0001386570-26-000013
SEC filingNiagen Bioscience Inc reported strong financial performance for fiscal year 2025, with net sales increasing 30.0% year-over-year to $129.4 million from $99.6 million in 2024. Net income more than doubled to $17.4 million compared to $8.6 million in the prior year, driven by revenue growth across all segments and a $2.0 million gain from the settlement of royalty obligations. Gross profit grew 35.1% to $83.2 million, with gross margin expanding from 61.8% to 64.3%. The company generated $13.5 million in operating cash flow and ended the year with $64.8 million in cash and cash equivalents. Key forward-looking developments include the planned sale of the analytical reference standards segment, ongoing patent litigation with Elysium Health, and continued expansion of the consumer products and ingredients businesses.
Niagen Bioscience delivered exceptional financial results for fiscal year 2025, with revenue reaching $129.4 million, representing 30.0% growth compared to $99.6 million in 2024. Net income more than doubled to $17.4 million from $8.6 million in the prior year. The company achieved operating income of $16.3 million, a 110.7% increase from $7.7 million in 2024. Key drivers included strong performance in the consumer products segment, which grew 27.2% to $97.7 million, and the ingredients segment, which expanded 44.7% to $28.7 million. The company also benefited from a $2.0 million gain on settlement of royalty obligations related to the termination of agreements with Queen's University Belfast.
Revenue growth was broad-based across all segments. The consumer products segment, representing 75.5% of total revenue, grew to $97.7 million, driven by Tru Niagen® product sales through direct-to-consumer channels and distributors. The ingredients segment showed the strongest growth at 44.7%, reaching $28.7 million, with food-grade Niagen® sales of $24.1 million and pharmaceutical-grade Niagen® sales of $3.8 million. International sales contributed $27.8 million, representing 21.5% of total revenue. The company's relationship with A.S. Watson Group, previously a related party, generated $8.7 million in sales in 2024 but no sales in 2025 following the change in ownership structure.
Gross margin improved to 64.3% from 61.8% in the prior year, with gross profit reaching $83.2 million. Operating margin expanded significantly to 12.6% from 7.8% in 2024, driven by revenue growth outpacing operating expense increases. Operating expenses totaled $66.9 million, including $35.5 million in sales and marketing, $6.3 million in research and development, and $27.1 million in general and administrative expenses. The company recorded share-based compensation expense of $6.1 million. The effective tax rate was 4.5%, resulting from valuation allowance reductions and other tax benefits.
The company generated $13.5 million in operating cash flow, with net income of $17.4 million adjusted for non-cash items including $6.1 million in share-based compensation. Investing activities used $0.3 million primarily for equipment purchases, while financing activities provided $6.9 million from stock option exercises. Free cash flow (operating cash flow minus capital expenditures) was $13.2 million. The balance sheet shows total assets of $106.4 million, including $64.8 million in cash and cash equivalents, $20.4 million in inventory, and $9.7 million in trade receivables. Total liabilities were $29.9 million, with stockholders' equity of $76.5 million. The company has a $10.0 million revolving credit facility with no outstanding borrowings.
The company is planning to sell its analytical reference standards and services segment, with a definitive agreement signed on February 24, 2026, for approximately $6.0 million in cash consideration. Key risk factors include ongoing patent litigation with Elysium Health, where the company faces a potential liability of approximately $10.4 million if unsuccessful in its appeal. The company also filed a lawsuit against the FDA in February 2026 challenging regulatory interpretations related to NMN. Strategic priorities include expanding the consumer products business internationally and developing pharmaceutical applications for NAD+ precursors. The company maintains an exclusive manufacturing arrangement with W.R. Grace for NRCL supply through April 2029, with minimum purchase obligations of $23.4 million for 2026.