Natural Alternatives International, Inc. — Cyborg Score 3/10
Challenged
Nutritional supplement contract manufacturing
Strategic Profile
The company is a micro-cap operator in the nutritional and dietary supplements space, primarily providing formulation, manufacturing and packaging services for private-label and branded products. In Q3 2026 (ended March 31, 2026), revenue totaled $35.5M, up 23.0% from $28.8M in Q3 2025, with private-label contract manufacturing leading at $33.8M in revenue, up 25.0% year-over-year. However, the widening gap between revenue growth and profitability suggests the company faced mounting cost pressures during the quarter.
Cyborg Score Rationale
The company posted a net loss of $4.3M for Q3 2026, with per-share loss widening significantly from $0.37 in the year-ago quarter, representing a 94.6% increase. Operating cash flow turned negative, with $7.9M used in operations in the nine-month period, and the company entered a new credit facility with Legacy Corporate Lending for an $11.0M term loan and up to $20.0M working capital line at higher rates.
Top Insights
Private-label manufacturing is growing while CarnoSyn® revenue is declining year-to-date; management cites factory underutilization for operating losses and expects a full-year 2026 net loss.
With a market capitalization of about $16.24M as of May 2026, the company's scale makes it more sensitive to operational swings, customer concentration and short-term cashflow pressures.
Management plans to sell the corporate headquarters building to free up capital and intends to relocate functions to other properties or leased space.
The company is experiencing challenges in accurately forecasting demand from several clients engaged in multi-level marketing and direct selling channels in China, Europe, and North America.
Named Competitors
Contract Manufacturing Services — Softgel and pharmaceutical contract manufacturer
Nutritional Supplements — Formulator and marketer of nutritional supplements
Contract Manufacturing — Sports nutrition and dietary supplement manufacturer
Recent Developments
(May 2026) Q3 2026 results: Net loss of $4.3M on revenue of $35.5M (up 23% YoY); refinanced debt with Legacy Corporate Lending $11M term loan and $20M revolver
(May 2026) Announced plan to sell headquarters to improve liquidity and relocate functions
(February 2026) Q2 2026 results: Net loss of $2.6M on revenue of $34.8M; CarnoSyn beta-alanine royalty revenue grew 13% to $2.0M
(November 2025) Q1 2026 results: Net loss of $0.3M on revenue of $37.7M; private-label manufacturing sales increased 17.7% YoY
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