Niagen Bioscience, Inc. Common Stock 2026 Q2 Earnings Call

Please go ahead. Good afternoon, welcome to Niagen Bioscience Inc.'s second quarter 2026 conference call.

Joining me today are our Chief Executive Officer, Rob Fried, Chief Financial Officer, Ozan Pamir, Senior Vice President of Scientific and Regulatory Affairs, Dr. Andrew Shao. Dr. Shao 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.

Thank you, Lauren, good afternoon, everyone, 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, skincare, 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, skincare, 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 skincare, 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 NanoCloud. 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 skincare 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 skincare companies that are evaluating the incorporation of Niagen into one of its established skincare 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+ 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 skincare and IV injections. The beginnings of a pharmaceutical pipeline addressing diseases with significant unmet need. We're 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. 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. Then we'll open the call for your questions.

Ozan? 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-generative businesses provide the financial foundation for Niagen Plus, 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.