1. NAI reported a net loss of $7.2 million for Q4 2025. 2. Sales increased 15% YoY to $33.9 million due to contract manufacturing. 3. CarnoSyn® revenue rose 14% to $2.1 million in Q4 2025. 4. Fiscal 2026 forecasts expect improved sales and profitability. 5. The company had $12.3 million in cash as of June 30, 2025.
NAI's significant losses and litigation costs overshadow revenue growth, similar to past downturns.
The reported losses and cash position indicate risk, but revenue growth shows potential.
Expected continued losses in early FY 2026 could pressure short-term investor sentiment.
CARLSBAD, Calif., Sept. 23, 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 $7.2 million, or ($1.20) per diluted share, on net sales of $33.9 million for the fourth quarter of fiscal year 2025 compared to a net loss of $1.9 million, or ($0.32) per diluted share, in the fourth quarter of the prior fiscal year. Our net loss for the fourth quarter of fiscal 2025 included non-recurring non-cash charges of $1.4 million related to the settlement of a litigation matter and a $4.8 million valuation allowance against our net deferred tax assets. Excluding these charges, our net loss for the fourth quarter of fiscal 2025 would have been $1.0 million.
Net sales during the three months ended June 30, 2025, increased $4.4 million, or 15%, to $33.9 million compared to $29.5 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 15% to $31.8 million. Private-label contract manufacturing sales increased primarily due to increased orders from several of our existing customers and orders from new customers, partially offset by reduced orders from one of our larger customers.
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 14% to $2.1 million during the fourth quarter of fiscal year 2025, as compared to $1.8 million for the fourth quarter of fiscal year 2024. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the fourth quarter of fiscal 2025 was primarily due to increased raw material sales to existing customers and royalty income.
Our net loss for fiscal year 2025 was $13.6 million, or ($2.28) per diluted share, compared to a net loss of $7.2 million, or ($1.23) per diluted share, for fiscal year 2024. Our net loss for fiscal 2025 included non-recurring non-cash charges of $1.4 million related to the settlement of a litigation matter and a $4.8 million valuation allowance against our net deferred tax assets. Excluding these charges, our net loss for fiscal 2025 would have been $7.4 million.
Net sales during the year ended June 30, 2025, increased $16.1 million, or 14%, to $129.9 million as compared to $113.8 million recorded in the comparable prior year period. During the year ended June 30, 2025, private-label contract manufacturing sales increased 16% to $121.8 million, as compared to $105.4 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 4% to $8.1 million during the fiscal 2025, as compared to $8.4 million for fiscal 2024.
While we grew sales during the three and twelve months ended June 30, 2025, we experienced a net loss primarily due to underutilization of our available factory capacities, a valuation allowance against our domestic net deferred income tax assets and the accrual of a litigation settlement. Although our overall sales forecast for fiscal 2026 includes a significant increase in sales as compared to fiscal 2025, we currently anticipate 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 June 30, 2025, we had cash of $12.3 million and working capital of $30.5 million, compared to $12.0 million and $38.1 million respectively, as of June 30, 2024. As of June 30, 2025, we had $9.9 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $1.9 million.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "The results achieved in our final quarter of fiscal year 2025 were negatively impacted by non-cash charges associated with accounting treatment of deferred tax assets and a litigation settlement, however, the net results were still a disappointment. The fourth quarter and fiscal 2025 showed increases in revenues and our preliminary outlook for this next fiscal year shows some ‘green shoots' emerging in renewed growth in current and new customer relationships. Our team remains focused on client expansion, channel diversity and process improvements to increase revenues and profitability. We remain hopeful we will emerge from fiscal year 2026 profitable with expanded client relationships and revenues. We continue to focus our attention on adoption of the remarkable benefits associated with our highly bio-available form of CarnoSyn® beta-alanine known as TriBsyn™ and continue our human research in various settings around the world to bolster scientific support for this remarkable molecule – especially in light of the concerns associated with the millions of global consumers utilizing pharmaceutical agents to control weight. This molecule also addresses key concerns for addressing good health in the aging demographics by addressing issues like sarcopenia, mental function, skeletal integrity, cardiovascular function and immune responses to external challenges. We remain committed to maintaining the integrity of our balance sheet in our renewed dedication to secure profits in the near future."
