Dyadic International (NASDAQ:DYAI) reported a sharp increase in first-quarter revenue and said its transition from a platform technology developer into a more commercially focused biotechnology company is beginning to show progress through product launches, customer sampling, distribution agreements and partner-led commercialization.
On the company’s Q1 2026 earnings call, President and Chief Operating Officer Joseph Hazelton said Dyadic has products “launched, products being shipped, products being sampled by customers, and products beginning to generate revenues” through a mix of direct sales, OEM distribution, milestone payments, profit-sharing arrangements and strategic partnerships.
Commercial products move into market channels
Hazelton highlighted Proliant Health and Biologicals’ commercial launch of AlbuFree DX, a recombinant human albumin produced using Dyadic’s platform technology. Dyadic is eligible to receive a share of profits from product sales. Hazelton said the launch is significant because it shows established industry participants are willing to commercialize products made with Dyadic’s technology.
He also pointed to Enzymes’ commercialization of recombinant non-animal bovine chymosin after achieving development milestones, calling it another validation point for Dyadic’s technology and commercialization model.
In life sciences, Hazelton said Dyadic is focused on recombinant proteins and enzymes used in cell culture media, diagnostics, molecular biology and bioprocessing. He said recombinant transferrin is one product of interest because it is used in serum-free and animal-free cell culture media. During the quarter, Dyadic expanded customer engagement around recombinant bovine transferrin and received initial purchase orders in the cultivated meat segment.
“While still early, we believe this is an important indicator of market adoption,” Hazelton said.
Dyadic also has an OEM distribution agreement with IBT Bioservices, which will commercialize Dyadic recombinant products, including DNase I and transferrin, through global distribution channels. In the Q&A portion of the call, Hazelton said the first products under the IBT arrangement — DNase I and transferrin — shipped during the week of the call. He said IBT’s sales teams will target academic institutions, hospitals and research organizations for research-use products.
Food, nutrition and bioindustrial opportunities
In food and nutrition, Hazelton said Dyadic remains focused on animal-free proteins that may offer functional, sustainability and supply chain advantages. He cited the company’s agreement with Brigg Bio for recombinant bovine alpha-lactalbumin, a whey protein used in infant nutrition, medical nutrition and functional food products. Dyadic is also continuing work on recombinant human lactoferrin for nutrition and wellness applications.
Asked about the outlook for cultured meat and non-animal dairy, Hazelton said demand is “more acute” in cultured meat because companies in that segment need to reduce production costs as they pursue regulatory approvals and pilot-scale production. He said the nearer-term direct revenue opportunity is likely to be cultured meat, while non-animal dairy could become the larger market over time.
Dyadic’s partnership with FermBox Bio remains a key part of its bioindustrial strategy. Hazelton said FermBox provides a pathway to manufacturing capacity and commercial scale without Dyadic needing to build significant internal infrastructure. He said FermBox’s N3zyme product, produced using Dyadic’s Dapibus technology, previously fulfilled its first large-scale commercial order and continues expanded sampling into additional geographic markets, including Asia Pacific.
In response to a question from a private investor, Hazelton said Dyadic expects to see initial revenues from bioindustrial products with FermBox in 2026.
Biopharma remains partner-funded and strategic
Chief Executive Officer Mark Emalfarb said Dyadic’s primary commercial focus remains non-pharmaceutical markets, but biopharmaceutical programs continue to help validate the C1 platform, generate non-dilutive funding and create potential future licensing and partnership opportunities.
Emalfarb said Dyadic is working with government agencies, global health organizations, academic institutions and industry partners rather than independently funding large clinical development programs. He cited the company’s Gates Foundation-supported collaboration, funded under an approximately $3 million grant program, to advance low-cost monoclonal antibodies targeting RSV and malaria. He also discussed the CEPI-supported collaboration through Fondazione Biotecnopolo di Siena, under which Dyadic is eligible to receive up to approximately $2.4 million to support recombinant vaccine development, scale-up and future manufacturing capabilities.
During the Q&A session, Emalfarb said Dyadic’s C1 technology has improved since the COVID-19 period and said the company has generated data in the CEPI program supporting high-yield, high-quality protein production. Hazelton added that Dyadic has since completed a Phase 1 study showing a C1 protein was safe and effective for human application, as well as non-human primate studies with some monoclonal antibodies.
Revenue rises, net loss narrows
Chief Financial Officer Ping Rawson said total revenue for the three months ended March 31, 2026, was approximately $1.1 million, up 182% from approximately $394,000 in the first quarter of 2025. She said the increase was related to higher activity levels associated with research and development and grant-funded programs, particularly under CEPI and Gates Foundation initiatives, as well as the Proliant agreement.
Internal research and development expenses decreased about 4% year over year to approximately $476,000, which Rawson attributed to a slight reduction in the number of active internal research and commercial initiatives during the quarter. General and administrative expenses increased $159,000, or 10%, to approximately $1.8 million, driven primarily by higher legal and accounting expenses and rebranding and business development activities, partially offset by lower share-based compensation and reduced insurance costs.
Loss from operations improved by approximately 5% to about $1.9 million, compared with about $2 million in the prior-year period. Net loss was approximately $1.95 million, or $0.05 per share, compared with approximately $2.03 million, or $0.07 per share, a year earlier.
Dyadic ended the quarter with approximately $6.6 million in cash equivalents, restricted cash and investment-grade securities. Rawson said the company expects operating expenses to remain generally in line with 2025 levels and believes existing cash resources provide runway into the second quarter of 2027. In the Q&A session, she said cash burn is expected to be similar to, or less than, the prior year’s level.
Management expects gradual commercial growth
Asked by Craig-Hallum analyst Matthew Hewitt whether revenue growth is likely to be steady or uneven, Hazelton said he expects it to be steady but not “hockey stick level growth” initially. He said early pilot-scale orders are beginning to grow, but larger volumes would depend on cultivated meat products receiving regulatory approvals and moving into commercial production.
Hazelton said Dyadic is seeing broader potential for products such as bovine transferrin beyond cultivated meat, including serum-free cell culture, diagnostics and bioprocessing. He also said the company expanded its relationship with Intralink to include Europe in addition to Asia, describing the firm as a cost-efficient way to increase business development reach. Hazelton said Dyadic has seen initial success in Japan, shipped samples to some customers and is identifying additional product opportunities.
Closing the call, Hazelton said Dyadic is increasingly focused on scaling product sales, expanding strategic partnerships and distribution channels, supporting customer adoption and maintaining expense discipline as it seeks to build recurring revenue opportunities.
About Dyadic International (NASDAQ:DYAI)
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.
