Dyadic (NASDAQ: DYAI) books first direct protein sales, but revenue falls 61.4%

Posted by Kyle Jackson on Nov 14th, 2026

What happened

Dyadic International, Inc. (NASDAQ: DYAI) booked its first direct commercial product sales in the third quarter, mainly recombinant transferrin and DNase I. The company said the amounts were not material.

Total revenue for the quarter ended Sept. 30 fell 61.4% to $449,101 from $1.16 million a year earlier. Grant revenue dropped $538,199 as work under the Gates Foundation and CEPI grants slowed. Research and development revenue fell $187,728 as several collaboration projects ended. License fee revenue rose $10,411.

Loss from operations narrowed 5.9% to $1.81 million from $1.93 million. Lower costs of revenue, research and development, and general and administrative expenses outweighed the revenue drop.

Key numbers

Metric	Latest	Change	Source
Total revenue, three months ended Sept. 30	$449,101	from $1.16 million, -61.4%	SEC 8-K, Exhibit 99.1
Net loss, three months ended Sept. 30	$1.36 million	from $1.98 million, -31.3%	Calculated from SEC 8-K
Loss from operations, three months ended Sept. 30	$1.81 million	from $1.93 million, -5.9%	SEC 8-K, Exhibit 99.1
Cash, equivalents, restricted cash and securities (vs. Dec. 31, 2025)	$6.05 million	from $8.59 million, -29.6%	Calculated from SEC 8-K
Warrant liability gain, net of issuance costs	$545,527		SEC 8-K, Exhibit 99.1
Total stockholders' equity (deficit) (vs. Dec. 31, 2025)	-$2.58 million	from $1.23 million	SEC 8-K, Exhibit 99.1

Where the narrower net loss came from

Below the operating line, a non-cash item did the work. The company ties the swing in other income to a $545,527 gain from the change in fair value of its warrant liability, net of $388,702 of issuance costs. Other income was a net $455,324, against net expense of $50,643 a year earlier.

Net loss was $1.36 million, or $0.04 a share, down from $1.98 million, or $0.06 a share, in the third quarter of 2025. The nine-month figures look worse. Revenue was little changed at $2.52 million against $2.52 million, while the operating loss widened to $5.77 million from $5.66 million.

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Cash, liabilities and share count

The cash cushion shrank. Cash, cash equivalents, restricted cash and investment-grade securities, including accrued interest, were $6.05 million on Sept. 30, against $8.59 million on Dec. 31, 2025. OptimistFi calculates that as a $2.54 million, or 29.6%, drop in nine months. Cash and cash equivalents alone fell $695,528 to $3.93 million.

Obligations grew as the cushion shrank. Total liabilities rose to $10.51 million from $8.71 million, and accounts payable climbed to $1.52 million from $852,024. The balance sheet now carries an $813,424 warrant liability. Stockholders' equity turned to a deficit of $2.58 million from equity of $1.23 million.

Shares outstanding rose 10.8% to 40,091,203 from 36,187,798 at year-end, by OptimistFi's calculation.

Partner and platform progress

The commercial news came largely from partners. Proliant Health Biologicals kept promoting AlbuFree DX, made with Dyadic's C1 platform, and outlined AlbuFree TX and AlbuFree CGT as planned additions. Integrated Biotherapeutics launched six Dyadic-produced research-use-only proteins through its distribution network.

Inzymes reported in November 2026 that the first commercial sale of its second chymosin, a camel chymosin made with Dyadic's Dapibus strain, occurred in October. That met a milestone under the Inzymes agreement. Dyadic expects to receive a $225,000 payment and recognize it as fourth-quarter revenue.

On the biopharmaceutical side, Dyadic reported production yields of about 12.1 g/L for RSV antibody RSM01 and 13.2 g/L for malaria antibody MAM01 in seven-day fermentation runs. They came under a Gates Foundation-funded program of about $3.1 million.

Why it matters

OptimistFi has argued that Dyadic is a high-risk licensing option. It pays off if collaborators fund, license and commercialize its technology before cash runway and partner dependence become the limits. The quarter gives evidence on both sides, so the direction is mixed.

For the case, a second partner-commercialized chymosin, six distributed protein products and the expected milestone show partners moving product. Management also said it is putting more emphasis on larger strategic partnerships and on licensing and supply arrangements.

Against it, Joe Hazelton, President and Chief Operating Officer, said early sales remain modest and evaluation timelines are longer than anticipated. Management also concluded there is substantial doubt about Dyadic's ability to continue as a going concern for the 12 months following Nov. 12, 2026.

Dyadic is evaluating financing alternatives. The filing lists the dilutive impact of a capital raise as a risk.

What's next

The Gates Medical Research Institute began preclinical animal studies in October 2026. They compare the C1-produced RSV and malaria antibodies head to head with GMP CHO-produced counterparts. Results are anticipated in the first quarter of 2027. Comparable pharmacokinetics would support C1 as a biopharmaceutical platform, while weaker data would undercut it.

Fourth-quarter results will show whether Dyadic recognizes the Inzymes milestone as it expects. They will also show whether partner and direct sales begin to replace falling grant revenue.