Operating cash flow was only $949K against net income of $8.8M in Q1 2026, yielding a 0.11 cash conversion ratio, highlighting earnings quality deterioration and working capital volatility.
Nathan's Famous, Inc. (NATH) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Cash from Operations | 19.4M | 18.23M | 25.24M | 20M | 19.84M | 16.48M | 11.77M | 12.35M | 11.16M | 18.86M | 10.41M | 12.48M | 13.29M | 2.88M | 9.49M | 9.61M | 7.23M | 7.18M | 4.1M | 4.85M | 8.19M | 4.06M | 3.31M | 5.28M | 2.3M | -3.08M | 4.15M | 1.98M | 6.8M | 2.3M | 800K |
| Operating CF Margin % | - | 11.25% | 17.03% | 14.43% | 15.17% | 14.34% | 15.51% | 11.95% | 10.95% | 18.1% | 10.77% | 12.37% | 13.4% | 3.48% | 13.36% | 14.64% | 12.8% | 14.11% | 8.33% | 10.24% | 17.91% | 9.82% | 9.7% | 17.2% | 6.77% | -6.94% | 8.8% | 6.48% | 27.76% | 9.79% | 3.01% |
| Operating CF Growth % | 530.88% | -27.76% | 26.19% | 0.83% | 20.39% | 40.04% | -4.72% | 10.69% | -40.85% | 81.16% | -16.57% | -6.06% | 361.93% | -69.71% | -1.23% | 33.02% | 0.65% | 75.05% | -15.48% | -40.76% | 101.7% | 22.76% | -37.3% | 129.79% | 174.52% | -174.26% | 109.86% | -70.93% | 195.65% | 187.5% | 300% |
| Net Income | 19.92M | 20.02M | 24.03M | 19.62M | 19.62M | 13.6M | 11.07M | 13.44M | 21.49M | 2.63M | 7.49M | 6.1M | 11.7M | 8.33M | 7.47M | 279K | 2.21M | 5.57M | 7.48M | 6.55M | 5.54M | 5.68M | 2.74M | 1.89M | -13.97M | 1.25M | 1.61M | -1.27M | 2.7M | 1.5M | 800K |
| Depreciation & Amortization | 936K | 925K | 957K | 1.14M | 1.14M | 1.05M | 1.18M | 1.23M | 1.21M | 1.35M | 1.3M | 1.25M | 1.25M | 1.16M | 940K | 965K | 915K | 843K | 874K | 1.2M | 1.39M | 1.38M | 1.42M | 1.36M | 2.27M | 2.55M | 2.63M | 2.07M | 1.5M | 1.5M | 1.5M |
| Stock-Based Compensation | 1.12M | 1.13M | 993K | 733K | 258K | 74K | 116K | 116K | 162K | 398K | 582K | 722K | 859K | 721K | 627K | 274K | 378K | 428K | 428K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -86K | -88K | -235K | 165K | 207K | -444K | -147K | 580K | 396K | -339K | 760K | -13K | 111K | 1.65M | 497K | 2.04M | -1.96M | -267K | -63K | 682K | -180K | 175K | 915K | 945K | -585K | 509K | 313K | -958K | -1M | -100K | 200K |
| Other Non-Cash Items | 190K | 199K | 817K | 525K | 1.26M | 2.07M | 912K | 994K | -10.39M | 10.77M | 1.26M | 1.34M | 253K | -2.2M | 275K | 6.44M | 1.16M | 717K | -3.46M | -2.13M | -140K | -2.58M | 101K | -4K | 15.16M | -89K | 547K | 2.49M | 300K | -100K | 0 |
| Working Capital Changes | -2.68M | -3.95M | -1.32M | -2.17M | -2.64M | 130K | -1.37M | -4.01M | -1.72M | 4.06M | -974K | 3.08M | -894K | -6.78M | -313K | -105K | 5.09M | -111K | -1.16M | -1.45M | 1.57M | -591K | -1.86M | 1.08M | -584K | -7.3M | -947K | -355K | 3.3M | -500K | -1.7M |
| Change in Receivables | -5.13M | -5.91M | 392K | -74K | -2.15M | -1.91M | -645K | -1.01M | 229K | -1.59M | -280K | 740K | -2.42M | -927K | -397K | -501K | -951K | -536K | -1.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -499K | 330K | -379K | -303K | -17K | 102K | -246K | 157K | -151K | 195K | 108K | 135K | 125K | 99K | 79K | 14K | -110K | -350K | 160K | -32K | 27K | -129K | 55K | -354K | 203K | -69K | 20K | 3K | 0 | -100K | 0 |
| Change in Payables | 5.2M | 2.24M | -1.23M | -1.23M | 377K | 1.7M | -287K | -2.03M | -3.37M | 7.09M | -673K | -293K | 1.78M | 2.33M | -838K | 247K | 6.17M | 158K | -50K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -322K | -370K | -225K | -313K | -584K | -636K | -551K | -870K | 12.33M | -550K | -1.13M | 5.99M | 2.22M | 4.92M | 496K | 3.17M | -1.21M | -434K | -961K | 2.97M | -6.03M | -3.8M | -4.8M | -2.13M | 3.7M | 2.08M | -1.94M | 184K | -5.9M | -1.6M | -900K |
| Capital Expenditures | -322K | -370K | -225K | -313K | -626K | -636K | -551K | -870K | -447K | -563K | -1.13M | -1.13M | -1.54M | -4.34M | -998K | -1.36M | -1.25M | -2.18M | -513K | -972K | -545K | -2.14M | -588K | -449K | -562K | -2.08M | -1.46M | -3.56M | -1.5M | -1.7M | -900K |
