NAII is like the 'Intel Inside' for many sports nutrition and pre-workout supplements, through its CarnoSyn® beta-alanine ingredient.

NAII is akin to 'Catalent' or 'Thermo Fisher Scientific', but focused on contract manufacturing and development for the nutritional supplement industry.

• Contract Manufacturing Services: Provides formulation, manufacturing, and packaging services for private label nutritional supplements to other companies.
• CarnoSyn® Beta-Alanine: A patented ingredient for sports nutrition products, which they license to other manufacturers and use in their own products.
• Finished Product Sales: Sells a range of branded nutritional supplements directly to consumers and retailers.

Natural Alternatives International (NAII) - Major Customers

Natural Alternatives International (NAII) primarily operates as a contract manufacturer and private labeler of nutritional supplements. As such, the company sells its products primarily to other companies (a business-to-business or B2B model) rather than directly to individuals.

Major Customer Companies:

Based on recent financial filings (e.g., 10-K reports), NAII derives a substantial portion of its net sales from a limited number of major customers. These include:

• Nutrabolt: Nutrabolt is a leading global health and wellness company known for brands such as C4 Energy, Cellucor, and Xtend. Nutrabolt is a privately held company.
• JaktRx International, Inc.: This company is behind the Jocko Fuel brand of supplements. JaktRx International, Inc. is a privately held company.
• Glanbia Performance Nutrition, Inc.: This is a subsidiary of Glanbia plc, a global nutrition group. Glanbia plc is a public company primarily listed on Euronext Dublin with the symbol GLB. It also trades on the OTC Markets in the US under the symbol GLAPF.

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Mark A. LeDoux, Chief Executive Officer and Chairman

Mark A. LeDoux founded Natural Alternatives International (NAI) in 1980. He possesses over 45 years of experience in the nutritional supplements industry, starting in 1975, and is recognized as a respected leader and spokesperson for the sector. Mr. LeDoux is also Chairman Emeritus of the Natural Products Association (NPA), a former Chairman and Board member of the Council for Responsible Nutrition (CRN), and the Founding Chairman of CRN International. Additionally, he serves as Chairman of the Board of Selectmen in Hollis, New Hampshire, and is President of the Marie A. LeDoux Charitable Foundation. He earned a J.D. from Thomas Jefferson School of Law, a bachelor's degree from the University of Oklahoma, and is an alumnus of Stanford University's Program for Small Business Executives.

Michael E. Fortin, Chief Financial Officer

Michael E. Fortin joined NAI in April 2008 as Director of Accounting and SEC Reporting and was appointed Chief Financial Officer in October 2015. He brings over 20 years of experience in accounting and finance, including roles in "Big 4" public accounting with Arthur Andersen LLP and KPMG LLP, as well as private industry. Prior to NAI, he served as Director of Finance for K2 Licensed Products, a subsidiary of Jarden Corporation, and as Manager of Financial Accounting Operations for HSBC Auto Finance, a subsidiary of HSBC Bank USA. He is a Certified Public Accountant in California and holds a Bachelor of Science in Business Administration-Accounting from San Diego State University.

Kenneth E. Wolf, President and Chief Operating Officer

Kenneth E. Wolf joined NAI in February 2008 as Chief Financial Officer, was promoted to Chief Operating Officer in June 2010, and has held the position of NAI's President since October 2015. He is responsible for the design and implementation of NAI's long-term strategic plans and oversees all areas within the company. Mr. Wolf has over 26 years of senior financial management experience in both publicly traded and privately held companies, with 21 years focused on consumer products manufacturing companies. Before joining NAI, he was Chief Financial Officer with Phoenix Footwear Group for five years and was a nine-year veteran of Callaway Golf Company.

Andrea Lester, Vice President, Global Quality

Andrea Lester joined NAI's Quality Unit in 2005. Her extensive background includes notable positions at Olly PBC, Arbonne International, Forever Living International, Usana Health Sciences, and Bio Concepts in Australia. In her current role at NAI, she collaborates with clients to develop and launch innovative, science-based, and compliant products.

Aaron Starr, Vice President, CarnoSyn® Brands

Aaron Starr was appointed Vice President of CarnoSyn® Brands in April 2022, where he leads business teams and oversees operational performance and brand advancement. His prior experience includes roles as an Executive Editor, a Marketing Director, and a Managing Partner at a financial firm. Mr. Starr holds an MBA in Financial Management and a Bachelor of Science degree in Exercise Physiology and Kinesiology.

