For the quarter ended December 31, 2025, Natural Alternatives International recorded a net loss of $2.6 million, or $0.42 per diluted share, versus a loss of $2.2 million, or $0.37 per share, a year earlier. Net sales increased 2% to $34.8 million from $34.1 million, and gross profit rose to $2.5 million, or 7.2% of sales, up from 4.9% in the prior period.

Private-label contract manufacturing, which accounts for 94.5% of trailing 12-month revenue, generated $32.8 million in Q2, a 2% increase year-over-year and $68.9 million in the first half, up 9%. CarnoSyn beta-alanine royalties and sales climbed 13% to $2.0 million in the quarter but fell 15% to $3.7 million over the first six months due to royalty variability and order timing.

As of December 31, 2025, cash and cash equivalents stood at $3.8 million, down from $12.3 million at June 30, 2025. Working capital decreased to $28.7 million from $30.5 million, and $5.8 million was drawn on a $15.8 million credit line, leaving $10 million available borrowing capacity.

Management expects sales growth in the remaining two quarters but anticipates a net loss for the second half and full fiscal 2026 due to reduced customer forecasts and delayed product launches. Completed capacity expansions, including a high-volume powder facility and enhanced blending capacity, aim to support future volume increases and cost efficiency.