Cyanotech Corporation (CYAN): History, Ownership, Mission, How It Works & Makes Money

How does a company farming microalgae on the Kona Coast of Hawaii, like Cyanotech Corporation, navigate the volatile nutritional supplement market while holding a dominant position in high-value ingredients? For the fiscal year 2025, Cyanotech reported net sales of $24,215,000, a 5.0% increase from the prior year, yet still posted a net loss of $3,203,000, showing the real-world challenge of scaling a specialized agricultural biotechnology business. You need to understand the underlying mechanics of this unique operation-where 65% of revenue comes from its premium BioAstin Astaxanthin product line-to see how they plan to move from narrowing a $2,508,000 operating loss to sustainable profitability.

Cyanotech Corporation (CYAN) History

You're looking for the foundational story behind Cyanotech Corporation, and it's a classic tale of a scientist moving a lab experiment to the perfect commercial environment. The company has spent over four decades harnessing microalgae, evolving from a small Washington State operation to a world leader in high-value nutritional supplements like BioAstin and Hawaiian Spirulina Pacifica. They defintely bet on the right location.

Given Company's Founding Timeline

Year established

Cyanotech Corporation was established in 1983.

Original location

The company was initially founded in Woodinville, Washington State.

Founding team members

The company was founded by Dr. Gerald Cysewski, PhD, who co-founded the entity in 1983 and initially served as Scientific Director. His initial work involved growing spirulina as an experiment in his garage.

Initial capital/funding

Cyanotech was formed through a reverse-merger with an inactive public shell corporation, making it a public company from inception without an Initial Public Offering (IPO). This structure provided the initial public listing status, but specific initial capital amounts are not widely publicized.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory was fundamentally shaped by two major strategic pivots: the move to Hawaii and the focus on astaxanthin.

• The Hawaiian Relocation: Dr. Cysewski's 1984 decision to move from Washington and Nevada test sites to Kailua-Kona, Hawaii, was the single most critical factor. The area offers consistent, year-round warm temperatures, low man-made pollution, and access to deep ocean water, creating a unique, high-quality production environment. This move established the brand's core identity-a commitment to 'Fulfill The Promise of Whole Health Through Hawaiian Microalgae.' You can read more about that commitment in their Mission Statement, Vision, & Core Values of Cyanotech Corporation (CYAN).
• The Astaxanthin Bet Paid Off: While Hawaiian Spirulina Pacifica is a foundational product, representing about 32% of fiscal year 2025 net sales, the introduction and scaling of BioAstin (natural astaxanthin) was the financial game-changer. Astaxanthin accounted for approximately 65% of net sales in fiscal year 2025. Here's the quick math: the higher margin, potent antioxidant product drives the bulk of the revenue.
• Financial Turnaround in FY 2025: The company showed meaningful progress by cutting its operating loss by almost 45% in fiscal year 2025, compared to the prior year. The operating loss narrowed to $2,508,000 from $4,592,000 in fiscal year 2024, a clear sign that operational efficiencies and cost management are starting to take hold.

The investment in the 1,000 bar supercritical carbon dioxide extraction plant in 2015 was a major capital expenditure that solidified their vertical integration, allowing them to be the only microalgae company globally to control the entire process from culture to final oleoresin. This level of control is a significant competitive advantage in a market where quality and purity matter most.

Cyanotech Corporation (CYAN) Ownership Structure

Cyanotech Corporation operates as a publicly held company, trading on the OTCQB Venture Market under the ticker CYAN, but its ownership structure is tightly controlled by a few key beneficial owners and insiders, meaning the public float is smaller than you might expect for a public entity.

This concentrated ownership, where the top two shareholders control over a third of the stock, gives a small group substantial influence over the company's strategic direction and voting matters, which is a critical factor to consider in your analysis. You can dive deeper into the market's reaction to this structure by Exploring Cyanotech Corporation (CYAN) Investor Profile: Who's Buying and Why?

Cyanotech Corporation's Current Status

As of November 2025, Cyanotech Corporation is a publicly traded company on the OTCQB Market (OTCQB:CYAN). Its fiscal year 2025 concluded on March 31, 2025, with the company reporting net sales of $24,215,000 and a net loss of $3,203,000, reflecting a focus on operational improvements despite continued losses. [cite: 17 in previous step]

The company remains a small-cap entity, and its stock trades on an over-the-counter market, which often means lower liquidity and less rigorous reporting requirements than a major exchange like the NYSE or Nasdaq. The total shares outstanding as of mid-2025 were approximately 7,232,217. [cite: 7 in previous step]

Cyanotech Corporation's Ownership Breakdown

The ownership is heavily skewed toward insiders and a major non-profit foundation, which collectively hold a significant block of the company's stock. This structure means that a small number of parties can defintely influence the outcome of shareholder votes.

