Dyadic anticipates $500,000 milestone and targets commercialization ramp through 2026

Earnings Call Insights: Dyadic International, Inc. (DYAI) Q2 2025

MANAGEMENT VIEW

* Joseph P. Hazelton, President & COO, stated Dyadic has shifted from a platform-focused R&D company to a commercially-driven biotechnology business, emphasizing, "We are now at the commercial inflection point and Dyadic is built to compete and win in these markets." The company rebranded as Dyadic Applied BioSolutions and completed a $5.3 million equity raise to fund late-stage product development and multiple product launches. Hazelton detailed the company’s proprietary C1 and Dapibus platforms, highlighting their capability for scalable, animal-free protein production for life sciences, food nutrition, and bioindustrial applications.
* Hazelton noted a focus on high-growth, nontherapeutic markets, with key commercialization targets in cell culture media proteins—albumin, transferrin, and fibroblast growth factors—plus molecular biology reagents and animal-free food proteins. The launch of recombinant human albumin, in partnership with Proliant Health & Biologics, is planned for 2025, with $1 million in milestone payments received and a $500,000 milestone targeted for the third quarter.
* Partnerships and grant-funded programs continue, including a $3 million Gates Foundation grant for monoclonal antibody development, yielding a $1.5 million milestone this quarter, and collaborations with CEPI and Fondazione Biotecnopolo di Siena for vaccine development.
* "Total revenue for the quarter ended June 30, 2025 increased to $967,000 compared to $386,000 for the same period a year ago," stated Chief Financial Officer Ping Wang Rawson. "Loss on operations for the quarter decreased to $1,729,000 compared to $2,043,000 for the same period a year ago. Net loss for the quarter decreased to $1,794,000 or $0.06 per share compared to $2,045,000 or $0.07 per share for the same period a year ago."

OUTLOOK

* Rawson indicated, "For the rest of 2025, we anticipate achieving our third and last milestone of $500,000 in revenue from Proliant along with additional income from DNase1 and other products while maintaining our operating expenses at or below last year's level."
* The company will focus on commercialization across life sciences, food nutrition, and bioindustrial segments, with DNase1 and transferrin expected to follow albumin in the commercialization pipeline, and initial revenues from alpha-lactalbumin and bioindustrial products targeted for 2026.

FINANCIAL RESULTS

* Second quarter revenue rose sharply to $967,000, bolstered by a $250,000 milestone from Inzymes and grant revenue. Research and development expenses increased to $629,000, reflecting expanded internal research initiatives, while general and administrative expenses decreased to $1,437,000, driven by cost reductions.
* Cash, cash equivalents, and investment-grade securities stood at approximately $7.3 million as of June 30, 2025. The company raised $5.3 million from a public offering of 6,052,000 shares in August 2025.

Q&A

* John D. Vandermosten, Zacks: Asked about updated cash burn and timing for commercialization of transferrin and DNase1. Rawson replied, "We do not provide a specific cash burn guidance as we normally do. But I think you can at least expect this equivalent cash burn as last year or even less, again, depending on revenue for the upcoming 2 quarters." Hazelton stated DNase1 is "the more commercially ready one," with revenue expected soon, and transferrin is targeted for late 2025 or 2026.
* Richard Williams, Williams Resource Group: Inquired about the Fermbox deal and U.S. opportunities. Hazelton described focus on bioindustrial enzymes for biofuels and biogas, noting, "The focus on biofuels obviously in the U.S. and North America isn't quite as strong as it is overseas. But the interest is picking up and we're starting to evaluate potential manufacturing options here in the U.S."
* Glenn Primack, Lusa Investment Group: Asked about systems and three-year planning. Hazelton said systems are in place for current growth and the three-year plan process will start in the fall.
* Robert Hoffman, Princeton Opportunity Management: Queried potential conflicts with DuPont and fully diluted share count. CEO Mark Emalfarb clarified, "We had a noncompete that ended 3, 4 years ago. And then we've completely -- we're not using C1 for industrial products. We're using Dapibus which we've recreated, so we don't see any conflicts." Rawson said fully diluted share count is "36 million-plus shares."
* Unidentified Analyst: Asked about profitability crossover. Hazelton indicated the goal is to be cash flow positive by end of 2026, with profitability increasing in 2027 and beyond.
* Tony Bowers, Intro-act: Sought insight on commercialization timelines and addressable markets. Hazelton explained, "The highest addressable market is really that cell culture media market," and product-specific timelines depend on regulatory and scaling requirements.

SENTIMENT ANALYSIS

* Analysts maintained a generally positive tone, with probing questions focused on commercialization timelines, cash burn, and market opportunities. There was recognition of progress but some uncertainty about revenue scaling and profitability.
* Management maintained a confident and optimistic tone throughout, stressing execution and readiness for commercial launch. Hazelton consistently emphasized the company’s readiness and focused strategy, while Rawson was measured about financial projections and operating expense control.
* Compared to the previous quarter, analysts’ tone remains cautiously optimistic but more focused on near-term revenue and profitability milestones, reflecting the company’s commercial pivot. Management’s tone has grown more assertive and confident about Dyadic’s strategic positioning.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter marks the completion of Dyadic’s transformation into a market-facing, product-driven company, compared to the previous quarter’s focus on pipeline development and a transition toward commercialization.
* Management’s language in Q2 emphasizes commercial execution, rebranding, and operational transformation, versus the prior quarter’s emphasis on partnerships and product development.
* Financially, revenue increased to $967,000 from $394,000 in Q1, with reduced net loss and operating expenses. The successful $5.3 million equity raise in Q2 bolsters the balance sheet, compared to Q1’s focus on maintaining cash and investment levels.
* Analysts’ questions in both quarters focus on commercialization, market segments, and cash utilization, but Q2 sees more direct inquiries about profitability and market entry timing.

RISKS AND CONCERNS

* Management highlighted the uncertainty of product revenue ramp, noting that cash burn is dependent on sales performance in the second half of the year.
* Analysts raised questions about potential conflicts regarding technology use (DuPont), scalability of systems, and market adoption pace, with management addressing these concerns directly.
* No specific new operational or regulatory risks were raised in this call, but the success of commercialization efforts and scaling remains a focal point.

FINAL TAKEAWAY

Dyadic completed a strategic transformation in Q2 2025, emerging as a commercially-focused biotechnology company with a robust pipeline and expanding partnerships. Management projects continued revenue growth, a targeted $500,000 milestone in the second half, and a goal of reaching cash flow positivity by the end of 2026. With a strengthened balance sheet and a clear path to market launch for key proteins and enzymes, the company is positioned to capitalize on growing demand in life sciences, food nutrition, and bioindustrial sectors.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/dyai/earnings/transcripts]

MORE ON DYADIC INTERNATIONAL

* Dyadic International, Inc. (DYAI) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4813356-dyadic-international-inc-dyai-q2-2025-earnings-call-transcript]
* Dyadic International prices public offering of 6.05M shares of common stock [https://seekingalpha.com/news/4475573-dyadic-international-prices-public-offering-of-605m-shares-of-common-stock]
* Seeking Alpha’s Quant Rating on Dyadic International [https://seekingalpha.com/symbol/DYAI/ratings/quant-ratings]
* Historical earnings data for Dyadic International [https://seekingalpha.com/symbol/DYAI/earnings]
* Financial information for Dyadic International [https://seekingalpha.com/symbol/DYAI/income-statement]