Niagen Bioscience to Streamline and Focus its Operations with the Sale of ChromaDex Reference Standards Business to LGC in All-Cash Transaction-# Niagen Bioscience to Streamline and Focus its Operations with the Sale of ChromaDex Reference Standards Business to LGC in All-Cash TransactionShare---Divestiture streamlines operations and advances the Company's strategy to fully exit non-core activitiesLOS ANGELES--([BUSINESS WIRE])-- [Niagen Bioscience, Inc.](NASDAQ: NAGE), the global authority on NAD+ (nicotin ...

Summary of Niagen Bioscience FY Conference Call Company Overview - Niagen Bioscience, formerly known as ChromaDex, focuses on nicotinamide riboside (NR), a precursor to the coenzyme NAD (nicotinamide adenine dinucleotide) [2][3] - The company has over 100 patents related to NAD precursors and has conducted 41 clinical studies and over 100 preclinical studies on Niagen [4] Core Product and Market Position - Niagen is positioned as the leading product in the NAD supplement space, with claims of improving cellular resilience and healthspan, particularly in aging populations [3][10] - The company has diversified its offerings, selling Niagen as a dietary supplement, a B2B ingredient, and as an injectable product [5][13] Financial Performance - Niagen Bioscience reported approximately $125 million in revenue and $20 million in net income over the last 12 months, with a strong balance sheet showing nearly $65 million in cash and no debt [20] - The company operates conservatively, focusing on maintaining a strong cash position and exploring growth opportunities [28] Growth Opportunities - The NAD IV market is rapidly growing, potentially surpassing the supplement market, with initial retail sales estimated between $50-$100 million in the first year [24][23] - Plans to launch a telehealth business for at-home injections are expected to cater to the growing interest in self-administered health products [15] Research and Development - Niagen Bioscience emphasizes R&D, investing significantly in understanding its products and their effects, with a commitment to quality science [18] - The company is exploring applications in orphan diseases, particularly those that cause rapid aging in children, with promising results from clinical studies [16] Skincare Market Potential - The company is pursuing opportunities in the skincare market, leveraging niacinamide, which elevates NAD but is less effective than NR [17] - Discussions with major global skincare companies are ongoing, with expectations for announcements in 2026 [18] Strategic Partnerships - Niagen has formed partnerships with networks of healthcare practitioners to educate consumers and promote its products [26] - The company aims to differentiate itself through scientific credibility and informed marketing strategies [27] Market Challenges - The company faces challenges from competitors and infringers in the NAD space, which can impact sales and market perception [22] - The stock has shown volatility, attributed to external market factors rather than company performance [20] Conclusion - Niagen Bioscience is well-positioned in the growing NAD market, with a strong financial foundation and diverse product offerings. The company is focused on expanding its market presence through innovative products, strategic partnerships, and a commitment to research and development [20][28]

Financial Data and Key Metrics Changes - The company reported a record revenue of $34 million for Q3 2025, representing a 33% increase year over year, and a net income of $4.6 million compared to $1.9 million in the same period last year [5][14][17] - The cash position at the end of the quarter was $64.3 million with no debt [5][17] - Gross margin improved to 64.5%, up 100 basis points from 63.5% a year ago [16] Business Line Data and Key Metrics Changes - E-commerce business generated net sales of $19 million, a 29% increase year over year [5][14] - The distribution business saw a significant growth of 109% year over year, achieving $7 million in revenue [5][14] - Niagen ingredient business remained steady with revenue of $6.9 million, a 4% increase year over year [14] Market Data and Key Metrics Changes - The NAD market is expanding rapidly, with significant opportunities in skincare, cosmetics, food, beverage, and drug applications [8][10] - The company has onboarded over 1,000 wellness and healthcare clinics across the U.S. to offer the Niagen Plus product line [7][8] Company Strategy and Development Direction - The company aims to educate healthcare practitioners and consumers about Niagen as the most effective NAD booster available [6][8] - Plans to expand distribution of at-home injection kits via a telehealth platform are underway [7][34] - The company is considering establishing a standalone entity to pursue pharmaceutical applications of nicotinamide riboside, particularly for Parkinson's disease [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated full-year revenue growth guidance, revised from 22%-27% to 25%-30% year-over-year [18] - The company anticipates that gross margins will normalize on a quarterly basis moving forward, despite improvements year-over-year [16][19] - Management noted that the FDA's recent decision regarding NMN has not significantly impacted consumer purchasing behavior [36][37] Other Important Information - The company has over 40 peer-reviewed clinical studies supporting the efficacy of Niagen [9][12] - The National Advertising Division recently supported the company's position against false claims made by competitors