Cyanotech Corporation reported second‑quarter fiscal 2026 results that included net sales of $6.98 million, a gross profit of $2.39 million, and an operating income of $190,000. Net income turned positive at $1,000, a turnaround from the $1.15 million loss recorded in the same quarter a year earlier.
Gross profit margin expanded to 34.3% from 25.3% in the prior year quarter. The lift is driven by higher production volumes and stronger pricing power in bulk and online sales channels, which offset the cost of raw materials and labor. The company’s focus on operational efficiency and disciplined cost control enabled it to capture a larger share of the premium pricing available for its Nutrex‑brand products.
Over the trailing twelve months ending September 30 2025, Cyanotech generated $25.27 million in net sales and $8.09 million in gross profit, while the company recorded a net loss of $1.78 million. The loss narrowed from $5.45 million in the same period a year earlier, indicating a steady improvement in profitability and a reduction in the scale of operating losses.
CEO Matthew K. Custer highlighted the company’s momentum, noting that “we are steadily moving in a positive direction” and emphasizing continued focus on cost discipline, operational excellence, and building a stronger, more resilient business. He cited the combination of higher sales volumes and pricing power as key drivers of the improved margin profile.
The company acknowledged ongoing headwinds, including tariffs that have impacted the competitiveness of its contract extraction operations. Despite these challenges, the company’s cost‑control initiatives and product mix shift toward higher‑margin segments have helped maintain profitability gains.
Cyanotech will host a virtual broadcast on November 11 to discuss the results in more detail and answer investor questions. No forward‑looking guidance was provided in the announcement.
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