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Niagen Bioscience, Inc. (NAGE)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered strong top- and bottom-line growth: revenue $33.99M (+33% YoY), gross margin 64.5% (+100 bps YoY), and diluted EPS $0.05; adjusted EBITDA rose to $6.36M (+120% YoY) .
  • Both revenue and EPS beat Wall Street consensus; revenue beat by ~$2.88M and EPS beat by ~$0.034, supported by Tru Niagen® strength and cost discipline; estimates from S&P Global* *.
  • FY2025 guidance reaffirmed and increased: net sales growth 25–30% (was 22–27% in Q2 and 20–25% in Q1); R&D expected down as % of sales; G&A updated to $8–9M (from $7–8M) .
  • Strategic catalysts: launch of AboutNAD® digital science platform and expansion of Niagen Plus™ IV/injectable distribution to >1,000 clinics, bolstering category leadership and channel breadth .

What Went Well and What Went Wrong

What Went Well

  • Tru Niagen® drove growth: $26.0M sales (+44% YoY), comprising 77% of net sales; improved gross margin to 64.5% on mix and lower-cost inventory .
  • Operating leverage and cost discipline: S&M as % of sales improved 170 bps to 25.8%; adjusted EBITDA rose to $6.36M (+$3.47M YoY) .
  • Strategic reach expanded: >1,000 clinics carrying pharmaceutical-grade Niagen Plus™ IV and injectables; CEO: “continued execution across the business…margin expansion, and disciplined cost management” .

What Went Wrong

  • Operating expenses rose 21% YoY to $17.69M (G&A +13%; R&D +$0.5M), reflecting higher employee comp, SBC, and project work .
  • Mix headwind vs Q2 peak margin: gross margin 64.5% vs 65.0% in Q2; Q2 release cautioned temporary benefits from lower-cost inventory purchases and normalization ahead .
  • Ingredient sales softness within pharma-grade in Q3 ($0.5M; down vs Q2 $1.4M) amid scaling/inventory timing, partly offset by Food-grade Niagen® growth .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025Q3 2025 Consensus
Revenue ($USD Millions)$25.58 $30.48 $31.12 $33.99 $31.10*
Diluted EPS ($USD)$0.02 $0.06 $0.04 $0.05 $0.016*
Gross Margin %63.5% 63.4% 65.0% 64.5% —
Operating Income ($USD Millions)$1.60 $4.77 $3.19 $4.24 —
Adjusted EBITDA ($USD Millions)$2.89 $4.89 $5.05 $6.36 —

Values marked with * were retrieved from S&P Global.

Segment breakdown

Segment ($USD Millions)Q1 2025Q2 2025Q3 2025
E-Commerce$16.8 $18.1 $19.0
Watson’s & Other B2B$4.7 $4.6 $7.0
Food-grade Niagen®$7.0 $6.0 $6.4
Pharmaceutical-grade Niagen®$1.0 $1.4 $0.5
Analytical Reference Standards & Services$0.8 $0.8 $0.8
Other Ingredients$0.2 $0.2 $0.3
Total Net Sales$30.5 $31.1 $34.0

KPIs

KPIQ1 2025Q2 2025Q3 2025
Cash and Cash Equivalents ($USD Millions)$55.62 $60.47 $64.29
Cash from Operations YTD ($USD Millions)$7.88 $9.13 $12.83
Tru Niagen® as % of Net Sales71% 73% 77%
Niagen®-related % of Net Sales97% 97% 97%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales Growth YoYFY 202520%–25% (Q1) 22%–27% (Q2) ; 25%–30% (Q3) Raised twice
Gross Margin %FY 2025Slight improvement YoY (Q1) Slight improvement YoY (Q2) ; Improvement YoY (Q3) Improved trajectory
Sales & Marketing (% of sales)FY 2025Up in $; stable % (Q1) Up in $; down % (Q2) More efficient (down %)
Research & Development (% of sales)FY 2025Stable % (Q1) Stable vs FY2024 levels (Q2) Down % (Q3)
General & AdministrativeFY 2025Up $7–8M (Q1) Up $7–8M (Q2) Up $8–9M (Q3)

Earnings Call Themes & Trends

Note: A Q3 2025 call transcript was not available in our document set; themes below draw from the Q3 press release and investor presentation.