regarding NAD products [10] Q&A Session Summary Question: What is the uptake looking like with the new partnership for IV? - Management indicated it is too early to provide feedback as the partnership just began reselling the material [24] Question: How does the "About NAD" site fit into the marketing funnel? - The site serves as an objective resource for information on NAD and is not part of the purchasing funnel [26] Question: Are at-home injection kits available in all clinics? - Currently, the kits are available in clinics, and the rollout for online purchasing is expected to take several months [33] Question: Has the FDA's announcement on NMN changed consumer purchasing behavior? - Management noted no significant changes in purchasing behavior since the announcement [36] Question: Will the company establish a standalone entity for pharmaceutical applications? - Management confirmed that establishing a standalone entity for pharmaceutical pursuits is likely, depending on study results and discussions with pharma companies [42]

Financial Performance - Total company net sales reached $34 million in Q3 2025, a 33% increase year-over-year[10] - Tru Niagen® net sales were $26 million in Q3 2025, up 44% year-over-year[10] - Gross margin improved to 64.5% in Q3 2025, a 100 basis points increase year-over-year[10] - Net income was $4.6 million, or $0.06 earnings per share, an increase of $2.7 million and $0.04 year-over-year[10] - Adjusted EBITDA reached $6.4 million, up $3.5 million year-over-year[10] - Cash provided from operations year-to-date was $12.8 million, with $64.3 million in cash and no debt[10] Sales Mix and Growth - Tru Niagen® net sales accounted for 77% of total net sales in Q3 2025, compared to 71% in Q3 2024[28] - Niagen®-related net sales remained at 97% of total net sales in both Q3 2025 and Q3 2024[28] - Year-to-date net sales reached $99.6 million, a 36% increase year-over-year[34] Outlook - The company reaffirmed its increased full-year 2025 net sales growth outlook to between 25% and 30%, driven by strong momentum in Tru Niagen® and Niagen® ingredients[10]

Financial Performance - Net sales increased 33% to $34.0 million, driven by a 44% increase in Tru Niagen® sales to $26.0 million[5] - Net income rose to $4.6 million, or $0.06 per share, compared to $1.9 million, or $0.02 per share, in the prior year[8] - Adjusted EBITDA increased by 120% to $6.4 million, up from $2.9 million in the same quarter last year[8] - Net sales for Q3 2025 reached $33.986 million, a 32.9% increase from $25.580 million in Q3 2024[22] - Gross profit for Q3 2025 was $21.928 million, up 35.5% from $16.240 million in Q3 2024[22] - Operating income for Q3 2025 increased to $4.236 million, compared to $1.602 million in Q3 2024, representing a 164.5% growth[22] - Net income for Q3 2025 was $4.578 million, significantly higher than $1.878 million in Q3 2024, marking a 143.5% increase[22] - Adjusted EBITDA for Q3 2025 was $6.361 million, up from $2.888 million in Q3 2024, representing a 120.5% increase[28] Cash Flow and Assets - Cash provided by operations for the nine months ended September 30, 2025, was $12.8 million, compared to $3.5 million in the prior year[9] - Cash and cash equivalents at the end of Q3 2025 totaled $64.290 million, up from $32.398 million at the end of Q3 2024, reflecting a 98.5% increase[26] - Total current assets increased to $93.616 million as of September 30, 2025, compared to $64.102 million at the end of 2024, a growth of 46.1%[24] - The company reported a net cash provided by operating activities of $12.825 million for the nine months ended September 30, 2025, compared to $3.526 million for the same period in 2024, a growth of 264.5%[26] Expenses and Margins - Gross margin improved by 100 basis points to 64.5%, attributed to product mix changes and lower-cost inventory[7] - Sales and marketing expenses as a percentage of net sales improved by 170 basis points to 25.8%[12] - Operating expenses for Q3 2025 totaled $17.692 million, a 20.0% increase from $14.638 million in Q3 2024[22] - Research and development expenses are expected to decrease as a percentage of net sales while continuing to increase in absolute dollars[11] Future Outlook - Full year 2025 net sales growth outlook reaffirmed at 25% to 30%, up from a previous range of 22% to 27%[10] Product and Market Development - The Company launched AboutNAD®, a digital platform for NAD+ research, enhancing brand visibility and scientific leadership[5] - The nationwide distribution network for Niagen Plus™ IV expanded to over 1,000 clinics, including more than 50 iCRYO locations[5]

Financial Performance - For the three months ended September 30, 2025, net sales increased by 33% to $33.986 million compared to $25.580 million in the same period of 2024[119] - For the nine months ended September 30, 2025, net sales rose by 36% to $95.584 million from $70.472 million in the prior year[119] - The Consumer Products segment saw a 44% increase in net sales for the three months ended September 30, 2025, totaling $26.017 million compared to $18.123 million in 2024[120] - The Ingredients segment reported an 8% increase in net sales for the three months ended September 30, 2025, reaching $7.197 million, while the nine-month figure surged by 63% to $22.985 million[120] - Net income for the three months ended September 30, 2025, was $4.578 million, a significant increase from $1.878 million in the same period of 2024[119] - Basic income per common share for the three months ended September 30, 2025, was $0.06, compared to $0.02 in the