Here's the quick math: The two largest shareholders, Michael A. Davis and the Rudolf Steiner Foundation, collectively control approximately 37.5% of the common stock. [cite: 6, 7 in previous step] This concentration is why you see the board and management having a very strong hand in company governance.

Cyanotech Corporation's Leadership

The management team steering the company as of November 2025 brings a mix of long-term operational experience and newer financial leadership, which is key as the company works to improve profitability.

• Matthew Custer: President and Chief Executive Officer (CEO). He has over two decades of management experience in the food and supplement industries. [cite: 8 in previous step]
• Jennifer Miyashiro: Chief Financial Officer (CFO) and Treasurer. She was promoted to this role in August 2025, bringing over twenty-five years of finance and corporate strategy experience, notably from Hawaiian Airlines. [cite: 8 in previous step]
• Gerald R. Cysewski, Ph.D.: Chief Executive Officer Emeritus and Chief Scientific Officer. As a co-founder, his technical expertise is still central to the microalgae production process. [cite: 8 in previous step]
• Collette Kakuk: Chief Strategic Officer and Chief Commercial Officer. She oversees all aspects of sales and marketing for the company and its Nutrex Hawaii brand. [cite: 8 in previous step]
• Glenn Jensen: Vice President of Operations. His tenure dates back to 1984, providing deep institutional knowledge in the company's production systems. [cite: 8 in previous step]

The board is led by Michael Davis, who, as the largest individual shareholder, has a clear vested interest in the company's performance. His 24.8% stake gives him unparalleled influence in director elections and major corporate decisions. [cite: 7 in previous step] The average tenure of the board is a seasoned 10.2 years, suggesting stability but also a potential resistance to radical strategic shifts. [cite: 2 in previous step]

Cyanotech Corporation (CYAN) Mission and Values

Cyanotech Corporation's mission centers on delivering Breaking Down Cyanotech Corporation (CYAN) Financial Health: Key Insights for Investors whole health through its unique Hawaiian microalgae, grounding its operations in Hawaiian culture and a commitment to quality and sustainability.

This focus on purpose, not just profit, is critical, especially when you look at the financials: the company reported net sales of $24,215,000 for fiscal year 2025, with a gross profit of $6,876,000, showing a 28.4% gross profit margin, which defintely underscores their ability to execute on high-value products like BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®.

Cyanotech Corporation's Core Purpose

The company's cultural DNA is rooted in its Hawaiian location and its commitment to the natural environment, which is a rare but powerful differentiator in the supplement market.

Official mission statement

The mission is a concise declaration of their core value proposition, focusing on the source and the outcome for the consumer.

• Fulfilling the promise of WHOLE HEALTH through Hawaiian microalgae.

Here's the quick math: their mission-driven product focus helped them reduce their operating loss by almost 45% in fiscal year 2025, bringing it down to $2,508,000 from the prior year, so the mission isn't just words; it's a driver for operational efficiency.

Vision statement

The vision statement maps their long-term aspiration, which is to maximize the utility of microalgae beyond their current product lines, ensuring global reach and impact.

• To unlock the full potential of microalgae to nourish the world and improve human well-being.

This vision is backed by their core values, which are more than just corporate buzzwords; they are Hawaiian-centric principles that guide daily operations at their 96-acre facility in Kona, Hawaii.

• Integrity: Be trustworthy and honest, adhering to moral and ethical principles.
• Well Being: Be safe and grow, focusing on health, happiness, and prosperity.
• 'Ohana: Work as a team, embracing the extended family concept of mutual respect and cooperation.

Cyanotech Corporation slogan/tagline

Their tagline is a simple, powerful statement that connects their product's origin directly to its benefit for the customer.

• From the Source, for Life.

This focus on 'Source' is literal, as their location provides consistent sunlight and access to cold deep ocean water, which is key to their Ocean-Chill Drying system for their products. Still, even with this strong brand identity, the company reported a net loss of $3,203,000, or $0.45 loss per share, in fiscal 2025, which shows that mission alignment doesn't eliminate market challenges.

