Cyanotech (CYAN) AI Stock Analysis

• Market Cap: $2.12M
• Dividend Yield: N/A
• Average Volume (3M): 5.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: 1.32%
• EPS Growth: 45.45%
• Country: US
• Employees: 77
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.13
• Shares Outstanding: 7,242,243
• 10 Day Avg. Volume: 5,678
• 30 Day Avg. Volume: 5,930
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.58
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -39.60
• 1Y Price Target: $0.50
• Price Target Upside: 72.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Cyanotech's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's financial health is concerning, with declining revenue, negative margins, and high leverage. Technical analysis further indicates a downtrend, with the stock trading below key moving averages. Valuation metrics are poor, with a negative P/E ratio and no dividend yield.

Positive Factors

Strategic Partnerships

Strategic partnerships expand Cyanotech's market access and improve product offerings, potentially driving long-term revenue growth and competitive positioning.

Product Diversification

Product diversification into high-demand health supplements supports resilience against market fluctuations and aligns with growing health trends.

Leadership Stability

Stable leadership with a new Chairman can guide strategic decisions and foster corporate governance, aiding long-term business stability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting Cyanotech's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate operational inefficiencies and can constrain the company's ability to fund operations and growth initiatives.

Declining Revenue

Declining revenue and profitability issues suggest challenges in maintaining market share and operational efficiency, impacting long-term viability.

Cyanotech Business Overview & Revenue Model

Company Description

Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae worldwide. The company's products include BioAstin Hawaiian Astaxanthin, a dietary antioxidant to enhance skin, and to support eye, joint and immune health, as well as used as a human dietary supplement and dietary ingredient; and Hawaiian Spirulina Pacifica, a nutrient-rich dietary supplement, which is used for extra energy, strengthened immune system, cardiovascular benefits, and as a source of antioxidant carotenoids. It also provides contract extraction services. The company sells its products through distributors, retailers, and online channels; direct to consumers; and in bulk form to manufacturers, formulators, and distributors in the health foods, nutraceuticals, and dietary supplement markets. Cyanotech Corporation was incorporated in 1983 and is headquartered in Kailua-Kona, Hawaii.

How the Company Makes Money

Cyanotech generates revenue through the sale of its microalgae-derived products, primarily astaxanthin and spirulina, which are marketed as dietary supplements and functional food ingredients. The company has a diversified revenue model that includes direct-to-consumer sales, partnerships with health and wellness brands, and distribution agreements with retailers both domestically and internationally. Significant revenue streams come from bulk sales of its products to manufacturers who incorporate these ingredients into their own supplement formulations. Additionally, Cyanotech benefits from strategic partnerships that enhance its market reach and product development capabilities, contributing to its overall earnings.

Cyanotech Financial Statement Overview

Summary

Cyanotech is experiencing significant financial difficulties, with declining revenue, negative profitability, and increasing leverage. The company's cash flow issues further exacerbate its financial health, requiring strategic intervention to stabilize operations and improve cash management.

Income Statement

Cyanotech's income statement reveals significant challenges, with declining revenue since 2022 and persistent negative net income for the past three years. Gross profit margin improved slightly in 2025 to 28.40% from 25.77% in 2024, but the company continues to struggle with negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin also remains negative, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet shows moderate stability, with a debt-to-equity ratio of 1.30 in 2025, up from 0.92 in 2022, suggesting increasing leverage. Return on equity is negative due to persistent net losses. The equity ratio decreased over the years to 37.81% in 2025, indicating a reduced equity base relative to total assets, which may heighten financial risk.

Cash Flow

Cyanotech's cash flow statement highlights cash flow challenges, with negative operating and free cash flows in 2025. The free cash flow to net income ratio is negative, signaling insufficient cash flow generation relative to net losses. The company has not achieved positive free cash flow growth, reflecting poor cash management and financial distress.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.14M	24.21M	23.07M	23.18M	35.97M	32.34M
Gross Profit	7.17M	6.88M	5.95M	7.26M	13.57M	11.12M
EBITDA	-352.00K	-629.00K	-2.51M	-825.00K	4.50M	3.54M
Net Income	-2.93M	-3.20M	-5.27M	-3.44M	2.15M	920.00K
Balance Sheet
Total Assets	23.00M	23.49M	25.11M	29.73M	32.05M	30.88M
Cash, Cash Equivalents and Short-Term Investments	383.00K	257.00K	707.00K	974.00K	2.59M	3.77M
Total Debt	11.91M	11.56M	10.90M	11.17M	8.61M	10.55M
Total Liabilities	14.99M	14.61M	13.30M	13.38M	12.56M	13.84M
Stockholders Equity	8.00M	8.88M	11.81M	16.35M	19.49M	17.04M
Cash Flow
Free Cash Flow	-1.88M	-1.44M	-836.00K	-3.17M	1.11M	1.64M
Operating Cash Flow	-1.76M	-1.19M	-455.00K	-2.10M	2.38M	2.40M
Investing Cash Flow	-222.00K	-247.00K	-381.00K	-1.07M	-1.27M	-760.00K
Financing Cash Flow	1.65M	990.00K	569.00K	1.55M	-2.29M	-290.00K

Cyanotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYAN, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.36, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYAN.

Cyanotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$299.10M	22.74	9.15%	―	4.33%	-6.33%
WYHG	68 Neutral	$40.40M	10.69	4.29%	―	6.91%	-54.09%
Sector *	62 Neutral	$20.51B	14.76	-3.31%	3.19%	1.94%	-10.37%
STKL	60 Neutral	$739.84M	―	-1.34%	―	10.90%	96.02%
NAII	53 Neutral	$21.63M	―	-10.25%	―	-1.16%	-146.23%
CYAN	42 Neutral	$2.12M	―	-31.37%	―	1.32%	45.45%
LSF	42 Neutral	$61.32M	―	-8.34%	―	22.79%	74.00%

Cyanotech Corporate Events

Cyanotech Amends Promissory Note with Skywords

On August 29, 2025, Cyanotech Corporation amended its promissory note with Skywords Family Foundation, increasing its borrowing limit from $4,000,000 to $4,600,000 and extending the maturity date to April 12, 2027. This amendment, involving the company’s Chairman and largest stockholder, Michael Davis, reflects strategic financial adjustments that may impact the company’s liquidity and financial planning.

Cyanotech Elects New Board and Chairman

On August 21, 2025, Cyanotech held its 2025 Annual Meeting of Stockholders, where four nominees were elected to the Board of Directors, and BPM LLP was ratified as the independent registered public accounting firm for the fiscal year ending March 31, 2026. Additionally, the company decided to continue holding an advisory vote on executive compensation every three years. During the subsequent Organizational Meeting, Michael A. Davis was appointed Chairman of the Board, and committee members were appointed to the Audit, Nominating and Corporate Governance, and Compensation Committees.