Transcript: Niagen Bioscience Q2 2026 Earnings Conference Call

Niagen Bioscience (NASDAQ: NAGE ) held its second-quarter earnings conference call on Tuesday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary Niagen Bioscience Inc. 8 million, with Tru Niagen sales increasing by 6% year over year, primarily driven by a 14% increase in e-commerce revenue. The company is expanding its offerings beyond supplements into skincare and pharmaceuticals, with notable progress in launching NAD Pharmaceuticals and developing NB4168 for rare genetic diseases. Strategic initiatives include the launch of Niagen Plus for IV and injection markets, ongoing partnerships with skincare companies, and expansion into new geographic markets like China.

Niagen Bioscience expects e-commerce growth of 10-15% for 2026 and anticipates increased operating expenses to support brand initiatives, R&D, and market expansion. Management highlighted the resilience and growth potential of their core business, emphasizing their scientific leadership and intellectual property as key differentiators. Full Transcript OPERATOR Hello everyone. Thank you for joining us and welcome to the Niagen Bioscience second quarter 2026 earnings conference call.

After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Lauren Borzanski, Assistant Controller.

Please go ahead. 's second quarter 2026 conference call. Joining me today are our Chief Executive Officer, Rob Fried, Chief Financial Officer, Ozan Premier, and Senior Vice President of Scientific and Regulatory Affairs, Dr. Andrew Hsiao.

Dr. Hsiao will join the call for Q&A. Before we begin, I'd like to remind everyone that today's call may include forward-looking statements. These statements relate to, among other things, our research and development activities, clinical trial plans and timing, regulatory filings, expansion into new markets, business development opportunities, and our expected financial and operating performance.

These statements are based on our current expectations as of today and are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our most recent Form 10-Q and other filings with the SEC. We undertake no obligation to update these statements except as required by law. In addition, we may reference certain non-GAAP financial measures.

Reconciliations to the most directly comparable GAAP measures can be found in today's earnings release and presentation, both available in the Investor Relations section of our website. With that, it's now my pleasure to turn the call over to our Chief Executive Officer, Rob Fried. Rob Fried, Chief Executive Officer Thank you, Lauren, and good afternoon, everyone, and thank you for joining us today. This quarter marks another important milestone in the evolution of Niagen Bioscience.

For many years, investors knew us primarily as the company behind Tru Niagen, the leading nicotinamide riboside NAD supplement. Today, we are becoming something much broader: a science-driven platform company built around the biology of NAD with opportunities spanning consumer health, injectable and IV skin care, and pharmaceuticals. Our name, Niagen Bioscience, reflects that evolution. It represents the company we are building and the opportunity we believe lies ahead.

As we look at the progress we've made in 2026 in developing our platform, we see this year as our springboard for growth and for value creation. Our financial results this quarter demonstrate the resilience of our core business, while our strategic progress reinforces our confidence that we're building multiple long-term engines of growth. Today, Niagen Bioscience spans consumer supplements, branded ingredients, intravenous delivery through Niagen Plus skin care, and pharmaceutical development. These businesses are connected by a common scientific foundation and increasingly reinforce one another.

The scientific discoveries guide our commercial path, and the commercial adoption expands awareness of Niagen. Pharmaceutical development deepens our understanding of NAD biology while expanding the long-term value of our intellectual property. That integrated platform is what differentiates Niagen Bioscience. Global interest in NAD continues to accelerate.

We estimate the worldwide NAD supplement market now exceeds $2 billion annually, while the IV and injection market has now grown beyond $500 million. We believe these markets remain in the early stages of their development as scientific understanding of cellular NAD continues to expand. Looking forward, we believe additional opportunities in skin care, IV and injections, pharmaceuticals, and other healthcare applications have the potential to substantially expand the overall addressable market.

For more than a decade, Niagen has helped define this category through scientific leadership, regulatory excellence, intellectual property, and what we believe is the industry's largest body of human clinical research supporting NAD and nicotinamide riboside. Those advantages continue to differentiate us as awareness of NAD grows around the world. Our core business continues to provide a solid foundation, and we expect our e-commerce business to continue to be the engine for consistent growth. During the quarter, Tru Niagen website sales increased 23% year over year, while Amazon sales increased 10%.

