Executive Summary

Strong top/bottom-line: revenue $31.1M (+37% YoY) and diluted EPS $0.04 with gross margin 65.0% (+480 bps YoY) .
Clear beats vs S&P Global consensus: revenue $31.1M vs $28.3M*, EPS $0.04 vs $0.01*; guidance raised to 22%–27% FY sales growth (was 20%–25%) — a constructive catalyst.
Mix tailwinds: Tru Niagen® +22% YoY to $22.7M and Niagen® ingredient sales +135% YoY to $7.4M; S&M leverage to 26.4% of sales (-420 bps YoY).
Management flagged some margin drivers as temporary (low-cost inventory) with margins expected to normalize, tempering exuberance despite strong print.

What Went Well and What Went Wrong

What Went Well
- Broad-based growth: Net sales +37% to $31.1M, Tru Niagen® $22.7M (+22% YoY), Niagen® ingredient $7.4M (+135% YoY). “We delivered an excellent second quarter, with $31.1 million in net sales, up 37% year-over-year, and $3.6 million in net income.” — CEO Rob Fried.
- Margin expansion and opex efficiency: GM 65.0% (+480 bps YoY); S&M 26.4% of sales (-420 bps YoY).
- Balance sheet strength and cash generation: Operating cash flow $9.1M YTD; cash $60.5M, no debt.
What Went Wrong
- Margin sustainability: Company cautions some drivers (lower-cost inventory) are temporary; gross margins expected to normalize.
- OpEx up to support growth: Total opex +22% YoY to $17.0M (G&A +28%, S&M dollars +$1.2M; R&D +$0.3M).
- Mix shift away from Tru Niagen® share: Tru Niagen® was 73% of sales in Q2 2025 vs 82% in Q2 2024, reflecting higher ingredient contribution; positive for total growth but implies greater dependence on ingredient channels.

Financial Results

Headline results vs prior periods and consensus

Metric	Q2 2024	Q1 2025	Q2 2025 Actual	Q2 2025 Consensus	Commentary
Revenue ($M)	$22.739	$30.481	$31.117	$28.309*	Beat on revenue with broad-based growth (E-comm + ingredient)
Diluted EPS ($)	$0.00	$0.06	$0.04	$0.01*	EPS ahead of consensus; sequential downtick on higher OpEx to fuel growth
Gross Margin (%)	60.2%	63.4%	65.0%	n/a	Expansion on mix/scale; some drivers flagged as temporary

Notes: Values with asterisks (*) are retrieved from S&P Global.

Segment/net sales mix

Segment ($M)	Q1 2025	Q2 2025
E-Commerce	$16.8	$18.1
Watson’s & Other B2B	$4.7	$4.6
Food-grade Niagen®	$7.0	$6.0
Pharmaceutical-grade Niagen®	$1.0	$1.4
Analytical Reference Standards & Services	$0.8	$0.8
Other Ingredients	$0.2	$0.2
Total Net Sales	$30.5	$31.1

Key KPIs and profitability

Metric	Q2 2024	Q1 2025	Q2 2025
Net Income ($M)	$(0.015)	$5.063	$3.609
Adjusted EBITDA ($M)	$1.575	$4.894	$5.049
Sales & Marketing (% Sales)	30.6%	26.6%	26.4%
Cash & Equivalents ($M)	n/a	$55.616 (3/31/25)	$60.474 (6/30/25)
Clinics carrying Niagen Plus (count)	n/a	>475 (Dec-2024 baseline)	>800 (as of Aug-2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales Growth (YoY)	FY 2025	20%–25% (as of Q1 2025)	22%–27%	Raised
Gross Margin	FY 2025	Slight improvement vs 61.8% FY24	Slight improvement vs 61.8% FY24	Maintained
Sales & Marketing (% Sales)	FY 2025	Up in $ and stable as %	Up in $ and down as %	Improved leverage
Research & Development	FY 2025	Up in $; stable as %	Steady investment, near FY24 $6.0M	Maintained
General & Administrative	FY 2025	Up $7–$8M (raised from prior $5–$6M in Q1 PR)	Up $7–$8M	Maintained from Q1 update

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set despite targeted searches; themes below reflect press release and presentation disclosures.