| CapEx % of Revenue | 0.19% | 0.23% | 0.15% | 0.23% | 0.48% | 0.55% | 0.73% | 0.84% | 0.44% | 0.54% | 1.17% | 1.12% | 1.55% | 5.25% | 1.4% | 2.07% | 2.21% | 4.29% | 1.04% | 2.05% | 1.19% | 5.18% | 1.72% | 1.46% | 1.66% | 4.69% | 3.09% | 11.69% | 6.12% | 7.23% | 3.38% |
| Acquisitions | 0 | 0 | 0 | 0 | 42K | 0 | 0 | 0 | 12.78M | 13K | 0 | 133K | 0 | 2.71M | 449K | 0 | 0 | 0 | 3.96M | 1.69M | 0 | 3.62M | 11K | 489K | 781K | 0 | -1.04M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.78M | 13K | 0 | 133K | 3.76M | 8.59M | -6K | -447K | -4.87M | 215K | 406K | 1.93M | 487K | 3.97M | 342K | 1.29M | 1.05M | 4.16M | 551K | 3.75M | -4.4M | 100K | 0 |
| Cash from Financing | -21.26M | -21.26M | -18.24M | -28.52M | -39.45M | -46.84M | -7.27M | -9.81M | -5.38M | -17.89M | -2.6M | -19.63M | 13.81M | 881K | -2.62M | -15.69M | -8.69M | -3.81M | -8.84M | -372K | 1.76M | -185K | 977K | -1.11M | -6.41M | -1.49M | -278K | -1.93M | 0 | 0 | 0 |
| Debt Issued (Net) | -2.4M | -2.4M | -9.63M | -20M | -30M | -40.66M | 0 | 0 | 0 | 150M | 0 | -60K | 135M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39K | -827K | -173K | -187K | -553K | -1.35M | -278K | -1.93M | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | -362K | -1.89M | -7K | -1.5M | -4.97M | -1M | 0 | -1.27M | -19.23M | -1.92M | -1.49M | -3.08M | -15.8M | -9.05M | -6.39M | -9.71M | -1M | 722K | 642K | 1.15M | -928K | -5.86M | -135K | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -18.4M | -18.4M | -8.17M | -8.16M | -7.56M | -6.17M | -5.76M | -5.91M | -4.34M | -21.07M | -375K | -375K | -115.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -362K | -1.89M | -7K | -1.5M | -4.97M | -1M | -157K | -1.27M | -19.23M | -1.92M | -1.49M | -3.08M | -15.87M | -9.25M | -6.39M | -9.71M | -1.93M | 0 | 0 | -237K | -928K | -5.86M | -135K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -459K | -459K | -437K | 0 | 0 | 0 | -6K | 1.07M | -40K | -146.81M | -950K | 32K | -4.17M | 2.37M | 469K | 113K | 356K | 2.58M | 870K | 632K | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -2.18M | -3.4M | 6.78M | -8.83M | -20.2M | -31M | 3.95M | 1.67M | 18.11M | 424K | 6.69M | -1.17M | 29.32M | 8.67M | 7.37M | -2.91M | -2.67M | 2.93M | -5.7M | 7.45M | 3.92M | 74K | -514K | 2.03M | -419K | -2.49M | 1.93M | 232K | 900K | 700K | -200K |
| Free Cash Flow | 19.08M | 17.86M | 25.02M | 19.69M | 19.21M | 15.84M | 11.21M | 11.48M | 10.71M | 18.3M | 9.28M | 11.36M | 11.75M | -1.46M | 8.5M | 8.25M | 5.98M | 5M | 3.59M | 3.88M | 7.65M | 1.92M | 2.72M | 4.83M | 1.73M | -5.16M | 2.69M | -1.59M | 5.3M | 600K | -100K |
| FCF Margin % | 11.28% | 11.02% | 16.88% | 14.2% | 14.69% | 13.79% | 14.79% | 11.11% | 10.51% | 17.56% | 9.61% | 11.25% | 11.85% | -1.77% | 11.95% | 12.57% | 10.6% | 9.82% | 7.29% | 8.19% | 16.72% | 4.64% | 7.97% | 15.73% | 5.11% | -11.63% | 5.7% | -5.21% | 21.63% | 2.55% | -0.38% |
| FCF Growth % | -3.28% | -28.59% | 27.05% | 2.49% | 21.27% | 41.25% | -2.3% | 7.19% | -41.48% | 97.1% | -18.24% | -3.34% | 902.94% | -117.22% | 2.93% | 38% | 19.74% | 39.21% | -7.53% | -49.25% | 298.23% | -29.41% | -43.65% | 178.37% | 133.59% | -291.86% | 269.46% | -129.96% | 783.33% | 700% | 97.06% |
| FCF per Share | 4.62 | 4.33 | 6.11 | 4.82 | 4.70 | 3.85 | 2.72 | 2.72 | 2.54 | 4.34 | 2.21 | 2.54 | 2.56 | -0.32 | 1.85 | 1.63 | 1.09 | 0.87 | 0.58 | 0.60 | 1.21 | 0.29 | 0.45 | 0.85 | 0.29 | -0.73 | 0.38 | -0.23 | 1.11 | 0.13 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.96x | 0.91x | 1.05x | 1.02x | 1.01x | 1.21x | 1.06x | 0.92x | 0.52x | 7.17x | 1.39x | 2.05x | 1.14x | 0.35x | 1.27x | 1.56x | 3.27x | 1.29x | 0.55x | 0.74x | 1.48x | 0.19x | 1.21x | 2.79x | -0.16x | -2.47x | 2.58x | -1.56x | 2.52x | 1.53x | 1.00x |
