Natural Alternatives International, Inc. Announces Fiscal 2026 Q4 and YTD Results

Quarterly gross margin fell to 5.0% from 10.4%, even as sales increased.

Rhea-AI Summary

Natural Alternatives International (NAII) reported a $13.5 million net loss for its fiscal 2026 fourth quarter.

Quarterly sales rose 1.9% to $34.5 million from $33.9 million, but the loss widened from $7.2 million. A $10.4 million noncash impairment of its underutilized Carlsbad manufacturing facility contributed to the loss. Excluding that charge, the quarterly loss was $3.1 million.

Fiscal 2026 sales rose 10% to $142.5 million from $129.9 million, while the annual net loss widened to $20.7 million from $13.6 million. Private-label sales rose 11% to $134.6 million; CarnoSyn revenue fell 2% to $7.9 million. Cash and equivalents stood at $7.388 million on June 30, 2026, down from $12.325 million a year earlier. The company has initiated a shift of U.S. manufacturing to Vista, anticipates selling the Carlsbad facility and is exploring strategic alternatives.

Positive

• Fiscal 2026 sales rose 10% to $142.5 million from $129.9 million.
• Annual private-label sales rose 11% to $134.6 million.
• Quarterly sales rose 1.9% to $34.5 million from $33.9 million.
• Quarterly CarnoSyn revenue rose 22% to $2.6 million from $2.1 million.
• Quarterly private-label sales rose 0.6% to $31.9 million.
• U.S. manufacturing consolidation has begun; the company aims to increase capacity use and reduce operating costs.

Negative

• Fiscal 2026 net loss widened to $20.7 million, or $3.43 per diluted share, from $13.6 million, or $2.28.
• Quarterly net loss widened to $13.5 million, or $2.23 per diluted share, from $7.2 million, or $1.20.
• $10.4 million noncash impairment reflected underutilization of the Carlsbad manufacturing facility.
• Quarterly gross margin fell to 5.0% from 10.4%.
• Annual gross margin fell to 6.3% from 7.2%.
• Annual CarnoSyn revenue fell 2% to $7.9 million from $8.1 million.
• Cash and equivalents fell to $7.388 million from $12.325 million a year earlier.
• Working capital fell to $27.7 million from $30.5 million a year earlier.
• Line-of-credit borrowings rose to $7.749 million from $1.900 million a year earlier.
• Private-label orders declined among some existing customers, partly offsetting increased orders from one larger customer.
• Carlsbad manufacturing facility sale remains anticipated, rather than completed.

News Explained

The company reported $17.7 million of borrowing capacity on its credit facility as of June 30, 2026.

The company has initiated consolidation of U.S. manufacturing into Vista; it describes the Carlsbad headquarters sale as planned and the manufacturing-facility sale as expected, with the sales expected to add liquidity and reduce debt.

At June 30, 2026, the $7.388 million cash balance equaled 630.7 days of operating cash use at the last reported quarter's rate, a historical sizing rather than a forecast.

Sources and calculations

• Natural Alternatives International fiscal 2026 Q4 and YTD results (2026-09-28)
• NAII fiscal 2026 Q4 fundamentals (2026Q4)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $7,388,000 / ($1,066,000 / 91) = 630.7 days

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Details

Market move: NAII +14.12% vs previous close. FY2026 Q4 earnings report

$1.61 – $1.94 Day Range

$12.17M Market Cap

On Sep 28, the day this news came out, the latest delayed price for NAII is 14.12% above the previous close. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $1.94.

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Market Context

On Sep 28, the day this news came out, the latest delayed price for the stock is 14.1% above the pre...

Analysis

On Sep 28, the day this news came out, the latest delayed price for the stock is 14.1% above the previous close. The May 19 fiscal Q3 report showed 23% sales growth alongside a $4.3 million net loss; that comparable-quarter performance adds context to these Q4 and full-year results. The earlier report's 24-hour price change was -1.16%.