Cyanotech Corporation (CYAN) How It Works

Cyanotech Corporation operates by producing high-value natural products from microalgae, leveraging its unique Hawaiian location and proprietary technology to serve the global nutritional supplements and animal feed markets. The company's business model is a vertically integrated farm-to-bottle operation that maximizes the natural potency of its two core microalgae strains, Haematococcus pluvialis and Spirulina Pacifica.

Cyanotech Corporation's Product/Service Portfolio

For the fiscal year 2025, Cyanotech Corporation's net sales reached $24,215,000, with the majority of revenue coming from two flagship microalgae-based products and a smaller, but growing, contract services segment. Here's the quick math: BioAstin® accounted for 65% of sales, or $15.7 million, while Hawaiian Spirulina Pacifica® brought in 32%, or $7.6 million.

Cyanotech Corporation's Operational Framework

The company's value creation starts at its 96-acre facility in Kona, Hawaii, which is defintely a key asset due to the year-round warm climate and high solar insolation. This ideal environment allows for consistent, large-scale cultivation of microalgae in open-pond systems. What this process hides is the complexity of maintaining purity and consistency in an open environment.

The operational process is highly controlled, ensuring the quality that commands a premium in the health supplement market. For example, the gross profit margin for fiscal year 2025 was 28.4%, reflecting improved production efficiency compared to the prior year.

• Cultivate microalgae (Haematococcus and Spirulina) in separate, open-pond systems using fresh water and nutrients.
• Harvest the microalgae biomass carefully to preserve its nutritional integrity.
• Process the biomass using advanced extraction and purification techniques.
• Employ the patented Ocean Chill Drying™ technology to dry the product quickly and at low temperatures, which helps maintain the potency of the delicate compounds like Astaxanthin.
• Package and distribute the finished goods, both as bulk ingredients to manufacturers and as branded products (Nutrex-Hawaii) direct to consumers and retailers.

Cyanotech Corporation's Strategic Advantages

Cyanotech's market success is grounded in a few clear, non-replicable advantages that differentiate it from lower-cost competitors, particularly in the bulk ingredient market. You can explore more about the stakeholders in Exploring Cyanotech Corporation (CYAN) Investor Profile: Who's Buying and Why?

• Pristine Hawaiian Sourcing: The Kona Coast location provides a unique, pollution-free environment with access to deep ocean water, which is a powerful marketing tool for premium, natural products.
• Proprietary Technology: The patented Ocean Chill Drying™ process is a key differentiator, helping to produce a high-quality, stable product that retains its antioxidant potency better than standard drying methods.
• Established Brand Equity: BioAstin® and Hawaiian Spirulina Pacifica® are recognized and trusted brands, which is critical in the crowded dietary supplement space.
• Regulatory Head Start: BioAstin® was one of the first natural astaxanthin products to receive the Generally Recognized as Safe (GRAS) status from the FDA for use in food products, giving it a strong foundation in the US market.

Cyanotech Corporation (CYAN) How It Makes Money

Cyanotech Corporation generates revenue primarily by cultivating and selling two high-value microalgae products: Astaxanthin and Spirulina. The company monetizes these through two main channels: selling branded, finished dietary supplements (packaged sales) and supplying raw ingredients to other manufacturers (bulk sales).

The business model is built on vertical integration-controlling the production process from microalgae cultivation in its 96-acre facility in Kona, Hawaii, to final product packaging, which helps ensure premium quality and a U.S.-sourced competitive edge.

Cyanotech Corporation's Revenue Breakdown

For the fiscal year ended March 31, 2025, Cyanotech Corporation's total net sales were $24,215,000. The revenue mix shows a clear reliance on its two core products, with a smaller but growing contribution from specialized services.

The big takeaway here is that bulk ingredient sales are the primary growth engine right now, with bulk Astaxanthin and Spirulina sales seeing significant increases in the fourth quarter of fiscal year 2025. This growth is offsetting a 5% decline in packaged sales, which are the higher-margin, branded products like BioAstin® and Nutrex-brand supplements.

Business Economics

Cyanotech Corporation operates in the highly competitive and price-sensitive bulk ingredient market, yet it aims to maintain a premium position. Its economic fundamentals are tied directly to production efficiency and brand differentiation.

