Dyadic International (DYAI -3.53%), a biotechnology company focused on protein and enzyme production through its unique microbial platforms, reported its second quarter 2025 results on August 13, 2025. The highlight was a sharp year-over-year revenue surge, driven primarily by milestone payments and grant revenues. Revenue (GAAP) exceeded consensus estimates by 61.2%. Revenue (GAAP) reached $967,000, beating the $0.60 million analyst estimate (GAAP). Earnings per share (GAAP) came in at a loss of $0.06, matching expectations. Overall, the quarter showed solid operational progress and cost controls, but recurring product revenue remains an area to watch as the company pivots toward greater commercialization.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.06) | ($0.06) | ($0.07) | 14.3 % |
| Revenue (GAAP) | $0.97 million | $0.60 million | N/A | 150.4 % |
| Loss from Operations | ($1.73 million) | ($2.04 million) | 15.3 % | |
| Cash, Equivalents, and Investments | $7.3 million(as of June 30, 2025) | $9.3 million(as of Dec 31, 2024) | (21.5%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Dyadic International is a biotechnology firm specializing in producing proteins and enzymes using its C1 and Dapibus microbial expression platforms. The C1 platform focuses on biopharmaceuticals, while Dapibus targets non-pharmaceutical fields such as food, nutrition, and industrial enzymes. These technologies are known for being scalable, cost-efficient, and flexible, offering potential across a wide range of applications.
Recently, the company has shifted its primary focus from research and development services to commercializing its proprietary products. Success for Dyadic depends on the ability of its platforms to scale production cost-effectively, forge strategic partnerships, address the market demand for animal-free proteins, navigate regulatory requirements, and protect innovations with intellectual property. In 2025, it rebranded as Dyadic Applied BioSolutions to reflect this new direction.
Quarter in Review: Revenue Drivers and Product Milestones
Revenue (GAAP) was $0.97 million, a 150.5% increase from Q2 2024. This top-line boost was driven by a $250,000 milestone on the Inzymes dairy enzyme agreement, and by grant funding from the Gates Foundation and Coalition for Epidemic Preparedness Innovations (CEPI). Grant and milestone revenue made up over three-quarters of total sales, while product sales have yet to contribute meaningfully to recurring revenue. The company remains reliant on project-based revenue rather than steady product sales.
Breakdown of revenue sources included $213,000 from research and development (GAAP), $503,000 in grant revenue (GAAP), and $250,000 in license and milestone payments. In comparison, last year’s revenue came almost entirely from research and development. Cost of revenue also increased, tracking with higher project activity. Meanwhile, Expenses for research and development rose 21.7% compared to Q2 2024, reflecting a rise in the number of active internal research initiatives undertaken to expedite product development. General and administrative costs (GAAP) fell 10.6%, showing improvement in cost discipline, with reductions noted in business development, legal, and insurance expenses.
Several major product families advanced this quarter. The company’s animal-free serum albumin, developed with Proliant Health and Biologicals, moved closer to a commercial launch projected for 2025, following receipt of $1.0 million in milestone payments to date. DNase-1, an enzyme for molecular diagnostics and pharmaceuticals, entered commercial scale-up, with research-grade sampling already underway. The food and nutrition segment made progress on alpha-lactalbumin, a whey protein, and human lactoferrin, with partner sampling and pre-launch testing ongoing. In industrial applications, EN3ZYME, an enzyme cocktail designed for cellulosic sugar production, delivered its first commercial order under a 50/50 revenue-sharing arrangement with Fermbox Bio.
Grants and collaborations in biopharmaceuticals and vaccines also moved forward. The Gates Foundation’s $3.0 million grant and CEPI’s $4.5 million grant, of which Dyadic is eligible for $2.4 million, supported product R&D. The company’s C1 platform is now being evaluated as part of the European Vaccines Hub, a €170 million initiative supporting rapid vaccine innovation. Partner research in livestock applications, such as vaccines against avian influenza, continued, signaling broader interest in Dyadic’s platform.
Financial Position, Trends, and Risks
Operating loss (GAAP) narrowed to $1.73 million from $2.04 million in Q2 2024, a 15.4% improvement, as cost management offset higher R&D spend. The net loss (GAAP) was $1.79 million, down 12.3% compared to Q2 2024. Despite these improvements, Cash and investments (GAAP) fell to $7.3 million from $9.3 million over three months (Q4 2024 to Q1 2025) due to ongoing investments in commercialization efforts and increased project activity. The balance sheet reflected negative equity as of June 30, 2025, stemming from accumulated losses, though a $5.3 million equity raise completed after quarter-end extended the company’s cash runway for ongoing operations.
The company’s revenue mix highlights the current stage of its transition: product launches are upcoming, but revenue during the period was heavily dependent on one-time and milestone events. There is yet no clear evidence of consistent, recurring sales from commercial products, though several launches are projected over the back half of 2025. The company does not currently pay a dividend.
Looking Ahead: Guidance and Key Watch Areas
Management did not issue quantitative guidance for revenue or earnings for the next period or for fiscal 2025. However, Leadership signaled the planned commercial launches of recombinant albumin and DNase-1 in 2025 as key catalysts expected to shift the company’s revenue base toward recurring product sales. Investors are also watching the scale and pace of milestone achievements, the conversion of sampling programs into orders, and the financial sustainability from continued external funding.
Other areas to monitor include further commercial progress of the C1 and Dapibus platforms, new or expanded partnerships, and regulatory advances that could clear the way for broader adoption of the company’s animal-free proteins and industrial enzymes. As of this report, DYAI does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
