Natural Alternatives International Reports Q4 Net Loss of $7.2M, Net Sales of $33.9M

Natural Alternatives International reported a net loss of $7.2 million, or ($1.20) per diluted share, on net sales of $33.9 million for Q4 of fiscal 2025, compared to a net loss of $1.9 million in the prior year. Excluding non-recurring charges, the net loss would have been $1.0 million. Net sales increased 15% to $33.9 million, with private-label contract manufacturing sales up 15% to $31.8 million. The company's net loss for fiscal 2025 was $13.6 million, or ($2.28) per diluted share.

Natural Alternatives International (NASDAQ: NAII), a nutritional supplements manufacturer, reported a challenging fourth quarter (Q4) fiscal 2025, with a net loss of $7.2 million, or $1.20 per diluted share, on net sales of $33.9 million. This compares to a net loss of $1.9 million in Q4 2024. Excluding non-recurring charges, the adjusted net loss would have been approximately $1.0 million, indicating operational improvements despite ongoing challenges Natural Alternatives International, Inc. Announces Fiscal 2025 Q4 and YTD Results^[1].

Despite the net loss, Q4 net sales increased 15% to $33.9 million, with private-label contract manufacturing sales up 15% to $31.8 million and CarnoSyn® beta-alanine sales increasing 14% to $2.1 million. For full fiscal 2025, net sales grew 14% to $129.9 million, though the company recorded a net loss of $13.6 million, or $2.28 per diluted share, compared to a $7.2 million loss in 2024 Natural Alternatives International, Inc. Announces Fiscal 2025 Q4 and YTD Results^[1].

The primary challenges faced by the company were underutilization of factory capacity, tax valuation allowances, and litigation costs. Gross margin improved to 10.4% in Q4 2025 from 4.8% in Q4 2024, indicating better operational efficiency. Management's guidance is cautiously optimistic, projecting continued losses in the first half of fiscal 2026 but returning to profitability in the second half and for the full year, driven by anticipated significant sales growth and improved capacity utilization Natural Alternatives International, Inc. Announces Fiscal 2025 Q4 and YTD Results^[1].

As of June 30, 2025, NAII maintained $12.3 million in cash and $30.5 million in working capital, with $8 million in unused borrowing capacity. The company's liquidity position remains stable, though working capital decreased from $38.1 million in 2024 to $30.5 million in 2025 Natural Alternatives International, Inc. Announces Fiscal 2025 Q4 and YTD Results^[1].

The company's CEO, Mark A. Le Doux, 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” Natural Alternatives International, Inc. Announces Fiscal 2025 Q4 and YTD Results^[1].