| Interest Paid | 2.76M | 2.88M | 5.48M | 5.48M | 8.06M | 10.56M | 9.94M | 9.94M | 9.94M | 9.04M | 13.5M | 13.69M | 0 | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 8.3M | 8.19M | 8.49M | 8.31M | 7.16M | 4.98M | 4.77M | 3.87M | 6.28M | 3.58M | 4.05M | 848K | 4.54M | 3.46M | 2.55M | 1.94M | 2.64M | 2.24M | 3.19M | 2.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying NATH stock.
Nathan's Famous, Inc. (NATH) generated $18.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nathan's Famous, Inc. (NATH) generated $17.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nathan's Famous, Inc. (NATH) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Nathan's Famous, Inc. (NATH) returned $18.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital volatility
Metrics are mathematically derived from official filings.
Earnings Quality Deteriorates Sharply
The 9:1 ratio between Q1 2026 net income and operating cash flow signals a severe breakdown in earnings quality, with working capital consuming virtually all reported profit according to recent financial statements.
This pronounced disconnect, where $8.8 million in net income generated only $949,000 in operating cash flow, suggests the current period's profitability is heavily accrual-based and may not be supported by underlying cash generation. The trend is highly erratic, with the OCF/NI ratio swinging from 1.95 in 2025Q2 to 0.11 in the latest quarter, indicating unpredictable cash conversion.
Working Capital Swings Offset Profitability
Massive quarterly swings in working capital, including a $8.4 million cash outflow in Q1 2026 alone, appear to be the primary driver of operating cash flow volatility and are overshadowing underlying operational performance.
The working capital dynamics show no discernible pattern of efficiency improvement; instead, large negative changes periodically erode cash reserves, as seen in both 2025Q1 and 2026Q1. This volatility makes free cash flow highly unpredictable and suggests potential challenges in inventory or receivables management that warrant closer scrutiny.
Unstable FCF Despite Asset-Light Model
Despite minimal capital expenditure requirements consistently below 0.5% of revenue, the free cash flow margin remains erratic, collapsing from 21.9% in 2025Q2 to just 1.6% in the latest quarter.
The FCF trajectory is characterized by violent instability rather than steady progression, with quarterly margins ranging from -0.7% to 23.7% over the past ten periods. This indicates that the company's cash generation is not reliably scaling with revenue and is being dictated by timing issues in working capital rather than sustainable operational leverage.
Dividends Consuming Surplus Cash Flow
The company is returning substantial cash to shareholders through periodic dividends, including a $12.3 million payout in 2025Q3, which significantly reduces the cash available for reinvestment or balance sheet strengthening.
Dividend payments appear to be a primary use of excess cash, but their lumpiness creates additional cash flow uncertainty. Given the volatile operating cash flow, sustaining these payments may periodically pressure liquidity, especially in quarters where working capital requires significant cash infusion.
Stock-Based Compensation Masks True Cash Costs
Stock-based compensation has grown to $280,000 per quarter, a non-cash expense that inflates operating cash flow relative to net income and may overstate the company's true cash-generating ability.
While SBC is added back to calculate operating cash flow, its rising absolute amount suggests it is becoming a more material component of total compensation. Investors should recognize that this adjustment flatters the OCF figure, and the true cash cost of employee retention is higher than the net income figure alone might imply.