Revenue growth of 22.7% in 2025Q3 is undermined by structural margin failure, with gross margins plummeting to a nominal 0.6%.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 140.99M | 129.86M | 113.8M | 154.01M | 170.97M | 178.52M | 118.88M | 138.29M | 132.44M | 121.95M | 114.2M | 79.51M | 73.94M | 62.8M | 72.82M | 55.88M | 65.55M | 73.92M | 81.75M | 97.13M | 99.13M | 91.49M | 78.53M | 55.96M | 50.04M | 42.16M | 47.83M | 57.4M | 67.9M | 49.4M | 47.6M |
| Revenue Growth % | 12.36% | 14.12% | -26.11% | -9.91% | -4.23% | 50.17% | -14.04% | 4.42% | 8.6% | 6.78% | 43.63% | 7.53% | 17.75% | -13.77% | 30.31% | -14.75% | -11.32% | -9.58% | -15.83% | -2.02% | 8.35% | 16.5% | 40.33% | 11.84% | 18.69% | -11.85% | -16.68% | -15.46% | 37.45% | 3.78% | 27.27% |
| Cost of Goods Sold | 131.07M | 120.57M | 106.93M | 135.86M | 140.46M | 148.08M | 100M | 114.72M | 106.12M | 95.74M | 88.94M | 65.17M | 61.2M | 51.05M | 57.37M | 45.25M | 54.7M | 64.51M | 68.84M | 75.84M | 76.75M | 73.09M | 59.96M | 42.78M | 39.07M | 33.97M | 39.32M | 43.4M | 47.7M | 37.7M | 34.1M |
| COGS % of Revenue | - | 92.85% | 93.97% | 88.21% | 82.15% | 82.95% | 84.13% | 82.95% | 80.13% | 78.51% | 77.88% | 81.97% | 82.77% | 81.29% | 78.78% | 80.98% | 83.45% | 87.28% | 84.21% | 78.08% | 77.43% | 79.89% | 76.35% | 76.45% | 78.08% | 80.58% | 82.22% | 75.61% | 70.25% | 76.32% | 71.64% |
| Gross Profit | 9.93M | 9.29M | 6.87M | 18.16M | 30.51M | 30.44M | 18.87M | 23.57M | 26.32M | 26.2M | 25.26M | 14.34M | 12.74M | 11.75M | 15.45M | 10.63M | 10.85M | 9.4M | 12.91M | 21.29M | 22.38M | 18.4M | 18.57M | 13.18M | 10.97M | 8.19M | 8.51M | 14M | 20.2M | 11.7M | 13.5M |
| Gross Margin % | 7.04% | 7.15% | 6.03% | 11.79% | 17.85% | 17.05% | 15.87% | 17.05% | 19.87% | 21.49% | 22.12% | 18.03% | 17.23% | 18.71% | 21.22% | 19.02% | 16.55% | 12.72% | 15.79% | 21.92% | 22.57% | 20.11% | 23.65% | 23.55% | 21.92% | 19.42% | 17.78% | 24.39% | 29.75% | 23.68% | 28.36% |
| Gross Profit Growth % | - | 35.31% | -62.19% | -40.48% | 0.22% | 61.32% | -19.95% | -10.43% | 0.44% | 3.75% | 76.15% | 12.57% | 8.41% | -23.95% | 45.37% | -2.05% | 15.37% | -27.16% | -39.34% | -4.88% | 21.63% | -0.93% | 40.88% | 20.17% | 33.96% | -3.74% | -39.24% | -30.69% | 72.65% | -13.33% | 23.85% |
| Operating Expenses | 18.03M | 17.95M | 15.4M | 13.45M | 16.83M | 16.77M | 20.38M | 17.61M | 16.79M | 16.5M | 13M | 10.18M | 9.96M | 9.6M | 9.25M | 8.3M | 7.58M | 9.01M | 11.84M | 26M | 17.76M | 14.61M | 15.19M | 12.01M | 10.68M | 10.39M | 13.23M | 18.9M | 10.6M | 9.9M | 8.3M |
| OpEx % of Revenue | - | 13.82% | 13.53% | 8.73% | 9.84% | 9.39% | 17.14% | 12.74% | 12.68% | 13.53% | 11.38% | 12.8% | 13.47% | 15.28% | 12.7% | 14.86% | 11.56% | 12.19% | 14.48% | 26.77% | 17.91% | 15.96% | 19.34% | 21.46% | 21.35% | 24.65% | 27.66% | 32.93% | 15.61% | 20.04% | 17.44% |
