Dyadic International Reports 40.5% Revenue Decline and Increased Net Loss in Q3 2025

Dyadic International, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $1.16 million, a decrease of 40.5% from $1.96 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $2.52 million, down from $2.68 million in 2024. The decline in revenue was primarily attributed to a reduction in active collaborations, which decreased from ten to four for the quarter and from twenty to seven for the nine-month period. The company recognized $814,571 in grant revenue during the third quarter, a new source of income compared to the previous year, which had no grant revenue.

The company's net loss for the third quarter was $1.98 million, compared to a loss of $203,460 in the same quarter of 2024. For the nine-month period, the net loss increased to $5.80 million from $4.26 million year-over-year. The increase in losses was driven by higher costs associated with grant revenue, increased research and development expenses, and elevated general and administrative costs. Research and development expenses rose to $572,000 for the third quarter, up from $460,000, reflecting a rise in internal research initiatives aimed at expediting product development.

In terms of operational developments, Dyadic has made significant strides in its strategic focus on commercializing its proprietary protein production platforms, Dapibus™ and C1. The company rebranded as Dyadic Applied BioSolutions in August 2025, marking a shift towards a more commercially focused identity. The company also completed an underwritten public offering of 6,052,000 shares at $0.95 per share, raising approximately $4.9 million in net proceeds, which will be used for working capital and product development.

As of September 30, 2025, Dyadic's cash, cash equivalents, and restricted cash totaled $7.16 million, an increase from $6.51 million at the end of 2024. The company also reported total assets of $11.67 million, up from $9.93 million at the end of the previous fiscal year. The increase in assets was driven by higher cash reserves and investment securities. However, total liabilities also rose to $9.07 million from $7.46 million, primarily due to increased accounts payable and accrued expenses.

Looking ahead, Dyadic expects to continue incurring losses as it develops its microbial protein production platforms and expands its research and development activities. The company anticipates that its existing cash and cash equivalents, along with the proceeds from the recent public offering and convertible notes, will be sufficient to meet its operational needs for at least the next twelve months. However, management acknowledges that future financing may be necessary to support ongoing development and commercialization efforts.