--- title: "NATURAL ALTERNATIVES INTERNATIONAL INC SEC 10-Q Report" type: "News" locale: "en" url: "https://longbridge.com/en/news/275945661.md" description: "Natural Alternatives International Inc. (NAI) has released its Form 10-Q report for Q2 FY 2026, highlighting a 2% increase in total net sales to $34.8 million and a 49% rise in gross profit to $2.5 million. Despite a net loss of $2.6 million, the company improved its loss from operations by 34%. Key developments include the launch of a new product, TriBsyn™, and a focus on operational efficiency. The company anticipates a net loss for FY 2026 but aims to expand its customer base and improve profitability." datetime: "2026-02-13T21:21:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275945661.md) - [en](https://longbridge.com/en/news/275945661.md) - [zh-HK](https://longbridge.com/zh-HK/news/275945661.md) --- # NATURAL ALTERNATIVES INTERNATIONAL INC SEC 10-Q Report Natural Alternatives International Inc. (NAI), a leading provider of private-label contract manufacturing and patent and trademark licensing in the wellness and healthy aging markets, has released its Form 10-Q report for the second quarter of fiscal year 2026. The report outlines the company's financial performance and key business activities, providing insights into its operational efficiency, new product launches, and future outlook. **Financial Highlights** - **Total Net Sales**: $34.8 million, increased by 2% compared to the same period last year, driven by increased orders from existing and new customers. - **Gross Profit**: $2.5 million, representing a 49% increase from the prior year, primarily due to improved factory utilization and favorable product sales mix. - **Loss from Operations**: $(1.8) million, a 34% improvement from the prior year, attributed to increased sales volume and reduced selling, general, and administrative expenses. - **Net Loss**: $(2.6) million, increased by 17% compared to the prior year, impacted by foreign currency exchange losses and a Swiss withholding tax. - **Basic Net Loss Per Common Share**: $(0.42), reflecting the net loss for the period. **Business Highlights** - **Revenue Segments**: The company operates in two main segments: private-label contract manufacturing and patent and trademark licensing. Private-label contract manufacturing sales increased by 2% in the three months and 9% in the six months ended December 31, 2025, driven by increased orders from existing and new customers. Patent and trademark licensing revenue increased by 13% in the three months but decreased by 15% in the six months ended December 31, 2025, primarily due to fluctuations in raw material orders and royalty income. - **New Product Launches**: The company launched a new product called TriBsyn™, a carnosine booster that enhances beta-alanine bioavailability and absorption while eliminating related paresthesia. This product is aimed at expanding the company's reach in the Wellness and Healthy Aging markets. - **Operational Efficiency**: The company focused on improving operational efficiencies and managing costs to enhance profitability. This includes leveraging state-of-the-art facilities to increase the value of services provided to private-label contract manufacturing customers. - **Future Outlook**: The company anticipates a net loss for the full fiscal year 2026 due to declines in customer forecasted sales and delayed new product launches. However, it plans to continue focusing on expanding its customer base, commercializing its beta-alanine patent estate, and improving operational efficiencies. - **Geographical Performance**: The company sources multiple raw materials from Israel, and while geopolitical tensions are being monitored, they are not expected to significantly impact net sales. The company is evaluating alternative ingredient sources to mitigate potential impacts. - **Sales Units**: The company experienced increased sales volumes, which improved factory utilization and contributed to a higher gross profit margin. This was primarily due to increased orders from existing and new customers. - **New Production Initiatives**: The company installed solar energy generation equipment on its manufacturing facilities, reflecting an investment in sustainable production capabilities. - **Customer Concentration**: Revenue concentration for the largest private-label contract manufacturing customer was 31% for the six months ended December 31, 2025, compared to 34% in the prior year. The company expects this concentration to decrease in fiscal 2026. SEC Filing: NATURAL ALTERNATIVES INTERNATIONAL INC \[ NAII \] - 10-Q - Feb. 13, 2026 ### Related Stocks - [NAII.US](https://longbridge.com/en/quote/NAII.US.md) ## Related News & Research - [LIVE MARKETS-Life after the Fed put](https://longbridge.com/en/news/294717422.md) - [Bitcoin Holders Lose $88,600,000 in Coldcard Crypto Wallet Exploit: Galaxy Researchers](https://longbridge.com/en/news/294653457.md) - [ROI-OPEC+ oil output hike is irrelevant for now, not for later: Russell](https://longbridge.com/en/news/294620367.md) - [What's Wrong With Micron Technology Stock?](https://longbridge.com/en/news/294710998.md) - [ARM Stock: A $1 Billion AGI CPU Opportunity Could End Up Being Much Bigger Than Wall Street Expects](https://longbridge.com/en/news/294711660.md)