| Selling, General & Admin | 16.69M | 16.55M | 15.4M | 14.87M | 16.95M | 16.77M | 18.38M | 17.61M | 16.79M | 16.5M | 13M | 10.18M | 9.96M | 9.6M | 9.25M | 8.3M | 7.58M | 9.01M | 11.84M | 18.97M | 17.76M | 14.61M | 15.19M | 12.01M | 10.68M | 8.85M | 11.05M | 17.3M | 9.1M | 8.6M | 7.2M |
| SG&A % of Revenue | - | 12.74% | 13.53% | 9.65% | 9.91% | 9.39% | 15.46% | 12.74% | 12.68% | 13.53% | 11.38% | 12.8% | 13.47% | 15.28% | 12.7% | 14.86% | 11.56% | 12.19% | 14.48% | 19.53% | 17.91% | 15.96% | 19.34% | 21.46% | 21.35% | 20.99% | 23.1% | 30.14% | 13.4% | 17.41% | 15.13% |
| Research & Development | 3.6M | 1.8M | 1.9M | 2.1M | 2.5M | 1.9M | 1.8M | 1.8M | 1.5M | 1.6M | 1.1M | 1.1M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.39% | 1.67% | 1.36% | 1.46% | 1.06% | 1.51% | 1.3% | 1.13% | 1.31% | 0.96% | 1.38% | 1.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1.4M | -400K | -1.9M | -3.52M | -2.62M | -1.9M | 200K | 5K | -14K | -19K | 1.61M | -3K | -103K | 0 | 0 | 0 | 0 | 0 | 0 | 7.04M | 0 | 0 | 0 | 0 | 0 | 1.54M | 2.18M | 1.6M | 1.5M | 1.3M | 1.1M |
| Operating Income | -8.1M | -8.66M | -8.53M | 4.71M | 13.68M | 13.67M | -1.51M | 5.96M | 9.53M | 9.7M | 12.26M | 4.16M | 2.78M | 2.15M | 6.2M | 2.33M | 3.27M | 397K | 1.07M | -4.72M | 4.62M | 3.79M | 3.38M | 1.17M | 285K | -2.2M | -4.72M | -4.9M | 9.6M | 1.8M | 5.2M |
| Operating Margin % | -5.74% | -6.67% | -7.5% | 3.06% | 8% | 7.66% | -1.27% | 4.31% | 7.2% | 7.96% | 10.73% | 5.23% | 3.76% | 3.43% | 8.51% | 4.16% | 4.99% | 0.54% | 1.31% | -4.86% | 4.66% | 4.14% | 4.31% | 2.09% | 0.57% | -5.23% | -9.88% | -8.54% | 14.14% | 3.64% | 10.92% |
| Operating Income Growth % | - | -1.48% | -281.07% | -65.55% | 0.05% | 1006.03% | -125.31% | -37.47% | -1.74% | -20.85% | 194.73% | 49.77% | 28.98% | -65.27% | 166.67% | -28.94% | 724.18% | -63.04% | 122.76% | -202.19% | 21.78% | 12.12% | 189.31% | 310.18% | 112.93% | 53.34% | 3.59% | -151.04% | 433.33% | -65.38% | 44.44% |
| EBITDA | -3.41M | -4.1M | -3.89M | 11.79M | 20.59M | 18.01M | 2.45M | 9.43M | 12.44M | 12.09M | 14.03M | 6.59M | 5.68M | 5.19M | 9.22M | 5.55M | 6.62M | 3.54M | 4.03M | -1.14M | 7.76M | 6.35M | 6.06M | 3.65M | 2.69M | 283K | -2.54M | -3.3M | 11.1M | 3.1M | 6.3M |
| EBITDA Margin % | -2.42% | -3.16% | -3.42% | 7.66% | 12.05% | 10.09% | 2.06% | 6.82% | 9.39% | 9.91% | 12.29% | 8.29% | 7.68% | 8.26% | 12.66% | 9.93% | 10.1% | 4.79% | 4.93% | -1.17% | 7.82% | 6.94% | 7.71% | 6.52% | 5.38% | 0.67% | -5.32% | -5.75% | 16.35% | 6.28% | 13.24% |
| EBITDA Growth % | 26.44% | -5.48% | -132.96% | -42.73% | 14.34% | 635.1% | -74.01% | -24.23% | 2.94% | -13.86% | 112.9% | 15.98% | 9.5% | -43.71% | 66.12% | -16.15% | 86.95% | -12.25% | 454.79% | -114.66% | 22.12% | 4.84% | 66.15% | 35.44% | 851.24% | 111.13% | 22.97% | -129.73% | 258.06% | -50.79% | 34.04% |