TopicPrevious Mentions (Q2 & Q1)Current Period (Q3)Trend
Digital/technology initiativesNo platform launch; brand identity refresh in Q1 Launched AboutNAD® platform to curate NAD+ science Accelerating digital engagement
Supply chain and margin driversQ2 noted temporary benefit from lower-cost inventory; normalization expected GM +100 bps YoY; benefit from lower-cost inventory, mix and utilization Favorable but moderating vs Q2 peak
Pharmaceutical-grade Niagen® rollout>800 clinics by Aug; ramp after earlier supply constraints Expanded to >1,000 clinics nationwide in Oct Scaling distribution
Regulatory/legal positioningWerner syndrome study published; PD licensing; 503B compounding network NAD advertising challenge victory supports evidence-based claims Strengthened scientific/regulatory stance
Product performanceTru Niagen® +24% (Q1); +22% (Q2); strong e-commerce Tru Niagen® +44%; e-commerce and B2B growth Accelerating growth

Management Commentary

  • CEO Rob Fried: “We delivered another strong performance…with sustained sales growth, margin expansion, and disciplined cost management. The progress across both scientific leadership and commercial reach reinforces our confidence in the long-term fundamentals of our leadership in the NAD+ category.”
  • Q3 operating context: Gross margin gains driven by product mix, lower-cost inventory, and better overhead/labor utilization; S&M efficiency improved to 25.8% of sales .
  • Strategic posture: Launch of AboutNAD® to lead in NAD+ science communication; clinic network expansion to >1,000 sites for Niagen Plus™ IV/injectables .

Q&A Highlights

  • A Q3 2025 earnings call transcript was not available in the documents; the company hosted a webcast on Nov 4, 2025 with replay details provided .
  • Guidance context from management materials emphasized sustained e-commerce momentum, new B2B partnerships, and efficiency-driven margin gains into year-end .
  • Q2 commentary cautioned certain margin drivers (lower-cost inventory) may be temporary and margins could normalize, relevant for Q3/4 modeling .

Estimates Context

  • Q3 2025 revenue: $33.99M vs consensus $31.10M*; EPS: $0.05 (diluted) vs consensus $0.016* — clear beat on both top- and bottom-line *.
  • Consensus coverage: 5 estimates for both revenue and EPS*; trajectory supports upward revisions to FY revenue and margin assumptions given guidance lift and Tru Niagen® momentum *.
    Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Strong beat-and-raise cadence: Q3 beat on revenue/EPS with guidance raised to 25–30% FY growth, supported by Tru Niagen® strength and B2B expansion *.
  • Margin quality: GM +100 bps YoY on mix and cost optimization; watch for normalization vs Q2’s temporary lower-cost inventory tailwind when modeling Q4 .
  • Channel breadth and durability: E-commerce and Watson’s/B2B mix shifting favorably; clinic network for Niagen Plus™ now >1,000, expanding medically administered channel .
  • Cash-funded growth: $64.29M cash, no debt; YTD operating cash flow $12.83M provides flexibility for R&D and selective marketing investments .
  • Expense outlook: S&M down as % of sales; R&D down as % of sales; G&A revised up to $8–9M—factor higher SBC and growth investments into FY opex .
  • Narrative momentum: Launch of AboutNAD® and evidence-based market positioning (NAD advertising challenge win) enhance brand moat against competitors’ claims .
  • Near-term trading lens: Positive beat, increased guidance, and clinic expansion are supportive; monitor Q4 gross margin normalization and pharma-grade ingredient run-rate to calibrate upside risk-reward .