1. Financial Performance and Profitability Challenges: Natural Alternatives International has reported substantial net losses for both the fourth quarter and the full fiscal year 2025, with a total net loss of $13.6 million for fiscal year 2025. The company also anticipates a net loss in the first half of fiscal year 2026. This ongoing struggle with profitability is further compounded by shrinking revenue over the past medium-term, which has contributed to a low price-to-sales ratio.
2. Customer Concentration and Demand Fluctuations: The company is vulnerable to shifts in demand and purchasing patterns from its key customers. In August 2023, NAII experienced a temporary closure of a new facility because one of its largest customers temporarily ceased purchases to rebalance its supply and demand. This event had an adverse effect on NAII's operations and financial condition. Additionally, fiscal year 2024 saw key customers reduce purchases due to excess inventory levels.
3. Supply Chain Disruptions and Increased Operational Costs: Natural Alternatives International has acknowledged ongoing disruptions in its supply chains. These disruptions, along with inflationary factors such as increased labor, raw material, freight, and general supply chain costs, have negatively impacted the company's operating income. In late 2022, sales backlog was primarily attributed to supply chain and logistical constraints.

Natural Alternatives International (NAII) operates primarily in two main market segments: private-label contract manufacturing of nutritional supplements and the patent and trademark licensing of beta-alanine ingredients under the CarnoSyn® Brands.

Private-Label Contract Manufacturing of 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, growing at a Compound Annual Growth Rate (CAGR) of 12.6% from 2025 to 2030. Another estimate places the global market at USD 60 billion based on a five-year historical analysis (as of November 2025). North America held a dominant share in the global market, accounting for 33.29%, with the U.S. being the leading country within North America. The U.S. private label and contract manufacturing market for supplements was an estimated $22 billion in 2022, with projections to exceed $40 billion by 2030.

Patent and Trademark Licensing (CarnoSyn® Brands Beta-Alanine)

The global CarnoSyn Beta-Alanine market size reached USD 233.5 million in 2024 and is projected to expand to USD 466.7 million by 2033, demonstrating a CAGR of 8.2% from 2025 to 2033. More broadly, the global beta-alanine market was valued at USD 445.0 million in 2023 and is projected to reach USD 724.9 million by 2033, growing at a CAGR of 5% from 2024 to 2033. The U.S. beta-alanine market alone earned USD 28.1 million in 2024. For beta-alanine supplements, the global 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, with a CAGR of 6.72% during the forecast period. North America specifically accounted for USD 543.8 million, or 39.12%, of the beta-alanine supplements market in 2023.

Expected Drivers of Future Revenue Growth for Natural Alternatives International (NAII)

Over the next 2-3 years, Natural Alternatives International (NAII) is expected to drive revenue growth through several key initiatives:

• Growth in Private-Label Contract Manufacturing: NAII has seen significant increases in its private-label contract manufacturing sales, with a 40% rise in the second quarter of fiscal year 2025 and a 16% increase for the full fiscal year 2025. This growth is primarily fueled by increased orders from larger existing customers and the addition of new customers.
• Expansion to New Customers: The company anticipates that new customer relationships will be a significant factor in achieving profitability in the latter half of fiscal year 2026, indicating a focus on expanding its client base.
• Broadening Existing Customer Products, Base, and Channels: NAII aims to expand its revenue by growing the range of products offered to current customers, increasing its customer base, and widening its distribution channels.
• Expansion of In-House Brands: The company plans to expand its in-house brands, particularly those leveraging proprietary ingredients like CarnoSyn® and SR CarnoSyn® beta-alanine, which are marketed towards sports nutrition, wellness, and healthy aging segments.
• Strategic Complementary Acquisitions: NAII has identified complementary acquisitions as a strategy to support its growth objectives.

Share Repurchases

• In September 2020, Natural Alternatives International's Board of Directors authorized a $2.0 million increase to its stock repurchase plan, bringing the total authorized repurchase amount to $12.0 million. At that time, $2.0 million remained available under the plan.
• The company announced a $1 million increase in its stock repurchase plan in December 2022.
• Actual shares repurchased amounted to $221,000 for fiscal year 2024 and $168,000 in Q1 2025. Shares repurchased peaked at $2.6 million in Q1 2022.

Inbound Investments

• In March 2020, the company withdrew $10.0 million from its credit facility with Wells Fargo as a precautionary measure due to the COVID-19 pandemic.
• Natural Alternatives International amended its credit facility with Wells Fargo in June 2025, extending its maturity to December 2026 and increasing its borrowing capacity to $10 million. This facility is intended to support working capital needs and strategic growth initiatives.
• As of March 31, 2025, the company had $2.0 million in outstanding borrowings on its credit facility, with $8.5 million of borrowing capacity available.

Capital Expenditures

• The amended credit facility in June 2025 is expected to help finance capital expenditures on new equipment and research and development, supporting long-term revenue growth.
• Research and development expenses were $2.5 million for the fiscal year ended June 30, 2022, and $1.9 million for the fiscal year ended June 30, 2021, reflecting ongoing investments in product development.
• The company announced the expected May 2024 reopening of its state-of-the-art high-volume powder blending and packaging facility in Carlsbad, CA, following a 7-month closure.