| D&A (Non-Cash Add-back) | 4.69M | 4.56M | 4.65M | 7.08M | 6.91M | 4.34M | 3.96M | 3.46M | 2.91M | 2.38M | 1.77M | 2.43M | 2.9M | 3.04M | 3.02M | 3.22M | 3.35M | 3.14M | 2.96M | 3.58M | 3.14M | 2.56M | 2.68M | 2.48M | 2.41M | 2.49M | 2.18M | 1.6M | 1.5M | 1.3M | 1.1M |
| EBIT | -6.7M | -7.26M | -9.1M | 4.01M | 13.74M | 12.24M | 491K | 7.98M | 12.43M | 10.11M | 13.57M | 4.32M | 2.68M | 2.11M | 6.35M | 2.41M | 3.14M | 83K | 1.07M | 3.77M | 4.62M | 3.79M | 3.38M | 1.17M | 285K | -2.2M | -4.72M | -4.9M | 9.6M | 1.8M | 5.2M |
| Net Interest Income | -859K | -747K | -185K | -418K | -83K | -117K | 110K | 1.84M | 1.08M | 456K | 131K | 24K | 23K | 26K | -86K | -41K | -94K | -196K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 73K | 168K | 176K | 33K | 0 | 1K | 177K | 1.87M | 1.08M | 459K | 131K | 36K | 34K | 45K | 19K | 17K | 15K | 14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 932K | 915K | 361K | 451K | 83K | 118K | 67K | 29K | 9K | 3K | 0 | 12K | 11K | 19K | 105K | 58K | 109K | 210K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.49M | -2.08M | -930K | -1.16M | -20K | -1.55M | -229K | 1.99M | 1.08M | 409K | 1.31M | 148K | -109K | -60K | 42K | 25K | -245K | -524K | 102K | -8.93M | -507K | -383K | -358K | -17K | 2.95M | -315K | -2.18M | 100K | 100K | 0 | 0 |
| Pretax Income | -9.59M | -10.74M | -9.46M | 3.56M | 13.66M | 12.13M | -1.74M | 7.95M | 10.61M | 10.11M | 13.57M | 4.31M | 2.67M | 2.09M | 6.24M | 2.28M | 3.03M | -127K | 1.18M | -5.17M | 4.11M | 3.41M | 3.02M | 1.15M | 3.24M | -2.52M | -6.9M | -4.8M | 9.7M | 1.8M | 5.2M |
| Pretax Margin % | -6.8% | -8.27% | -8.32% | 2.31% | 7.99% | 6.79% | -1.46% | 5.75% | 8.01% | 8.29% | 11.88% | 5.42% | 3.61% | 3.33% | 8.57% | 4.08% | 4.62% | -0.17% | 1.44% | -5.32% | 4.15% | 3.73% | 3.85% | 2.06% | 6.47% | -5.98% | -14.43% | -8.36% | 14.29% | 3.64% | 10.92% |
| Income Tax | 4.78M | 2.83M | -2.25M | 1.03M | 2.95M | 1.36M | -93K | 1.41M | 5.56M | 2.88M | 4.03M | 961K | 674K | 523K | 2.08M | -2.74M | -943K | 93K | 264K | 119K | 1.44M | 1.21M | 24K | 47K | -642K | 2.37M | -2.43M | -1.9M | 3.8M | 700K | 2M |
| Effective Tax Rate % | -49.85% | -26.4% | 23.74% | 29.06% | 21.58% | 11.19% | 5.35% | 17.75% | 52.41% | 28.44% | 29.66% | 22.31% | 25.26% | 24.99% | 33.39% | -120.05% | -31.15% | -73.23% | 22.45% | -2.3% | 35.05% | 35.49% | 0.79% | 4.08% | -19.83% | -94.08% | 35.2% | 39.58% | 39.18% | 38.89% | 38.46% |
| Net Income | -14.37M | -13.57M | -7.22M | 2.52M | 10.71M | 10.77M | -1.65M | 6.54M | 5.05M | 7.24M | 9.55M | 3.35M | 1.99M | 1.57M | 4.16M | 5.09M | 4.13M | -4.08M | -371K | -5.29M | 2.67M | 2.2M | 3M | 1.1M | 3.88M | -4.89M | -4.47M | -2.9M | 5.9M | 1.1M | 3.2M |
