Q4 2025 Cyanotech Corp Earnings Call

Executive Officer, a silo tech joining me on the call today is Jennifer Rodgerson, our Chief Financial Officer, and I will turn the call over to Jennifer to provide a 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 less.

Speaker Change: And in our publicly filed documents for additional information. We encourage you to review our 10-K fiscal year 'twenty twenty-five report filed with the Securities and Exchange Commission I will turn it back to Matt for comments on the quarter Matt.

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 and 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.

Matt: Our product mix and sales shifted from prior year with our bulks purely non bulk gases, they often growing 53% and 74% respectively. This increase was offset by a decline in our package sales of about 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 Margaret awareness, we are focused on this year as.

Matt: 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.

Matt: Turning it over to Jennifer to discuss the financial results Jennifer.

Jennifer: Thank you, Matt and good evening, everyone key financial results for the fourth quarter and fiscal year 2025.

Jennifer: In the fourth quarter. This fiscal year net sales were $6 3 million as compared to 6 million last year, an increase of $330000 or five 5%.

Jennifer: Total sales for the fiscal year were $224 2 million compared to $23 1 million last year, an increase of $1 1 million or 5%.

Jennifer: Gross profit for the fourth quarter of fiscal 2025 was $1 7 million with a gross profit margin of 27, 7% compared.

Compared to a gross profit of $675000 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.

Jennifer: Fourth quarter operating loss was $442000 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.

Jennifer: Net loss for the current quarter was $627000 or nine cents loss per diluted share compared to a net loss of 2.1 million or 30 cent loss per diluted share in the prior year net loss for the full year was $3 2 million or <unk> 45 per cent loss per diluted share compared to a net loss.

Jennifer: A $5 3 million or <unk> 81 cent loss per diluted share in the prior year. We ended the current fiscal year with cash of $257000 and working capital of $302000 compared to $707000 and $2 million respectively. At the end of fiscal year 2024, I will hand.

Matt: On the call back to Matt for concluding comments Matt.

Matt: We did not receive any questions Aloha.

Matt: Okay.

Matt: Thank you.

Matt: Thank you.

Matt: Sure.

Matthew Custer: I am Matt Custer, President and Chief Executive Officer of Cyanotech.

Jennifer Rogerson: Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer.

Jennifer Rogerson: 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 on our publicly filed documents.

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

Matthew Custer: I will turn it back to Matt for comments on the quarter. Matt.

Matthew Custer: 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. Deficiencies 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.

Matthew Custer: Our product mix in sales shifted from prior year with our bulk spirulina and bulk acid xanthan growing 53% and 74% respectively. This increase was offset by a decline in our package sales of 5%.

Matthew Custer: 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.

Matthew Custer: As we look forward to the next fiscal year and the to balance our focus on managing our inventory levels to meet the demand while also being conservative with our cash.

Unnamed: Turning over to Jennifer to discuss the financial results.

Jennifer Rogerson: 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.

Jennifer Rogerson: 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.

Jennifer Rogerson: 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.

Jennifer Rogerson: 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.

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

Matthew Custer: Matt. We did not receive any questions.

Unnamed: Aloha.