Cyanotech Corporation (CYAN): BCG Matrix [Dec-2025 Updated]

You're looking at Cyanotech Corporation's portfolio right now, and frankly, it's a mixed bag that needs sharp focus. We've got the Bulk BioAstin® Astaxanthin segment blazing a trail, shooting up 74% in fiscal year 2025 to become 65% of total revenue, clearly marking it as a Star. But that high-growth engine is running alongside a mature Spirulina Cash Cow (32% of sales) and a struggling packaged segment that dipped 5%, all while the company posted a net loss of $3.2 million for FY 2025. Dive in below to see exactly where the rest of their business lines-the Dogs and the high-potential Question Marks-sit in this critical BCG Matrix snapshot.

Background of Cyanotech Corporation (CYAN)

You're looking at Cyanotech Corporation (CYAN), a company that's been cultivating high-value microalgae products from its 96-acre facility on the Kona Coast of Hawaii since 1983. They focus on providing natural ingredients and dietary supplements for the health and wellness space. Honestly, their location is a key asset, letting them maintain year-round production.

For the fiscal year ended March 31, 2025, Cyanotech Corporation reported total net sales of approximately $24.215 million, which was a 5.0% increase over the prior fiscal year. That year saw the operating loss shrink to $2.508 million from $4.592 million the year before, showing some meaningful progress on cost control. Still, the company posted a net loss of $3.203 million for that full fiscal year.

The company's portfolio is anchored by two main product lines. BioAstin® Hawaiian Astaxanthin, a natural antioxidant, was the clear revenue driver, making up about 65% of net sales, or roughly $15.7 million in fiscal 2025. The other major component is Hawaiian Spirulina Pacifica®, a nutrient-rich superfood, which contributed 32% of net sales, translating to about $7.6 million for the same period.

What's interesting is how the sales mix shifted during fiscal 2025. While packaged sales actually saw a decline of 5%, the bulk ingredient side was on fire; bulk spirulina sales jumped 53% and bulk astaxanthin grew by an impressive 74%. Also, contract extraction and R&D services chipped in $849,000, which was about 4% of total net sales for fiscal 2025.

Looking at the very latest figures, the momentum seems to be continuing into fiscal 2026. For the second quarter ended September 30, 2025, Cyanotech reported net sales of $6.976 million, a strong 19.3% increase year-over-year. This operational improvement helped push the gross profit margin up to 34.3%, and they achieved a break-even net income of just $1,000 for the quarter, a huge turnaround from the $1.15 million net loss in the same quarter last year. The overall Chlorella & Marine Microalgae market they operate in is projected to grow at a CAGR of 7.8% through 2033, so the demand backdrop is definitely there.

The company's President and CEO, Matthew K. Custer, noted that this recent performance was driven by higher bulk sales and strong online channel performance, even while tariffs impacted their contract extraction competitiveness. Finance: draft 13-week cash view by Friday.

Cyanotech Corporation (CYAN) - BCG Matrix: Stars

The Star quadrant for Cyanotech Corporation (CYAN) is clearly anchored by the performance of its Astaxanthin products, particularly the bulk ingredient sales, which demonstrate both high market share within the company's portfolio and significant growth.

The bulk BioAstin® Astaxanthin sales were a major growth engine, specifically reporting a 74% increase in fiscal year 2025. This high-growth area is critical because it directly feeds into the overall segment strength.

Astaxanthin products, as the largest segment, accounted for approximately 65% of Cyanotech Corporation's total net sales for fiscal year 2025, translating to $15.7 million in revenue for that period. This high market share within the company's offerings positions it as a clear leader in its internal portfolio.

This high-growth bulk sales trajectory is directly leveraging production efficiencies, which is reflected in the company's improved profitability metrics. The gross margin for the full fiscal year 2025 improved to 28.4%. This operational leverage is a key characteristic of a Star needing investment to maintain its lead.

The strong operational momentum seen in the Star segment is indicative of the broader company health, as evidenced by the Q2 FY2026 results. For the second quarter of fiscal year 2026, net sales increased 19.3% year-over-year, which is nearly 20%, showing the continuation of this growth trend into the new fiscal year.

