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Here are 1-3 brief analogies to describe Natural Alternatives International (NAII):

• They are the Foxconn of the nutritional supplement world, manufacturing products for many different brands that put their own label on the bottle.
• Think of them as an Intel or Qualcomm for the supplement industry, providing key ingredients and contract manufacturing services that power numerous other supplement brands.

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• Private-Label Contract Manufacturing: Manufactures vitamins, minerals, herbal, and other nutritional supplements for other companies to market under their own brands.
• Strategic Partnering Services: Offers a comprehensive suite of services including product formulation, clinical studies, manufacturing support, regulatory compliance, and packaging design.
• Ingredient Sales: Sells the proprietary beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names.
• Patent and Trademark Licensing: Licenses its intellectual property, including patents and trademarks, to other businesses.

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Natural Alternatives International (NAII) primarily sells its products and services to other companies, operating as a private-label contract manufacturer and a licensor of proprietary ingredients.

While the company has disclosed in its public filings (e.g., Form 10-K) that a single major customer accounted for a significant portion of its consolidated net sales (e.g., 69% in fiscal 2023), the name of this major customer, or other specific customer companies, is not publicly disclosed by Natural Alternatives International. This is a common practice in the private-label contract manufacturing industry to protect client confidentiality.

Generally, NAII's private-label contract manufacturing customers include companies that market and distribute nutritional supplements through various channels:

• Companies utilizing direct sales marketing channels.
• Companies utilizing direct-to-consumer e-commerce channels.
• Companies distributing products through retail stores.

Additionally, for its CarnoSyn and SR CarnoSyn beta-alanine ingredients, NAII sells to other companies that incorporate these ingredients into their own nutritional supplement products.

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Mark A. LeDoux, Chief Executive Officer

Mark A. LeDoux founded Natural Alternatives International (NAI) in 1980. He has over 50 years of experience in the nutritional supplements industry, starting in 1975, and is recognized as a leader and spokesperson for the industry.

Michael E. Fortin, Chief Financial Officer

Michael E. Fortin brings over 18 years of experience in accounting and finance, including work in Big 4 public accounting and private industry. He is a Certified Public Accountant (California) and holds a Bachelor of Science in Business Administration-Accounting.

Kenneth E. Wolf, President, Chief Operating Officer, and Secretary

Kenneth E. Wolf serves as the President, Chief Operating Officer, and Secretary of Natural Alternatives International.

Shane Conti, Vice President of Global Sales

Shane Conti joined NAI as Vice President of Global Sales in July 2023. He previously served as a Senior Business Development Manager for NAI from 2016 to 2021. Conti has over 25 years of experience in the domestic and international nutritional supplement industry, with a proven track record in building new business.

Aaron Starr, Vice President of CarnoSyn® Brands

Aaron Starr was appointed Vice President of CarnoSyn® Brands in April 2022. Prior to this role, he managed customer relationships and operations, contributing to sales growth for NAI and CarnoSyn® Brands.

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1. Customer Concentration and Demand Volatility: Natural Alternatives International faces significant risk due to its reliance on a limited number of large customers and the volatility of demand from these clients. In August 2023, the company temporarily closed a new high-speed powder blending and packaging facility, which was primarily intended to handle orders from one of its largest customers, because this customer temporarily ceased purchases to rebalance supply and demand. This action was anticipated to have an adverse effect on NAII's operations and financial condition. More recently, in fiscal year 2026, the company has experienced difficulties in accurately forecasting demand from several clients, particularly those in multi-level marketing and direct selling channels across China, Europe, and North America. Reductions in customer forecasts and delayed product launches have directly contributed to the underutilization of manufacturing capacity.
2. Operational Inefficiencies and Underutilization of Manufacturing Capacity: The company has reported significant net losses in recent fiscal periods, partly attributable to the underutilization of its factory capacities. The temporary closure of the Carlsbad facility in 2023 due to a major customer's reduced orders directly resulted in operational inefficiencies and employee furloughs. Additionally, increased manufacturing costs, including labor, foreign currency exchange rates, operating supplies, rent, and freight costs, have negatively impacted the company's financial performance.
3. Reliance on Proprietary Ingredients and Intellectual Property Risk: A portion of NAII's business operates through its Patent and Trademark Licensing segment, specifically involving the beta-alanine ingredient sold under the CarnoSyn and SR CarnoSyn names. A decrease in royalty and licensing revenue from CarnoSyn® beta-alanine, primarily due to reduced orders from existing customers, has contributed to the company's net losses. This highlights a risk associated with the continued demand for their proprietary ingredients and the ongoing protection and value of their intellectual property.

