New York, May 20, 2026, 18:04 (EDT)
- Shares of Natural Alternatives changed hands at $2.59, adding around 1.8%. The company’s market cap is about $15.6 million.
- The company reported a loss of $4.3 million, or 72 cents per share, for its fiscal third quarter, with revenue coming in at $35.5 million.
- Legacy Corporate Lending came in to replace the Wells Fargo debt with a new facility that brings an $11 million term loan and a working-capital line capped at $20 million.
Natural Alternatives International Inc. stock gained Wednesday, though the nutritional supplements maker posted a larger fiscal third-quarter loss. Investors looked past the loss, focusing on higher sales, slimmer margins, and news of new refinancing.
NAII shares last changed hands at $2.59, about 1.8% higher, with 10,040 shares traded. The company has a market cap close to $15.6 million. NAII is still in micro-cap territory, which means it carries a small market value and usually sees thin trading.
Natural Alternatives International is pulling in more revenue, but profit is still out of reach. The Carlsbad, California firm posted a third-quarter loss that grew to $2.2 million from last year, while revenue climbed to $35.5 million from $28.8 million.
Net sales rose 23% for the quarter ended March 31, with private-label contract manufacturing jumping 25%. That’s the line that makes goods for other brands. The gross profit margin narrowed to 1.1%, down from 6.3%, leaving little left to cover operating costs.
Chairman and CEO Mark A. Le Doux said the company is “committed to restoration of profitability” and working to “enhance capacity utilization.” Le Doux said investment in CarnoSyn, TriBsyn and CarnoSyn 4X, its beta-alanine brands, is part of the effort to get performance back on track. GlobeNewswire
The balance sheet is under stress too. NAII owed $10 million on its Wells Fargo credit line and another $8.7 million on a term note as of March 31, according to a filing. The company was out of compliance with two Wells Fargo credit covenants, or lender tests required.
Company signed a three-year loan and security deal with Legacy Corporate Lending on May 18. The credit line carries an interest rate of 4.5 points over SOFR, the benchmark overnight dollar rate. There’s also a real estate loan that starts at 14% interest, then changes to 5 points over SOFR after appraisal and paperwork are done.
The company said its management decided selling the corporate headquarters was best for both the company and shareholders, pointing to more financial flexibility and liquidity. This is a straightforward cash move, not a fix for margin problems.
Small caps caught a bid as the broader market moved higher. The Russell 2000 jumped 2.6%. The Nasdaq Composite closed up 1.5%. Nutrition stocks were also stronger—Herbalife was last at $12.57, up 3.4%. USANA Health Sciences rose 4.1% to $18.14.
But the risk is clear. NAII said three major customers made up $56.9 million of sales in the first nine months of fiscal 2026. The company warned that if it loses these customers, if their growth slows, or if they do not pay on time, sales and operating results could take a hit.
Investors are focused on a single question now: can rising orders actually fill up the factories but still prevent NAII from getting stuck with almost no gross profit? The company has already warned it will post a net loss in the fourth quarter and for fiscal 2026. So Wednesday’s move wasn’t a clear show of faith—more of a careful bounce.
