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Natural Alternatives International NAII

Natural Alternatives International is a U.S. based private-label contract manufacturer of nutritional supplements, with production facilities in California and Switzerland.

Ticker
NAII
Headquarters
Carlsbard, California
CEO
Mark Ledoux
IPO year
1987
Sector
Vitamin Contract Manufacturing
Website
nai-online.com
Management
Team & leadership ↗

Notes & Takes

"Subpar business, to say the least. Still, the founder and CEO owns a good chunk of stock and runs the business he started decades ago. Three major customers make up the bulk of revenue so there is customer concentration risk. Contract manufacturing pills is a tough business, let alone done in California.

In Q1 F2026 losses totaled only $300K indicating a return to profitability was within reach. Turned out to be a head fake. Both fiscal Q2 and Q3 had large losses and the stock is now trading at its lowest levels in 20 years.

Their headquarters at 1535 Faraday Avenue Carlsbad is listed for sale as of Sept 17th, listed for $7 mill. The plan is to sell the office space and pay down the debt owed to Legacy Corporate Lending.

They have to either break even or produce modest positive free cash flow in F2027, or they are toast."

Commentary: September 2026

Company Financials

Open the Google Sheet ↗

Quarterly Headlines

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Natural Alternatives International Q3 Fiscal 2026

Mar 31, 2026

  • Net loss of $4.3 million or $0.72 per diluted share vs. a loss of $2.2 million last year
  • Sales increased 23% due to private label contract manufacturing
  • Caro Syn Beta alanine royalty were flat at $1.7 million
  • Total net loss of $7.2 million for the first 9 months
  • Net sales for the first 9 months are up 13%
  • We are experiencing a loss due to the underutilization of our factory
  • We expect a net loss for the fourth quarter
  • $9.2 mill in cash, $10 mill outstanding on the line of credit and $8.7 mill outstanding on the mortgage
  • In May we replaced Wells Fargo with Legacy Corporate Lending getting a new term loan for $11 million and line of credit up to $20 million

Natural Alternatives International Q2 Fiscal 2026

Dec 31, 2025

  • Net loss of $2.6 million
  • Net sales up 2% to $34.8 million
  • $3.8 million in cash with $5.8 million in borrowings on credit line
  • $2.5 million loss before taxes for the first 6 months of fiscal 2026
  • Guiding for a full year loss in 2026

Natural Alternatives International Q1 Fiscal 2026

Sep 30, 2025

  • Net loss of $300K
  • Sales of $37.7 million up 13.8%
  • CaroSyn licensing sales down 33% to $1.7 million
  • We expect a positive net income for full year fiscal 2026 with a net loss the first half
  • $2.5 mill outstanding on the line of credit with cash of $7.7 million
  • Our focus to return to sustainable profitability has never been clearer, as we continue our efforts at expanding our client relationships.

Natural Alternatives International Q4 Fiscal 2025

Jun 30, 2025

  • Net loss of $7.2 million which includes a $1.4 million litigation expense and a $4.8 million valuation allowance against net deferred tax assets. Without those charges the net loss for Q4 was $1 million
  • Sales up 15%
  • While sales grew during Q4 and fiscal 2025 we experience a net loss due to underutilization of our available factory capacities
  • We anticipate we will experience a net loss in the first half of 2026, net income in the second half of 2026, and net income for the full year of 2026

Natural Alternatives International Q3 Fiscal 2025

Mar 31, 2025

  • Net loss of $2.2 million
  • Net sales increased 14% to $28.8 million from increases in private label manufacturing orders from existing customers
  • Carosyn royalty revenue decreased 36%
  • Net loss for the first 9 months was $6.4 million
  • We continue to experience losses due to the under capacity of our manufacturing facilities
  • Cash of $10.6 million with $2 million drawn on the line of credit
  • Gross profit margin of 6.3% vs. 7.6% same period last year

Natural Alternatives International Q2 Fiscal 2025

Dec 31, 2024

  • Net loss of $2.2 million
  • Sales of $34.1 million up 35% YoY
  • Carosyn royalty revenue decreased by 18%
  • Net loss for the first 6 months was $4.2 million
  • $8.7 million in cash and $5 million in borrowings

Natural Alternatives International Q1 Fiscal 2025

Sep 30, 2024

  • Net loss of $2 million
  • Sales decreased 2.4%
  • Carosyn royalty revenue increased 41%
  • $10 million in cash and $5 million outstanding on the credit line