We estimate Amazon growth would have been approximately 19% absent a temporary platform issue during early June that has since been resolved. Within the ingredient business, purchases from Life Extension were lower than last year, affecting quarterly comparisons. We also continue to see competitive activity from NMN and NAD as a straight ingredient in certain channels. While we recognize these near-term challenges, our confidence remains grounded in our scientific leadership, intellectual property, regulatory position, manufacturing quality, and extensive body of clinical evidence supporting Niagen.

Across every market in which we participate, we are seeing the same trend emerge. Organizations seeking the most scientifically validated approach to elevating NAD are increasingly choosing Niagen, and that trend is becoming particularly evident within skincare. Earlier this year we completed a limited launch of our first branded skincare product, Niagen Nanoclouds. The response exceeded our internal expectation and supports a broader commercial launch later this year.

More importantly, we are now seeing growing validation from some of the world's most respected skin care companies. Recently published research demonstrating that nicotinamide riboside was more effective than niacinamide at increasing NAD levels and protecting against UV-induced depletion in human skin models. Presently we are engaged in discussions with two global skin care companies that are evaluating the incorporation of Niagen into one of its established skin care brands. We're encouraged by the level of interest we are seeing from leading companies throughout the industry.

IV and injection represents another exciting opportunity. During the quarter, we expanded the Niagen Plus platform with the launch of our at-home injection kit, while continuing to grow relationships with clinic networks such as Restore Hyper Wellness. Perhaps most encouraging, several of the largest telehealth companies have approached us to explore adding Niagen injections as their NAD offering on their platform. Should these discussions ultimately lead to commercial partnerships, they have the potential to meaningfully expand the reach of the Niagen platform.

More importantly, they reinforce our belief that consumers are increasingly recognizing the advantages of Niagen over traditional NAD administration. Our newest business may ultimately prove to be our most transformational. Earlier this month we formally launched NAD Pharmaceuticals, establishing a dedicated organization focused on developing therapies for rare genetic diseases and age-related disorders. Our lead development candidate, NB4168, has already received Rare Pediatric Disease designation from the FDA, and Orphan Medicinal Product designation from the European Medicines Agency for ataxia telangiectasia.

Rare disease development provides an opportunity to address areas of significant unmet medical need while leveraging our deep understanding of NAD biology. We intend to invest thoughtfully, remain financially disciplined, and provide updates as we achieve meaningful scientific, regulatory, and clinical milestones. Ozan will discuss the economics in greater detail later in today's call. Scientific leadership remains the foundation that supports every business we operate.

During the quarter, researchers reported encouraging findings linking Niagen supplementation with reductions in measures of epigenetic age acceleration and improvements associated with mitochondrial biology. Additional independent studies explored potential applications in retinal disease, neurodegeneration, immune function, and mitochondrial disorders. While many of these findings remain early stage and require further validation, they illustrate an important trend: independent researchers around the world continue choosing nicotinamide riboside to investigate fundamental questions in cellular health. That expanding body of science benefits every segment of our business.

As we look ahead, we believe Niagen Bioscience is entering one of the most exciting periods in its history. We have a profitable and cash-generating core business. We have a growing global consumer brand. We have a differentiated intellectual property portfolio.

We have an expanding commercial opportunity across skin care and IV injections, and the beginnings of a pharmaceutical pipeline addressing diseases with significant unmet need. We are building the world's leading NAD platform company. Our objective is clear: wherever consumers, physicians, researchers, or pharmaceutical companies seek the most clinically supported approach to elevating NAD, we want Niagen to be their first choice. We remain disciplined in how we allocate our capital and resources, and we remain realistic about the work still ahead.

We're highly confident that the investments we are making today in our brand, in our science, and in our pipeline are laying the foundation for a much larger company in the years ahead. This year will be our springboard for growth in 2027 and well beyond. With that, I'll turn the call over to Ozan to review our financial results, discuss our pharmaceutical strategy in greater detail, and then we'll open the call for your questions. Kevin Farr, Chief Financial Officer Thank you, Rob.

It is a pleasure to once again address our investors, partners, and team members today. As Rob stated, the NAD platform that we have built extends beyond our core consumer and our Niagen ingredient businesses. Those profitable, cash-generating businesses provide the financial foundation for Niagen+, telehealth, skincare, and pharmaceutical development. These opportunities are at different stages and are not yet fully reflected in our financial results.

