10-Q · November 12, 2024
Cyanotech reported quarterly net sales of $5,845,000 and a net loss of $1,150,000 (EPS -$0.16) for the three months ended September 30, 2024. Packaged sales remain the largest category at $4,206,000, while bulk sales…
Earnings analysis · 10-K
CYAN earnings analysis
Filed June 20, 2025 · Our reading of the company's report
The latest report
Cyanotech reported fiscal 2025 net sales of $24.215 million, up 5.0% year-over-year, driven by a 63.2% increase in bulk sales. Gross margin improved to 28.4% and operating expenses declined $1.2 million, but the company…
Read full summary
Cyanotech reported fiscal 2025 net sales of $24.215 million, up 5.0% year-over-year, driven by a 63.2% increase in bulk sales. Gross margin improved to 28.4% and operating expenses declined $1.2 million, but the company remains unprofitable with a net loss of $3.203 million and ongoing liquidity pressure (cash $0.3M, working capital $0.3M). Management obtained covenant waivers from the bank but significant customer concentration (top 10 = 70% of sales) and high related‑party borrowings pose continued risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue growth led by bulk products
Net sales rose 5.0% to $24.215M in fiscal 2025, driven by a 63.2% increase in total bulk sales to $4.998M (astaxanthin bulk $2.593M, spirulina bulk $2.405M) compared with fiscal 2024.
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Gross margin improvement
Gross profit increased to $6.876M, representing a 28.4% gross margin in fiscal 2025 (vs 25.8% in 2024), attributed to higher production volumes and lower production costs.
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Operating expense reduction
Operating expenses fell $1.2M to $9.384M (38.8% of net sales) in fiscal 2025, contributing to an improved operating loss of $(2.508)M (‑10.4% of sales) versus $(4.592)M in 2024, a 45% improvement in operating loss.
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Packaged sales remain largest channel
Packaged sales totaled $18.368M in fiscal 2025 (packaged astaxanthin $13.145M; packaged spirulina $5.223M), representing the majority of revenue despite a 5.3% decline year-over-year.
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Contract extraction / services add diversification
Contract extraction and R&D services contributed $849,000 of revenue in fiscal 2025, up from $616,000 in fiscal 2024.
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Related‑party financing provided liquidity
Cash provided by financing in FY2025 included additional draws on the related‑party line of credit of $1.8M; as of March 31, 2025, $3.0M was outstanding on the related‑party Revolver.
What to watch
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Going concern / covenant noncompliance
The company had cash of $0.3M and working capital of $0.3M as of March 31, 2025 and sustained operating losses; debt covenant violations for the debt service coverage ratio and current ratio were waived by the Bank on June 4, 2025, but the Bank reserves rights to declare default if covenants remain out of compliance.
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High customer concentration
Top ten customers generated 70% of net sales in fiscal 2025 (two customers accounted for 31% and 10% of total net sales in fiscal 2025), so loss or reduced purchases by a major customer could materially reduce revenues.
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Heavy reliance on single production location and water supply
Operations are concentrated at a single Hawaii facility dependent on freshwater and deep ocean water (State‑set pricing for deep ocean water can increase costs), and production is vulnerable to weather, contamination, and water availability interruptions.
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Elevated related‑party and bank borrowings
As of March 31, 2025, the company had $3.0M outstanding on the related‑party Revolver, $1.0M outstanding on the related‑party promissory note (maturing April 12, 2027), $0.8M outstanding on the 2023 Bank Loan, and $3.0M outstanding under the 2012 Bank Loan, increasing default and refinancing risk.
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Packaged sales softness vs inflation
Packaged sales declined $1.0M, or 5.3%, in fiscal 2025 as consumers responded to higher inflation and discretionary spending pressures, which could further pressure margins and cash flow if sustained.
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Quarterly and seasonal volatility
Management notes production and sales are influenced by seasonal/weather variability and a large portion of costs are fixed, increasing the risk that shortfalls in production or demand will magnify quarterly operating losses.
Management's outlook
The Form 10‑K contains no numeric FY2026 revenue or EPS guidance. MD&A states management has an operating plan to generate a portion of required cash flows but "no assurances can be provided" and refers to financing and covenant waivers; annual outlook and numeric guidance are deferred to earnings press releases/calls.
Earlier filings 4
10-Q · August 7, 2024
Cyanotech reported quarter net sales of $5.898M (up $752k, +14.6% vs. $5.146M a year ago) and a net loss of $1.202M (EPS -$0.17), an improvement from a $1.369M loss (EPS -$0.22) in the prior-year quarter. Gross margin…
10-K · June 26, 2024
Cyanotech describes itself as a world leader in microalgae-based dietary supplements and is shifting mix toward higher-margin packaged consumer products (BioAstin® and Hawaiian Spirulina). Fiscal 2024 revenue was…
10-Q · February 8, 2024
Cyanotech reported Q3 net sales of $5,582,000 and a net loss of $1,020,000 (EPS -$0.16), with gross profit of $1,649,000. Packaged product sales increased (packaged $4,968,000 vs $4,260,000 YoY) while bulk and contract…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.