Natural Alternatives International, Inc. Announces 2026 Q2 and YTD Results

CARLSBAD, Calif., Feb. 13, 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 $2.6 million, or $0.42 per diluted share, on net sales of $34.8 million for the second quarter of fiscal year 2026 compared to a net loss of $2.2 million, or $0.37 per diluted share, in the second quarter of the prior fiscal year.

Net sales during the three months ended December 31, 2025, increased $0.7 million, or 2%, to $34.8 million as compared to $34.1 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 2% to $32.8 million. Private-label contract manufacturing sales increased primarily due to increased orders from several of our existing customers and shipments to new customers, partially offset by decreased shipments to other existing customers.

CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue increased 13% to $2.0 million during the second quarter of fiscal year 2026, as compared to $1.8 million for the second quarter of fiscal year 2025. The increase was primarily due to increased raw material orders from existing customers partially offset by a decrease in royalty and licensing revenue.

Our net loss for the six months ended December 31, 2025, was $2.8 million, or $0.47 per diluted share, compared to a net loss of $4.2 million, or $0.70 per diluted share, for the six months ended December 31, 2024.

Net sales during the six months ended December 31, 2025, increased $5.3 million, or 8%, to $72.5 million as compared to $67.2 million recorded in the comparable prior year period. During the six months ended December 31, 2025, private-label contract manufacturing sales increased 9% to $68.9 million, as compared to $62.9 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 15% to $3.7 million during the first six months of fiscal 2026, as compared to $4.3 million for the first six months of fiscal 2025.

While we grew our net sales, expanded our gross margins and reduced selling, general and administrative costs during the three and six months ended December 31, 2025, we experienced a loss from operations during the first six months of fiscal 2026 primarily due to underutilization of our factory capacities. The improvement in gross profit is primarily related to increased new and existing customer sales that also drove improved factory utilization. Although we anticipate we will increase our sales revenue during the remaining two quarters of fiscal 2026 as compared to the prior year periods and the first half of this year, we now believe that we will experience a net loss in the second half of fiscal 2026, and a net loss for the full fiscal 2026 year due to reductions in several of our customer's forecasted sales along with delayed new product launches.

As of December 31, 2025, we had cash of $3.8 million and working capital of $28.7 million, compared to $12.3 million and $30.5 million respectively, as of June 30, 2025. As of December 31, 2025, we had $10.0 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $5.8 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "NAI is experiencing some disappointments in the ability to accurately forecast demand from several clients engaged in the multi-level marketing and direct selling channels of commerce, in China, Europe and in some cases North America.  We believe that efforts are underway by our clients to rectify these challenges by introducing new products and reinvigorating their sales efforts in these various markets.  Other sales channels of our business are growing, and we are seeing this as well in large retailer environments, warehouse stores and through internet-based sales direct to consumers.

While we assist our direct selling customer base with their sales and inventory modification efforts, we are also diligently managing our cost and expenses during this challenging environment.  We continue to focus on the expansion of acceptance of our CarnoSyn® patent estate with the introduction of the highly bioavailable and beneficial form of beta-alanine in our patent pending TriBsyn^TM molecule which has demonstrated the capability of delivering 4 times the effectiveness of instant release beta-alanine with lower dosing and resulting absence of paresthesia.  As the weight loss phenomenon attributed to utilization of GLP-1 and related metabolic indicators continues to grow, the opportunity to provide TriBsyn^TM and SR CarnoSyn® to retard or prevent the onset of muscle wasting attributed to reduced caloric and protein intake of those utilizing GLP-1 medications is significant.  This is also an essential compound for use in nutritional supplementation of the elderly to support age-based sarcopenia.  We remain committed to expanding the adoption of this scientifically revolutionary molecule."

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 [email protected].

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														Six Months Ended
	December 31,														December 31,
		2025							2024							2025							2024
NET SALES	$	34,795			100.0	%		$	34,078			100.0	%		$	72,525			100.0	%		$	67,228			100.0	%
Cost of goods sold		32,304			92.8	%			32,409			95.1	%			65,637			90.5	%			63,300			94.2	%
Gross profit		2,491			7.2	%			1,669			4.9	%			6,888			9.5	%			3,928			5.8	%
Selling, general & administrative expenses		4,338			12.5	%			4,449			13.1	%			8,451			11.7	%			8,544			12.7	%
LOSS FROM OPERATIONS		(1,847	)		-5.3	%			(2,780	)		-8.2	%			(1,563	)		-2.2	%			(4,616	)		-6.9	%
Other expense, net		(482	)		-1.4	%			(86	)		-0.3	%			(965	)		-1.3	%			(663	)		-1.0	%
LOSS BEFORE TAXES		(2,329	)		-6.7	%			(2,866	)		-8.4	%			(2,528	)		-3.5	%			(5,279	)		-7.9	%
Income tax provision (benefit)		224							(675	)						316							(1,106	)
NET LOSS	$	(2,553	)					$	(2,191	)					$	(2,844	)					$	(4,173	)
NET LOSS PER COMMON SHARE:
Basic:	($	0.42	)					($	0.37	)					($	0.47	)					($	0.70	)
Diluted:	($	0.42	)					($	0.37	)					($	0.47	)					($	0.70	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		6,008							5,921							6,007							5,920
Diluted		6,008							5,921							6,007							5,920

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	(unaudited)
	December 31,			June 30,
		2025			2025
ASSETS
Cash and cash equivalents	$	3,753		$	12,325
Accounts receivable, net		17,763			14,644
Inventories, net		33,433			24,871
Other current assets		6,567			7,436
Total current assets		61,516			59,276
Property and equipment, net		51,258			50,890
Operating lease right-of-use assets		39,778			41,054
Other noncurrent assets, net		749			719
Total Assets	$	153,301		$	151,939
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities		24,548			24,483
Line of Credit		5,802			1,900
Mortgage note payable		8,781			8,933
Operating lease liability		47,124			48,197
Total Liabilities		86,255			83,513
Stockholders' Equity		67,046			68,426
Total Liabilities and Stockholders' Equity	$	153,301		$	151,939