Core Viewpoint - Natural Alternatives International, Inc. reported a net loss of $2.2 million for Q2 FY2025, an improvement from a net loss of $3.1 million in the same quarter of the previous year, with net sales increasing to $34.1 million, a 35% rise compared to $25.2 million in Q2 FY2024 [1][2]. Financial Performance - Net sales for the three months ended December 31, 2024, increased by $8.9 million, or 35%, reaching $34.1 million compared to $25.2 million in the prior year [2]. - For the six months ended December 31, 2024, net sales rose by $8.1 million, or 14%, totaling $67.2 million compared to $59.2 million in the same period of the previous year [5]. - Private-label contract manufacturing sales increased by 40% to $32.3 million in Q2 FY2025, driven by higher orders from major customers and new customer shipments [2]. - CarnoSyn beta-alanine royalty, licensing, and raw material sales revenue decreased by 18% to $1.8 million in Q2 FY2025, primarily due to reduced orders from existing customers [3]. Losses and Expenses - The company reported a net loss of $4.2 million, or $0.70 per diluted share, for the six months ended December 31, 2024, compared to a net loss of $3.8 million, or $0.64 per diluted share, for the same period in 2023 [4]. - The loss from operations for the three and six months ended December 31, 2024, was attributed to a change in sales mix, increased manufacturing costs, and higher legal expenses related to patent expansion [6]. Cash and Working Capital - As of December 31, 2024, the company had cash of $8.7 million and working capital of $36.9 million, down from $12.0 million and $38.1 million, respectively, as of June 30, 2024 [7]. Management Commentary - The CEO expressed satisfaction with revenue growth and reduced anticipated losses, while acknowledging challenges such as customer order flow and currency valuations [8].
Natural Alternatives International, Inc. Announces 2025 Q2 and YTD Results