Natural Alternatives International, Inc. Announces Fiscal 2027 Q1 Results

Rhea-AI Summary

Natural Alternatives International (Nasdaq: NAII) reported a $2.5 million net loss for its first quarter of fiscal 2027 as sales declined. Sales fell 25.5% to $28.1 million for the three months ended September 30, 2026. Diluted loss per share widened to $0.41 from $0.05 a year earlier. Private-label sales fell 29.1% to $25.6 million, while CarnoSyn revenue rose 54.0% to $2.6 million. The company attributed weaker private-label sales primarily to customers' excess inventory and delayed launches.

Gross margin declined to 4.5% from 11.7%. Cash, cash equivalents and restricted cash totaled $6.7 million, versus $7.5 million at June 30; working capital fell to $14.7 million from $27.7 million. Most U.S. production has been consolidated in Vista, and a process to sell the Carlsbad facility has begun. A strategic review includes potential mergers, acquisitions, joint ventures or a company sale.

8 points · 0 major

NegativeiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.U.S. production consolidation moved most operations to Vista, targeting improved utilization, profitability and lower costs.
• Minor pointCarnoSyn revenue increased 54.0% year over year to $2.6 million, primarily from increased TriBsyn sales.
• Minor pointSelling, general and administrative expenses fell to $3.848 million from $4.113 million a year earlier.
• Minor pointOther expense, net decreased to $162,000 from $483,000 a year earlier.
• Minor pointIncome tax benefit of $265,000 compared with a $92,000 expense a year earlier.

3 minor points

• Minor pointCarlsbad manufacturing facility sale process has begun as part of the company's operating changes.
• Minor pointLine-of-credit borrowings declined to $6.273 million from $7.749 million at June 30, 2026.
• Minor pointMortgage debt declined to $10.755 million from $10.939 million at June 30, 2026.

Negative

• Major pointNet loss widened to $2.5 million, or $0.41 per diluted share, versus $0.3 million, or $0.05.
• Major pointQuarterly sales decreased $9.6 million, or 25.5%, year over year to $28.1 million.
• Moderate pointGross margin declined to 4.5% from 11.7% a year earlier as manufacturing capacity utilization fell.
• Moderate pointWorking capital fell to $14.7 million from $27.7 million at June 30, 2026.
• Minor pointPrivate-label sales fell 29.1% to $25.6 million, primarily reflecting customer excess inventory and delayed launches.

3 minor points

• Minor pointOperating loss of $2.582 million compared with operating income of $284,000 a year earlier.
• Minor pointCash, cash equivalents and restricted cash fell to $6.7 million from $7.5 million at June 30.
• Minor pointStockholders' equity declined to $47.190 million from $49.959 million at June 30, 2026.

News Explained

As of September 30, 2026, Natural Alternatives International reported $11.8 million of borrowing capacity on its credit facility and $6.3 million in outstanding borrowings.

Key Figures

Net loss: $2.5 million Diluted loss per share: ($0.41) Net sales: $28.1 million; down 25.5% +5 more

Net loss

$2.5 million

Fiscal 2027 Q1

Diluted loss per share

($0.41)

Fiscal 2027 Q1

Net sales

$28.1 million; down 25.5%

Three months ended September 30, 2026, compared with the prior-year period

Private-label contract manufacturing sales

$25.6 million; down 29.1%

Fiscal 2027 Q1

CarnoSyn beta-alanine revenue

$2.6 million; up 54.0%

Fiscal 2027 Q1

Cash, cash equivalents and restricted cash

$6.7 million

As of September 30, 2026

Working capital

$14.7 million

As of September 30, 2026

Borrowing capacity on credit facility

$11.8 million

As of September 30, 2026

Historical Context

2 past events · Latest: Sep 28

2 events

1. Sep 28

   Q4 earnings

   24h Move

   -13.5%

   Quarterly loss widened; company began shifting U.S. production and exploring strategic alternatives.

2. May 19

   Q3 earnings

   24h Move

   -1.2%

   Sales rose year over year, but quarterly and nine-month losses persisted; a new lending facility was announced.

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

Key Terms

beta-alanine, working capital, restricted cash, capacity utilization

4 terms

beta-alanine technical

"CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 54.0%"

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.

working capital financial

"cash, cash equivalents and restricted cash of $6.7 million and working capital of $14.7 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

restricted cash financial

"cash, cash equivalents and restricted cash of $6.7 million"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

capacity utilization technical

"lower gross margins because of reduced factory capacity utilization"

Capacity utilization measures how much of a factory, plant or service operation’s productive ability is actually being used, expressed as a percentage of its maximum possible output. Like seeing how full an oven is while baking, it tells investors whether a business is operating efficiently, has room to grow without new investment, or may face higher costs and supply constraints; changes can signal shifts in profit margins, pricing power and the need for capital spending.