• Pricing Strategy: The company uses its unique location-Kona, Hawaii, with pristine deep ocean water-to justify a premium price point, positioning its products against lower-priced international ingredients. Selective price increases on Nutrex-brand packaged products in early fiscal year 2026 also helped expand margins.
• Cost of Goods Sold (COGS): Higher production volumes are a key lever for profitability, as they drive down the per-unit cost of goods sold and improve overall efficiency. An increase in gross profit margin to 34.3% in Q2 FY2026, up from 25.3% in Q2 FY2025, directly reflects this operational improvement.
• Customer Concentration: A substantial portion of net sales is concentrated with a few large customers. In fiscal year 2025, two customers accounted for 31% and 10% of total net sales, respectively. This concentration is a key business risk, as the loss of a major buyer would immediately impact revenue.
• Research & Development (R&D): R&D expenses were modest at $0.4 million in fiscal year 2025, down from $0.7 million in fiscal year 2024, indicating a focus on cost control over new product pipeline expansion. You can read more about what drives this focus in the Mission Statement, Vision, & Core Values of Cyanotech Corporation (CYAN).

Cyanotech Corporation's Financial Performance

The company showed meaningful financial progress in fiscal year 2025, reducing its losses and improving efficiency, but liquidity remains a critical concern as of November 2025.

• Full Year Fiscal 2025 Results: Net sales grew 5.0% to $24,215,000. The gross profit margin improved by 2.6 percentage points to 28.4%. The net loss for the year was significantly reduced to $3,203,000, compared to a net loss of $5,267,000 in the prior year.
• Recent Performance (Q2 FY2026): The most recent quarter (ended September 30, 2025) showed a strong turnaround, with net sales increasing 19.3% year-over-year to $6,976,000. The company achieved a break-even net income of $1,000 for the quarter, a major improvement from a net loss of $1,150,000 in the same period a year earlier.
• Liquidity and Debt: This is defintely the area to watch. As of September 30, 2025, cash was tight at $649,000 and working capital was only $39,000. The company is managing a substantial debt load, including a related-party revolving credit facility with $4.200 million outstanding.
• Going Concern Risk: The company's recent filings explicitly state there is 'substantial doubt' about its ability to continue as a going concern, largely due to tight liquidity and prior covenant noncompliance on its bank debt. This means while operations are improving, the balance sheet pressure is real.

Cyanotech Corporation (CYAN) Market Position & Future Outlook

Cyanotech Corporation is strategically positioned to capture growth in the premium natural microalgae market, leveraging its unique Hawaiian-farmed products, BioAstin and Hawaiian Spirulina Pacifica. While the company achieved a significant turnaround with a break-even net income of $1,000 in Q2 fiscal year 2026 (ended September 30, 2025), its future trajectory is heavily dependent on maintaining operational efficiencies and navigating persistent liquidity concerns, as indicated by the tight cash position of $649,000 as of the same quarter.

Competitive Landscape

The microalgae-based supplement market, particularly natural astaxanthin, is highly consolidated, with the top five global manufacturers controlling approximately 75% of the market share. Cyanotech competes directly with large, financially stronger global players in both the bulk ingredient and packaged consumer product segments, with its primary competitive advantage stemming from its unique Hawaiian-sourced, premium-grade cultivation.

Opportunities & Challenges

The company is focused on driving growth through operational excellence and strategic pricing adjustments to capture margin expansion, which saw the gross profit margin jump to 34.3% in Q2 FY2026. Expanding packaged goods sales remains a priority, especially after a period of inventory shortages in that segment. The broader market trend for natural, clean-label antioxidants and plant-based nutrition strongly favors Cyanotech's core products.

Industry Position

Cyanotech is a pioneer, holding a leadership position in the microalgae sector, particularly as the sole producer of spirulina in Hawaii. Its BioAstin® astaxanthin, which generated approximately $15.7 million in net sales for fiscal year 2025, is a recognized premium brand in the nutraceutical space.

Here's the quick math: The company's total net sales for fiscal year 2025 were $24.2 million, with astaxanthin making up the bulk of that revenue. This revenue base, while small compared to diversified chemical giants, is substantial in the niche natural astaxanthin segment. Still, the small market capitalization of approximately $2.68 million as of August 2025 shows the market's skepticism regarding the financial risk profile.

• Focus on cost discipline: Operating loss was reduced by nearly 45% in FY2025.
• Prioritize R&D services: Revenue from contract services grew to approximately 4% of net sales in FY2025, up from 3% in FY2024.
• Strengthen customer base: Two customers accounted for 31% and 10% of total net sales in FY2025, highlighting customer concentration risk.

To be fair, the recent move to profitability in Q2 FY2026, even at just $1,000 net income, is a defintely positive sign that operational changes are working. For a deeper dive into the company's core values, you should review the Mission Statement, Vision, & Core Values of Cyanotech Corporation (CYAN).