Niagen Bioscience (NAGE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net sales of $25.6 million, up 31% year-over-year, with net income of $1.9 million and EPS of $0.02, marking a return to profitability and strong gross margin of 63.5%.

• Niagen ingredient sales, including food- and pharmaceutical-grade, surged 368% year-over-year to $6.7 million, with e-commerce and Niagen+ launches as key growth drivers.

• Adjusted EBITDA reached a record $2.9 million, up from $0.5 million in the prior year quarter.

• Ended the quarter with $32.4 million in cash and no debt, reflecting strong fiscal discipline and positive cash flow.

• Expanded Niagen+ pharmaceutical-grade product line to over 100 wellness clinics, with further expansion expected.

Financial highlights

• Net sales reached $25.6 million, a $6.1 million increase YoY; Niagen ingredient sales surged 368% ($6.7 million), with $4.3 million from food-grade and initial pharma-grade sales.

• Gross margin improved to 63.5% (up 210 bps YoY), driven by product mix, pharma-grade launch, and operational efficiencies.

• Operating income was $1.6 million, reversing a $1.1 million loss YoY; net income was $1.9 million ($0.02/share) vs. a $1 million loss ($0.01/share) last year.

• Adjusted EBITDA was $2.9 million in Q3 2024, up from $0.5 million in Q3 2023.

• Cash provided by operations for nine months was $3.5 million, down from $6.5 million YoY, mainly due to working capital changes despite a $6.4 million net income improvement.

Outlook and guidance

• Full-year 2024 net sales growth outlook raised to approximately 15% YoY, driven by e-commerce, partnerships, and Niagen+ launch.

• Gross margins expected to remain strong and slightly above prior year’s 60.8%.

• Increased Q4 investments in sales, marketing, and R&D to support Niagen+ and strategic initiatives.

• No formal 2025 guidance provided; management cites early stage of Niagen+ rollout and ongoing market assessment.

• Management expects current cash and cash flow from sales to cover obligations for at least the next 12 months.