prior year[119] Cash and Liquidity - As of September 30, 2025, cash and cash equivalents totaled approximately $64.3 million, with $64.1 million being unrestricted[117] - As of September 30, 2025, the Company had cash and cash equivalents of $64.3 million, including $152,000 of restricted cash, and no outstanding borrowings under its line of credit[138] - Net cash provided by operating activities was approximately $12.8 million for the nine months ended September 30, 2025, compared to approximately $3.5 million for the same period in 2024, an increase of approximately $9.3 million[140] - Cash used in investing activities was $191,000 for the nine months ended September 30, 2025, compared to $74,000 for the same period in 2024[142] - Cash provided by financing activities was $7.0 million for the nine months ended September 30, 2025, compared to $1.6 million for the same period in 2024, an increase of $5.4 million[143] - The Company anticipates that its current cash and cash equivalents will be sufficient to meet financial obligations for at least the next twelve months, but may seek additional funds for operating objectives[139] Expenses and Profitability - Total cost of sales for the three months ended September 30, 2025, was $12,058,000, representing 35.5% of net sales, an improvement of 100 basis points compared to 36.5% in 2024[123] - Gross profit for the Consumer Products segment rose to $17,457,000 for the three months ended September 30, 2025, a 50% increase from $11,611,000 in 2024[123] - Total gross profit for the nine months ended September 30, 2025, was $61,485,000, a 42% increase from $43,389,000 in 2024[123] - Total sales and marketing expenses increased by $1.7 million and $4.3 million during the three and nine months ended September 30, 2025, respectively, but improved as a percentage of net sales by 170 basis points and 310 basis points[125] - Research and development expenses for the Consumer Products segment increased by 55% to $1,400,000 for the three months ended September 30, 2025, compared to $901,000 in 2024[126] - General and administrative expenses increased by $0.8 million (13%) to $7.129 million for the three months ended September 30, 2025, and by $2.3 million (13%) to $19.580 million for the nine months ended September 30, 2025, compared to the same periods in 2024[127] - Selling expenses grew by $0.5 million during the three months ended September 30, 2025, and by $1.3 million during the nine months ended September 30, 2025, with selling expenses as a percentage of net sales improving to 10.7% from 12.3% in the corresponding periods in 2024[128] Tax and Deferred Income - The Company recorded income tax expense of $222,000 (4.6% of earnings before income taxes) and $518,000 (3.8% of earnings before income taxes) for the three and nine months ended September 30, 2025, respectively[130] - The Company maintained a full valuation allowance against the entire deferred income tax balance as of September 30, 2025, indicating uncertainty regarding the realization of deferred tax assets[129] Research and Development - The company has built over 300 research collaborations through its ChromaDex External Research Program (CERP®) with leading institutions, enhancing its position in NAD+ research[109] Inventory and Commitments - The company has a minimum purchase commitment of approximately $33.6 million in inventory through September 30, 2026, under the Grace Supply Agreement[112] - The amended lease in Longmont, Colorado, extends through October 31, 2030, with an estimated increase in lease liability and right-of-use asset of approximately $1.1 million[114] Segment Performance - Consumer Products segment sales increased by $7.9 million and $16.1 million for the three and nine months ended September 30, 2025, respectively, driven by e-commerce performance[122] - Total ingredient sales increased by $0.5 million and $8.9 million for the three and nine months ended September 30, 2025, respectively[122] - Sales through distributor partners increased by $2.0 million and $2.6 million for the three and nine months ended September 30, 2025, respectively[122] - Cost of sales as a percentage of net sales in the Ingredients segment increased by approximately 830 basis points for the three months ended September 30, 2025, primarily due to a shift in business mix[124] - Cost of sales as a percentage of net sales in the analytical reference standards and services segment improved by approximately 1,140 basis points for the three months ended September 30, 2025[124] Losses - The Company has incurred aggregate losses of approximately $168.7 million from inception through September 30, 2025, primarily due to operational development and intellectual property protection expenses[136]