Here is a snapshot of the key financial metrics related to the Astaxanthin Star segment as of the end of fiscal year 2025:

The characteristics defining this segment as a Star are clear:

• Bulk sales growth rate is extremely high at 74% in FY 2025.
• The segment holds the largest market share within Cyanotech Corporation at 65%.
• The growth is driving margin improvement, which is necessary for future Cash Cow status.

The operational success is further detailed by the margin expansion seen in the subsequent quarter, which suggests the investment in production efficiency is paying off. For Q2 FY2026, the gross profit margin reached 34.3%, up from 25.3% in Q2 FY2025.

You can see the margin progression here:

• FY 2025 Gross Margin: 28.4%
• Q2 FY2025 Gross Margin: 25.3%
• Q2 FY2026 Gross Margin: 34.3%

Finance: review the capital expenditure plan for Q3 FY2026 to ensure sufficient funding for bulk production capacity to sustain the 74% growth rate.

Cyanotech Corporation (CYAN) - BCG Matrix: Cash Cows

The Cash Cow quadrant represents established products in mature markets where Cyanotech Corporation maintains a strong market position, generating more cash than is required for maintenance. For Cyanotech Corporation, Hawaiian Spirulina Pacifica® fits this profile, being a mature, established product line since 1984.

This product line is a significant, reliable revenue stream, which is characteristic of a Cash Cow. In the fiscal year ended March 31, 2025, Spirulina contributed approximately 32% of Cyanotech Corporation's net sales, amounting to $7.6 million. This contribution is substantial, especially when compared to the total net sales for fiscal year 2025, which reached $24,215,000. The market position is unique, as Cyanotech Corporation is the only Spirulina producer in Hawaii, offering a defensible advantage based on location and proprietary processes.

The underlying revenue generation from the bulk segment supports the Cash Cow designation, even if the overall product category is mature. Specifically, Bulk Spirulina sales grew 53.0% in FY 2025. This high-volume segment provides the reliable cash flow needed to support other parts of Cyanotech Corporation's portfolio. To be fair, packaged sales showed a different trend, decreasing by 5.3% in the same period, which is typical for a mature product facing market saturation or shifting consumer preferences in that specific format.

Investments into Cash Cows are typically focused on maintaining efficiency rather than aggressive growth promotion. This is reflected in Cyanotech Corporation's spending structure. For instance, Research and Development (R&D) expenses for the fiscal year ended March 31, 2025, were $0.4 million. This relatively low figure, compared to total net sales of $24,215,000, suggests minimal aggressive investment for market expansion, aligning with the strategy to 'milk' the gains passively while supporting infrastructure improvements.

Here's a quick look at the revenue contribution breakdown for the fiscal year ended March 31, 2025, illustrating the product mix that feeds the Cash Cow status:

The core strength of this Cash Cow status rests on the following operational advantages that support high market share and efficiency:

• Grown in Kailua-Kona, Hawaii, benefiting from intense sunlight year-round.
• Uses ultra-pure deep ocean water from 2,000 feet depth for minerals and drying.
• Proprietary Ocean Chill Drying process minimizes nutrient oxidation.
• The facility is located in a designated Biosecure Zone, free of genetically modified organisms (GMOs).

You'll want to monitor the bulk sales growth rate, as 53.0% is quite high for a product line you classify as low growth; this might indicate a temporary surge in demand or a shift in how customers are purchasing, which requires infrastructure support to maintain profitability.

Cyanotech Corporation (CYAN) - BCG Matrix: Dogs

In the Boston Consulting Group Matrix framework, the Dogs quadrant represents business units or product lines operating in low-growth markets with a low relative market share. These segments typically neither generate nor consume significant cash, often breaking even, but they tie up valuable capital that could be deployed elsewhere. For Cyanotech Corporation (CYAN), the packaged sales segment, encompassing both Astaxanthin and Spirulina products sold directly to consumers or smaller distributors, fits this profile as of the close of Fiscal Year 2025 (FY 2025).

