Natural Alternatives 2025 Q4 Earnings Wider Losses Amid Revenue Growth

Natural Alternatives International (Nasdaq: NAII) reported its fiscal 2025 Q4 earnings on September 23, 2025, with a significant increase in losses despite strong revenue growth. The results missed profit expectations, and while the company provided guidance for a turnaround in fiscal 2026, no near-term profit is expected in the first half of the year.

Revenue
Natural Alternatives reported total revenue of $33.87 million for the fourth quarter of fiscal 2025, reflecting a 14.8% year-over-year increase from $29.49 million in the same period of 2024. The growth was primarily driven by a 15% rise in private-label contract manufacturing sales to $31.8 million. This increase was supported by higher orders from existing clients and new customers, although partially offset by reduced orders from one larger account. Additionally, CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue rose 14% year-over-year to $2.1 million, bolstered by increased raw material sales and royalty income.

Earnings/Net Income
Despite the revenue growth, Natural Alternatives recorded a net loss of $7.22 million, or $1.17 per diluted share, in Q4 2025, representing a 285.1% increase in losses compared to a $1.87 million, or $0.30 per share, loss in Q4 2024. The wider loss was heavily influenced by non-cash charges, including a $4.8 million valuation allowance on deferred tax assets and a $1.4 million litigation settlement. On an adjusted basis, excluding these charges, the net loss would have been $1.0 million. The company’s earnings performance was notably negative, with a substantial deterioration in both EPS and net income.

Price Action
The stock price of Natural Alternatives experienced a decline of 5.12% on the latest trading day and fell by 0.10% during the most recent full trading week. Over the past month, the stock has dropped 21.00%, reflecting investor concerns about the company’s profitability and guidance.

Post-Earnings Price Action Review
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI, acknowledged that non-cash charges and a litigation settlement negatively impacted the fourth quarter and fiscal 2025 results. However, he emphasized the positive momentum in revenue growth and the emergence of “green shoots” in renewed customer relationships. The company remains focused on expanding client bases, diversifying distribution channels, and improving operational efficiency. While NAI expressed cautious optimism for profitability in fiscal 2026, the CEO highlighted the importance of maintaining balance sheet strength and promoting the benefits of its flagship product, TriBsyn™, to support long-term growth.

CEO Commentary
Mark A. Le Doux, CEO of Natural Alternatives, commented that the fourth quarter of fiscal 2025 was disappointing due to non-cash charges related to deferred tax assets and a litigation settlement. However, the company has observed encouraging growth in new and existing customer relationships, and the team remains committed to enhancing revenue and profitability through client expansion, channel diversification, and operational improvements. The CEO also emphasized the company's ongoing research and promotion of TriBsyn™, a high-bioavailability form of CarnoSyn® beta-alanine, to address key health concerns in aging demographics and support long-term market differentiation.

Guidance
Natural Alternatives expects a net loss in the first half of fiscal 2026, followed by net income in the second half and for the full fiscal year. Although the company anticipates a significant increase in sales compared to fiscal 2025, no specific revenue targets were provided. Management remains focused on expanding client relationships, enhancing revenue streams, and maintaining balance sheet integrity to achieve future profitability.

Additional News
On September 23, 2025, Natural Alternatives International, Inc. announced its fiscal 2025 fourth-quarter results, with a net loss of $7.2 million, or $1.20 per diluted share, on net sales of $33.9 million, compared to a net loss of $1.9 million, or $0.32 per diluted share, in the prior fiscal year. The loss included non-recurring non-cash charges of $1.4 million related to a litigation settlement and a $4.8 million valuation allowance on deferred tax assets. For the fiscal year 2025, the company reported a net loss of $13.6 million, or $2.28 per diluted share, compared to a loss of $7.2 million, or $1.23 per diluted share, in the prior fiscal year. Management highlighted the need to address underutilized factory capacity and anticipated a net loss in the first half of fiscal 2026 before turning to net income in the second half.