform’s scalability and potential for Phase I trials as growth drivers. The CEO also outlined a shift to a product-driven model with recurring revenue from life sciences and food nutrition.

Guidance

Ping Rawson, CFO, expects 2025 product revenue growth from life sciences and food/nutrition markets, with operating expenses aligned to 2024 levels. Joe Hazelton, COO, highlighted partnerships like Intralink in Asia to scale sales without major infrastructure costs. The company anticipates recombinant protein launches in 2025-2026 and royalty revenue from enzyme and dairy protein collaborations, supported by $10.4 million in cash reserves.

Additional News

Dyadic rebranded as Dyadic Applied BioSolutions and secured a non-exclusive CRISPR license to enhance genetic engineering capabilities. The company expanded its Asia commercial efforts through Intralink and received a $250,000 milestone payment from Inzymes. Insider purchases, including 26,000 shares by COO Joseph Hazelton, and institutional investments from Perkins Capital and Truist Financial underscored investor confidence.