The performance metrics for this segment clearly signal its position as a Dog. For the full Fiscal Year 2025, Cyanotech Corporation reported that the decline in packaged sales was 5%. This underperformance contrasts sharply with the bulk ingredient segments, which showed significant growth, suggesting the packaged segment is struggling to gain traction or maintain share in a mature or highly competitive space. It's a classic cash trap scenario where the return on investment is minimal, but the resources required to keep it running persist.

The operational headwinds facing this segment are material. During the second quarter of FY 2025, packaged goods sales specifically saw a steep 21% decrease, which management attributed directly to stock shortages and timing issues, indicating a lack of agility in the supply chain to meet demand spikes. This suggests that even when demand exists, Cyanotech Corporation's ability to fulfill orders consistently is compromised, which is a major drag in a low-growth, competitive environment.

The overall financial picture for Cyanotech Corporation in FY 2025 confirms that the portfolio, including the Dogs segment, is not yet self-sustaining on a net basis. The company reported a consolidated net loss of $3,203,000 for the full fiscal year 2025. This loss, while an improvement from the $5,267,000 net loss in fiscal year 2024, still means the combined business units are consuming cash rather than generating it, reinforcing the need to minimize exposure to underperforming assets like the packaged sales line.

Management is acutely aware of this situation. As noted by the President and Chief Executive Officer following the third quarter of FY 2025: "While bulk sales are helping drive growth, addressing the slower growth of packaged sales remains a priority." This statement confirms that the segment requires focused attention, though the BCG model suggests expensive turnaround plans for Dogs rarely pay off. The focus should likely be on minimizing cash consumption or divestiture rather than heavy investment.

To illustrate the relative performance within Cyanotech Corporation's sales mix for FY 2025, consider the following comparison:

The disparity in growth rates between packaged and bulk sales highlights where capital is being effectively deployed versus where it is being tied up. The operational challenges that plague the packaged segment are further detailed by the inventory issues experienced:

• Stock shortages in finished goods, down by $1.5 million at one point in Q2 FY2025.
• Inventory levels were reduced to just-in-time levels to manage cash flow in prior quarters.
• Packaged goods take longer to restock compared to bulk inventory.
• The segment faces intense competition, requiring significant marketing spend for marginal returns.

Finance: draft scenario analysis for divesting packaged sales operations by end of Q1 FY2026.

Cyanotech Corporation (CYAN) - BCG Matrix: Question Marks

You're looking at the segments of Cyanotech Corporation (CYAN) that are burning cash but hold the potential for significant future growth. These are the Question Marks in the BCG framework.

The Contract Extraction and R&D Services segment is a clear example of this quadrant for Cyanotech Corporation. This specific area represented only about 4% of net sales in Fiscal Year 2025, equating to revenue of $849,000. This low market share in a potentially high-growth area-customized extraction and research-means it consumes resources without delivering substantial current returns.

To see the high-growth nature, look at the volatility and surge experienced in the second quarter of Fiscal Year 2025 (ended September 30, 2024). During that quarter, revenue from contract extraction grew by a massive 156%, and bulk inventory sales saw a 39% increase, showing demand exists for the underlying capabilities. Still, the overall segment size remains small relative to the core business.

New product formats represent another area fitting the Question Mark profile. The Hawaiian Spirulina® gummies, launched in May 2024, are unproven in the broader market but target the high-growth consumer segment for convenient supplements. These new ventures require investment to gain traction against established competitors.

The need for careful investment in these Question Marks is underscored by the company's liquidity position. Cash reserves at the end of Fiscal Year 2025 were reported at only $257,000. This tight cash position means that any heavy investment required to push these segments into the Star category must be weighed against immediate operational needs.

Here is a snapshot of the key financial context surrounding these high-growth, low-share areas as of the end of FY 2025 (ended March 31, 2025):

The strategic imperative for Cyanotech Corporation here is clear. You must decide which of these Question Marks, like the new gummy format or the contract services, merits significant cash infusion to rapidly capture market share and transition to a Star, and which ones should be divested before they consume too much capital and become Dogs.

• Contract Extraction and R&D Services revenue was $849,000.
• This segment was only 4% of total net sales.
• Contract extraction revenue surged 156% in Q2 FY 2025.
• New product launches require market adoption to justify investment.
• Cash on hand at period end was a tight $257,000.

Finance: draft 13-week cash view by Friday.