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Niagen Bioscience, Inc. (NAGE)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered record net sales of $30.5M (+38% YoY), gross margin of 63.4% (+270bps YoY), and net income of $5.1M ($0.06 diluted EPS), supported by strong Tru Niagen and Niagen ingredient demand .
  • Results beat S&P Global consensus: revenue $30.5M vs $27.1M (+12%), EPS $0.06 vs $0.02; on S&P’s “Primary EPS,” actual was $0.0454 vs $0.02 (+2.3x), implying a notable beat across both topline and earnings expectations *.
  • FY2025 guidance raised: net sales growth to 20–25% (from ~18%); G&A expense increase revised to +$7–$8M (from +$5–$6M), with the outlook still projecting profitability and slight gross margin improvement .
  • Catalysts: guidance raise, sustained profitability, segment mix shift toward higher-margin Niagen ingredients and continued e-commerce momentum; the corporate rebrand and patent expansion support a strengthening narrative in healthy aging .

What Went Well and What Went Wrong

What Went Well

  • Strong topline and margins: net sales $30.5M (+38% YoY) and gross margin of 63.4% (+270bps YoY) driven by product and business mix, and improved labor/overhead utilization .
  • Ingredient acceleration: total Niagen ingredient sales $8.0M (+95% YoY), including pharmaceutical-grade Niagen not present in the prior year quarter .
  • Operating leverage: selling & marketing at 26.6% of sales (−380bps YoY) as ingredient growth requires relatively minimal incremental marketing spend .
  • CEO tone: “We are proud to start the year with another record quarter…reinforcing a powerful foundation for the future of healthy aging” . Rebrand positions Niagen as synonymous with healthy aging .

What Went Wrong

  • Higher G&A outlook: FY2025 G&A expected up $7–$8M (previously +$5–$6M), primarily due to updated share-based compensation estimates and the absence of the 2024 royalty reversal, which raises opex despite profitability .
  • R&D normalization: R&D declined $0.8M YoY vs elevated prior-year spending for pharmaceutical-grade launch efforts; while disciplined, it may temper near-term pipeline visibility .
  • Regulatory/supply risks: management highlights dependencies on 503B arrangements, FDA list status, China supply chain risks, and evolving consumer perceptions; these remain important execution headwinds .

Financial Results

Headline Financials vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$25.58M*$29.13M*$30.48M
Gross Profit ($USD)$16.24M*$18.20M*$19.33M
Gross Margin (%)63.49%*62.48%*63.42%
Net Income ($USD)$1.88M*$7.18M*$5.06M
Diluted EPS ($USD)$0.02*$0.086*$0.06
EBIT ($USD)$1.60M*$7.11M*$4.77M
EBITDA ($USD)$1.80M*$7.30M*$4.97M
Cash from Operations ($USD)$3.50M*$8.58M*$7.88M

Values with * retrieved from S&P Global.

Actual vs Wall Street Consensus (Q1 2025)

MetricConsensusActualSurprise
Revenue ($USD)$27.08M*$30.48M +$3.40M; +12.6% (bold beat)
EPS (Primary, $USD)$0.02*$0.0454*+$0.0254; +127% (bold beat)
EPS (Diluted, $USD)N/A$0.06 N/A

Values with * retrieved from S&P Global.

Segment Breakdown (Q1 2025)

SegmentSales ($USD)YoY Growth
E-Commerce$16.8M +31%
Watson’s & Other B2B$4.7M +3%
Food-grade Niagen$7.0M +71%
Pharmaceutical-grade Niagen$1.0M Not present in Q1 2024 (new)
Analytical Reference Standards & Services$0.8M +14%
Other Ingredients$0.2M +38%
Total Net Sales$30.5M +38%

KPIs

KPIQ1 2025Prior Year/Quarter Reference
Sales & Marketing as % of Net Sales26.6% 30.4% in Q1 2024
Gross Margin63.4% +270bps YoY
Adjusted EBITDA$4.9M $0.7M in Q1 2024
Cash Balance$55.6M $44.7M at 12/31/2024
Cash from Operations$7.9M $0.3M in Q1 2024

