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Natural Alternatives International, Inc. Announces Fiscal 2027 Q1 Results

News originally published by

GlobeNewswire

CARLSBAD, Calif., Nov. 13, 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 $2.5 million, or ($0.41) per diluted share, on net sales of $28.1 million for the first quarter of fiscal year 2027 compared to a net loss of $0.3 million, or ($0.05) per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2026, decreased $9.6 million, or 25.5%, to $28.1 million compared to $37.7 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 29.1% to $25.6 million. Our Private-label contract manufacturing sales decreased primarily due to decreased orders from several of our larger customers associated with excess inventory positions and delayed product launches, partially offset by orders from new customer product launches.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 54.0% to $2.6 million during the first quarter of fiscal year 2027, as compared to $1.7 million for the first quarter of fiscal year 2026. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the first quarter of fiscal 2027 was primarily due to an increase in TriBsyn® product sales, partially offset by a decrease in instant release CarnoSyn® raw material sales.

We experienced a loss from operations during the three months ending September 30, 2026, primarily due to decreased sales volume in our private-label contract manufacturing segment which led to lower gross margins because of reduced factory capacity utilization. This operating loss was partially offset by lower selling, general and administrative costs primarily due to a decrease in employee compensation expense.

In an effort to improve our manufacturing capacity utilization, improve profitability and reduce operating costs, we have consolidated the majority of our U.S. production operations into our Vista, CA. manufacturing facility and have begun the process to sell 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 September 30, 2026, we had cash, cash equivalents and restricted cash of $6.7 million and working capital of $14.7 million, compared to $7.5 million and $27.7 million respectively, as of June 30, 2026. As of September 30, 2026, we had $11.8 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $6.3 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While the results of this past quarter have been very disappointing, the recent reticence to meet forecast commitments by several customers, which significantly contributed to the quarter's poor sales performance, has begun to subside. Recent meetings with current and prospective clients have encouraged us to expand our research and formulation efforts to include combinations of CarnoSyn® with various popular peptides, showing promise in supporting human health. We also are actively reviewing our options to improve our manufacturing architecture, overhead absorption, and liquidity.

We remain committed to right sizing the U.S. facilities to meet the needs of our current and prospective clients, as we also continue to promote the wide adoption of our IP estate in new applications."

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, or otherwise address our overcapacity, and increase 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    
  September 30,    
    2026           2025      
NET SALES $ 28,121     100.0 %   $ 37,730     100.0 %
Cost of goods sold   26,855     95.5 %     33,333     88.3 %
Gross profit   1,266     4.5 %     4,397     11.7 %
               
Selling, general & administrative expenses   3,848     13.7 %     4,113     10.9 %
               
(LOSS) INCOME FROM OPERATIONS   (2,582 )   -9.2 %     284     0.8 %
               
Other expense, net   (162 )   -0.6 %     (483 )   -1.3 %
LOSS BEFORE TAXES   (2,744 )   -9.8 %     (199 )   -0.5 %
               
Income tax (benefit) expense   (265 )         92      
               
NET LOSS $ (2,479 )       $ (291 )    
               
               
NET LOSS PER COMMON SHARE:              
Basic: ($ 0.41 )       ($ 0.05 )    
               
Diluted: ($ 0.41 )       ($ 0.05 )    
               
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:              
Basic   6,075           6,007      
Diluted   6,075           6,007      
               


   
NATURAL ALTERNATIVES INTERNATIONAL, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
         
         
  September 30,   June 30,  
    2026     2026  
  (Unaudited)      
ASSETS        
Cash and cash equivalents $ 6,485   $ 7,388  
Restricted cash   258     86  
Accounts receivable, net   12,426     20,650  
Inventories, net   28,165     30,753  
Other current assets   6,968     6,557  
Total current assets   54,302     65,434  
Property and equipment, net   35,326     35,605  
Operating lease right-of-use assets   23,669     24,062  
Other noncurrent assets, net   1,234     1,345  
Total Assets $ 114,531   $ 126,446  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Accounts payable and accrued liabilities $ 19,845   $ 26,514  
Line of Credit   6,273     7,749  
Mortgage note payable   10,755     10,939  
Operating lease liability   30,468     31,285  
Total Liabilities   67,341     76,487  
Stockholders’ Equity   47,190     49,959  
Total Liabilities and Stockholders’ Equity $ 114,531   $ 126,446  

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