| Net Margin % | -10.19% | -10.45% | -6.34% | 1.64% | 6.27% | 6.03% | -1.38% | 4.73% | 3.81% | 5.93% | 8.36% | 4.21% | 2.7% | 2.5% | 5.71% | 9.1% | 6.3% | -5.52% | -0.45% | -5.44% | 2.69% | 2.4% | 3.82% | 1.97% | 7.75% | -11.6% | -9.35% | -5.05% | 8.69% | 2.23% | 6.72% |
| Net Income Growth % | -74.55% | -88.1% | -386.16% | -76.46% | -0.52% | 754.59% | -125.15% | 29.5% | -30.19% | -24.21% | 185.3% | 67.8% | 27.01% | -62.24% | -18.25% | 23.24% | 201.15% | -999.73% | 92.98% | -297.94% | 21.42% | -26.7% | 171.49% | -71.51% | 179.34% | -9.32% | -54.21% | -149.15% | 436.36% | -65.63% | 60% |
| Net Income (Continuing) | -14.37M | -13.57M | -7.22M | 2.52M | 10.71M | 10.77M | -1.65M | 6.54M | 5.05M | 7.24M | 9.55M | 3.35M | 1.99M | 1.57M | 4.16M | 5.09M | 3.97M | -220K | 912K | 2.71M | 2.67M | 2.2M | 3M | 1.1M | 3.88M | -4.89M | -4.47M | -2.9M | 5.9M | 1.1M | 3.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.39 | -2.28 | -1.23 | 0.43 | 1.74 | 1.69 | -0.25 | 0.92 | 0.73 | 1.09 | 1.44 | 0.49 | 0.29 | 0.23 | 0.59 | 0.71 | 0.58 | -0.58 | -0.05 | -0.74 | 0.39 | 0.34 | 0.48 | 0.18 | 0.67 | -0.85 | -0.78 | -0.49 | 1.00 | 0.20 | 0.58 |
| EPS Growth % | -69.67% | -85.37% | -386.05% | -75.29% | 2.96% | 776% | -127.17% | 26.03% | -33.03% | -24.31% | 193.88% | 68.97% | 26.09% | -61.02% | -16.9% | 22.41% | 200% | -1000.57% | 92.88% | -289.74% | 14.71% | -29.17% | 166.67% | -73.13% | 178.82% | -8.97% | -59.18% | -149% | 400% | -65.52% | 56.76% |
| EPS (Basic) | - | -2.28 | -1.23 | 0.43 | 1.75 | 1.71 | -0.25 | 0.96 | 0.76 | 1.10 | 1.46 | 0.50 | 0.29 | 0.23 | 0.60 | 0.72 | 0.58 | -0.58 | -0.05 | -0.77 | 0.42 | 0.37 | 0.51 | 0.19 | 0.67 | -0.85 | -0.78 | -0.49 | 1.06 | 0.21 | 0.58 |
| Diluted Shares Outstanding | 6.03M | 5.95M | 5.87M | 5.88M | 6.16M | 6.38M | 6.7M | 7.1M | 6.89M | 6.66M | 6.64M | 6.81M | 6.86M | 6.88M | 6.99M | 7.12M | 7.11M | 7.06M | 7.04M | 7.18M | 6.78M | 6.46M | 6.3M | 6.02M | 5.8M | 5.77M | 5.76M | 5.87M | 5.76M | 5.61M | 5.52M |
| Basic Shares Outstanding | 6.03M | 5.95M | 5.87M | 5.86M | 6.12M | 6.29M | 6.7M | 6.81M | 6.64M | 6.58M | 6.52M | 6.75M | 6.82M | 6.87M | 6.98M | 7.11M | 7.08M | 7.06M | 6.98M | 6.84M | 6.34M | 5.95M | 5.84M | 5.81M | 5.79M | 5.77M | 5.76M | 5.87M | 5.57M | 5.35M | 5.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent operating margin erosion
According to the latest quarterly filings, NAII achieved a 22.7% year-over-year revenue increase in 2025Q3, yet this top-line expansion appears disconnected from underlying profitability, as the company continues to struggle with maintaining positive margins despite the higher volume of contract manufacturing activity reported in recent periods.
While the double-digit revenue growth suggests successful volume capture, the lack of corresponding bottom-line improvement implies that the company may be prioritizing market share over pricing power. Investors should monitor whether this growth is sustainable or if it reflects a temporary surge in demand from a concentrated customer base.