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

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CARLSBAD, Calif., Nov. 13, 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 $2.5 million, or ($0.41) per diluted share, on net sales of $28.1 million for the first quarter of fiscal year 2027 compared to a net loss of $0.3 million, or ($0.05) per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2026, decreased $9.6 million, or 25.5%, to $28.1 million compared to $37.7 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 29.1% to $25.6 million. Our Private-label contract manufacturing sales decreased primarily due to decreased orders from several of our larger customers associated with excess inventory positions and delayed product launches, partially offset by orders from new customer product launches.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 54.0% to $2.6 million during the first quarter of fiscal year 2027, as compared to $1.7 million for the first quarter of fiscal year 2026. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the first quarter of fiscal 2027 was primarily due to an increase in TriBsyn® product sales, partially offset by a decrease in instant release CarnoSyn® raw material sales.

We experienced a loss from operations during the three months ending September 30, 2026, primarily due to decreased sales volume in our private-label contract manufacturing segment which led to lower gross margins because of reduced factory capacity utilization. This operating loss was partially offset by lower selling, general and administrative costs primarily due to a decrease in employee compensation expense.

In an effort to improve our manufacturing capacity utilization, improve profitability and reduce operating costs, we have consolidated the majority of our U.S. production operations into our Vista, CA. manufacturing facility and have begun the process to sell 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 September 30, 2026, we had cash, cash equivalents and restricted cash of $6.7 million and working capital of $14.7 million, compared to $7.5 million and $27.7 million respectively, as of June 30, 2026. As of September 30, 2026, we had $11.8 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $6.3 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While the results of this past quarter have been very disappointing, the recent reticence to meet forecast commitments by several customers, which significantly contributed to the quarter's poor sales performance, has begun to subside. Recent meetings with current and prospective clients have encouraged us to expand our research and formulation efforts to include combinations of CarnoSyn® with various popular peptides, showing promise in supporting human health. We also are actively reviewing our options to improve our manufacturing architecture, overhead absorption, and liquidity.

We remain committed to right sizing the U.S. facilities to meet the needs of our current and prospective clients, as we also continue to promote the wide adoption of our IP estate in new applications."

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, or otherwise address our overcapacity, and increase 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
	September 30,
		2026							2025
NET SALES	$	28,121			100.0	%		$	37,730			100.0	%
Cost of goods sold		26,855			95.5	%			33,333			88.3	%
Gross profit		1,266			4.5	%			4,397			11.7	%
Selling, general & administrative expenses		3,848			13.7	%			4,113			10.9	%
(LOSS) INCOME FROM OPERATIONS		(2,582	)		-9.2	%			284			0.8	%
Other expense, net		(162	)		-0.6	%			(483	)		-1.3	%
LOSS BEFORE TAXES		(2,744	)		-9.8	%			(199	)		-0.5	%
Income tax (benefit) expense		(265	)						92
NET LOSS	$	(2,479	)					$	(291	)
NET LOSS PER COMMON SHARE:
Basic:	($	0.41	)					($	0.05	)
Diluted:	($	0.41	)					($	0.05	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		6,075							6,007
Diluted		6,075							6,007

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	September 30,			June 30,
		2026			2026
	(Unaudited)
ASSETS
Cash and cash equivalents	$	6,485		$	7,388
Restricted cash		258			86
Accounts receivable, net		12,426			20,650
Inventories, net		28,165			30,753
Other current assets		6,968			6,557
Total current assets		54,302			65,434
Property and equipment, net		35,326			35,605
Operating lease right-of-use assets		23,669			24,062
Other noncurrent assets, net		1,234			1,345
Total Assets	$	114,531		$	126,446
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	19,845		$	26,514
Line of Credit		6,273			7,749
Mortgage note payable		10,755			10,939
Operating lease liability		30,468			31,285
Total Liabilities		67,341			76,487
Stockholders’ Equity		47,190			49,959
Total Liabilities and Stockholders’ Equity	$	114,531		$	126,446

FAQ

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

What were Natural Alternatives International's fiscal 2027 first-quarter results?

Natural Alternatives International reported $28.1 million in sales and a $2.5 million net loss for the three months ended September 30, 2026. Sales fell 25.5% year over year, while diluted loss per share widened to $0.41 from $0.05.

What strategic alternatives is Natural Alternatives International reviewing?

Natural Alternatives International has initiated a review of strategic growth paths, potential mergers, acquisitions, joint ventures or a sale of the company. The company describes the review as focused on maximizing shareholder value.

What credit facility capacity and borrowings did NAII report at September 30, 2026?

Natural Alternatives International reported $11.8 million of borrowing capacity on its credit facility, of which outstanding borrowings were $6.3 million, at September 30, 2026.