Natural Alternatives International, Inc. Announces 2026 Q1 Results

Rhea-AI Summary

Natural Alternatives International (Nasdaq: NAII) reported a net loss of $0.3M (‑$0.05 per diluted share) on net sales of $37.7M for Q1 FY2026, versus a net loss of $2.0M on $33.2M a year earlier. Net sales rose 13.8%, driven by a 17.7% increase in private‑label contract manufacturing sales.

Gross profit was $4.397M and the company generated income from operations of $0.284M versus an operating loss in the prior year quarter. CarnoSyn revenue declined 33.9% to $1.7M. Cash was $7.7M and working capital was $31.2M as of Sept 30, 2025; $2.5M was outstanding on a $10.0M credit facility. Management expects a net loss in H1 FY2026 and net income in H2 and for the full year.

Positive

• Net sales increased to $37.7M (+13.8%)
• Private‑label sales rose $5.4M (+17.7%)
• Income from operations turned positive to $0.284M

Negative

• CarnoSyn revenue declined 33.9% to $1.7M
• Cash decreased to $7.7M from $12.3M on June 30, 2025
• Inventories increased to $30.7M from $24.9M as of June 30, 2025

Insights

Corporate Finance Analyst

Sales rose and operating income turned positive; narrower net loss and guidance target full-year profitability.

Net sales increased to $37.7 million, up 13.8% year-over-year, driving gross profit to $4.397 million (11.7% margin) and income from operations of $0.284 million. The company reported a net loss of $0.3 million (diluted $0.05 per share), a sizeable improvement from a $2.0 million loss in the prior-year quarter. Private-label contract manufacturing led growth with a $5.4 million increase, while CarnoSyn® related revenue declined 33.9% to $1.7 million.

Liquidity and working capital position show mixed signals: cash declined to $7.7 million and inventories rose to $30.7 million, while working capital remained robust at $31.2 million and $10.0 million of credit capacity remains available with $2.5 million drawn. Management expects a net loss in the first half and net income in the second half of fiscal 2026, and plans to post an updated investor presentation later today.

CARLSBAD, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $0.3 million, or $0.05 per diluted share, on net sales of $37.7 million for the first quarter of fiscal year 2026 compared to a net loss of $2.0 million, or $0.33 per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2025, increased $4.6 million, or 13.8%, to $37.7 million as compared to $33.2 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased $5.4 million, a 17.7% increase from the comparable quarter last year. Private-label contract manufacturing sales increased primarily due to increased orders from several of our existing customers and shipments to new customers.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 33.9% to $1.7 million during the first quarter of fiscal year 2026, as compared to $2.5 million for the first quarter of fiscal year 2025. The decrease in patent and trademark licensing revenue during the first quarter of fiscal 2026 was primarily due to decreased raw material orders from existing customers, partially offset by sales of our new TriBsyn™ product and increased royalty and licensing revenue.

We generated income from operations during the first quarter of fiscal 2026 as compared to a loss from operations during the first quarter of fiscal 2025. The improvement in our results from operations was primarily driven by increased sales and gross profit while selling, general, and administrative expenses remained relatively flat. The improvement in gross profit is primarily related to improved utilization of our factory capacities, increased new and existing customer sales, and lower volume rebates. We continue to anticipate that we will experience a net loss in the first half of fiscal 2026, net income in the second half of fiscal 2026, and net income for the full fiscal 2026 year.

As of September 30, 2025, we had cash of $7.7 million and working capital of $31.2 million compared to $12.3 million and $30.5 million respectively, as of June 30, 2025. As of September 30, 2025, we had $10.0 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $2.5 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “The growth in sales and improved financial results for the first quarter of fiscal 2026 reflects the efforts our teams have made in fostering existing relationships while also expanding our customer base. We believe our efforts over the past few quarters are beginning to bear fruit, and we believe this will lead us back to profitability in the second half of fiscal 2026. The significant increases in our inventories reflect goods purchased to fulfill existing and forecasted orders which are growing. Our focus to return to sustainable profitability has never been clearer, as we continue our efforts at expanding our client relationships, and focus on adoption of TriBsyn^TM paresthesia free beta-alanine in growing market segments. Of note is the recent announcement in Washington DC of reduced pricing for GLP-1 medications, and TriBsyn^TM is well suited to provide essential nutritional support to those consumers who wish to avoid losing lean muscle mass and reducing brain fog often associated with these medications. We are witnessing a revolution in health care when it comes to treatments for obesity and diabetes, and sound nutritive support for those millions of consumers is both timely and well supported by clinical science.

While we continue to experience some disruptions in supply chains, we are making every effort to secure scarce materials in anticipation of further growth in sales and commensurate profitability in the second half of our fiscal year.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging, and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please see our website at http://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, and our future revenue, profits and financial condition. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI's financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

SOURCE - Natural Alternatives International, Inc.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or investor@nai-online.com.

Web site: http://www.nai-online.com

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
	(Unaudited)
	Three Months Ended
	September 30,
		2025								2024
NET SALES	$	37,730				100.0	%		$	33,150				100.0	%
Cost of goods sold		33,333				88.3	%			30,891				93.2	%
Gross profit		4,397				11.7	%			2,259				6.8	%
Selling, general & administrative expenses		4,113				10.9	%			4,095				12.4	%
INCOME (LOSS) FROM OPERATIONS		284				0.8	%			(1,836	)			-5.5	%
Other expense, net		(483	)			-1.3	%			(577	)			-1.7	%
LOSS BEFORE TAXES		(199	)			-0.5	%			(2,413	)			-7.3	%
Income tax expense (benefit)		92								(431	)
NET LOSS	$	(291	)						$	(1,982	)
NET LOSS PER COMMON SHARE:
Basic:	($0.05		)						($0.33		)
Diluted:	($0.05		)						($0.33		)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		6,007								5,919
Diluted		6,007								5,919

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	September 30,			June 30,
	2025			2025
	(Unaudited)
ASSETS
Cash and cash equivalents	$	7,744		$	12,325
Accounts receivable, net		18,912			14,644
Inventories, net		30,654			24,871
Other current assets		7,741			7,436
Total current assets		65,051			59,276
Property and equipment, net		50,788			50,890
Operating lease right-of-use assets		40,420			41,054
Other noncurrent assets, net		686			719
Total Assets	$	156,945		$	151,939
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	28,995		$	24,483
Line of Credit		2,451			1,900
Mortgage note payable		8,859			8,933
Operating lease liability		47,619			48,197
Total Liabilities		87,924			83,513
Stockholders’ Equity		69,021			68,426
Total Liabilities and Stockholders’ Equity	$	156,945		$	151,939

FAQ

What were Natural Alternatives International (NAII) Q1 FY2026 revenue and net loss figures?

NAII reported Q1 FY2026 net sales of $37.7M and a net loss of $0.3M (‑$0.05 per diluted share).

Why did NAII's private‑label sales grow in Q1 FY2026?

Private‑label contract manufacturing sales increased by $5.4M (17.7%) due to increased orders from existing customers and shipments to new customers.

How did CarnoSyn revenue change for NAII in Q1 FY2026?

CarnoSyn beta‑alanine royalty, licensing and raw material revenue fell 33.9% to $1.7M versus the prior‑year quarter.

What is NAII's cash and liquidity position as of Sept 30, 2025?

As of Sept 30, 2025 NAII had $7.7M cash, working capital of $31.2M, and $2.5M outstanding on a $10.0M credit facility.

What guidance did NAII give for fiscal 2026 profitability?

NAII expects a net loss in the first half of FY2026, and net income in the second half and for the full fiscal year 2026.