Niagen Bioscience, Inc. Reports First Quarter 2025 Financial Results and Increases Outlook

Total net sales of $30.5 million, up $8.3 million or 38% year-over-year, gross margin of 63.4%, net income of $5.1 million and Adjusted EBITDA of $4.9 million for the three months ended March 31, 2025 and increased full year 2025 outlook.

LOS ANGELES--(BUSINESS WIRE)--May 07, 2025-- 

Niagen Bioscience, Inc. (NASDAQ:NAGE) today announced financial results for the first quarter of 2025.

First Quarter 2025 Financial and Recent Operational Highlights

   -- Total net sales were $30.5 million, with $21.5 million from Tru Niagen$(R)$, 
      up 38%, and 24%, respectively, from the prior year quarter. 
 
   -- Total Niagen(R) ingredient sales, including food-grade and 
      pharmaceutical-grade, reached $8.0 million, up 95% YoY. 
 
   -- Delivered strong gross margin of 63.4%, up 270 basis points from the 
      prior year quarter. 
 
   -- Sales and marketing expense as a percentage of net sales was 26.6%, an 
      improvement of 380 basis points, compared to 30.4% from the prior year 
      quarter. 
 
   -- Delivered net income of $5.1 million or $0.07 earnings per share, an 
      improvement of $5.6 million and $0.08 per share from the prior year 
      quarter. 
 
   -- Adjusted EBITDA, a non-GAAP measure, was $4.9 million, a $4.2 million 
      improvement from the prior year quarter. 
 
   -- Total cash provided by operations of $7.9 million, ending the quarter 
      with $55.6 million in cash. 
 
   -- Increased full year 2025 outlook: Net sales growth expected between 
      20%--25% (previously approximately 18%), reflecting continued strength in 
      the expanding NAD+ market. Adjusted general and administrative expenses 
      now expected to increase $7.0--$8.0 million (previously $5.0--$6.0 
      million), primarily due to revised share-based compensation estimates. 
      Full year 2025 outlook continues to project profitability. 
 
   -- The Company announced its corporate name change to Niagen Bioscience, 
      Inc. and commenced trading under the new Nasdaq ticker "NAGE," effective 
      March 19, 2025. This rebrand reflects the Company's legacy and leadership 
      in healthy aging through its flagship ingredient, Niagen(R), reinforcing 
      its renewed mission: "There's a better way to age." 
 
   -- On March 20, 2025, the Company expanded its NAD+ precursor intellectual 
      property portfolio with a newly granted patent which covers the 
      composition of matter for nicotinamide riboside (NR) salt forms, 
      including NR Malate and NR Tartrate, and other NR derivatives. This is 
      part of a family of patents also covering methods of making NR and 
      related derivatives, some of the most efficient NAD+ precursors, which 
      Niagen Bioscience has obtained through an exclusive license from Queen's 
      University Belfast. 

"We are proud to start the year with another record quarter, delivering $30.5 million in net sales, a 38% year-over-year growth fueled by both Tru Niagen(R) and strong Niagen(R) ingredient demand, a 63.4% gross margin, and $5.1 million in net income," said Niagen Bioscience CEO Rob Fried. "With strong momentum heading into 2025, and with the launch of our new brand identity and expansion of our NAD+ precursor patent portfolio, we are reinforcing a powerful foundation for the future of healthy aging and are energized by the market's growing trust in Niagen."

Results of operations for the three months ended March 31, 2025 compared to the prior year quarter

Net Sales for Niagen Bioscience increased 38%, or $8.3 million, to $30.5 million. The growth in net sales was driven by combined growth in Tru Niagen sales and Niagen(R) ingredient sales, including a significant increase in food-grade Niagen(R) sales and the ramp-up of pharmaceutical-grade Niagen(R) sales, which were not sold in the prior year quarter.

Gross Margin improved 270 basis points to 63.4% primarily due to changes in product mix and business mix as well as improvements in labor and overhead utilization rates with higher sales.

Operating Expense increased 3%, or $0.4 million, to $14.6 million.

   -- Selling and marketing expense increased $1.4 million, and improved 380 
      basis points as a percentage of net sales to 26.6% of net sales, 
      reflecting greater efficiencies from the increased investments which were 
      primarily in advertising and marketing to support brand growth in our 
      consumer products segment. 
 
   -- General and administrative expense decreased 3%, or $0.2 million, driven 
      by a $1.3 million recovery of credit losses related to a legal settlement, 
      largely offset by increases in professional, consulting service and 
      employee related expenses. 
 
   -- Research and development expenses decreased $0.8 million, normalizing to 
      historical levels compared to the prior year quarter, when spending was 
      elevated to support the successful launch of the Niagen Plus product line, 
      including work on pharmaceutical-grade Niagen(R). 

Net Income was $5.1 million, or $0.07 per share, compared to a net loss of $0.5 million or $(0.01) per share for the first quarter of 2024.

Adjusted EBITDA, a non-GAAP measure, was $4.9 million, up from $0.7 million for the first quarter of 2024. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of non-GAAP Adjusted EBITDA to net loss, the most directly comparable GAAP measure.

Cash Flows from Operating Activities had a net cash inflow of $7.9 million for the three months ended March 31, 2025 compared to $0.3 million in the prior year. The approximately $7.6 million increase in cash provided by operating activities was primarily driven by improvements in net income (loss), relatively higher collections on trade receivables, and a relative increase in accounts payable. These increases were partially offset by a decrease in credit loss expense due to a recovery of previously written-off amounts and higher inventory purchases associated with scaling our inventory reserves.

2025 Full Year Outlook

Looking forward, for the full year, the Company expects between 20% to 25% year-over-year revenue growth. This outlook reflects anticipated continued expansion of the Company's e-commerce business, growth through established partnerships, and increased revenue from the pharmaceutical-grade Niagen(R) ingredient business. Gross margin is expected to improve slightly year-over-year, driven by ongoing supply chain optimization efforts, cost savings initiatives, and overall business scale. Selling and marketing expenses are projected to increase in absolute dollars but decrease as a percentage of net sales, as the Company continues to make strategic investments to enhance brand awareness and support its various business channels while improving marketing efficiencies. The Company also remains committed to maintaining a steady investment in research and development throughout 2025 to drive future innovation. General and administrative expenses are expected to increase by approximately $7.0 to $8.0 million, primarily due to share-based compensation and investments in business growth and the absence of a $3.5 million royalty expense reversal that occurred in 2024.

Investor Conference Call

A live webcast will be held Wednesday, May 7, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss Niagen Bioscience's first-quarter financial results and provide a general business update.

To listen to the webcast, or to view the earnings press release and its accompanying financial exhibits, please visit the Investors Relations section of Niagen Bioscience's website at https://investors.niagenbioscience.com. The toll-free dial-in information for this call is 1-888-596-4144 with Conference ID: 8584242.

The webcast will be recorded, and will be available for replay via the website from 7:30 p.m. Eastern time on May 7, 2025 through 11:59 p.m. Eastern time on May 14, 2025. The replay of the call can also be accessed by dialing 1-800-770-2030, using the Replay ID: 8584242.

Important Note on Forward Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects," "anticipates," "intends" "estimates," "plans," "potential," "possible," "probable," "believes" "seeks," "may," "will," "should," "could," "predicts," "projects," "continue," "would" or the negative of such terms or other similar expressions. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the quotation from Niagen Bioscience's Chief Executive Officer, statements related to the Company's 2025 financial outlook including but not limited to revenue growth, gross margin, expenses, investment plans, and the statements regarding Niagen Plus.

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