NAII earnings analysis
What we found in NAII's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Natural Alternatives International, Inc. (NAII) reported that Q2 2026 revenue was $35.5M, up 23% year-over-year, with a gross margin of 1.1%. However, the company sustained a net loss of $4.3M in the quarter, indicating a significant operational challenge despite improved sales, largely due to increased costs and cash flow issues.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 23% YoY
- Q2 2026 revenue reached $35.5M, up from $28.8M in Q2 2025.
- Negative EPS Reflection
- The diluted EPS was -$0.42 for Q2 2026, worsening from -$0.37 in Q2 2025.
- Gross Margin Improvement
- Gross margin increased slightly to 1.1% in Q2 2026 from 6.3% in Q2 2025.
- Private Label Segment Gained 25%
- Private-label contract manufacturing growth of 25% YoY in Q2 helped boost overall revenue.
- Increased Operating Losses
- Operating loss increased to $4.0M in Q2 2026 from $2.1M in Q2 2025.
- Cash Reserves Down
- Cash decreased to $9.2M, down from $13.4M a year earlier, indicating liquidity pressure.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cash Flow Challenges
- The net cash used in operating activities was $7.9M for the nine months ended March 31, 2026, a significant drop from cash provided of $2.6M in the prior year.
- Increasing Debt Levels
- Total debt includes $10M on credit facilities and $8.7M term loan, adding to financial strain.
- Dependency on a Few Customers
- Revenue concentration risk, with one customer contributing 27% to sales, down from 35%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.42
- Gross margin
- 1.1%
- Segment
- Private Label Contract Manufacturing: $33.8M
- Segment
- Patent and Trademark Licensing: $1.7M
What they said about what is next.
Management anticipates revenue increase for Q4 FY 2026 compared to prior year but expects continued net losses for the full year.
The filing reads about the same as the one before it.
What came before.
- 10-Q · February 13, 2026
- NAI reported fiscal Q2 net sales of $34.795 million (three months ended Dec 31, 2025) — up modestly versus the year-ago quarter but down versus the prior quarter — with gross margin improving year-over-year to ~7.2% but…
- 10-K · September 23, 2025
- NAI reported fiscal 2025 net sales of $129.86 million, up from $113.80 million in fiscal 2024, driven primarily by private-label contract manufacturing. The company is focused on commercializing its beta-alanine patent…
- 10-Q · May 14, 2025
- NAI reported quarterly net sales of $28,766,000 for the three months ended March 31, 2025, up from $25,136,000 in the prior-year quarter, but posted a larger GAAP net loss of $(2,186,000) (EPS $(0.37)) versus…
- 10-Q · February 14, 2025
- Natural Alternatives International reported quarterly net sales of $34.078M (three months ended December 31, 2024), up from $25.202M in the prior-year quarter, with gross profit rising to $1.669M and gross margin about…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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