Cyanotech (CYAN) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 were $5.82M, down 1.3% year-over-year, with gross margin improving to 30.5% from 25.0% due to operational discipline and efficiency.

• Net loss narrowed to $926K ($0.13 per diluted share) from $1.2M ($0.17 per share) year-over-year, reflecting improved cost controls.

• Operating loss reduced to $753K from $1.04M, with operating expenses remaining flat.

• Management remains focused on brand value, e-commerce, bulk ingredient markets, and sustainable cash flows amid macroeconomic challenges.

• Trailing twelve months net sales were $24.1M, gross profit $7.2M (29.7% margin), and net loss $2.93M.

Financial highlights

• Q1 FY2026 net sales: $5.82M, down from $5.90M in Q1 FY2025; gross profit: $1.77M (30.5% margin) vs. $1.48M (25.0% margin) year-over-year.

• Operating loss improved to $753K from $1.04M; net loss for the quarter was $926K ($0.13/share), down from $1.2M ($0.17/share) year-over-year.

• Cash at quarter-end was $383K; negative working capital deficit of $255K.

• Trailing twelve months net sales: $24.14M, up from $23.82M; net loss $2.93M vs. $5.10M prior period.

• Gross margin: 30.5% (Q1 FY2026) vs. 25.0% (Q1 FY2025); net loss per share: $(0.13) vs. $(0.17) year-over-year.

Outlook and guidance

• Focus remains on stabilizing production, optimizing market channels, and leveraging core competencies.

• Emphasis on higher-margin consumer products, bulk sales opportunities, and sustainable cash flows.

• Management expects gross margin may face pressure from lower production volumes and increased competition.

• Cost controls, production alignment with demand, and eCommerce initiatives are ongoing priorities.

• No formal quantitative guidance provided; significant sales variability and macroeconomic risks noted.