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales GrowthFY2025~18% YoY 20%–25% YoY Raised
Gross MarginFY2025Slight improvement YoY (qualitative) Slight improvement YoY (qualitative) Maintained
Selling & MarketingFY2025Up in absolute $; ~stable % of sales Up in absolute $; ~stable % of sales Maintained
R&DFY2025Up in absolute $; ~stable % of sales Up in absolute $; ~stable % of sales Maintained
G&AFY2025+$5–$6M YoY +$7–$8M YoY Raised
ProfitabilityFY2025Profitability projected Profitability projected Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 / Q4 2024)Current Period (Q1 2025)Trend
Profitability disciplineProfit inflection with Q4 aided by royalty reversal and credit-loss recovery Third consecutive profitable quarter; record revenues; disciplined opex Improving
Segment mix & marginsMix shift toward Niagen ingredients emerging in 2H 2024; GM ~62–63% Ingredients up 95% YoY; GM 63.4% (+270bps YoY) Positive mix/margin
E-commerce strategyStable growth through 2024; Tru Niagen majority of sales +31% YoY e-commerce; focus on efficiency, cautious influencer use, expanding TikTok presence Efficient growth
Pharma-grade NiagenRamp began late 2024 (Q4 contribution) $1.0M sales in Q1; clinics expansion targeted in 2025 Scaling
Supply chain & costOngoing optimization supporting margin gains Continued supply chain optimization/cost savings baked into FY GM outlook Structural margin support
Regulatory/legal2024 legal settlement benefits; highlight 503B/FDA risks in filings Continued emphasis on FDA 503B list status, clinic compounding arrangements Ongoing risk management

Management Commentary

  • CEO Rob Fried: “We are proud to start the year with another record quarter, delivering $30.5 million in net sales…a 63.4% gross margin, and $5.1 million in net income.” He underscored the rebrand and patent portfolio expansion as foundations for leadership in healthy aging .
  • CEO on rebrand/mission: Transition from ChromaDex to Niagen Bioscience aligns brand with mission; reinforcing Niagen at the forefront of NAD+ boosting solutions and “a better way to age” .
  • CFO Ozan Pamir: “Niagen Bioscience had a strong start to the year, delivering record revenues and achieving net income for the third consecutive quarter,” emphasizing operational discipline and focus on key initiatives .

Q&A Highlights

  • Influencer/E-commerce strategy: Management plans to expand presence on TikTok and continue influencer/event campaigns while maintaining profitability and efficiency; cautious on influencer deal economics .
  • Niagen Plus clinic rollout: Target of ~1,000 clinics by year-end; potential addressable market of 2,000–3,000 clinics .
  • Clinical endpoints/partners: Ongoing discussions on endpoints and study numbers; third-party partners not yet engaged .
  • Profitability cadence: Management reiterated discipline and sustained profitability focus, consistent with prepared remarks .

Estimates Context

  • EPS beat: S&P Global consensus Primary EPS $0.02 vs actual Primary EPS $0.0454*; company-reported diluted EPS $0.06 also signals a significant beat relative to consensus *.
  • Revenue beat: Consensus $27.08M vs actual $30.48M; +12.6% surprise materially above expectations *.
  • Implications: Consensus should move higher on revenue trajectory and sustained margins; expense profile (G&A) may be revised up, but profitability outlook remains intact given operating leverage *.

Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Strong execution: Broad-based growth across e-commerce and ingredients drove double-digit revenue and margin expansion; sustained profitability indicates a structural improvement .
  • Clear beat vs Street: Material revenue and EPS beats support near-term positive estimate revisions and potential multiple support; guidance raise adds fuel to the narrative *.
  • Mix shift benefit: Higher Niagen ingredient contribution, including pharma-grade, improves operating efficiency and gross margin durability .
  • Marketing ROI: Lower S&M % of sales despite higher absolute investments highlights improved efficiency and channel strategy .
  • Balance sheet strength: $55.6M cash, no debt, and strong operating cash flow provide flexibility for R&D and brand investments without diluting profitability .
  • Watch risks: Execution on 503B compounding frameworks, FDA list status, and China supply chain remain critical to the pharma-grade growth thesis .
  • Near-term trading lens: Guidance raise and recurring profitability are likely stock-positive catalysts; continued segment mix improvement and clinic ramp updates are key milestones to monitor .