Summary of Niagen Bioscience Conference Call Company Overview - **Company**: Niagen Bioscience - **Industry**: Bioscience focused on healthy aging and NAD+ (nicotinamide adenine dinucleotide) research - **CEO**: Rob Fried - **Key Product**: TRU NIAGEN, a dietary supplement aimed at elevating NAD levels in the body [1][2][4] Core Points and Arguments - **NAD's Role**: NAD is crucial for energy metabolism and cell repair, with levels declining as one ages. Elevating NAD levels can have therapeutic benefits [3][5][6] - **Clinical Studies**: The company has 40 peer-reviewed clinical studies demonstrating the safety and efficacy of TRU NIAGEN, with another 40 ongoing. These studies cover various health conditions, including Parkinson's disease and aging-related diseases [4][7][12][35] - **Market Position**: TRU NIAGEN is the most successful dietary supplement launch in the last 50 years, with a 37% year-over-year growth rate and over $60 million in cash on the balance sheet [9][17][18] - **Product Expansion**: The company is expanding into IV and injectable markets (NIAGEN plus) and exploring topical applications for skincare [10][13][27] Financial Performance - **Revenue Growth**: The company reported a 37% year-over-year growth rate and has maintained a compounded growth rate of over 70% over the last decade [18] - **Debt-Free**: Niagen Bioscience has no debt, indicating a strong financial position [17] Product Offerings - **Current Products**: The primary product is TRU NIAGEN, with recent expansions into immune support and beauty formulations [24][25] - **Target Demographics**: The company is targeting both older adults concerned with aging and younger consumers interested in fitness and fertility [26][25] Clinical Research and Future Prospects - **Parkinson's Study**: A significant Phase 3 clinical study on Parkinson's disease has been completed, with results expected in October. Positive results could lead to further commercial opportunities [11][36][37] - **Potential Drug Development**: The company is exploring the development of a drug based on its NAD-elevating molecules, separate from its dietary supplement offerings [39] Competitive Landscape - **Market Differentiation**: Niagen emphasizes that many NAD products on the market are ineffective. Only products containing Niagen are trusted to elevate NAD levels effectively [42][43][45] - **Regulatory Engagement**: The company is working with regulatory bodies to address false claims in the dietary supplement industry [46] Marketing Strategy - **Authentic Marketing**: The company employs a conservative marketing strategy focused on authenticity rather than celebrity endorsements, aiming to build consumer trust [47][48][50] - **Consumer Awareness**: As awareness of NAD's benefits grows, the company expects continued growth in its consumer base [54] Tariff Impact - **Manufacturing Location**: The company manufactures its products in the U.S., thus avoiding tariff impacts. Business in Hong Kong is also unaffected [53] Conclusion - Niagen Bioscience is positioned as a leader in the NAD+ market with a strong financial foundation, a robust pipeline of clinical studies, and a commitment to authentic marketing. The company is poised for significant growth as consumer awareness of NAD's health benefits increases [54][55]

Financial Data and Key Metrics Changes - The company reported a record revenue of $31.1 million for Q2 2025, representing a 37% increase year over year, and a net income of $3.6 million compared to virtually breakeven a year ago [7][20]. - The cash position at the end of the quarter was $60.5 million with no debt [24]. - Gross margin improved to 65%, up from 60.2% a year ago, driven by lower cost inventory and higher e-commerce sales [22]. Business Line Data and Key Metrics Changes - E-commerce business generated $18.1 million in net sales, a 39% increase year over year [7][21]. - The food grade and pharmaceutical grade Niagen ingredient business grew 135% year over year, with revenue of $7.4 million [8][21]. - TRU NIAGEN revenue increased by 22% to $22.7 million, primarily driven by e-commerce revenues [21]. Market Data and Key Metrics Changes - The company is expanding its presence in wellness clinics, onboarding over 800 clinics nationwide to offer the Niagen Plus product line [8]. - The partnership with Watsons in Hong Kong is contributing to steady revenues, with plans for joint marketing efforts to grow brand presence [22]. Company Strategy and Development Direction - The company is focusing on expanding its Niagen Plus product line and exploring telehealth functionality on its website [9][8]. - A worldwide exclusive license agreement was signed with Haukeland University Hospital for the development of nicotinamide riboside as a potential therapy for Parkinson's disease [17]. - The company aims to maintain its position as the gold standard in NAD science and is committed to scientific innovation in the dietary supplement industry [14][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and strategic goals, highlighting the strong demand for NAD products [19][20]. - The company raised its revenue growth expectation for the full year from 20%-25% to a range of 22%-27% year over year [27]. - Management noted ongoing scrutiny from California regarding outsourcing facility practices but remains optimistic about the partnership with Wells Pharmacy Network [9][10]. Other Important Information - The company has been featured in major media outlets and events, increasing awareness of its products [10][12]. - There is ongoing research into the effects of NAD supplementation on long COVID and fertility, with studies expected to be published soon [15][16][51]. Q&A Session Summary Question: Regarding the initiative for Parkinson's disease - Management indicated that if the NOPARC trial results are positive, they may pivot to nicotinamide riboside triacetate for FDA approval in the U.S. [30][32]. Question: Volume and pricing for NIAGEN IV in clinics - Management noted that while clinics are currently charging high prices for IV experiences, they believe prices need to come down to increase accessibility and volume [36][39]. Question: Steps for treating long COVID - The key milestone to watch is the publication of the Harvard study on NAD supplementation for long COVID, which could lead to a marketing campaign if results are positive [49][54].

