Customer concentration
Two customers accounted for 31% and 10% of fiscal 2025 sales, so order changes by a few accounts can materially affect revenue and profitability.
- Scope
- Top customers and top ten customer base
- Materiality
- high
Cyanotech Corp
Cyanotech Corp is a U.S.-based producer of microalgae-derived nutritional ingredients and finished supplements, built around Hawaiian Spirulina Pacifica and BioAstin Hawaiian Astaxanthin. The company grows, harvests, processes, and sells spirulina and astaxanthin in bulk form to ingredient customers and in packaged consumer form through its Nutrex Hawaii subsidiary. It also monetizes its extraction expertise through contract extraction services and, more recently, third-party R&D services. Cyanotech’s business is tied to its Kona, Hawaii production site, where climate, cultivation conditions, and production volume directly affect output, quality, and margins.
−4,2 %
28,4 %
−13,2 %
+5,0 %
1.03
0.27
| % | |
|---|---|
| Bulk spirulina ingredients | 30% Hawaiian Spirulina Pacifica sold as powder or tablets to manufacturers and formulators. |
| Bulk astaxanthin ingredients | 40% BioAstin-related astaxanthin sales in bulk form for use in customer products. |
| Packaged consumer supplements | 23% Finished spirulina and astaxanthin products sold through retail, online, and distributor channels. |
| Contract extraction services | 4% Supercritical CO2 extraction services provided to third-party biomass producers. |
| Research and development services | 3% Microalgae-related R&D services offered to third parties using excess capacity and know-how. |
Cyanotech sells bulk ingredients primarily to international health food manufacturers, formulators, and other producers...
- Bulk ingredient manufacturers and formulatorsprimary
Buy spirulina and astaxanthin ingredients to incorporate into their own health and nutrition products, often because they value Hawaiian sourcing and product quality.
- Packaged supplement consumersprimary
Purchase finished spirulina and astaxanthin products through retail, e-commerce, and direct channels for wellness and nutritional use.
- International distributorssecondary
Distribute Cyanotech-branded or customer-branded products in selected overseas markets where local channel partners are used.
- Contract extraction customerssecondary
Third-party biomass producers that outsource extraction to Cyanotech’s supercritical CO2 system.
- R&D service customersemerging
Third parties seeking microalgae cultivation and processing expertise for development work.
Cyanotech is headquartered and produces in Hawaii, with its core cultivation and processing operations centered at its...
- •Hawaii is the core production base and the only spirulina production site the company highlights
- •Kona facility operations are central to cultivation, harvesting, and processing
- •California contract manufacturers bottle and label packaged consumer products
- •International markets represented 21% of fiscal 2025 revenue
- •International markets represented 18% of fiscal 2024 revenue
- •U.S. sales dominate, limiting foreign exchange exposure because sales are largely in USD
Cyanotech’s current strategy is to stabilize operations and improve cash generation while focusing on higher-margin...
01
Production discipline and inventory controlshort-term
The business has high fixed agricultural costs, so matching output to demand is essential to protect cash and margins.
02
Shift toward higher-margin consumer productsmedium-term
Premium branded supplements can support better economics than commodity-like bulk sales.
03
Monetize excess capacitymedium-term
Contract extraction and R&D services can generate incremental revenue from existing assets and know-how.
Cyanotech faces meaningful customer concentration risk because a small number of customers account for a large share of...
Agricultural production variability
Microalgae cultivation depends on weather, temperature, nutrients, water, and contamination control, making output and cost absorption volatile.
- Scope
- Kona cultivation and harvesting operations
- Materiality
- high
Competitive pricing pressure
The company competes with larger supplement producers and spirulina farms in India and China that may have greater scale or lower costs.
- Scope
- Bulk spirulina and dietary supplement markets
- Materiality
- high
Regulatory compliance
FDA, FTC, state health, agriculture, and environmental rules can increase costs and constrain operations or marketing claims.
- Scope
- U.S. manufacturing and product sales
- Materiality
- medium
Cybersecurity and IT disruption
Order processing, billing, shipping, and customer support depend on information systems that could be disrupted by a breach.
- Scope
- Enterprise systems and customer data
- Materiality
- medium
Revenue recognition and variable consideration
Net sales and gross margin
Inventory valuation and production absorption
Cost of sales, inventory balance, gross profit
Long-lived asset impairment
Operating income and asset carrying values
Income tax estimates
Net income and effective tax rate
: 28.4.2026