Core Viewpoint - Natural Alternatives International, Inc. reported a significant net loss for the fourth quarter and fiscal year 2025, primarily due to non-recurring charges and underutilization of factory capacities, despite an increase in net sales and positive growth indicators for the upcoming fiscal year [1][4][6]. Financial Performance - The company experienced a net loss of $7.2 million, or ($1.20) per diluted share, for Q4 FY 2025, compared to a net loss of $1.9 million, or ($0.32) per diluted share, in Q4 FY 2024 [1]. - For the fiscal year 2025, the net loss was $13.6 million, or ($2.28) per diluted share, compared to a net loss of $7.2 million, or ($1.23) per diluted share, for fiscal year 2024 [4]. - Net sales for Q4 FY 2025 increased by $4.4 million, or 15%, reaching $33.9 million, up from $29.5 million in the same period last year [2]. - Annual net sales for FY 2025 rose by $16.1 million, or 14%, totaling $129.9 million compared to $113.8 million in FY 2024 [5]. Revenue Streams - Private-label contract manufacturing sales increased by 15% to $31.8 million in Q4 FY 2025, driven by higher orders from existing and new customers [2]. - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue grew by 14% to $2.1 million in Q4 FY 2025, compared to $1.8 million in Q4 FY 2024 [3]. Operational Insights - The company faced challenges such as underutilization of factory capacities and a valuation allowance against deferred tax assets, contributing to the net loss despite revenue growth [6]. - The company anticipates a net loss in the first half of fiscal 2026 but expects to achieve net income in the second half and for the full fiscal year [6]. Balance Sheet Highlights - As of June 30, 2025, the company had cash of $12.3 million and working capital of $30.5 million, compared to $12.0 million and $38.1 million, respectively, as of June 30, 2024 [7]. - The total assets decreased to $151.9 million as of June 30, 2025, down from $162.3 million in the previous year [14][15].

Core Insights - Natural Alternatives International, Inc. reported a net loss of $2.2 million, or $0.37 per diluted share, on net sales of $28.8 million for Q3 FY 2025, compared to a net loss of $1.6 million, or $0.27 per diluted share, in the same quarter of the previous fiscal year [1][3][12]. Financial Performance - Net sales for the three months ended March 31, 2025, increased by $3.6 million, or 14%, to $28.8 million compared to $25.1 million in the same period last year [2][4]. - For the nine months ended March 31, 2025, net sales rose by $11.7 million, or 14%, to $96.0 million from $84.3 million in the prior year [4]. - Private-label contract manufacturing sales increased by 20% to $27.1 million in Q3 FY 2025 and by 16% to $90.0 million for the nine months ended March 31, 2025 [2][4]. Revenue Breakdown - CarnoSyn beta-alanine royalty, licensing, and raw material sales revenue decreased by 36% to $1.7 million in Q3 FY 2025, down from $2.7 million in Q3 FY 2024 [3]. - For the first nine months of FY 2025, CarnoSyn revenue decreased by 9% to $6.0 million compared to $6.6 million in the same period of FY 2024 [4]. Operational Challenges - The company experienced a loss from operations primarily due to underutilization of factory capacities, lower beta-alanine revenue, and increased operating expenses related to legal costs and salaries [5]. - Manufacturing costs were negatively impacted by increased labor, foreign currency exchange rates, operating supplies, rent, and freight costs [5]. Cash and Working Capital - As of March 31, 2025, the company had cash of $10.6 million and working capital of $35.2 million, down from $12.0 million and $38.1 million respectively as of June 30, 2024 [6][14]. Management Commentary - The CEO expressed optimism about continued revenue growth and the potential for profitability in the upcoming year, despite challenges from supply chain issues and currency valuations [7]. - The company is also encouraged by interest in its new TriBsyn™ product offering, with plans for commercial launches in retail channels [7]. Company Overview - Natural Alternatives International, Inc. is a leading formulator, manufacturer, and marketer of customized nutritional supplements, providing a wide range of services including scientific research, product formulation, and regulatory review [8].