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The addressable markets for Natural Alternatives International's (NAII) main products and services are as follows:

• Private-Label Contract Manufacturing (Nutritional Supplements): The global dietary supplements contract manufacturing market was estimated at USD 59.63 billion in 2024, and is projected to reach USD 121.2 billion by 2030.
• Beta-Alanine Ingredient Sales (CarnoSyn and SR CarnoSyn): The global beta-alanine supplements market size was valued at USD 1,390.2 million in 2023 and is projected to grow to USD 2,318.8 million by 2031.

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Natural Alternatives International (NAII) anticipates future revenue growth over the next two to three years driven by several key factors:

• Increased Orders from Existing and New Private-Label Contract Manufacturing Customers: The company has consistently reported growth in its private-label contract manufacturing segment, attributing it to increased orders from both existing clientele and the acquisition of new customers. This trend is expected to continue contributing to sales expansion.
• Growth in CarnoSyn® Beta-Alanine Revenue and New Product Introductions: While subject to fluctuations, Natural Alternatives International aims to grow revenue from its patent and trademark licensing segment, particularly through its proprietary CarnoSyn® beta-alanine ingredient. The launch and adoption of new products, such as TriBsyn™, a carnosine booster designed to enhance beta-alanine bioavailability, are expected to expand the company's reach in wellness and healthy aging markets.
• Enhanced Manufacturing Capacity and Operational Efficiency: Investments in manufacturing infrastructure, including capacity expansions like a high-volume powder manufacturing facility and increased blending capabilities in the United States, are crucial for supporting increased production demands. These improvements in operational efficiency and capacity are anticipated to enable the company to fulfill larger orders and improve gross profit margins, thereby facilitating revenue growth.
• Strategic Client Expansion and Channel Diversity: Management has expressed a focus on expanding client relationships and diversifying sales channels. This strategic approach includes efforts to broaden its customer base and explore various distribution methods, such as direct sales, e-commerce, and retail stores, to capture new market opportunities.

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Share Repurchases

• Natural Alternatives International, Inc. announced a $3.0 million increase to its stock repurchase plan on January 18, 2022, bringing the total authorized amount to $18.0 million.
• As of January 18, 2022, the company had purchased 1.9 million shares under this plan, including 237,000 shares since September 30, 2021, with $3.0 million remaining available for repurchases.
• The stock repurchase plan, initially announced on June 3, 2011, was completed by September 30, 2025, with a total of 2,193,504 shares repurchased for $18.3 million.

Share Issuance

• A director of Natural Alternatives International received an 8,000-share restricted stock grant in March 2026, which vests in three equal annual installments starting in March 2027.
• Another director also received a grant of 8,000 shares of restricted common stock under the company's 2020 Omnibus Incentive Plan, with vesting scheduled for March 7, 2027, 2028, and 2029.
• The number of shares outstanding for NAII increased by 1.43% in one year, based on data reflecting recent periods.

Inbound Investments

• Dimensional Fund Advisors LP reported passive beneficial ownership of 384,497 shares, representing 6.2% of Natural Alternatives International Inc.'s common stock, as of December 31, 2025.

Capital Expenditures

• Natural Alternatives International reported capital expenditures of -$4.22 million in the last 12 months (prior to February 2026).
• The company continued work on its new manufacturing and warehouse facility in Carlsbad, CA, with full operational status anticipated in Fall 2022.
• NAI invested in sustainable production capabilities by installing solar energy generation equipment on its manufacturing facilities.