Cyanotech Corporation Aktie

Aloha from Kona, Hawaii. Thank you for joining us today to report Cyanotech's Second Quarter Fiscal Year 2026 Earnings Results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Jennifer Miyashiro, our Chief Financial Officer.

I will turn the call over to Jennifer to provide our forward-looking statement.

Thanks, Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements either as a result of new information, future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of the factors that may cause results to differ are listed in our publicly filed documents. For additional information, we encourage you to review our 10-Q and fiscal year 2025 report filed with the Securities and Exchange Commission.

I will turn it back to Matt for comments on the quarter. Matt?

Our second quarter reflected continued momentum in both sales growth and profitability Total revenue increased nearly 20% year-over-year, driven by higher bulk sales and strong performance in our online channels. We also saw a meaningful improvement in gross margin as our production volumes continued to increase, driving lower cost per unit and better overall efficiency. Additionally, price increases implemented earlier in the year for our Nutrex-branded products contributed to margin expansion. While tariffs impacted our contract extraction competitiveness, we remain focused on operational excellence, disciplined cost control in building a stronger, more resilient business positioned for long-term success.

With continued momentum across our brands, improving profitability trends and a dedicated team that continues to deliver despite challenging market conditions, I'm confident that Cyanotech is steadily moving in a positive direction.

Turning over to Jennifer to discuss the financial results. Jennifer?

Thank you, Matt, and good evening, everyone. I'll begin with a summary of our key financial results for the second quarter of fiscal year 2026. Net sales for the second quarter reached $7 million, which is an increase of $1.1 million or 19.3% versus the same period of the prior year. Gross profit for the second quarter of fiscal 2026 rose to $2.4 million, representing a gross margin of 34.3%, which is up from $1.5 million and 25.3% in the same quarter last year. The 9-point margin expansion reflects both strong top line growth as well as continued gains in production efficiency, underscoring the company's strong operational momentum.

Second quarter operating income was $190,000 compared to an operating loss of $975,000 in the second quarter of the prior fiscal year. Net income for the current quarter was $1,000 or $0.00 per diluted share compared to a net loss of $1.2 million or $0.16 loss per diluted share in the same period of the prior year. At the end of the period, the company had cash of $649,000 and working capital of $39,000 compared to $780,000 and $550,000, respectively, in the prior year.

I will now hand the call back to Matt for concluding comments. Matt?

We have not received any questions. Thank you for joining today's call. Aloha.

Aloha from Kona, Hawaii. Thank you all for joining us today to report Cyanotech's First Quarter Fiscal Year 2026 Earnings Results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer. I will turn the call over to Jennifer to provide our forward-looking statement.

Thanks, Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements, either as a result of new information, future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of the factors that may cause results to differ are listed in our publicly filed documents.

For additional information, we encourage you to review our 10-Q and fiscal year 2025 report filed with the Securities and Exchange Commission.

I will turn it back to Matt for comments on the quarter. Matt?

This quarter's net sales declined 1.3% compared to the same period last year. However, improved production efficiencies and continued disciplined inventory management drove a 20% increase in gross profit, while operating expenses remained flat. As a result, the company reported a 23% improvement in net loss.

Compared to the prior year, our sales mix did shift meaningfully. Bulk Spirulina and bulk Astaxanthin sales increased by 48% and 49%, respectively, reflecting a renewed demand in the ingredients channel for U.S. sourced material. This growth was partially offset by a 12% decline in packaged product sales.

We remain focused on executing our long-term strategy. This includes driving brand value through differentiated storytelling, deepening relationships in e-commerce and bulk ingredient markets and focusing on sustainable cash flows. As we navigate the continued macroeconomic challenges, I'm proud of the resilience of our team -- has shown and I'm confident in the progress that we are making.

Turning over to Jennifer to discuss the financial results. Jennifer?