Topic	Q-2 (Q4 2024)	Q-1 (Q1 2025)	Current (Q2 2025)	Trend
Margin drivers/sustainability	Non-recurring gains: royalty reversal ($3.5M) and credit loss recovery ($1.3M) benefited 2024	GM 63.4%; drivers: mix/scale; outlook “slight improvement”	GM 65.0%; mix/scale/low-cost inventory; normalization expected	Improving but normalizing ahead
Sales mix: Tru Niagen vs Ingredient	FY24 net sales $99.6M; mix context in roll-forward	Tru Niagen 71%; ingredient acceleration (food- & pharma-grade)	Tru Niagen 73%; ingredient $7.4M (+135% YoY)	Ingredient contribution rising
R&D/Clinical pipeline	Non-recurring items, set base	New patent on NR salts (malate/tartrate)	Werner syndrome trial publication; PD license; NOPARK Phase III dosing completed	Pipeline momentum increasing
Go-to-market channels	FY24 B2B/e-comm base	Strong e-comm; pharma-grade introduced	E-comm + ingredient growth; >800 clinics; hospitality pilot at Equinox Hotel NY	Channel expansion
Supply chain/operations	n/a	Scale/efficiency aiding margins	Supply chain optimization cited in GM outlook	Operational leverage

Management Commentary

“We delivered an excellent second quarter, with $31.1 million in net sales, up 37% year-over-year, and $3.6 million in net income.” — Rob Fried, CEO.
On outlook and growth vectors: Raised FY25 net sales growth to 22%–27% with continued e-commerce expansion and partnerships; expecting slight GM improvement YoY vs 61.8% in 2024, and S&M to rise in dollars but fall as % of sales.
On clinical and strategic progress: Publication of the Werner syndrome study; exclusive PD license leveraging Phase III NOPARK dataset; >800 wellness clinics carrying Niagen Plus; Tru Niagen/Niagen IV debut at Equinox Hotel New York.

Q&A Highlights

A Q2 2025 earnings call transcript could not be located in our documents despite targeted searches for “earnings-call-transcript” between Jul 1–Sep 30, 2025; therefore, Q&A themes are unavailable from primary sources. [Search attempted; no results returned]

Estimates Context

S&P Global consensus for Q2 2025: revenue $28.309M* (4 ests), EPS $0.01* (3 ests). Actuals: revenue $31.117M and EPS $0.04; both ahead of consensus.
Target price consensus $15.8* (5 ests). Recommendation text unavailable in S&P extract.
With raised FY guide and sustained demand across e-comm and ingredient channels, sell-side models likely raise FY revenue and may modestly lift GM trajectory; however, management’s caution on margin normalization and higher G&A tied to stock comp temper EBITDA/EPS flow-through.

Values retrieved from S&P Global.

Key Takeaways for Investors

Quality beat and raise: revenue/EPS ahead of consensus with FY25 sales guide raised to 22%–27%, reinforcing demand momentum.
Mix benefits: Ingredient sales acceleration (+135% YoY) and e-comm strength drove growth and GM expansion to 65.0%.
Margin sustainability watch: Company flags some GM drivers (low-cost inventory) as temporary; expect normalization even as long-term efficiencies persist.
Operating leverage: S&M % improved 420 bps YoY to 26.4% while supporting growth initiatives; expect S&M dollars up but % down for FY25.
Balance sheet optionality: $60.5M cash, no debt, positive operating cash flow supports R&D, clinical, and channel expansion without external financing pressure.
Pipeline/catalysts: Werner syndrome publication, PD license, and NOPARK Phase III completion underpin a broader regulated/therapeutic narrative that could expand TAM.
Trading setup: Positive estimate revisions likely; watch for any margin reset commentary next quarter and updates on hospitality/clinic rollouts as incremental catalysts.

Appendix: Additional Data

Unaudited condensed income statement snapshots

Metric	Q2 2024	Q2 2025
Sales, net ($000s)	22,739	31,117
Gross Profit ($000s)	13,693	20,226
Gross Margin (%)	60.2%	65.0%
Operating Income (Loss) ($000s)	(256)	3,185
Net Income ($000s)	(15)	3,609
Diluted EPS ($)	—/~$0.00	$0.04

Cash flow and balance sheet (selected)

Metric	Q1 2025	Q2 2025
Cash from Operations YTD ($000s)	7,883	9,133
Cash & Equivalents ($000s)	55,616 (3/31/25)	60,474 (6/30/25)
Total Stockholders’ Equity ($000s)	55,345 (3/31/25)	64,195 (6/30/25)

Operational highlights (Q2)

800 U.S. wellness clinics carry Niagen Plus (vs >475 in Dec-2024); Equinox Hotel NY pilot expands into luxury hospitality.
Exclusive license with Haukeland University Hospital for PD therapy development; NOPARK Phase III dosing completed; data readout expected 2026.
Werner syndrome trial (Aging Cell) showed NAD+ increases and improved cardiovascular/skin markers over 52 weeks.

Earnings call transcript status: Not found in our document source; only 8-K press release and investor presentation were available.

Niagen Bioscience, Inc. (NAGE)·Q2 2025 Earnings Summary