Financial Performance - Q2 2025 - Total company net sales reached $31.1 million, a 37% year-over-year increase[10] - Tru Niagen® net sales were $22.7 million, representing a 22% year-over-year increase[10] - Niagen® ingredient sales surged to $7.4 million, marking a 135% year-over-year increase[10] - Gross margin improved to 65.0%, up 480 basis points year-over-year[10] - Net income was $3.6 million, or $0.05 earnings per share, a $3.6 million year-over-year increase[10] - Adjusted EBITDA reached $5.0 million, a $3.5 million year-over-year increase[10] Financial Position - Cash provided from operations year-to-date was $9.1 million, with a cash balance of $60.5 million and no debt[10] Sales Mix - Q2 2025 - E-commerce accounted for 57% of net sales, while Watson's & Other B2B represented 25%[26] - Food-grade Niagen® contributed 14% to net sales, and Analytical Reference Standards & Services accounted for 3%[26] - Other Ingredients made up 1% of net sales[26] 2025 Outlook - The company anticipates net sales growth between 22% and 27% year-over-year[10] - Sales and marketing expenses are expected to increase in absolute dollars but decrease as a percentage of net sales year-over-year[10]

Second Quarter 2025 Earnings Summary [Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) Niagen Bioscience achieved significant financial growth in Q2 2025, with substantial increases in net sales and net income, alongside strong gross margin and adjusted EBITDA performance Q2 2025 Financial Highlights (Year-over-Year Comparison) | Metric | Q2 2025 | Change | Prior Year Period | Source | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $31.1 million | +37% | $22.739 million | | Tru Niagen® Sales | $22.7 million | +22% | - | | Niagen® Ingredient Sales | $7.4 million | +135% | - | | Gross Margin | 65.0% | +480 bps | - | | Sales and Marketing Expense as % of Net Sales | 26.4% | -420 bps | - | | Net Income | $3.6 million | Shifted to Profit | Breakeven | | Earnings Per Share (EPS) | $0.05 | - | Breakeven | | Adjusted EBITDA | $5.0 million | +221% | - | | Operating Cash Flow (Six Months) | $9.1 million | - | Breakeven | | Cash at Period End | $60.5 million | - | - | [Operational Highlights](index=1&type=section&id=1.2%20Operational%20Highlights) The company made multiple advancements in product research, market expansion, and strategic partnerships, including clinical study releases, licensing agreements, trial completion, and expanded product availability - Released the first peer-reviewed clinical study on Niagen® in Werner syndrome patients, demonstrating **significant increases in NAD+ levels** and **improvements in cardiovascular and skin health markers**[4](index=4&type=chunk) - Signed a global exclusive license agreement with Haukeland University Hospital for proprietary development and commercialization rights of Niagen® as a potential therapeutic for Parkinson's disease, including access to Phase III NOPARK trial clinical data[4](index=4&type=chunk) - Completed patient dosing for the Phase III NOPARK trial, the largest and most comprehensive clinical study of NAD+ enhancement in early Parkinson's disease patients to date, with data analysis underway and results expected in 2026[4](index=4&type=chunk) - Tru Niagen® launched as the exclusive in-room amenity and Niagen IV at Equinox Hotel Spa in New York, marking the company's entry into the luxury hospitality market[4](index=4&type=chunk) - As of August 2025, Niagen Plus products (including Niagen IV and injectables) are available in **over 800 leading health clinics** across the U.S., a significant increase from 475 clinics in December 2024, reflecting accelerated clinic adoption and demand for clinically managed NAD+ solutions[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=1.3%20CEO%20Commentary) Niagen Bioscience CEO Rob Fried emphasized the company's pioneering role in the NAD+ market and stated that the company continues to invest in the future while achieving profitable growth - CEO Rob Fried stated: "We delivered an outstanding second quarter, with **net sales of $31.1 million**, representing **37% year-over-year growth**, and **net income of $3.6 million**. As pioneers in the burgeoning NAD+ market, we continue to invest in the future while remaining focused on profitable growth"[4](index=4&type=chunk) Detailed Financial Performance (Three Months Ended June 30, 2025) [Net Sales](index=2&type=section&id=2.1%20Net%20Sales) Net sales increased by 37% year-over-year to $31.1 million in Q2 2025, driven by growth in both Tru Niagen® and Niagen® ingredient sales, strong e-commerce performance, and the launch of pharmaceutical-grade Niagen® sales Net Sales (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $31.1 million | $22.7 million | +37% (+$8.4 million) | - Growth was primarily driven by a combination of increased Tru Niagen® sales and Niagen® ingredient sales (including both food-grade and pharmaceutical-grade), along with strong performance in e-commerce channels[5](index=5&type=chunk) [Gross Margin](index=2&type=section&id=2.2%20Gross%20Margin) Gross margin improved by 480 basis points to 65.0%, primarily due to shifts in product and business mix, lower-cost inventory purchases, and improved labor and overhead utilization from higher sales volumes, with the company expecting normalization in future periods Gross Margin (Q2 2025) | Metric | Q2 2025 | Change | | :--- | :--- | :--- | | Gross Margin | 65.0% | +480 bps | - Gross margin improvement was primarily due to changes in product mix, business mix, lower-cost inventory purchases, and improved labor and overhead utilization from higher sales volumes[6](index=6&type=chunk) - The company anticipates gross margin normalization in future periods, as some drivers (such as lower-cost inventory purchases) may be temporary[6](index=6&type=chunk) [Operating Expenses](index=2&type=section&id=2.3%20Operating%20Expenses) Total operating expenses increased