Natural Alternatives International Posts 23% Sales Rise and Q3 $4.3M Loss
Natural Alternatives International posted a Q3 net loss of $4.3 million (-$0.72 per share) on a 23% sales increase to $35.5 million, driven by a 25% jump in private-label manufacturing revenue. The company secured an $11.0 million term loan and $20.0 million credit line while forecasting a full-year net loss.
1. Q3 Financial Results
Natural Alternatives International reported a third-quarter net loss of $4.3 million, or $0.72 per diluted share, on net sales of $35.5 million, representing a 23% increase from $28.8 million in the prior-year quarter. Private-label contract manufacturing revenue rose 25% to $33.8 million, while CarnoSyn beta-alanine revenue held steady at $1.7 million.
2. YTD Performance and Sales Drivers
Through the first nine months of fiscal 2026, net sales climbed 13% to $108.0 million, driven by a 14% increase in private-label manufacturing sales to $102.7 million. CarnoSyn royalty, licensing, and raw material revenue declined 11% to $5.3 million, and the nine-month net loss widened to $7.2 million, or $1.19 per share.
3. Liquidity and Financing
As of March 31, cash on hand stood at $9.2 million with working capital of $24.9 million, down from $12.3 million and $30.5 million respectively at fiscal year-end. The company replaced its Wells Fargo facilities with an $11.0 million term loan and a $20.0 million credit line through Legacy Corporate Lending to support sales growth and ease covenant requirements.
4. Outlook and Operational Focus
Management expects fourth-quarter sales to exceed prior-year levels but anticipates a net loss for both the quarter and full fiscal year. Initiatives to restore profitability include expanding client bases to improve factory utilization, streamlining operations, and advancing new CarnoSyn products such as TriBsyn and CarnoSyn 4x.