Natural Alternatives International, Inc. Announces 2026 Q2 and YTD Results
Rhea-AI Summary
Natural Alternatives International (Nasdaq: NAII) reported a Q2 FY2026 net loss of $2.6M ($0.42 per diluted share) on net sales of $34.8M, up 2% year-over-year. Six-month net loss narrowed to $2.8M on sales of $72.5M, up 8%.
The company cited factory underutilization, reduced customer forecasts and delayed product launches and now expects a net loss for FY2026. Cash was $3.8M at Dec 31, 2025, with $5.8M drawn on a $10.0M credit facility.
Positive
- Six‑month net loss improved from $4.2M to $2.8M
- CarnoSyn® Q2 revenue increased 13% to $2.0M
- Private‑label sales up 9% for six months to $68.9M
Negative
- Q2 net loss widened to $2.6M (from $2.2M prior year)
- Cash declined from $12.3M to $3.8M at Dec 31, 2025
- Company now expects a net loss for full fiscal 2026 due to reduced customer forecasts
- Factory underutilization caused loss from operations in first half
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves: BOF up 9.85%, while STKH and NCRA were down 11.69% and 7.86% respectively. Momentum scanner flagged several names (e.g., NCRA, STKH) mostly moving up, but without related news, suggesting stock-specific rather than a clear sector-wide driver for NAII.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q1 2026 earnings | Positive | -1.8% | Q1 FY2026 loss narrowed with stronger sales and improved operations. |
| Sep 23 | FY2025 results | Negative | +3.3% | FY2025 showed higher sales but a sizable net loss and outlook comments. |
Recent earnings-related releases often saw share price moves diverge from the fundamental tone of the news.
Recent updates for NAII have centered on earnings and ongoing losses alongside revenue growth. On Sep 23, 2025, fiscal 2025 results highlighted higher net sales but a $13.6M annual loss and expectations for fiscal 2026 profitability in the second half. On Nov 12, 2025, Q1 FY2026 showed improved losses and double-digit sales growth. Today’s Q2 and YTD report continues the theme of sales growth but sustained net losses.
Market Pulse Summary
This announcement highlights NAII’s mixed profile of sales growth and persistent losses. Q2 net sales reached $34.8M, with six‑month net sales of $72.5M, but the company still recorded a six‑month net loss of $2.8M and lower cash of $3.8M. Management now anticipates a net loss for full fiscal 2026. Investors may watch margin trends, CarnoSyn ae and TriBsynTM adoption, customer demand forecasts, and liquidity developments closely.
Key Terms
glp-1 medical
AI-generated analysis. Not financial advice.
CARLSBAD, Calif., Feb. 13, 2026 (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
Net sales during the three months ended December 31, 2025, increased
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased
Our net loss for the six months ended December 31, 2025, was
Net sales during the six months ended December 31, 2025, increased
While we grew our net sales, expanded our gross margins and reduced selling, general and administrative costs during the three and six months ended December 31, 2025, we experienced a loss from operations during the first six months of fiscal 2026 primarily due to underutilization of our factory capacities. The improvement in gross profit is primarily related to increased new and existing customer sales that also drove improved factory utilization. Although we anticipate we will increase our sales revenue during the remaining two quarters of fiscal 2026 as compared to the prior year periods and the first half of this year, we now believe that we will experience a net loss in the second half of fiscal 2026, and a net loss for the full fiscal 2026 year due to reductions in several of our customer’s forecasted sales along with delayed new product launches.
As of December 31, 2025, we had cash of
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “NAI is experiencing some disappointments in the ability to accurately forecast demand from several clients engaged in the multi-level marketing and direct selling channels of commerce, in China, Europe and in some cases North America. We believe that efforts are underway by our clients to rectify these challenges by introducing new products and reinvigorating their sales efforts in these various markets. Other sales channels of our business are growing, and we are seeing this as well in large retailer environments, warehouse stores and through internet-based sales direct to consumers.
