Q1 2026 Cyanotech Corp Earnings Call

Biotech joining me on the call today is Jennifer Robinson, 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 in 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 one 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 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.

<unk> sales increased by 48% and 49% percent, 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 focus 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 am proud of the resilience of our team has shown and I'm confident in the progress that we're making.

Turning over to Jennifer to discuss the financial results Jennifer.

Yeah.

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 $78000 or one 3%.

Gross profit for the first quarter of fiscal 2026 was $1 8 million with a gross profit margin of 35% compared to a gross profit of $1 5 million and gross margin at 25% in the first quarter of fiscal year 2025.

The five five percentage point increase was a result of higher efficiencies in production driving our costs down.

First quarter operating loss was $753000 compared to an operating loss of $1 million in the first quarter of the prior fiscal year net loss for the current quarter was $926000 or 13 cents per diluted share loss compared to a net loss of $1 2 million or 17.

Loss per diluted share in the prior year.

The company had cash of $383000 and a negative working capital of $255000 compared to $257000 mm $302000, 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.

Okay.

Okay.

Yes.

Sure.