However, the strategic optionality they provide is tangible. As we advance these opportunities, we remain disciplined in allocating resources across marketing, research and development, and operations. Our objective is to invest thoughtfully in long-term growth while maintaining a strong balance sheet and financial flexibility to pursue the most attractive opportunities. We believe these investments will strengthen our foundation for growth and value creation beyond 2026.

5 million year over year. 5 million. Excluding the temporary marketplace listing issue experienced in June, we estimate our e-commerce business would... 9 million in food-grade Niagen and $400,000 in pharma-grade Niagen.

8% in the second quarter compared with 65% a year ago. The modest decline of 20 basis points primarily reflected changes in product and business mix. 4% in the second quarter of 2025. This increase reflects investments in e-commerce growth, brand awareness, new product launches, and our China cross-border business.

China remains a meaningful growth opportunity for Tru Niagen. In fact, through May 2026, revenue from our China cross-border channel had already exceeded the revenues generated by that channel for the full year 2025. 5 million, a slight decrease of $100,000 year over year. R&D spending can fluctuate with the timing of clinical studies and external research programs.

We expect it to increase as we conduct targeted studies supporting new claims and products and advance preclinical and IND-enabling work for NB4168. General and administrative expense was $7 million, a decrease of approximately $300,000 from the prior-year quarter, primarily due to lower royalties under our agreement with Queen's University Belfast. 05 per diluted share in the second quarter of 2025. 8 million in operating cash flow during the quarter.

8 million of common stock repurchases. 7 million in cash and no debt. 6 million of authorization remaining under our $20 million share repurchase program. I would now like to take a moment to discuss how we evaluate the potential economics of our drug development program around NB4168.

The commercial opportunity is driven by NB4168's differentiation as a pharmaceutical asset. Compared with NR chloride, NB4168 offers enhanced bioavailability and a potentially higher therapeutic index. It is also a novel molecule that is not naturally occurring or marketed as a dietary supplement, and it is protected by composition-of-matter intellectual property. These are attributes that could support stronger exclusivity, specialized rare disease pricing, and greater strategic value to potential pharmaceutical partners.

If NB4168 ultimately receives FDA approval and meets the applicable statutory requirements, it may also qualify for a transferable priority review voucher. Recent voucher transactions have generated proceeds of approximately $150 million, providing a meaningful potential source of value independent of product sales. We have completed a detailed risk-adjusted financial analysis of the ataxia telangiectasia opportunity incorporating relevant assumptions around the addressable patient population, development costs, regulatory timing, commercial adoption, and pricing.

Based on that work, we estimate that the AT indication alone could support a net present value of approximately $200 to $400 million, excluding the potential value of the voucher. Additionally, our review of the precedent transactions involving differentiated rare disease assets that achieved regulatory approval demonstrates that successful programs can create multibillion-dollar strategic value. 3 billion acquisition of Reata Pharmaceuticals following the approval of Skyclarys for Friedreich's ataxia. It's worth noting that the opportunity may also extend beyond AT.

We are evaluating a basket-style development approach across diseases with shared underlying biology, including but not limited to citrin deficiency, Werner syndrome, mitochondrial myopathy, and Cockayne syndrome. Subject to supporting evidence and regulatory alignment, this could broaden the potential clinical and commercial potential of NB4168. Our financial performance to date is supported by the combination of our consumer and ingredient businesses. For the full year 2026, we expect our e-commerce business to grow between 10% to 15% year over year.

Our expectation of the rest of the consumer business remains unchanged. We do expect our ingredients business to be lower than the prior year given the more competitive landscape, but we expect to add more ingredient partners in the near term to continue to explore Niagen in different formats and formulations and in different markets. While Niagen+ and our skincare initiatives are in early stages, we are seeing encouraging initial signs and believe it can become a meaningful contributor to the business over time. As we look beyond 2026, our revenue streams from these core verticals will be the foundation for our continued growth in 2027 and beyond.

We expect operating expenses to increase as we execute on these strategic priorities. Selling and marketing expense will reflect our broader brand initiative, refreshed creative assets, and support for new and developing channels. R&D spending will increase as we advance NB4168 and continue research related to our topical and injectable opportunities. G&A expense is also expected to increase as we build the infrastructure needed to support these programs and our broader market expansion.