While we assist our direct selling customer base with their sales and inventory modification efforts, we are also diligently managing our cost and expenses during this challenging environment. We continue to focus on the expansion of acceptance of our CarnoSyn® patent estate with the introduction of the highly bioavailable and beneficial form of beta-alanine in our patent pending TriBsynTM molecule which has demonstrated the capability of delivering 4 times the effectiveness of instant release beta-alanine with lower dosing and resulting absence of paresthesia. As the weight loss phenomenon attributed to utilization of GLP-1 and related metabolic indicators continues to grow, the opportunity to provide TriBsynTM and SR CarnoSyn® to retard or prevent the onset of muscle wasting attributed to reduced caloric and protein intake of those utilizing GLP-1 medications is significant. This is also an essential compound for use in nutritional supplementation of the elderly to support age-based sarcopenia. We remain committed to expanding the adoption of this scientifically revolutionary molecule.”
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) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
| NET SALES | $ | 34,795 | 100.0 | % | $ | 34,078 | 100.0 | % | $ | 72,525 | 100.0 | % | $ | 67,228 | 100.0 | % | ||||||||||||
| Cost of goods sold | 32,304 | 92.8 | % | 32,409 | 95.1 | % | 65,637 | 90.5 | % | 63,300 | 94.2 | % | ||||||||||||||||
| Gross profit | 2,491 | 7.2 | % | 1,669 | 4.9 | % | 6,888 | 9.5 | % | 3,928 | 5.8 | % | ||||||||||||||||
| Selling, general & administrative expenses | 4,338 | 12.5 | % | 4,449 | 13.1 | % | 8,451 | 11.7 | % | 8,544 | 12.7 | % | ||||||||||||||||
| LOSS FROM OPERATIONS | (1,847 | ) | -5.3 | % | (2,780 | ) | -8.2 | % | (1,563 | ) | -2.2 | % | (4,616 | ) | -6.9 | % | ||||||||||||
| Other expense, net | (482 | ) | -1.4 | % | (86 | ) | -0.3 | % | (965 | ) | -1.3 | % | (663 | ) | -1.0 | % | ||||||||||||
| LOSS BEFORE TAXES | (2,329 | ) | -6.7 | % | (2,866 | ) | -8.4 | % | (2,528 | ) | -3.5 | % | (5,279 | ) | -7.9 | % | ||||||||||||
| Income tax provision (benefit) | 224 | (675 | ) | 316 | (1,106 | ) | ||||||||||||||||||||||
| NET LOSS | $ | (2,553 | ) | $ | (2,191 | ) | $ | (2,844 | ) | $ | (4,173 | ) | ||||||||||||||||
| NET LOSS PER COMMON SHARE: | ||||||||||||||||||||||||||||
| Basic: | ($ | 0.42 | ) | ($ | 0.37 | ) | ($ | 0.47 | ) | ($ | 0.70 | ) | ||||||||||||||||
| Diluted: | ($ | 0.42 | ) | ($ | 0.37 | ) | ($ | 0.47 | ) | ($ | 0.70 | ) | ||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
| Basic | 6,008 | 5,921 | 6,007 | 5,920 | ||||||||||||||||||||||||
| Diluted | 6,008 | 5,921 | 6,007 | 5,920 | ||||||||||||||||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| (unaudited) | ||||||
| December 31, | June 30, | |||||
| 2025 | 2025 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 3,753 | $ | 12,325 | ||
| Accounts receivable, net | 17,763 | 14,644 | ||||
| Inventories, net | 33,433 | 24,871 | ||||
| Other current assets | 6,567 | 7,436 | ||||
| Total current assets | 61,516 | 59,276 | ||||
| Property and equipment, net | 51,258 | 50,890 | ||||
| Operating lease right-of-use assets | 39,778 | 41,054 | ||||
| Other noncurrent assets, net | 749 | 719 | ||||
| Total Assets | $ | 153,301 | $ | 151,939 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Accounts payable and accrued liabilities | 24,548 | 24,483 | ||||
| Line of Credit | 5,802 | 1,900 | ||||
| Mortgage note payable | 8,781 | 8,933 | ||||
| Operating lease liability | 47,124 | 48,197 | ||||
| Total Liabilities | 86,255 | 83,513 | ||||
| Stockholders’ Equity | 67,046 | 68,426 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 153,301 | $ | 151,939 | ||
FAQ
What were NAII's Q2 FY2026 earnings and EPS on Feb 13, 2026?
Why does NAII (NAII) expect a net loss for full fiscal 2026?
How much cash and credit availability did NAII have at December 31, 2025?
What drove NAII's private‑label and CarnoSyn® revenue trends in H1 FY2026?
How did factory utilization affect NAII's first‑half FY2026 results?