Thank you, Matt, and good evening, everyone. Key financial results for the first quarter of fiscal year 2026. In the first quarter of this fiscal year, net sales were $5.8 million as compared to $5.9 million last year, a decrease of $78,000 or 1.3%. Gross profit for the first quarter of fiscal 2026 was $1.8 million with a gross profit margin of 30.5% compared to a gross profit of $1.5 million and gross margin of 25% in the first quarter of fiscal year 2025. The 5.5 percentage point increase was a result of higher efficiencies in production, driving our costs down.

First quarter operating loss was $753,000 compared to an operating loss of $1 million in the first quarter of the prior fiscal year. Net loss for the current quarter was $926,000 or $0.13 per diluted share loss compared to a net loss of $1.2 million or $0.17 loss per diluted share in the prior year. The company had cash of $383,000 and a negative working capital of $255,000 compared to $257,000 and $302,000, respectively, in the prior year.

I will hand the call back to Matt for concluding comments. Matt?

We have not received any questions. Thank you for joining today's call. Aloha.

Aloha from Kona, Hawaii. Thank you all for joining us today to report Cyanotech's Fourth Quarter and Fiscal Year 2025 Earnings Results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer.

I will turn the call over to Jennifer to provide our forward-looking statement.

Thanks, Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements either as a result of new information future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of these factors that may cause results to differ are listed in our publicly filed documents. For additional information, we encourage you to review our 10-K fiscal year 2025 report filed with the Securities and Exchange Commission.

I will turn it back to Matt for comments on the quarter. Matt?

Although the year had its challenges, I'm pleased with the momentum we have seen throughout the year resulting in a 5% growth in net sales. Efficiencies in production and tight inventory management played a large role in the 11% improvement in expenses that we experienced from prior year resulting in a more favorable net loss. Our product mix in sales shifted from prior year with our bulk spirulina and bulk astaxanthin growing 53% and 74%, respectively. This increase was offset by a decline in our packaged sales of 5%.

We continue to expand market awareness with strategic initiatives by hiring a Head of Sales to focus on deeper retail channel expansion building on the strategic market awareness we have focused on this year. As we look forward to the next fiscal year and the heightened demand for our products, we are continuing to balance our focus on managing our inventory levels to meet the demand while also being conservative with our cash.

Turning it over to Jennifer to discuss the financial results. Jennifer?

Thank you, Matt, and good evening, everyone. Key financial results for the fourth quarter and fiscal year 2025. In the fourth quarter this fiscal year, net sales were $6.3 million as compared to $6 million last year, an increase of $330,000 or 5.5%. Total sales for the fiscal year were $24.2 million compared to $23.1 million last year, an increase of $1.1 million or 5%.

Gross profit for the fourth quarter of fiscal 2025 was $1.7 million with a gross profit margin of 27.7% compared to a gross profit of $675,000 and gross margin of 11.3% in the fourth quarter of fiscal year 2024. Total gross profit for the fiscal year was $6.9 million with a gross profit margin of 28.4%, as compared to $5.9 million with a gross profit margin of 25.8% last year. The 2.6 percentage point increase was a result of higher production volumes and efficiencies in production driving our costs down.

Fourth quarter operating loss was $442,000 compared to an operating loss of $1.9 million in the fourth quarter of the prior fiscal year. Fiscal year 2025 operating loss was $2.5 million compared to an operating loss of $4.6 million in fiscal year 2024. Net loss for the current quarter was $627,000 or $0.09 loss per diluted share compared to a net loss of $2.1 million or $0.30 loss per diluted share in the prior year. Net loss for the full year was $3.2 million or $0.45 loss per diluted share compared to a net loss of $5.3 million or $0.81 loss per diluted share in the prior year.

We ended the current fiscal year with cash of $257,000 and working capital of $302,000 compared to $707,000 and $2 million, respectively, at the end of fiscal year 2024.

I will hand the call back to Matt for concluding comments. Matt?

We did not receive any questions. Aloha.