by 22% to $17.0 million, reflecting the company's investment in business growth and brand awareness Operating Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Operating Expenses | $17.0 million | $13.9 million | +22% (+$3.1 million) | [Sales and Marketing Expense](index=2&type=section&id=2.3.1%20Sales%20and%20Marketing%20Expense) Sales and marketing expenses increased by $1.2 million but decreased by 420 basis points as a percentage of net sales to 26.4%, reflecting improved sales efficiency and disciplined investment Sales and Marketing Expense (Q2 2025) | Metric | Q2 2025 | Change | | :--- | :--- | :--- | | Sales and Marketing Expense | +$1.2 million | - | | As % of Net Sales | 26.4% | -420 bps | - The increase in expense primarily reflects investments to support brand growth in the consumer segment[11](index=11&type=chunk) [General and Administrative Expense](index=2&type=section&id=2.3.2%20General%20and%20Administrative%20Expense) General and administrative expenses increased by $1.6 million, or 28%, primarily due to higher employee-related costs, stock-based compensation, and professional consulting fees General and Administrative Expense (Q2 2025) | Metric | Q2 2025 | Change | | :--- | :--- | :--- | | General and Administrative Expense | +$1.6 million | +28% | - The increase was primarily driven by higher employee-related costs, stock-based compensation, and professional consulting fees[11](index=11&type=chunk) [Research and Development Expenses](index=2&type=section&id=2.3.3%20Research%20and%20Development%20Expenses) Research and development expenses increased by $0.3 million, mainly due to higher professional consulting fees and employee-related costs Research and Development Expenses (Q2 2025) | Metric | Q2 2025 | Change | | :--- | :--- | :--- | | Research and Development Expenses | +$0.3 million | - | - The increase in expenses was primarily due to higher professional consulting fees and employee-related costs[11](index=11&type=chunk) [Net Income and Adjusted EBITDA](index=2&type=section&id=2.4%20Net%20Income%20and%20Adjusted%20EBITDA) The company achieved net income of $3.6 million and EPS of $0.05 in Q2 2025, a shift from breakeven in the prior year, with Adjusted EBITDA significantly increasing by 221% to $5.0 million Net Income and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $3.6 million | Breakeven | Shifted to Profit | | Earnings Per Share (EPS) | $0.05 | Breakeven | Shifted to Profit | | Adjusted EBITDA | $5.0 million | $1.6 million | +221% | [Cash Flows from Operating Activities](index=2&type=section&id=2.5%20Cash%20Flows%20from%20Operating%20Activities) For the six months ended June 30, 2025, operating activities generated $9.1 million in net cash inflow, compared to approximately breakeven in the prior year, primarily driven by improved net income, increased accounts receivable collections, and a relative increase in accounts payable Cash Flows from Operating Activities (Six Months Ended June 30, 2025) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | $9.1 million | Breakeven | +$9.1 million | - The increase in cash inflow was primarily driven by improved net income, increased accounts receivable collections, and a relative increase in accounts payable, partially offset by a decrease in credit loss expense and an increase in inventory purchases[9](index=9&type=chunk) [2025 Full Year Outlook](index=2&type=section&id=2025%20Full%20Year%20Outlook) Niagen Bioscience raised its full-year 2025 revenue growth guidance to 22%-27% and expects a slight improvement in gross margin, while planning for increased absolute sales and marketing expenses with a declining percentage of net sales, maintaining R&D investment, and anticipating higher G&A expenses due to stock-based compensation and business growth 2025 Full Year Outlook Update | Metric | New Outlook | Old Outlook | 2024 Baseline | | :--- | :--- | :--- | :--- | | Net Sales Growth | 22%-27% YoY | 20%-25% YoY | - | | Gross Margin | Slight improvement YoY | - | 61.8% | | Sales and Marketing Expense (Absolute Amount) | Increase | Increase | $29.5 million | | Sales and Marketing Expense (as % of Net Sales) | Decrease | Stable | 29.6% | | R&D Expenses | Consistent with 2024 | - | $6.0 million | | General and Administrative Expense | Increase $7.0-$8.0 million | - | - | - Revenue growth reflects the continued expansion of the company's e-commerce business and growth in both new and existing partnerships[10](index=10&type=chunk) - Gross margin improvement is attributed to ongoing supply chain optimization, cost-saving initiatives, and overall business scale[10](index=10&type=chunk) - The increase in general and administrative expenses is primarily due to stock-based compensation, investments in business growth, and the absence of a $3.5 million royalty reversal from 2024[10](index=10&type=chunk) Company Overview [About Niagen Bioscience, Inc.](index=4&type=section&id=4.1%20About%20Niagen%20Bioscience,%20Inc.) Niagen Bioscience is a global bioscience company focused on healthy aging, leading the field of nicotinamide adenine dinucleotide (NAD+) research through its world-renowned team of scientists and holding a patent portfolio for the NAD+ precursor nicotinamide riboside chloride (NRC, or Niagen®) - Niagen Bioscience is dedicated to healthy aging and is an innovator of the NAD+ precursor nicotinamide riboside chloride (NRC), commercially known as Niagen®[17](index=17&type=chunk) - The company's team leads NAD+ research, a key regulator of cellular metabolism whose levels decline with age and can be boosted by supplementing NAD+ precursors[17](index=17&type=chunk) - Nicotinamide riboside chloride and other NAD+ precursors are protected by Niagen Bioscience's patent portfolio[17](index=17&type=chunk) [Products and Business Model](index=4&type=section&id=4.2%20Products%20and%20Business%20Model) The company offers Niagen® directly to consumers through its Tru Niagen® consumer product