Dyadic International, Inc.

Total revenue for the three months ended June 30, 2026 was approximately $961,000, essentially flat versus approximately $967,000 in Q2 2025. Revenue included approximately $124,000 of R&D revenue and $837,000 of grant revenue. For the first six months of 2026, revenue increased approximately 52% to $2.1 million from approximately $1.4 million a year ago. Total cost of revenue was approximately $984,000, up 60% year over year. Internal R&D expense fell 47% year over year to approximately $333,000, while G&A rose 18% to approximately $1.7 million. Loss from operations was approximately $2.1 million; net loss was approximately $2.1 million, or $0.06 per share, versus approximately $1.8 million, or $0.06 per share in Q2 2025. Cash, cash equivalents, restricted cash and investment-grade securities totaled approximately $4.8 million at quarter end. The company said it has substantial doubt about its ability to continue as a going concern under ASC 205-3. No formal revenue or EPS guidance was given. Management said product revenue should be viewed as lumpy near term and that the priority is revenue generation from the highest-value opportunities as quickly as possible.

Joe Hazelton framed Q2 as a step from platform development toward a commercially driven business, saying the company is now shipping products, supporting customer evaluations, generating initial sales, and expanding distribution. He highlighted a more capital-efficient go-to-market model using direct sales, distributors, and OEM partners, and said commercialization will likely progress unevenly rather than in a straight line. He also stressed that improvements in manufacturing productivity and economics are being used not only to improve specific products but also to validate the broader C1 and Dapibus platforms.

Ping Rawson reported Q2 revenue of approximately $961,000 and net loss of approximately $2.1 million, with approximately $4.8 million in cash, cash equivalents, restricted cash and investment-grade securities at quarter end. She said cost of revenue rose to approximately $984,000 due to higher grant-funded activity, while internal R&D fell to approximately $333,000 as the company kept spending disciplined and relied more on external funding. She also said the going concern disclosure reflects the need for additional capital, but noted the company is in compliance with its convertible note covenants and that the notes do not mature until December 31, 2027. She said management is pursuing both dilutive and non-dilutive capital sources, including licensing, royalties, milestone payments, funded development programs, and strategic partnerships.

Analysts asked whether product revenue should appear in Q3 and how fast it might ramp; management said it will likely be lumpy and that it is too early to predict a clean ramp because the company is still filling channels and seeking recurring orders. They also confirmed that revenue priority is being set by the size of the opportunity and speed to monetization. On cash, management said future inflows could come from milestones such as the Enzymes program and from potential large non-dilutive deals with suppliers or pharmaceutical companies, while also pointing to ongoing biopharma progress with Gates- and CEPI-related programs.