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Dyadic Applied BioSolutions, Inc. (NASDAQ: DYAI) announced 2Q:26 results on August 12th, 2026, and held a conference call providing additional detail after that day’s market close. Dyadic updated investors on the status of its active relationships; however, there were no product revenues reported. Highlights of progress with the Dapibus product set include shipment of recombinant protein products and initial partner sales of recombinant transferrin and growth factors for cultivated-meat applications and initial commercial sales of non-animal bovine chymosin. Proliant’s commercialization of Albufree DX continues with anticipated expansions into cell culture and cell and gene therapy applications.
Since the last update, Dyadic forged a new relationship with a European company for its precision-fermented dairy protein portfolio. It is also working on an improved enzyme in the paper and pulp industry that could lower costs in this narrow margin business. Dyadic continues its research work executing the Gates Foundation and Coalition for Epidemic Preparedness Innovations (CEPI) infectious disease programs. The company is working towards delivery of C1-produced monoclonal antibodies to support future use with these collaborators.
2Q:26 Operational & Financial Results
Dyadic released second quarter operational and financial results in a press release and a Form 10-Q filing with the SEC. Further detail was provided in a conference call held with investors. Below are financial results for the three months ending June 30th, 2026, compared to the same prior year period:
- Revenues were $1.0 million, essentially flat with prior year levels. Moving parts in the sales line include a $90,000 decline in R&D revenue from smaller and fewer collaborations and the absence of a $250,000 milestone received in the prior year. These amounts were offset by an increase in grant revenue from CEPI and the Gates Foundation;
- Cost of revenue totaled $984,000, rising 60% from $614,000 on higher research and grant revenue cost related to the CEPI and Gates Foundation grants, partially offset by a decrease in the cost of R&D revenue;
- Research and development expense was down 47% to $333,000 from $629,000 due to a decrease in the number of active internal research initiatives in support of product development;
- General and administrative expenses were $1.7 million vs $1.4 million, rising 18%. Higher legal and accounting expenses, and rebranding and business development expenses contributed. These amounts were partially offset by a decrease in share-based compensation and incentives;
- Foreign currency exchange loss was $9,000 vs a loss of $16,000 due to fluctuations in the Euro-Dollar exchange rate;
- Total other expenses were $70,000 vs $65,000 due to fluctuations in net interest expense categories;
- Net loss amounted to $2.1 million vs $1.8 million. On a per share basis, net loss was $0.06 for both periods.
As of June 30th, 2026, cash, equivalents, and short-term securities totaled $4.7 million compared to $8.6 million at the end of 2025. This includes restricted cash of about $1.6 million that is earmarked for work associated with the Gates Foundation Grant. Cash burn during the first six months of 2026 was $3.8 million compared with $2.1 million for the same prior year period. No cash from financing was recorded in the quarter. However, following the second quarter earnings report, on August 13th Dyadic announced a private placement that raised net proceeds of $2.28 million. Dyadic also has access to an At-The-Market (ATM) sales agreement with Craig-Hallum. In the company’s 10-Q Filing, which was issued prior to the post-2Q:26 capital raise, it notes that there is substantial doubt about its ability to continue as a going concern.
Registered Direct Offering and Private Placement
A day following the second quarter earnings report, Dyadic announced a $2.9 million registered direct offering and concurrent private placement of warrants. 3,625,000 shares of common stock were offered at $0.795 per share along with the same number of warrants at a purchase price of $0.005 per warrant. The exercise price for the warrant is set at $0.84. Net proceeds are expected to be $2.28 million, which will be used for normal Dyadic business operations. Aegis Capital served as the sole placement agent for the offering.
Partnerships and Collaborations
Dyadic reiterated its progress over the past two years with its numerous partnerships and collaborations adding a few additional agreements and, we believe, moving closer to product revenues. Reviewing progress year-to-date, the company highlighted continued advancement across the commercialization continuum, including strategic partner recruitment around the globe, customer identification, OEM distribution expansion, product launches, initial purchase orders, milestone achievements and product shipments through commercial channels.
Recent developments included Dyadic’s virus collaboration with Fondazione Biotecnopolo di Siena (FBS) to accelerate protein-vaccine antigen development with Scripps Research. The collaboration was able to develop and deliver stable pools of C1 cell lines and manufacture and initially purify two Scripps-designed Bundibugyo Ebola antigens in 15 days to FBS and Scripps. The non-dairy pipeline is also advancing through a commercial launch of recombinant bovine chymosin through Inzymes and the ongoing development of recombinant bovine alpha-lactalbumin with BRIG BIO.
Earlier in the year we highlighted the OEM distribution agreement with IBT Bioservices, commercialization activities with Proliant and Fermbox Bio, milestone revenue recognition under the Inzymes agreement, and ongoing funded collaborations with organizations such as the Gates Foundation and CEPI.
As the year progresses, we are looking to the timing, consistency and magnitude of collections, revenues and cash flow generation. While the trajectory toward commercialization appears to be delayed, the pace and scale of future revenue recognition remain uncertain, and we expect additional clarity to emerge over the coming quarters
Beyond the revenue opportunities, Dyadic also penned agreements with longer-term impacts. The first is with Intralink Group for expanding commercial efforts in Japan and Korea. They have made progress with customer engagement in Japan, have shipped samples and are in the process of identifying product opportunities. COO Joe Hazelton made an in-person trip to the region earlier this summer where he forged several new relationships and strengthened existing ones. The relationship with Intralink expanded to include Europe where sampling activity is taking place.
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