Full Press Release Details
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 | |||