CYAN earnings analysis
What we found in CYAN's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 28.4%
- Operating margin
- -10.4%
- Segment
- Packaged sales: $18.368M (astaxanthin packaged $13.145M; spirulina packaged $5.223M), down 5.3% YoY
- Segment
- Bulk sales: $4.998M (astaxanthin bulk $2.593M; spirulina bulk $2.405M), up 63.2% YoY
- Segment
- Contract extraction and R&D services: $849,000
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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