Revenue: As of FY2026 Q2, the actual value is USD 34.8 M.

EPS: As of FY2026 Q2, the actual value is USD -0.42.

EBIT: As of FY2026 Q2, the actual value is USD -1.623 M.

Segment Revenue

• Three Months Ended December 31, 2025
  • Private-label contract manufacturing net sales were $32,804 thousand, a 2% increase compared to the prior year.
  • Patent and trademark licensing net sales were $1,991 thousand, a 13% increase compared to the prior year.
  • Total net sales were $34,795 thousand.
• Six Months Ended December 31, 2025
  • Private-label contract manufacturing net sales were $68,869 thousand, a 9% increase compared to the prior year.
  • Patent and trademark licensing net sales were $3,656 thousand, a 15% decrease compared to the prior year.
  • Total net sales were $72,525 thousand.

Operational Metrics

• Gross Profit
  • Gross profit was $2,491 thousand (7.2% of net sales) for the three months ended December 31, 2025, and $6,888 thousand (9.5% of net sales) for the six months ended December 31, 2025.
  • This represents a 49% increase and a 75% increase for the three and six months, respectively, compared to the prior year periods.
  • Private-label contract manufacturing gross profit margin as a percentage of consolidated net sales increased 2.7 percentage points for the three months and 4.7 percentage points for the six months ended December 31, 2025.
  • Patent and trademark licensing gross profit margin as a percentage of consolidated net sales decreased 0.4 percentage points for the three months and 1.0 percentage points for the six months ended December 31, 2025.
• Selling, General and Administrative (SG&A) Expenses
  • SG&A expenses decreased approximately $0.1 million (-2%) to $4,338 thousand for the three months ended December 31, 2025, and decreased approximately $0.1 million (-1%) to $8,451 thousand for the six months ended December 31, 2025.
• Loss from Operations
  • Loss from operations was -$1,847 thousand for the three months ended December 31, 2025, and -$1,563 thousand for the six months ended December 31, 2025.
  • For the six months, private-label contract manufacturing generated $1,627 thousand in income from operations, patent and trademark licensing generated $1,281 thousand, and corporate expenses resulted in a -$4,471 thousand loss.
• Net Loss
  • Net loss was -$2,553 thousand for the three months ended December 31, 2025, and -$2,844 thousand for the six months ended December 31, 2025.
• Other Expenses, Net
  • Other expense, net increased $0.4 million for the three months and $0.3 million for the six months ended December 31, 2025.
• Provision (Benefit) for Income Taxes
  • The provision for income taxes was an expense of $0.2 million for the three months, compared to a benefit of -$0.7 million in the prior year.
  • For the six months, the provision was an expense of $0.3 million, compared to a benefit of -$1.1 million in the prior year.

Cash Flow

• Net Cash Used in Operating Activities
  • Net cash used in operating activities was -$10,353 thousand for the six months ended December 31, 2025, compared to -$3,406 thousand in the comparable prior year period.
  • Changes in accounts receivable used -$3,119 thousand in cash, and changes in inventory used -$8,562 thousand in cash.
  • Changes in accounts payable and accrued liabilities provided $861 thousand in cash.
• Net Cash Used in Investing Activities
  • Net cash used in investing activities was -$1,964 thousand for the six months ended December 31, 2025, an increase from -$1,357 thousand in the prior year.
• Net Cash Provided by Financing Activities
  • Net cash provided by financing activities was $3,745 thousand for the six months ended December 31, 2025, compared to $1,445 thousand in the prior year.

Unique Metrics

• Patent and Trademark Licensing Revenue
  • Beta-alanine raw material sales, and royalty and licensing income totaled $2.0 million for the three months and $3.7 million for the six months ended December 31, 2025.
  • Royalty expense as a component of cost of goods sold was approximately $55,000 for the three months and $121,000 for the six months ended December 31, 2025.
• Customer Concentration
  • Revenue concentration for the largest private-label contract manufacturing customer was 31% of total net sales for the six months ended December 31, 2025, down from 34% in the prior year period.
  • Net sales to the top three customers totaled $20,833 thousand for the three months and $43,949 thousand for the six months ended December 31, 2025.
  • Accounts receivable from these customers totaled $12.6 million at December 31, 2025.
• Supplier Concentration
  • Raw material purchases from Supplier 1 amounted to $3,017 thousand for the three months and $4,444 thousand for the six months ended December 31, 2025.
• Stock-Based Compensation
  • Stock-based compensation expense was $0.2 million for the three months and $0.4 million for the six months ended December 31, 2025.
• Depreciation and Amortization
  • Depreciation and amortization expense was approximately $1.1 million for the three months and $2.3 million for the six months ended December 31, 2025.
• Capital Expenditures
  • Capital expenditures were $934 thousand for the three months and $1,964 thousand for the six months ended December 31, 2025.

Future Outlook and Strategy

Natural Alternatives International, Inc. aims for long-term growth by diversifying its private-label contract manufacturing customer base and commercializing its patent estate, while continuing to invest in R&D for its CarnoSyn® product offerings, including SR CarnoSyn® and the new TriBsyn™. The company anticipates a net loss for the second half of fiscal 2026 and the full fiscal year due to expected declines in customer forecasted sales and delayed new product launches. Natural Alternatives International, Inc. is also seeking an additional waiver for covenant non-compliance from Wells Fargo and is actively looking for a new asset-based lender to increase borrowing capacity and flexibility.