Full Press Release Details
CARLSBAD, Calif., May 19, 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 $4.3 million, or $0.72 per diluted share, on net sales of $35.5 million for the third quarter of fiscal year 2026 compared to a net loss of $2.2 million, or $0.37 per diluted share, in the third quarter of the prior fiscal year.
Net sales during the three months ended March 31, 2026, increased $6.7 million, or 23%, to $35.5 million as compared to $28.8 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 25% to $33.8 million, primarily due to increased orders from one of our largest customers and shipments to new customers, partially offset by a net decrease in shipments to other existing customers.
CarnoSyn®beta-alanine royalty, licensing and raw material sales revenue were relatively flat at $1.7 million during the third quarter of fiscal year 2026 and fiscal year 2025.
Our net loss for the nine months ended March 31, 2026, was $7.2 million, or $1.19 per diluted share, compared to a net loss of $6.4 million, or $1.07 per diluted share, for the nine months ended March 31, 2025.
Net sales during the nine months ended March 31, 2026, increased $12.0 million, or 13%, to $108.0 million as compared to $96.0 million recorded in the comparable prior year period. During the nine months ended March 31, 2026, private-label contract manufacturing sales increased 14% to $102.7 million, as compared to $90.0 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 11% to $5.3 million during the first nine months of fiscal 2026, as compared to $6.0 million for the first nine months of fiscal 2025.
While we grew our net sales during the three and nine months ended March 31, 2026, as compared to the prior year periods, we experienced a loss from operations due primarily to underutilization of our factory capacities. The growth in net sales is primarily related to increased new and existing private label contract manufacturing customer sales that drove improved factory utilization, partially offset by a decrease in patent and trademark licensing net sales. While we anticipate our sales revenue for the fourth quarter of fiscal 2026 will increase compared to the prior year, we anticipate we will experience a net loss for the fourth quarter and an overall net loss for the full year of fiscal 2026.
As of March 31, 2026, we had cash of $9.2 million and working capital of $24.9 million, compared to $12.3 million and $30.5 million respectively, as of June 30, 2025. As of March 31, 2026, we had $10.0 million outstanding on our line of credit and $8.7 million of debt related to the purchase of our state-of-the art high volume powder blending and packaging facility, both with Wells Fargo.
On May 18, 2026, we entered into a new Loan and Security Agreement with Legacy Corporate Lending, LLC, which replaced our term loan and working capital line with Wells Fargo. This new credit facility includes a new term loan for $11.0 million and a working capital line of credit with a maximum borrowing capacity of $20.0 million, giving us greater flexibility in working capital and covenant requirements to support our anticipated sales growth.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “We remain committed to restoration of profitability and are actively pursuing multiple paths to that objective. As evidenced by our increasing sales, we are focused on enhancing capacity utilization through expansion of our client population, and examining efficiencies in processes and personnel across the company. We continue our research and investment in expanding our CarnoSyn®estate with the launch of TriBsyn®and recently announced CarnoSyn®4x with multiple applications in foods, beverages, powders and supplements. We are beginning to see recognition of TriBsyn among market participants in dietary supplementation as they recognize the value of administering paresthesia free beta-alanine with 4x potency – meaning one needs four times less intake of TriBsyn®or CarnoSyn®4x to achieve beneficial outcomes.
Our new lender and borrowing agreement will permit expansion across all these endeavors as we focus on the goal of revitalizing our performance in the months to come.”
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 athttp://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, as well as current and future economic conditions and the impact of such conditions on our business. 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 orinvestor@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 | Nine Months Ended | ||||||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| NET SALES | $ | 35,482 | 100.0 | % | $ | 28,766 | 100.0 | % | $ | 108,007 | 100.0 | % | $ | 95,994 | 100.0 | % | |||||||||||
| Cost of goods sold | 35,099 | 98.9 | % | 26,940 | 93.7 | % | 100,736 | 93.3 | % | 90,240 | 94.0 | % | |||||||||||||||
| Gross profit | 383 | 1.1 | % | 1,826 | 6.3 | % | 7,271 | 6.7 | % | 5,754 | 6.0 | % | |||||||||||||||
| Selling, general & administrative expenses | 4,397 | 12.4 | % | 3,926 | 13.6 | % | 12,848 | 11.9 | % | 12,470 | 13.0 | % | |||||||||||||||
| LOSS FROM OPERATIONS | (4,014 | ) | -11.3 | % | (2,100 | ) | -7.3 | % | (5,577 | ) | -5.2 | % | (6,716 | ) | -7.0 | % | |||||||||||
| Other expense, net | (229 | ) | -0.6 | % | (542 | ) | -1.9 | % | (1,194 | ) | -1.1 | % | (1,205 | ) | -1.3 | % | |||||||||||
| LOSS BEFORE TAXES | (4,243 | ) | -12.0 | % | (2,642 | ) | -9.2 | % | (6,771 | ) | -6.3 | % | (7,921 | ) | -8.3 | % | |||||||||||
| Income tax provision (benefit) | 68 | (456 | ) | 384 | (1,562 | ) | |||||||||||||||||||||
| NET LOSS | $ | (4,311 | ) | $ | (2,186 | ) | $ | (7,155 | ) | $ | (6,359 | ) | |||||||||||||||
| NET LOSS PER COMMON SHARE: | |||||||||||||||||||||||||||
| Basic: | ($ | 0.72 | ) | ($ | 0.37 | ) | ($ | 1.19 | ) | ($ | 1.07 | ) | |||||||||||||||
| Diluted: | ($ | 0.72 | ) | ($ | 0.37 | ) | ($ | 1.19 | ) | ($ | 1.07 | ) | |||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||||||||||
| Basic | 6,025 | 5,943 | 6,013 | 5,928 | |||||||||||||||||||||||
| Diluted | 6,025 | 5,943 | 6,013 | 5,928 | |||||||||||||||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| (unaudited) | |||||
| March 31, | June 30, | ||||
| 2026 | 2025 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 9,196 | $ | 12,325 | |
| Accounts receivable, net | 20,588 | 14,644 | |||
| Inventories, net | 29,934 | 24,871 | |||
| Other current assets | 4,277 | 7,436 | |||
| Total current assets | 63,995 | 59,276 | |||
| Property and equipment, net | 50,813 | 50,890 | |||
| Operating lease right-of-use assets | 39,130 | 41,054 | |||
| Other noncurrent assets, net | 942 | 719 | |||
| Total Assets | $ | 154,880 | $ | 151,939 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Accounts payable and accrued liabilities | 26,602 | 24,483 | |||
| Line of Credit | 10,000 | 1,900 | |||
| Mortgage note payable | 8,704 | 8,933 | |||
| Operating lease liability | 46,464 | 48,197 | |||
| Total Liabilities | 91,770 | 83,513 | |||
| Stockholders’ Equity | 63,110 | 68,426 | |||
| Total Liabilities and Stockholders’ Equity | $ | 154,880 | $ | 151,939 |