NAGE earnings analysis
What we found in NAGE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Niagen Bioscience posted Q2 revenue of $29.785 million, down 4% year over year, and diluted EPS of $0.01 versus $0.04, as strong Consumer Products growth was outweighed by a 29% Ingredients decline and the disposed analytical-services business. Gross margin was nearly stable at 64.8%, but sharply higher sales and marketing investment reduced operating margin to approximately 2.4% from approximately 10.2%. Liquidity is strong at $66.7 million of cash with no borrowings, though first-half operating cash flow fell to $1.6 million from $9.1 million and the filing provides no quantitative earnings guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Consumer segment delivered 6% growth
- Consumer Products revenue increased 6% year over year to $24.162 million, with Tru Niagen sales up $1.5 million. E-commerce grew approximately $2.5 million, more than offsetting a $2.3 million decline in A.S. Watson Group sales.
- Consumer mix modestly improved margins
- Consumer Products gross profit rose 7% to $16.323 million, and its cost of sales rate improved 40 basis points to 32.4%, helped by a higher mix of e-commerce sales.
- Liquidity remains substantial and debt-free
- The company held $66.7 million of cash and cash equivalents, including $66.6 million unrestricted, with no line-of-credit borrowings outstanding as of June 30, 2026.
- Operations remained cash generative
- Niagen Bioscience generated $1.6 million of operating cash flow in the first six months and received $5.2 million of net investing cash flow, primarily from the analytical-services business sale.
- Rare-disease program added regulatory designations
- NB4168 received FDA Rare Pediatric Disease designation and EMA Orphan Medicinal Product Designation during 2026, supporting development of the Ataxia-Telangiectasia candidate.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue, EPS and operating margin contracted
- Quarterly revenue fell 4% to $29.785 million and diluted EPS declined to $0.01 from $0.04. Operating income was approximately $0.700 million, implying a 2.4% operating margin versus approximately 10.2% a year earlier.
- Ingredients weakness and margin pressure
- Ingredients revenue declined 29% to $5.387 million and segment gross profit fell 37% to $3.013 million. Management cites softer downstream demand, lower pharmaceutical-grade purchases, competitive pricing concessions, and the shift toward lower-margin food-grade sales.
- Higher acquisition spending compressed profits
- Sales and marketing expense rose $1.9 million to $10.130 million, or 34.0% of revenue versus 26.4%. Consumer segment marketing expense reached 41.0% of its revenue, as spending was directed toward longer-term customer acquisition rather than immediate sales.
- Single-source supply and inventory commitments
- Risk-factor update: the company has approximately $20.5 million of inventory purchase commitments and relies on a single NRC supplier. Lower-than-expected demand could leave it with excess inventory, margin pressure, or write-down risk.
- Financing and equity dilution overhang
- Risk-factor update: the company can raise up to $50.0 million through its new ATM facility and had not sold shares under it as of the filing date. It also had approximately 10.0 million options outstanding at a $3.82 weighted-average exercise price, creating potential dilution.
- Operating cash conversion materially weakened
- Operating cash flow decreased $7.6 million year over year to $1.6 million for the first six months. Working capital used cash as accounts payable fell by $1.4 million and accrued expenses fell by $3.9 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.01
- Gross margin
- 64.8%
- Operating margin
- 2.4%
- Segment
- Consumer Products revenue: $24.162 million (+6% YoY)
- Segment
- Ingredients revenue: $5.387 million (-29% YoY)
- Segment
- Analytical reference standards and services revenue: $0 million (-100% YoY, following February 2026 divestiture)
- Segment
- Corporate and other/TSA revenue: $0.236 million
What they said about what is next.
The 10-Q does not provide a quantitative revenue or EPS outlook. Management states that unrestricted cash of $66.6 million plus operating cash generation is expected to fund obligations for at least the next 12 months, while it may seek additional capital for longer-term plans.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 6, 2026
- Niagen Bioscience, Inc. reported strong results for Q1 2026, achieving net sales of $31.474 million, up 3% from $30.481 million in Q1 2025. Net income rose to $6.318 million, with diluted EPS increasing to $0.07,…
- 10-K · March 4, 2026
- Niagen Bioscience, Inc. reported a strong year for 2025, showcasing a 30% revenue increase to $129.4 million, primarily driven by consumer demand for its Tru Niagen® products. The company also improved its net income to…
- 10-Q · November 4, 2025
- Niagen Bioscience, Inc. reported strong Q3 2025 results, with revenue of $33.99 million, up 33% year-over-year, and an EPS of $0.05, exceeding consensus estimates. Strong performance was driven primarily by consumer…
- 10-Q · August 6, 2025
- For the second quarter of 2025, Niagen Bioscience, Inc. (NAGE) reported robust financial performance with a 37% increase in revenue compared to the prior year and a swing to profitability, achieving net income of $3.6…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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