Natural Alternatives International, Inc.
- Open
- 2.45
- Day high
- 2.55
- Day low
- 2.40
- Prev close
- 2.39
- Volume
- 711
- Mkt cap
- $16M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.2
- P/S
- 0.1
- Yield
- —
- Per share
- —
Natural Alternatives International, Inc. (NAII) is a Consumer Defensive company listed on NASDAQ. The stock is down 27% over the past year.
Natural Alternatives International, Inc. (NAII) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NAII earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 18, 2026 | — | $-0.72 | — | $35M | — |
| Feb 13, 2026 | — | $-0.42 | — | — | — |
| Nov 12, 2025 | — | $-0.05 | — | $34M | — |
| Sep 23, 2025 | — | $-0.17 | — | $34M | — |
| May 14, 2025 | — | $-0.37 | — | $29M | — |
| Feb 14, 2025 | — | $-0.37 | — | $34M | — |
| Nov 13, 2024 | — | $-0.33 | — | $33M | — |
| Sep 27, 2024 | — | $-0.32 | — | $29M | — |
| Feb 13, 2024 | — | $-0.52 | — | $25M | — |
| Nov 9, 2023 | — | $-0.12 | — | $34M | — |
| Sep 21, 2023 | — | $0.35 | — | $36M | — |
| May 15, 2023 | — | $-0.41 | — | $33M | — |
NAII insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 10, 2026 | Fortin Michael Eofficer: Chief Financial Officer | Tax | 4,308 | $2.73 |
| Mar 10, 2026 | Dunn Alan Gdirector | Grant | 8,000 | — |
| Mar 10, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Tax | 3,484 | $2.73 |
| Mar 10, 2026 | Matherly Laura Kaydirector | Grant | 8,000 | — |
| Mar 10, 2026 | Fortin Michael Eofficer: Chief Financial Officer | Grant | 12,000 | — |
| Mar 10, 2026 | WOLF KENNETHofficer: President, COO, & Sec. | Tax | 5,151 | $2.73 |
| Mar 10, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Grant | 20,000 | — |
| Mar 10, 2026 | WOLF KENNETHofficer: President, COO, & Sec. | Grant | 15,000 | — |
| Mar 10, 2026 | Ramanathan Gurudirector | Grant | 8,000 | — |
| Mar 6, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 532 | $2.80 |
| Mar 6, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 500 | $2.77 |
| Mar 6, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 218 | $2.75 |
| Mar 3, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 500 | $2.79 |
| Feb 27, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 500 | $2.81 |
| Feb 27, 2026 | LEDOUX MARK Adirector, 10 percent owner, officer: CEO/Chairman | Buy | 250 | $2.80 |
Source: NAII SEC Form 4 filings, latest Mar 10, 2026. For informational purposes only — not investment advice.
See the full NAII insider & 13F page →Natural Alternatives International, Inc. company profile
Overview
Natural Alternatives International, Inc. (NASDAQ:NAII) is a California-based nutritional supplement contract manufacturer and ingredient licensing company founded in 1980. The company went public in 1993 and has established itself as a specialized player in the private-label manufacturing space for vitamins, minerals, and other nutritional supplements. NAII operates from its headquarters in Carlsbad, California, serving customers across the United States, Europe, Asia, and other international markets through its dual business model of contract manufacturing services and proprietary ingredient licensing.
Business
Natural Alternatives International operates in the nutritional supplements industry, which encompasses the production and distribution of vitamins, minerals, herbal products, and other health-related supplements. The company functions as a contract manufacturer, meaning it produces nutritional supplements for other companies that then market and sell these products under their own brand names, rather than manufacturing products for direct consumer sale. The company operates through two primary business segments. The Private-Label Contract Manufacturing segment represents the majority of NAII's business, providing comprehensive manufacturing services to companies in the nutritional supplement space. This includes formulating custom products, conducting clinical studies, managing regulatory compliance across different countries, designing packaging and labeling, and manufacturing products in various forms including capsules, tablets, chewable wafers, and powders. The company's customers in this segment include businesses that sell supplements through direct sales channels, e-commerce platforms, and retail stores. The second segment, Patent and Trademark Licensing, focuses on NAII's proprietary ingredient beta-alanine, which the company markets under the brand names CarnoSyn and SR CarnoSyn. Beta-alanine is an amino acid that is commonly used in sports nutrition supplements as it may help improve athletic performance and reduce muscle fatigue. This segment generates revenue through licensing fees and royalties from companies that use NAII's patented beta-alanine formulations in their products. The nutritional supplements industry serves a diverse market of health-conscious consumers, athletes, and individuals seeking to supplement their diets with vitamins and minerals. The industry has experienced significant growth due to increasing consumer awareness of health and wellness, aging populations in developed countries, and growing interest in preventive healthcare approaches.
