Niagen 2025 Q1 Earnings Surpasses Expectations with Net Income Soaring 1129.1%

Niagen Bioscience Inc. (NAGE) reported its fiscal 2025 Q1 earnings on May 07th, 2025, showcasing a strong performance that surpassed expectations. The company reported adjusted earnings per share (EPS) of $0.04, beating the Zacks Consensus Estimate of $0.02 per share, marking a positive earnings surprise of 100%. Niagen also raised its full-year 2025 outlook, anticipating net sales growth of 20% to 25%, exceeding the prior forecast of approximately 18% due to robust demand in the NAD+ market.

Revenue
Niagen's total revenue grew by 37.6% to $30.48 million in 2025 Q1, compared to $22.15 million in 2024 Q1. The Consumer Products segment generated $21.50 million, leading the revenue growth, while the Ingredients segment contributed $8.17 million. The Analytical Reference Standards and Services segment added $811,000, and corporate and other segments reported no revenue, culminating in a total of $30.48 million.

Earnings/Net Income
Niagen achieved a remarkable turnaround in profitability, posting an EPS of $0.07 in 2025 Q1, a significant improvement from a loss of $0.01 per share in 2024 Q1. The company also recorded a net income of $5.06 million, a 1129.1% positive swing from a net loss of $492,000 in the previous year. The EPS reflects strong performance and favorable market conditions.

Price Action
The stock price of Niagen experienced a 4.20% decline during the latest trading day. However, it gained 7.64% over the most recent full trading week and surged 40.48% month-to-date.

Post-Earnings Price Action Review
Investing in Niagen Bioscience shares post-earnings quarter-over-quarter revenue increases and holding for 30 days has yielded moderate returns over the past five years, averaging a 9.16% annual return with positive months occurring 66.88% of the time. Despite these returns, the strategy underperformed the benchmark, revealing vulnerabilities during market downturns, with a maximum drawdown of 23.55%. This indicates that while the approach has shown some success, it exposes investors to significant risks in less favorable market conditions, necessitating caution and perhaps additional diversification to mitigate potential losses.

CEO Commentary
"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® and strong Niagen® ingredient demand, a 63.4% gross margin, and $5.1 million in net income," said Rob Fried, CEO of Niagen Bioscience, Inc. The CEO highlighted strong momentum heading into 2025, noting the significant growth in both product lines and the successful launch of the new brand identity. He emphasized the expansion of the NAD+ precursor patent portfolio, reinforcing a solid foundation for the future of healthy aging and growing market trust in Niagen.

Guidance
The Company has increased its full-year 2025 outlook, expecting net sales growth of 20% to 25%, up from a previous estimate of approximately 18%, driven by continued strength in the expanding NAD+ market. Adjusted general and administrative expenses are now anticipated to increase by $7.0 to $8.0 million, revised from $5.0 to $6.0 million, mainly due to updated share-based compensation estimates. The outlook continues to project profitability for the full year 2025.

Additional News
Niagen Bioscience Inc. has recently announced the appointment of a new Chief Operating Officer, aiming to bolster its executive team and drive strategic growth initiatives. The company also unveiled plans to expand its facilities in response to increased demand for its products, reflecting its commitment to scaling operations effectively. Additionally, Niagen launched a share buyback program, indicating strong confidence in its future prospects and enhancing shareholder value. These developments highlight Niagen's proactive approach to solidifying its market position and fostering long-term growth.