Key Figures

Q4 net loss: $13.5 million Q4 net sales: $34.5 million Facility impairment charge: $10.4 million +5 more

Q4 net loss

$13.5 million

Fiscal 2026 Q4

Q4 net sales

$34.5 million

Fiscal 2026 Q4

Facility impairment charge

$10.4 million

Non-recurring, non-cash charge in fiscal 2026

Q4 net loss excluding impairment

$3.1 million

Fiscal 2026 Q4

Fiscal-year net loss

$20.7 million

Fiscal year ended June 30, 2026

Fiscal-year net sales

$142.5 million, up 10%

Fiscal year ended June 30, 2026

Cash

$7.5 million

As of June 30, 2026; compared with $12.3 million a year earlier

Credit facility

$17.7 million borrowing capacity; $7.7 million outstanding

As of June 30, 2026

Historical Context

1 past event · Latest: May 19

1 event

1. May 19

   Earnings results

   24h Move

   -1.2%

   Fiscal Q3 sales rose 23%, but NAI reported a $4.3 million net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

impairment, diluted share, working capital, credit facility, +1 more

5 terms

impairment financial

"a non-recurring non-cash charge of $10.4 million related to the impairment"

Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.

diluted share financial

"or ($2.23) per diluted share"

Diluted share count is the total number of company shares that would exist if all potential claims that can become stock—such as employee stock options, warrants and convertible bonds—were exercised or converted. Investors use diluted shares to see a more conservative view of ownership and per-share metrics (like earnings per share), because it’s like slicing a cake into more pieces: the same profit spread over more slices makes each slice smaller.

working capital financial

"cash of $7.5 million and working capital of $27.7 million"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

credit facility financial

"$17.7 million of borrowing capacity on our credit facility"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

beta-alanine technical

"CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue"

A naturally occurring amino acid used primarily as an ingredient in sports and dietary supplements to raise muscle levels of carnosine, which can help delay fatigue during short bursts of intense exercise. Investors monitor beta-alanine because its scientific support, regulatory status, supply chain, and consumer trends directly affect sales and profitability of supplement makers and food companies—think of it as a popular recipe ingredient that can drive product demand or regulatory scrutiny.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CARLSBAD, Calif., Sept. 28, 2026 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, announced today a net loss of $13.5 million, or ($2.23) per diluted share, on net sales of $34.5 million for the fourth quarter of fiscal year 2026 compared to a net loss of $7.2 million, or ($1.20) per diluted share, in the fourth quarter of the prior fiscal year. Our net loss for the fourth quarter of fiscal 2026 includes a non-recurring non-cash charge of $10.4 million related to the impairment of our Carlsbad, CA manufacturing facility due to its underutilization. Excluding this charge, our net loss for the fourth quarter of fiscal 2026 would have been $3.1 million, or ($0.52) per diluted share.

Net sales during the three months ended June 30, 2026, increased $0.6 million, or 1.9%, to $34.5 million compared to $33.9 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 0.6% to $31.9 million. Private-label contract manufacturing sales increased primarily due to increased orders from one of our larger customers, partially offset by reduced orders from other existing customers.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 22% to $2.6 million during the fourth quarter of fiscal year 2026, as compared to $2.1 million for the fourth quarter of fiscal year 2025. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the fourth quarter of fiscal 2026 was primarily due to increased raw material sales to existing customers and increased royalty income.

Our net loss for our fiscal year ending June 30, 2026, was $20.7 million, or ($3.43) per diluted share, compared to a net loss of $13.6 million, or ($2.28) per diluted share for fiscal year 2025. Our net loss for fiscal 2026 included the non-recurring, non-cash charge of $10.4 million related to the impairment of our Carlsbad, CA. manufacturing facility, and related assets. Excluding this charge, our net loss for fiscal 2026 would have been $10.3 million or ($1.71) per diluted share.

Net sales during the year ended June 30, 2026, increased $12.7 million, or 10%, to $142.5 million as compared to $129.9 million recorded in the comparable prior year period. During the year ended June 30, 2026, private-label contract manufacturing sales increased 11% to $134.6 million, as compared to $121.8 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 2% to $7.9 million during fiscal 2026, as compared to $8.1 million for fiscal 2025.

While we grew sales during the three and twelve months ended June 30, 2026, we experienced a net loss primarily due to underutilization of our available factory capacities and a non-cash impairment charge against our Carlsbad, CA manufacturing facility. 

To increase our capacity utilization and reduce operating costs, we have initiated the consolidation of our USA manufacturing operations into our Vista, CA facility, which includes the anticipated sale of our Carlsbad, CA manufacturing facility. We have also initiated a comprehensive review process to explore strategic alternatives focused on maximizing shareholder value including evaluating a full range of strategic growth paths, potential mergers, acquisitions, joint ventures, or a sale of the Company.