Based on reported financial statements, NAII's gross margin plummeted to a nominal 0.6% in 2025Q3, highlighting a critical inability to pass through rising input costs or effectively manage the manufacturing cost structure within its primary private-label contract manufacturing segment during the most recent reporting period.
The collapse in gross margins suggests that the company's manufacturing operations are currently functioning at near-zero profitability, leaving no buffer for overhead expenses. This trend warrants further investigation into whether the current cost of goods sold is inflated by supply chain inefficiencies or unfavorable long-term contract pricing.
As indicated by the income statement data, NAII's operating expenses consistently outpace gross profit, resulting in a negative operating margin of 11.6% in 2025Q3, which demonstrates a failure to achieve the necessary scale to cover fixed overheads despite the recent uptick in total revenue figures.
The persistent inability to scale operating income relative to revenue suggests that the current SG&A structure is too heavy for the company's low-margin business model. Without a significant shift in the sales mix toward higher-margin licensing revenue, the company appears trapped in a cycle of unprofitable manufacturing expansion.
Financial data reveals a concerning trend where NAII's net margin has deteriorated to -12.2% as of 2025Q3, raising significant questions about the long-term viability of the current business model and the potential for further erosion of the company's cash reserves if these losses are not addressed.
Short-sellers would likely focus on the company's inability to generate positive net income despite its proprietary IP portfolio. The reliance on a few large customers for manufacturing volume creates a binary risk profile where the loss of a single contract could exacerbate the existing cash burn.
Quick answers to the most common questions about buying NAII stock.
For fiscal year 2024, Natural Alternatives International, Inc. (NAII) reported total revenue of $129.9M. This represents a 172.8% increase compared to $47.6M in 1995.
Natural Alternatives International, Inc. (NAII) reported a net loss of $13.6M for the fiscal year ending 2024.
Natural Alternatives International, Inc. (NAII) reported an operating income of $-8.7M, resulting in an operating profit margin of -6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Natural Alternatives International, Inc. (NAII) generated $9.3M in gross profit for the year, representing a gross profit margin of 7.2%. This demonstrates the company's core pricing power and production efficiency.