Niagen Biosciences Reports Strong Q1 2025 Growth

ChromaDex Corporation ((NAGE)) has held its Q1 earnings call. Read on for the main highlights of the call.

Niagen Biosciences has kicked off 2025 on a high note, showcasing robust revenue growth and achieving net income, as highlighted in their recent earnings call. The company has made significant strides in e-commerce and ingredient sales, expanded the availability of Niagen Plus, and improved gross margins. Despite facing regulatory challenges and misconceptions surrounding NAD supplements, the positive developments have outshone these hurdles, painting an optimistic picture for the company’s future.

Strong Revenue Growth

Niagen Biosciences reported an impressive $30.5 million in revenue for the first quarter of 2025, marking a substantial 38% increase compared to the previous year. This growth underscores the company’s successful strategies in capturing market share and driving sales across its product lines.

Net Income Achievement

The company achieved a net income of $5.1 million, a remarkable turnaround from a net loss of $0.5 million in the previous year. This achievement highlights the company’s effective cost management and operational efficiency.

E-commerce and Ingredient Growth

E-commerce sales experienced a 31% year-over-year growth, while the Niagen ingredient business saw an astounding 95% increase. These figures reflect the company’s strong online presence and the growing demand for its ingredients.

Expansion of Niagen Plus

Niagen Plus has expanded its reach, now available in nearly 600 clinics nationwide, with plans to extend to 1,000 by the end of the year. This expansion is part of the company’s strategy to increase accessibility and market penetration.

Patent Portfolio Expansion

A new composition of matter patent has been granted, enhancing the protection for all salt forms of nicotinamide riboside. This development strengthens the company’s intellectual property portfolio and competitive edge.

Improved Gross Margin

The company reported an improved gross margin of 63.4%, up from 60.7% the previous year. This improvement is indicative of the company’s operational efficiencies and cost control measures.

Increased Cash Flow

Net cash provided by operations surged to $7.9 million, a significant increase from $300,000 in the same period last year. This boost in cash flow enhances the company’s financial flexibility and capacity for future investments.

Regulatory Challenges with NMN

The FDA’s ruling that NMN is not a lawful dietary ingredient presents a regulatory challenge. Niagen Biosciences supports enforcement against non-compliant NMN products, demonstrating its commitment to regulatory compliance and product integrity.

Challenges with NAD Supplement Misconceptions

There are widespread misconceptions about the effectiveness of NAD supplements, with a significant portion of products failing to meet label claims. This challenge underscores the need for consumer education and product transparency.

Potential Delays in Study Results

The results from the Phase 3 NOPARK study for Parkinson’s disease may face delays, with data analysis and publication potentially taking over a year. This delay highlights the complexities involved in clinical research and development.

Forward-Looking Guidance

Niagen Biosciences has raised its full-year revenue growth outlook to 20%-25% year-over-year, reflecting confidence in the expanding NAD market. The company continues to focus on strategic initiatives, including expanding Niagen Plus availability and advancing research in pharmaceutical applications, particularly for Parkinson’s disease and ataxia-telangiectasia.

In conclusion, Niagen Biosciences’ earnings call paints a positive picture of the company’s performance and future prospects. With strong revenue growth, improved margins, and strategic expansions, the company is well-positioned to navigate challenges and capitalize on opportunities in the NAD market.