Natural Alternatives International, Inc. (NAI) reported a net loss of $2.2 million for the third quarter of fiscal year 2025, a decline from the $1.6 million net loss recorded in the same quarter of the previous fiscal year. This net loss occurred despite an increase in net sales, which grew by 14% to $28.8 million from $25.1 million in the prior year period. The increase in sales was driven primarily by a 20% rise in private-label contract manufacturing sales, attributed to larger orders from existing customers and new customer acquisitions. The company noted that the continued losses were mainly due to underutilization of factory capacities, decreased beta-alanine royalty and licensing revenue, and heightened operating expenses. These expenses include increased legal costs, salaries, and wages, as well as higher costs associated with labor, foreign currency exchange rates, operating supplies, rent, and freight. NAI anticipates an overall net loss for fiscal 2025, despite forecasting a sales increase in the fourth quarter compared to fiscal 2024. The company remains optimistic about a return to profitability in the future, bolstered by new customer relationships and the upcoming commercial launch of products containing their innovative TriBsyn™ ingredient.