CARLSBAD, Calif., Nov. 13, 2026 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, announced today a net loss of $2.5 million, or ($0.41) per diluted share, on net sales of $28.1 million for the first quarter of fiscal year 2027 compared to a net loss of $0.3 million, or ($0.05) per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2026, decreased $9.6 million, or 25.5%, to $28.1 million compared to $37.7 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 29.1% to $25.6 million. Our Private-label contract manufacturing sales decreased primarily due to decreased orders from several of our larger customers associated with excess inventory positions and delayed product launches, partially offset by orders from new customer product launches.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 54.0% to $2.6 million during the first quarter of fiscal year 2027, as compared to $1.7 million for the first quarter of fiscal year 2026. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the first quarter of fiscal 2027 was primarily due to an increase in TriBsyn® product sales, partially offset by a decrease in instant release CarnoSyn® raw material sales.

We experienced a loss from operations during the three months ending September 30, 2026, primarily due to decreased sales volume in our private-label contract manufacturing segment which led to lower gross margins because of reduced factory capacity utilization. This operating loss was partially offset by lower selling, general and administrative costs primarily due to a decrease in employee compensation expense.

In an effort to improve our manufacturing capacity utilization, improve profitability and reduce operating costs, we have consolidated the majority of our U.S. production operations into our Vista, CA. manufacturing facility and have begun the process to sell our Carlsbad, CA. manufacturing facility. We have also initiated a comprehensive review process to explore strategic alternatives focused on maximizing shareholder value including evaluating a full range of strategic growth paths, potential mergers, acquisitions, joint ventures, or a sale of the Company.

As of September 30, 2026, we had cash, cash equivalents and restricted cash of $6.7 million and working capital of $14.7 million, compared to $7.5 million and $27.7 million respectively, as of June 30, 2026. As of September 30, 2026, we had $11.8 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $6.3 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While the results of this past quarter have been very disappointing, the recent reticence to meet forecast commitments by several customers, which significantly contributed to the quarter's poor sales performance, has begun to subside. Recent meetings with current and prospective clients have encouraged us to expand our research and formulation efforts to include combinations of CarnoSyn® with various popular peptides, showing promise in supporting human health. We also are actively reviewing our options to improve our manufacturing architecture, overhead absorption, and liquidity.

We remain committed to right sizing the U.S. facilities to meet the needs of our current and prospective clients, as we also continue to promote the wide adoption of our IP estate in new applications."

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging, and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please see our website at http://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, or otherwise address our overcapacity, and increase future revenue, profits, and financial condition. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI's financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

SOURCE - Natural Alternatives International, Inc.

CONTACT – Kenneth Wolf, President, Chief Operating Officer and Acting Principal Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or investor@nai-online.com.

Web site: http://www.nai-online.com