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Introduction & Market Context
Niagen Bioscience Inc (NASDAQ:NAGE), formerly known as ChromaDex, reported strong first-quarter 2025 results on May 7, showcasing significant growth across all business segments. The company’s stock responded positively, rising 6.27% in aftermarket trading to $8.98, approaching its 52-week high of $9.18.
The Q1 results come after a robust fourth quarter of 2024, which saw the company exceed analyst expectations and officially rebrand from ChromaDex to Niagen Bioscience, emphasizing its focus on NAD+ precursor science and healthy aging solutions.
Quarterly Performance Highlights
Niagen Bioscience reported total net sales of $30.5 million for Q1 2025, representing a 38% increase year-over-year. The company’s flagship consumer product line, Tru Niagen®, generated $21.5 million in sales, up 24% from the same period last year.
Particularly impressive was the growth in Niagen® ingredient sales, which nearly doubled to $8.0 million, up 95% year-over-year. This included the introduction of pharmaceutical-grade Niagen®, a new category not present in Q1 2024.
As shown in the following breakdown of Q1 2025 net sales:
The company also reported significant improvements in profitability metrics. Gross margin expanded to 63.4%, up 270 basis points from Q1 2024, while net income reached $5.1 million or $0.07 per share, compared to a loss in the prior year period. Adjusted EBITDA increased to $4.9 million, up from just $0.7 million in Q1 2024.
Detailed Financial Analysis
The composition of Niagen Bioscience’s revenue has evolved over the past year, with ingredient sales gaining prominence. While Tru Niagen® consumer products still account for the majority of revenue (71% in Q1 2025), this represents a decrease from 78% in Q1 2024, indicating successful diversification.
The sales mix comparison between Q1 2025 and Q1 2024 illustrates this shift:
E-commerce remains the largest sales channel at 55% of total revenue, generating $16.8 million in Q1 2025, a 31% increase year-over-year. Food-grade Niagen® ingredient sales showed the strongest growth rate at 71%, reaching $7.0 million.
The company’s improved profitability is clearly demonstrated in the comparison of key P&L metrics:
Operating income showed a dramatic improvement, swinging from a $0.7 million loss in Q1 2024 to a $4.8 million profit in Q1 2025. This $5.5 million improvement was primarily driven by volume growth ($5.1 million impact) and gross margin improvement ($0.8 million), partially offset by increased sales and marketing expenses.
The following waterfall chart illustrates the factors contributing to this improvement:
Balance Sheet and Cash Flow
Niagen Bioscience continues to strengthen its financial position, ending Q1 2025 with $55.6 million in cash and no debt, up from $44.7 million at the end of 2024. This represents an increase of $11.0 million in just one quarter, primarily driven by strong operating cash flow and proceeds from stock option exercises.
The company generated $7.9 million in cash from operations during Q1 2025, compared to just $0.3 million in Q1 2024. This improvement reflects both higher profitability and effective working capital management, with working capital contributing $2.7 million to cash flow in the quarter.
The adjusted EBITDA reconciliation provides further insight into the company’s improved cash generation capabilities:
Scientific Foundation and Research
Niagen Bioscience continues to invest in scientific research to support its products and expand potential applications. The company’s Scientific Advisory Board includes distinguished researchers, including Nobel Prize winner Roger Kornberg, Ph.D., providing credibility to its scientific approach.
The company’s scientific leadership is reflected in its impressive advisory board:
Niagen Bioscience has conducted numerous clinical studies on oral Niagen® across multiple health areas, with the longest study duration reaching two years and the largest population studied comprising 140 participants. These studies span various health domains including aging, cardiovascular health, metabolic health, and neurological health.
The breadth of clinical research is illustrated in this chart:
Forward-Looking Statements
Based on the strong Q1 performance, Niagen Bioscience has raised its full-year 2025 outlook, now projecting net sales growth between 20%-25%, up from the previous guidance of approximately 18%. This improved outlook reflects positive trends in the NAD+ market and strong demand for both consumer products and ingredients.
The company’s detailed financial outlook for 2025 includes:
Gross margin is expected to show slight improvement year-over-year from the 61.8% achieved in 2024. Sales and marketing expenses are projected to increase in absolute dollars but remain stable as a percentage of net sales, while research and development spending will focus on new product development and continued NAD precursor research.
General and administrative expenses are now expected to increase by $7.0 to $8.0 million year-over-year, up from the previous projection of $5.0 to $6.0 million, primarily due to increased share-based compensation related to stock performance awards.
Executive Commentary
CEO Rob Fried described Q1 2025 as "a strong start to the year, delivering impressive top- and bottom-line results and taking key steps toward building the future of Niagen Bioscience." The company highlighted its expanded NAD+ precursor patent portfolio and new brand identity as evidence of its "continued commitment to leading the science of healthy aging."
The presentation also emphasized the company’s focus on operational efficiency, with sales and marketing expense as a percentage of net sales improving by 380 basis points year-over-year to 26.6%.
Conclusion
Niagen Bioscience’s Q1 2025 results demonstrate strong momentum across all business segments, with particularly impressive growth in ingredient sales. The company’s improved profitability, strong cash generation, and raised guidance suggest a positive trajectory for the remainder of 2025.
The stock’s positive reaction in aftermarket trading indicates investor confidence in the company’s strategy and execution. With $55.6 million in cash and no debt, Niagen Bioscience appears well-positioned to continue investing in research, product development, and market expansion while maintaining profitability.
Full presentation:
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