Natural Alternatives International, Inc. Announces 2026 Q1 Results
MWN-AI** Summary
Natural Alternatives International, Inc. (NAI), a prominent player in the nutritional supplements sector, reported its fiscal Q1 2026 results on November 12, 2025. The company experienced a modest net loss of $0.3 million, or $0.05 per diluted share, a significant improvement compared to a net loss of $2.0 million, or $0.33 per diluted share, during the same quarter of the previous year. Net sales climbed to $37.7 million, reflecting a 13.8% increase from $33.2 million in Q1 2025, boosted mainly by a substantial rise in private-label contract manufacturing sales, which saw a 17.7% increase amounting to $5.4 million.
Despite the overall sales growth, revenue from CarnoSyn® beta-alanine products declined by 33.9% to $1.7 million, attributed to lower raw material orders from existing customers. However, the launch of the new TriBsyn™ product helped offset some of the losses, contributing to an uptick in royalties and licensing revenue.
The company reported an income from operations of $284,000, a turnaround from a loss in the prior year's quarter, driven by increased sales and improved gross profit margins, while keeping selling, general, and administrative expenses relatively stable. NAI’s management remains optimistic, projecting a return to profitability by the second half of fiscal 2026 due to ongoing growth strategies and expanding customer relationships.
As of September 30, 2025, NAI reported a solid cash position of $7.7 million and working capital of $31.2 million. NAI's CEO, Mark A. Le Doux, emphasized the company's strategies aimed at achieving sustainable profitability and highlighted the importance of their new product offerings in meeting market demands, amid the evolving landscape in healthcare treatments for obesity and diabetes. The investor presentation is available on their website for those seeking more detailed insights.
MWN-AI** Analysis
Natural Alternatives International, Inc. (NAII) is showing signs of recovery, with net sales increasing to $37.7 million in Q1 2026, up 13.8% from the previous year. This uptick, alongside a significant reduction in net loss to $0.3 million from $2.0 million, suggests that the company’s strategic initiatives are beginning to take effect. Notably, the substantial growth in private-label contract manufacturing sales indicates that NAI is not only retaining but also expanding its customer base, highlighting its potential for sustainable revenue.
However, the significant decrease in CarnoSyn® royalty and licensing revenue, which dropped by 33.9%, raises concerns. The variability in this segment suggests a reliance on specific products that may need diversification to avoid future revenue fluctuations. The introduction of the new TriBsyn™ product offers a promising avenue to mitigate this risk, particularly as it targets an expanding demographic focused on health amid ongoing healthcare revolutions concerning obesity and diabetes treatments.
From a financial health perspective, NAI’s cash reserves of $7.7 million in combination with a solid working capital position of $31.2 million are encouraging, especially given their minimized debt levels (only $2.5 million borrowed against a $10 million line of credit). The management's outlook for a return to net profitability in the second half of fiscal 2026 should be weighed against the inherent risks mentioned, particularly those associated with raw material supply chain disruptions.
Investors should consider NAI as a potential buy, particularly in anticipation of profitability in H2 2026 and in recognition of the growing demand for supportive nutritional products. However, monitoring the performance of their licensing agreements and new product offerings will be essential to gauge long-term sustainability and growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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**
How does Natural Alternatives International Inc. (NAII) plan to improve its CarnoSyn® beta-alanine sales following the 33.9% decline in revenue reported for the first quarter of fiscal 2026?
What strategies is Natural Alternatives International Inc. (NAII) implementing to expand its customer base amidst rising operational costs?
Given the significant inventory increase at Natural Alternatives International Inc. (NAII), how does the company plan to manage supply chain disruptions as sales forecast grows?
What specific actions will Natural Alternatives International Inc. (NAII) take to ensure a net income for the full fiscal year 2026 after projecting a net loss in the first half?
**MWN-AI FAQ is based on asking OpenAI questions about Natural Alternatives International Inc. (NASDAQ: NAII).
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