As of June 30, 2026, we had cash of $7.5 million and working capital of $27.7 million, compared to $12.3 million and $30.5 million respectively, as of June 30, 2025. As of June 30, 2026, we had $17.7 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $7.7 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “We are taking decisive steps to strengthen our financial position and better align our operations with current market demand. The planned sales of our Carlsbad, CA Headquarters building and the expected sale of the Carlsbad, CA manufacturing facility are an important part of this effort and are expected to provide additional liquidity, reduce debt, and eliminate significant excess manufacturing capacity. We believe we can successfully consolidate production into our Vista, CA facility without disrupting our customers, while continuing to focus on growing revenue, expanding customer relationships and reducing costs.”

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, 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 – Kenneth Wolf, President, Chief Operating Officer and Acting Principal 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														Year Ended
	June 30,														June 30,
		2026							2025							2026							2025
NET SALES	$	34,508			100.0	%		$	33,866			100.0	%		$	142,515			100.0	%		$	129,860			100.0	%
Cost of goods sold		32,782			95.0	%			30,331			89.6	%			133,518			93.7	%			120,571			92.8	%
Gross profit		1,726			5.0	%			3,535			10.4	%			8,997			6.3	%			9,289			7.2	%
Other selling, general & administrative expenses		4,460			12.9	%			4,079			12.0	%			17,296			12.1	%			16,549			12.7	%
Settlement of legal proceedings & associated expense		32			0.1	%			1,400			4.1	%			44			0.0	%			1,400			1.1	%
Selling, general & administrative expenses		4,492			13.0	%			5,479			16.2	%			17,340			12.2	%			17,949			13.8	%
Impairment loss		10,409			30.2	%										10,409			7.3	%
LOSS FROM OPERATIONS		(13,175	)		-38.2	%			(1,944	)		-5.7	%			(18,752	)		-13.2	%			(8,660	)		-6.7	%
Other expense, net		(319	)		-0.9	%			(875	)		-2.6	%			(1,513	)		-1.1	%			(2,080	)		-1.6	%
LOSS BEFORE TAXES		(13,494	)		-39.1	%			(2,819	)		-8.3	%			(20,265	)		-14.2	%			(10,740	)		-8.3	%
Income tax expense		46							4,397							430							2,835
NET LOSS	$	(13,540	)					$	(7,216	)					$	(20,695	)					$	(13,575	)
NET LOSS PER COMMON SHARE:
Basic:	$	(2.23	)					$	(1.20	)					$	(3.43	)					$	(2.28	)
Diluted:	$	(2.23	)					$	(1.20	)					$	(3.43	)					$	(2.28	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		6,071							6,003							6,028							5,947
Diluted		6,071							6,003							6,028							5,947

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	June 30,				June 30,
		2026				2025
ASSETS
Cash and cash equivalents	$	7,388			$	12,325
Restricted cash		86				-
Accounts receivable, net		20,650				14,644
Inventories, net		30,753				24,871
Other current assets		6,557				7,436
Total current assets		65,434				59,276
Property and equipment, net		35,605				50,890
Operating lease right-of-use assets		24,062				41,054
Other noncurrent assets, net		1,345				719
Total Assets	$	126,446			$	151,939
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities		26,514				24,483
Line of Credit		7,749				1,900
Mortgage note payable		10,939				8,933
Operating lease liability		31,285				48,197
Total Liabilities		76,487				83,513
Stockholders’ Equity		49,959				68,426
Total Liabilities and Stockholders’ Equity	$	126,446			$	151,939

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Natural Alternatives International perform in fiscal 2026 excluding the Carlsbad impairment?

Excluding the $10.4 million noncash charge, the fiscal 2026 net loss would have been $10.3 million, or $1.71 per diluted share. The reported annual net loss, which includes the charge, was $20.7 million, or $3.43 per diluted share.

What are Natural Alternatives International's plans for its Carlsbad properties?

The company described a planned sale of its Carlsbad headquarters building and an expected sale of its Carlsbad manufacturing facility. It has initiated the consolidation of its U.S. manufacturing operations into its Vista facility.

What options is Natural Alternatives International considering in its strategic review?

The company has initiated a review of potential growth paths, mergers, acquisitions, joint ventures or a sale of the company. These are options under evaluation, not announced transactions.

What was Natural Alternatives International's credit-facility position at fiscal year-end 2026?

As of June 30, 2026, the company had $17.7 million of borrowing capacity on its credit facility, of which it had outstanding borrowings of $7.7 million.