Revenue model
NAII generates revenue through two distinct business models. The primary revenue stream comes from private-label contract manufacturing, where the company charges fees for manufacturing services, product formulation, regulatory compliance assistance, and related services. Customers pay NAII to produce their nutritional supplement products according to specific formulations and quality standards. This is essentially a manufacturing service business where revenue is generated through production contracts and ongoing manufacturing agreements. The secondary revenue stream comes from patent and trademark licensing of the company's proprietary beta-alanine ingredient. Companies that want to include CarnoSyn or SR CarnoSyn beta-alanine in their products pay licensing fees and ongoing royalties to NAII. This creates a more recurring revenue stream compared to the project-based manufacturing business. Several factors can significantly impact NAII's profitability margins. Raw material costs for vitamins, minerals, and other supplement ingredients can fluctuate based on global supply and demand, affecting manufacturing margins. Regulatory changes in different countries can increase compliance costs and complexity, particularly as NAII serves international markets with varying supplement regulations. Competition from other contract manufacturers can pressure pricing, especially from larger players with greater economies of scale or lower-cost international competitors. Capacity utilization is crucial for NAII's profitability, as the company has significant fixed costs in its manufacturing facilities and equipment. Higher production volumes spread these fixed costs across more units, improving margins. Conversely, lower demand can lead to underutilized capacity and reduced profitability. The company's financial performance is also influenced by the health and growth of the overall nutritional supplements market, consumer spending patterns on health products, and the success of its customers' marketing and distribution efforts.
Competitive moat
NAII's competitive moat appears to be relatively narrow, typical of companies in the contract manufacturing space. The company's primary competitive advantages include its established customer relationships and regulatory expertise across multiple international markets. Navigating the complex web of supplement regulations, labeling requirements, and product registration processes in different countries requires specialized knowledge that NAII has developed over decades of operation. The company's proprietary beta-alanine patents under the CarnoSyn brand provide a stronger moat in the licensing segment, as patent protection creates barriers to entry for competitors wanting to offer similar beta-alanine formulations. However, patents have finite lifespans, and the supplement ingredient space is highly competitive with numerous alternative ingredients and formulations available. The contract manufacturing business faces significant competitive threats from larger, more diversified contract manufacturers with greater economies of scale, more advanced manufacturing capabilities, and broader service offerings. International competitors, particularly those in lower-cost regions, can offer competitive pricing that pressures NAII's margins. Additionally, some of NAII's larger customers might consider vertical integration, bringing manufacturing capabilities in-house to reduce costs and gain greater control over their supply chains. The company's relatively small size compared to major players in the contract manufacturing space limits its ability to invest in cutting-edge manufacturing technology or offer the comprehensive service portfolios that larger competitors can provide. This makes NAII vulnerable to customer defection and pricing pressure, particularly during economic downturns when customers may prioritize cost savings over established relationships.
Risks & safety
NAII's margin of safety appears limited based on its current financial position and recent performance trends. **Overall Assessment**: The company faces significant financial stress with consistent losses and declining cash position, though it maintains adequate liquidity for near-term operations. **Cash and Solvency**: - Cash and short-term investments of $10.6 million as of Q3 2024, down from $11.9 million a year earlier - Positive free cash flow of $5.2 million in Q3 2024, but this followed negative free cash flow in previous quarters - Current ratio of 2.51 indicates adequate short-term liquidity coverage - Debt-to-equity ratio of 0.62 shows moderate leverage levels **Profitability Concerns**: - Consistent net losses across recent quarters: -$2.2M (Q3), -$2.2M (Q2), -$2.0M (Q1) - Negative EBITDA of -$2.1 million in Q3 2024 - Annual revenue declining from $154M (FY2022) to $114M (FY2023) **Valuation Metrics**: - Trading at 0.27x book value, suggesting potential asset value but reflecting market pessimism - Negative P/E ratios due to losses make traditional valuation difficult - Enterprise value appears disconnected from fundamentals given negative EBITDA **Other Considerations**: - Small market capitalization of ~$21 million increases volatility risk - Limited diversification with heavy dependence on contract manufacturing business - Regulatory and competitive pressures in nutritional supplement industry
Recent development
Based on the available financial data, NAII has been navigating a challenging period marked by declining revenues and persistent losses. The company's revenue dropped significantly from $154 million in fiscal year 2022 to $114 million in fiscal year 2023, representing a substantial 26% decline. This revenue contraction has continued into fiscal 2024, with quarterly revenues remaining below prior-year levels. The company has been working to stabilize its operations while dealing with margin pressures in its core contract manufacturing business. Despite the revenue challenges, NAII has maintained its focus on both business segments - continuing to serve private-label manufacturing clients while protecting and licensing its CarnoSyn beta-alanine intellectual property. The company's recent financial performance suggests it may be implementing cost-cutting measures and operational efficiency improvements, as evidenced by the positive free cash flow generation in Q3 2024 despite ongoing net losses. However, the persistent negative EBITDA across recent quarters indicates that the company has not yet achieved the operational turnaround needed to return to profitability. NAII's international operations continue to represent an important part of its business strategy, though global economic uncertainties and varying regulatory environments across different markets have likely contributed to the company's current challenges. The nutritional supplements industry's competitive dynamics and pricing pressures appear to be significantly impacting the company's ability to maintain historical profit margins.
NAII company profile · for informational purposes only — not investment advice.
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