line and partnerships with global retailers and distributors, while also developing and commercializing proprietary ingredient technologies, including food-grade and pharmaceutical-grade Niagen®, supplied as raw materials to consumer product manufacturers and FDA-registered 503B outsourcing facilities, and providing natural product fine chemicals and related R&D services - The company offers Niagen® through its Tru Niagen® consumer product line, available at www.TruNiagen.com and through global retailers and distributors[18](index=18&type=chunk) - The company develops and commercializes proprietary ingredient technologies, including food-grade Niagen® and pharmaceutical-grade Niagen®, supplied as raw materials to consumer product manufacturers and U.S. FDA-registered 503B outsourcing facilities[18](index=18&type=chunk) - The company also provides natural product fine chemicals (phytochemicals) and related research and development services[18](index=18&type=chunk) Investor Information [Investor Conference Call](index=3&type=section&id=5.1%20Investor%20Conference%20Call) Niagen Bioscience will host an investor conference call on August 6, 2025, to discuss second-quarter financial results and provide a business update, with details including webcast links, dial-in information, and replay arrangements - The conference call will be held on **August 6, 2025, at 4:30 PM ET (1:30 PM PT)**[12](index=12&type=chunk) - Investors can access the webcast, earnings press release, and financial appendix through the investor relations section of the company's website[13](index=13&type=chunk) - A replay of the conference call will be available from **7:30 PM ET on August 6, 2025, until 11:59 PM ET on August 13, 2025**, via the website and dial-in access[14](index=14&type=chunk) [Contacts](index=4&type=section&id=5.2%20Contacts) Investor Relations and Media Relations contact information is provided for company information and news - Investor Relations contacts: Reed Anderson and Stephanie Carrington of ICR, LLC, at NiagenIR@ICRInc.com[19](index=19&type=chunk) - Media Relations contact: Kendall Knysch, Senior Director of Communications, at Kendall.Knysch@NiagenBio.com[19](index=19&type=chunk) Forward-Looking Statements and Risks [Important Note on Forward Looking Statements](index=3&type=section&id=6.1%20Important%20Note%20on%20Forward%20Looking%20Statements) This press release contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are not historical facts and are typically identified by words such as "anticipate," "expect," "intend," and involve the company's intentions, beliefs, forecasts, and expectations for future performance - Forward-looking statements are not historical facts and are typically identified by words such as "anticipate," "expect," "intend," "estimate," "plan," "may," "will," and similar expressions[15](index=15&type=chunk) - Forward-looking statements include the CEO's quotes, the 2025 financial outlook (including revenue growth, gross margin, expenses, and investment plans), and statements related to Niagen Plus[15](index=15&type=chunk) [Risks and Uncertainties](index=3&type=section&id=6.2%20Risks%20and%20Uncertainties) Forward-looking statements are subject to various risks, including inflation, a history of operating losses, product sales growth and profitability, changes in consumer perception, reliance on third-party suppliers, risks of doing business in China, ability to obtain pharmaceutical-grade Niagen®, intellectual property maintenance, unsuccessful clinical trial results, and economic and market instability - Risks include inflation and adverse economic conditions, the company's history of operating losses, the growth and profitability of product sales, and the ability to maintain and develop sales, marketing, and distribution capabilities[16](index=16&type=chunk) - Other risks include changes in consumer perception of the company's products, reliance on single or limited third-party suppliers, risks of doing business in China, the ability to obtain sufficient pharmaceutical-grade Niagen® in a timely manner, and the ability to enter into appropriate contracts with FDA-registered 503B outsourcing facilities[16](index=16&type=chunk) - Also included are the ability to maintain and enforce existing intellectual property and obtain new patents, whether the potential benefits of NRC will be further supported, that R&D and clinical trial results may be unsuccessful or insufficient to meet regulatory standards, decisions by the FDA and other governmental agencies, and economic and market instability[16](index=16&type=chunk) Unaudited Condensed Consolidated Financial Statements [Statements of Operations](index=5&type=section&id=7.1%20Statements%20of%20Operations) Unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, detailing net sales, cost of sales, gross profit, operating expenses, operating income (loss), non-operating income, income tax provision, and net income (loss) and earnings per share Unaudited Condensed Consolidated Statements of Operations | | Three Months Ended June 30 | | | Six Months Ended June 30 | | | :--- | :--- | :--- | :--- | :--- | :--- | | (In thousands of dollars, except per share data) | 2025 | 2024 | 2025 | 2024 | | Net sales | $31,117 | $22,739 | $61,598 | $44,892 | | Cost of sales | 10,891 | 9,046 | 22,041 | 17,743 | | Gross profit | 20,226 | 13,693 | 39,557 | 27,149 | | Operating expenses: | | | | | | Sales and marketing | 8,207 | 6,969 | 16,324 | 13,709 | | Research and development | 1,567 | 1,316 | 2,825 | 3,411 | | General and administrative | 7,267 | 5,664 | 12,451 | 11,016 | | Total operating expenses | 17,041 | 13,949 | 31,600 | 28,136 | | Operating income (loss) | 3,185 | (256) | 7,957 | (987) | | Non-operating income: | | | | | | Interest income, net | 552 | 241 | 1,011 | 480 | | Income (loss) before income tax provision | 3,737 | (15) | 8,968 | (507) | | Income tax provision | 128 | — | 296 | — | | Net income (loss) | $3,609 | $(15) | $8,672 | $(507) | | Net income (loss) attributable to common stockholders per share: | | | | | | Basic | $0.05 | $— | $0.11 | $(0.01) | | Diluted | $0.04 | $— | $0.10 | $(0.01) | | Weighted average common shares outstanding: | | | | | | Basic | 79,249 | 75,559 | 78,534 | 75,394 | | Diluted | 86,241 | 75,559 | 84,877 | 75,394 | [Balance Sheets](index=6&type=section&id=7.2%20Balance%20Sheets) Unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, presenting the detailed composition of assets, liabilities, and stockholders' equity Unaudited Condensed Consolidated Balance Sheets | (In thousands of dollars, unless otherwise stated) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Current assets: | | | | Cash and cash equivalents, including restricted cash | $60,474 | $44,660 | | Accounts receivable, net of allowance | 9,656 | 7,768 | | Inventories | 14,406 | 9,192 | | Prepaid expenses and other assets | 2,143 | 2,482 | | Total current assets | 86,679 | 64,102 | | Leasehold improvements and equipment, net | 1,632 | 1,719 | | Intangible assets, net | 284 | 359 | | Right-of-use assets | 2,525 | 1,730 | | Other long-term assets | 405 | 368 | | **Total assets** | **$91,525** | **$68,278** | | **Liabilities and Stockholders’ Equity** | | | | Current liabilities: | | | | Accounts payable | $13,680 | $8,526 | | Accrued expenses | 7,381 | 7,817 | | Current portion of operating lease liabilities | 957 | 982 | | Current portion of finance lease liabilities | 6 | 12 | | Customer deposits | 303 | 611 | | Total current liabilities | 22,327 | 17,948 | | Deferred revenue | 2,674 | 2,579 | | Operating lease liabilities, less current portion | 2,329 | 1,657 | | Total stockholders’ equity | 64,195 | 46,094 | | **Total liabilities and stockholders’ equity** | **$91,525** | **$68,278** | [Statements of Cash Flows](index=6&type=section&id=7.3%20Statements%20of%20Cash%20Flows) Unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, showing net cash from operating, investing, and financing activities, and the ending balance of cash and cash equivalents Unaudited Condensed Consolidated Statements of Cash Flows | (In thousands of dollars) | Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash provided by / (used in) operating activities | $9,133 | $31 | | Net cash provided by / (used in) investing activities | (167) | (53) | | Net cash provided by / (used in) financing activities | 6,848 | 582 | | Net increase in cash and cash equivalents | 15,814 | 560 | | Cash and cash equivalents at beginning of period | 44,660 | 27,325 | | Cash and cash equivalents at end of period | $60,474 | $27,885 | Non-GAAP Financial Measures Reconciliation [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=7&type=section&id=8.1%20Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) A reconciliation of net income (loss) to Adjusted EBITDA is provided, listing adjustments such as interest income, income tax provision, depreciation, amortization, non-cash stock-based compensation, severance and restructuring expenses, royalty reversals, and credit loss recoveries Reconciliation of Net Income (Loss) to Adjusted EBITDA | (In thousands of dollars) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Net Income (Loss) | $3,609 | $5,063 | $7,179 | $1,878 | $(15) | | Adjustments: | | | | | | | Interest income, net | (552) | (459) | (373) | (276) | (241) | | Income tax provision | 128 | 168 | 305 | — | — | | Depreciation | 158 | 158 | 151 | 164 | 170 | | Amortization of intangible assets | 38 | 37 | 38 | 38 | 37 | | Non-cash lease expense | 159 | 173 | 169 | 164 | 163 | | Stock-based compensation | 1,488 | 1,075 | 752 | 735 | 1,185 | | Severance and restructuring | 21 | 4 | (4) | 185 | 276 | | Reversal of previously accrued royalties and license maintenance fees (1) | — | — | (3,521) | — | — | | Recovery of credit loss related to legal settlement (2) | — | (1,325) | (1,325) | — | — | | **Adjusted EBITDA** | **$5,049** | **$4,894** | **$3,371** | **$2,888** | **$1,575** | - Note (1): The reversal of previously accrued royalties and license maintenance fees relates to a supplemental agreement with Dartmouth, which waived certain obligations under the exclusive license agreement[29](index=29&type=chunk) - Note (2): The recovery of credit loss relates to a 2024 legal settlement with Elysium Health, LLC, paid in two installments, reversing a write-off from 2019[29](index=29&type=chunk) [Non-GAAP Financial Information Disclosure](index=7&type=section&id=8.2%20Non-GAAP%20Financial%20Information%20Disclosure) The company provides Adjusted EBITDA as a non-GAAP financial measure to supplement GAAP financial data, aiming to offer additional information for management and investors to enhance understanding of the company's financial operating performance. The company believes this metric is material because excluded expenses are infrequent, variable in nature, or do not represent current cash outlays. However, this metric is not prepared in accordance with GAAP, may not be comparable to similar measures from other companies, and management primarily relies on GAAP results with Adjusted EBITDA as a supplementary tool - Adjusted EBITDA, a non-GAAP financial measure, is provided to supplement GAAP data, offering additional information to enhance understanding of the company's historical and current financial operating performance[30](index=30&type=chunk) - Adjusted EBITDA is defined as net income (loss) adjusted for interest, income tax provision, depreciation, amortization, non-cash stock-based compensation costs, severance and restructuring expenses, and other infrequent items such as royalty reversals and credit loss recoveries[31](index=31&type=chunk) - Non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to similar measures from other companies, and management primarily relies on GAAP results with Adjusted EBITDA as a supplementary tool[31](index=31&type=chunk)[32](index=32&type=chunk)