Dyadic International (NASDAQ:DYAI) reported second-quarter revenue that was essentially unchanged from a year earlier, while management highlighted early product shipments, pilot sales and partner-led commercialization efforts across life sciences, food and nutrition, and industrial markets.

Total revenue for the three months ended June 30 was approximately $961,000, compared with $967,000 in the prior-year period. The quarter’s revenue included about $124,000 in research and development revenue and $837,000 in grant revenue tied primarily to externally funded programs. For the first six months of 2026, revenue rose 52% to approximately $2.1 million.

The company recorded a quarterly net loss of approximately $2.1 million, or $0.06 per share, compared with a net loss of about $1.8 million, or $0.06 per share, a year earlier. Dyadic ended the quarter with approximately $4.8 million in cash equivalents, restricted cash and investment-grade securities, including accrued interest.

President and Chief Operating Officer Joe Hazelton said the company’s transition from a platform-development story toward a commercially driven business became more visible during the quarter. Dyadic began shipping products to IBT Bioservices under an original equipment manufacturer distribution agreement and completed additional shipments after quarter-end for research, diagnostic and cell-culture uses.

The company also generated initial pilot sales of recombinant transferrin and growth factors for cultivated-meat applications. Hazelton cautioned that it remains too early to project a steady sales ramp, describing expected near-term product revenue as “lumpy.”

“We were starting to fill the channels,” Hazelton said during the question-and-answer session. “But it is too early until we have some recurring orders to really figure out what that ramp is going to look like.”

Dyadic said its approach combines selective direct sales with distributors and OEM partners, rather than building a large direct commercial organization for every market. The company said this strategy is intended to provide customer access and global reach while maintaining a relatively lean commercial infrastructure.

• Proliant has begun commercialization of Albufree DX recombinant human albumin for life-science and diagnostic applications, with plans to introduce additional products for cell culture and cell-and-gene-therapy applications.
• Enzymes’ non-animal bovine chymosin, made using Dyadic technology, is generating commercial sales, according to the company.
• Fermbox Bio is expanding commercialization activities involving recombinant DNase I and recombinant human and bovine transferrin.
• Dyadic initiated scale-up work with BRIG BIO on recombinant bovine alpha-lactalbumin under a fully funded development agreement.

Hazelton said Dyadic prioritizes projects based on their potential to generate revenue in the shortest time frame, considering both the opportunity size and whether a program involves direct sales or licensing.

During the quarter, Dyadic said an initial pilot-scale run for its animal-free recombinant human transferrin increased productivity by approximately 80%. Based on preliminary biomanufacturing assumptions, the company expects the improvement to reduce manufacturing costs by about 40%.

Dyadic has sampled the product for research and cell-culture applications. Management said the lower-cost and higher-productivity profile could improve commercial flexibility, scalability and supply economics for customers evaluating the protein as a critical media component.

The company also announced in July a proprietary industrial cellulase product designed for advanced fiber-modification applications. Dyadic said potential uses include pulp biorefining, microcrystalline cellulose and nanocellulose production. The product builds on commercialization of EN3ZYME and is part of Dyadic’s Dapibus platform, which management described as a shared microbial production and development infrastructure for enzyme products.

Chief Executive Officer Mark Emalfarb said Dyadic continues to pursue a partner-funded biopharmaceutical strategy rather than independently financing large clinical programs. The company is working with organizations including the Gates Foundation, CEPI, Fondazione Biotecnopolo di Siena, Scripps Research, NIAID-supported collaborators and the Israel Institute for Biological Research.

Dyadic’s Gates Foundation-supported work is funded through an approximately $3 million grant program focused on lower-cost monoclonal antibodies targeting respiratory syncytial virus and malaria. The company said C1-produced antibodies have shown high productivity and functional characteristics comparable with established mammalian-cell reference materials, and it is working toward supplying material for preclinical studies involving one or both antibodies.

Through its CEPI-supported collaboration with Fondazione Biotecnopolo di Siena, Dyadic is eligible to receive up to approximately €2.4 million for recombinant vaccine development and scale-up activities. The company said its C1 platform has demonstrated an ability to progress from plasmid to purified protein antigen in approximately 15 days. It delivered two Scripps-designed Bundibugyo ebolavirus antigens to Scripps Research and Fondazione Biotecnopolo di Siena for further characterization.

Emalfarb said the company is also pursuing discussions with major suppliers and pharmaceutical companies that could potentially yield non-dilutive capital through strategic arrangements. He noted that the company had previously brought in $30 million of non-dilutive capital through non-exclusive industrial licenses.

Cost of revenue increased 60% year over year to approximately $984,000, primarily due to higher activity in grant-funded programs. Internal research and development expense declined 47% to approximately $333,000 as Dyadic shifted work toward externally funded collaborations.

General and administrative expense rose 18% to approximately $1.7 million, driven by higher rebranding and business-development costs as well as legal and accounting expenses. Loss from operations was approximately $2.1 million, compared with $1.7 million in the prior-year quarter.

Chief Financial Officer Ping Rawson said Dyadic concluded that substantial doubt exists about its ability to continue as a going concern under the applicable accounting standard, based on the required 12-month liquidity assessment. Rawson said the disclosure does not mean the company is ceasing operations and does not reflect a default under its convertible notes. The notes mature on Dec. 31, 2027, and the company said it remained compliant with their covenants.

Dyadic is evaluating financing alternatives, including equity financing as well as potential licensing arrangements, upfront and milestone payments, royalties, funded development programs, product partnerships and other strategic transactions. Management said its objective for the remainder of 2026 is to convert commercial and technical progress into product sales, recurring revenue and larger licensing or strategic opportunities while managing costs and capital requirements.

Dyadic International, Inc is a biotechnology company headquartered in Jupiter, Florida, that specializes in developing and commercializing its proprietary C1 fungal-based expression platform. The company’s core business revolves around enabling efficient, scalable production of proteins and enzymes for a wide range of applications, including biopharmaceuticals, industrial enzymes, agricultural bioactives and biofuels. By leveraging its C1 system, Dyadic seeks to offer clients cost-effective, high-yield manufacturing processes that can accelerate development timelines and reduce overall production costs.

The Dyadic C1 platform is designed to produce complex proteins five to ten times faster than traditional cell culture technologies, such as CHO cells or yeast.