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 – 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 | Year Ended | ||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| NET SALES | $ | 33,866 | 100.0 | % | $ | 29,489 | 100.0 | % | $ | 129,860 | 100.0 | % | $ | 113,796 | 100.0 | % | |||||||||||
| Cost of goods sold | 30,331 | 89.6 | % | 28,070 | 95.2 | % | 120,571 | 92.8 | % | 106,931 | 94.0 | % | |||||||||||||||
| Gross profit | 3,535 | 10.4 | % | 1,419 | 4.8 | % | 9,289 | 7.2 | % | 6,865 | 6.0 | % | |||||||||||||||
| Other selling, general & administrative expenses | 4,079 | 12.0 | % | 3,944 | 13.4 | % | 16,549 | 12.7 | % | 15,399 | 13.5 | % | |||||||||||||||
| Settlement of legal proceedings & associated expense | 1,400 | 4.1 | % | 0.0 | % | 1,400 | 1.1 | % | 0.0 | % | |||||||||||||||||
| Selling, general & administrative expenses | 5,479 | 3,944 | 17,949 | 15,399 | |||||||||||||||||||||||
| LOSS FROM OPERATIONS | (1,944 | ) | -5.7 | % | (2,525 | ) | -8.6 | % | (8,660 | ) | -6.7 | % | (8,534 | ) | -7.5 | % | |||||||||||
| Other (expense), net | (875 | ) | -2.6 | % | (256 | ) | -0.9 | % | (2,080 | ) | -1.6 | % | (930 | ) | -0.8 | % | |||||||||||
| LOSS BEFORE TAXES | (2,819 | ) | -8.3 | % | (2,781 | ) | -9.4 | % | (10,740 | ) | -8.3 | % | (9,464 | ) | -8.3 | % | |||||||||||
| Income tax expense (benefit) | 4,397 | (907 | ) | 2,835 | (2,247 | ) | |||||||||||||||||||||
| NET LOSS | $ | (7,216 | ) | $ | (1,874 | ) | $ | (13,575 | ) | $ | (7,217 | ) | |||||||||||||||
| NET LOSS PER COMMON SHARE: | |||||||||||||||||||||||||||
| Basic: | $ | (1.20 | ) | $ | (0.32 | ) | $ | (2.28 | ) | $ | (1.23 | ) | |||||||||||||||
| Diluted: | $ | (1.20 | ) | $ | (0.32 | ) | $ | (2.28 | ) | $ | (1.23 | ) | |||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||||||||||
| Basic | 6,003 | 5,916 | 5,947 | 5,871 | |||||||||||||||||||||||
| Diluted | 6,003 | 5,916 | 5,947 | 5,871 | |||||||||||||||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| June 30, | June 30, | ||||
| 2025 | 2024 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 12,325 | $ | 11,981 | |
| Accounts receivable, net | 14,644 | 16,891 | |||
| Inventories, net | 24,871 | 24,249 | |||
| Other current assets | 7,436 | 8,489 | |||
| Total current assets | 59,276 | 61,610 | |||
| Property and equipment, net | 50,890 | 52,211 | |||
| Operating lease right-of-use assets | 41,054 | 43,537 | |||
| Other noncurrent assets, net | 719 | 4,984 | |||
| Total Assets | $ | 151,939 | $ | 162,342 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Accounts payable and accrued liabilities | 24,483 | 19,456 | |||
| Line of Credit | 1,900 | 3,400 | |||
| Mortgage note payable | 8,933 | 9,229 | |||
| Operating lease liability | 48,197 | 47,662 | |||
| Total Liabilities | 83,513 | 79,747 | |||
| Stockholders' Equity | 68,426 | 82,595 | |||
| Total Liabilities and Stockholders' Equity | $ | 151,939 | $ | 162,342 | |
