Free cash flow remains highly volatile and negative, swinging to a $18.8M outflow in 2026Q1, which underscores the firm's inability to sustain capital expenditures through core operations.
| Cash from Operations | -14.4M | -7.31M | 13.2M | 45.51M | 16.67M | -40.42M | -4.9M | 101.31M | 89.58M | 5.67M | -3.29M | 140.37M |
| Operating CF Margin % | - | -1.3% | 2.38% | 7.47% | 2.81% | -11.57% | -1.58% | 12.16% | 10.83% | 1.04% | -1.17% | 29.33% |
| Operating CF Growth % | -340.6% | -155.37% | -71.01% | 172.97% | 141.25% | -724.65% | -104.84% | 13.09% | 1479.56% | 272.37% | -102.34% | - |
| Net Income | 62.37M | -51.32M | -41.08M | -32.21M | 14.39M | -64.58M | -378.95M | -217.75M | -52.98M | -67.68M | -70.91M | -39.12M |
| Depreciation & Amortization | 49.75M | 49.6M | 50.03M | 53.18M | 48.92M | 53.04M | 57.8M | 68.91M | 63.81M | 62.22M | 64.34M | 67.54M |
| Stock-Based Compensation | 0 | 0 | 2.95M | 2.17M | 2.44M | 5.41M | 9.74M | 14.06M | 13.22M | 7.57M | 5.71M | 5.47M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -1.59M | -4.33M | 898K | -5.82M | -12.16M | -15.84M |
| Other Non-Cash Items | -120.12M | 16.26M | 10.23M | 10.79M | 4.32M | -9.29M | 270.85M | 204.43M | 83.17M | 43.95M | 19.9M | 42.22M |
| Working Capital Changes | -6.39M | -21.85M | -8.93M | 11.58M | -53.4M | -24.99M | 37.24M | 35.99M | -18.54M | -34.57M | -10.18M | 80.08M |
| Change in Receivables | 6.8M | 5.21M | 6.72M | 16.49M | -41.11M | -22.54M | 52.91M | 41.85M | -24.97M | -52.18M | 2.07M | 88.88M |
| Change in Inventory | -4.34M | -7.14M | 1.71M | 5.22M | -22.97M | -8.61M | 13.6M | 22.55M | -15.04M | -8.21M | -558K | 3.52M |
| Change in Payables | 12.07M | 2.71M | -2.09M | 1.06M | 0 | 12.45M | -25.46M | -27.9M | 27.16M | 12.53M | -2.4M | -24.14M |
| Cash from Investing | -15.09M | -13.59M | -14.18M | -23.16M | -25.42M | -11.92M | -1.78M | -34.12M | -389.76M | -44.46M | -4.18M | -19.25M |
| Capital Expenditures | -18.4M | -15.95M | -14.76M | -24.6M | -28.55M | -15.41M | -9.42M | -64.96M | -46.65M | -45.22M | -9.13M | -26.73M |
| CapEx % of Revenue | 3.4% | 2.84% | 2.66% | 4.04% | 4.81% | 4.41% | 3.03% | 7.8% | 5.64% | 8.32% | 3.23% | 5.59% |
| Acquisitions | 3.31M | 2.35M | 0 | 0 | 0 | 0 | 0 | 17.93M | -349.99M | -1M | 3.18M | -397K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 585K | 1.45M | 3.13M | 3.49M | 7.64M | 12.9M | 6.87M | 1.75M | 4.95M | 7.87M |
| Cash from Financing | 34.13M | 12.86M | -1.68M | -8.89M | 4.85M | 5.05M | -17.39M | -37.91M | 346.69M | 52.34M | -7.32M | -126.88M |
| Debt Issued (Net) | 34.13M | 13.09M | -9.33M | -281.96M | 5.82M | 5.67M | -15.84M | -35.9M | 192.72M | -5.27M | -7.52M | -127.28M |
| Equity Issued (Net) | 0 | 0 | 8.25M | 279.75M | 0 | 0 | -158K | 0 | -927K | 61.37M | 500K | 419K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.44M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -2K | 0 | 0 | -158K | 0 | -927K | 0 | 0 | 0 |
| Other Financing | 0 | -223K | -604K | -6.68M | -975K | -627K | -1.39M | -2M | 154.9M | -1.32M | -297K | -17K |
| Net Change in Cash | 4.59M | -8.04M | -2.96M | 13.39M | -4.06M | -47.35M | -24.13M | 29.37M | 46.1M | 13.44M | -14.8M | -5.36M |
| Free Cash Flow | -32.8M | -23.25M | -1.57M | 20.91M | -11.88M | -55.83M | -14.32M | 36.35M | 42.93M | -39.55M | -12.42M | 113.64M |
| FCF Margin % | -6.06% | -4.14% | -0.28% | 3.43% | -2% | -15.98% | -4.61% | 4.36% | 5.19% | -7.27% | -4.4% | 23.75% |
| FCF Growth % | -1037.27% | -1383.04% | -107.5% | 275.99% | 78.72% | -289.92% | -139.39% | -15.34% | 208.56% | -218.4% | -110.93% | - |
| FCF per Share | -0.76 | -0.57 | -0.04 | 0.63 | -0.37 | -1.84 | -0.48 | 1.24 | 1.76 | -1.71 | -0.58 | 5.29 |
| FCF Conversion (FCF/Net Income) | -0.53x | 0.14x | -0.32x | -1.41x | 1.16x | 0.63x | 0.01x | -0.47x | -1.69x | -0.08x | 0.05x | -3.59x |
| Interest Paid | 0 | 0 | 43.94M | 31.43M | 29.71M | 30.09M | 34.42M | 37.38M | 5.98M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 525K | 563K | 0 | 0 | 0 | 517K | 1.7M | 0 | 0 | 0 |
Liquidity and solvency constraints
As reported in recent financial statements, NINE's operating cash flow frequently diverges from net income, with the 2026Q1 period showing a net income of $106.6M against a negative operating cash flow of $12.4M, suggesting that reported earnings are not translating into tangible liquidity for the firm.
The persistent disconnect between accounting profits and cash generation indicates that earnings are likely bolstered by non-operating items or accounting adjustments rather than core operational efficiency. Investors should monitor this gap, as it suggests the company's ability to fund its own operations remains structurally compromised despite headline net income figures.
Based on the provided cash flow data, NINE's free cash flow trajectory is highly erratic, swinging from a positive $15.8M in 2023Q4 to a negative $18.8M in 2026Q1, which reflects the company's inability to maintain consistent cash generation amidst fluctuating completion activity levels in the Permian.
The inability to sustain positive free cash flow suggests that the business model is highly sensitive to cyclical downturns and lacks the margin buffer to absorb operational volatility. This trend warrants further investigation into whether the company can achieve self-sustaining cash flow without relying on external financing or asset divestitures.
According to quarterly cash flow disclosures, NINE experiences significant working capital volatility, with swings ranging from a $18.0M inflow in 2023Q4 to a $16.1M outflow in 2024Q1, indicating that the company struggles to manage its cash conversion cycle effectively during periods of shifting service demand.
These erratic movements in working capital suggest that the company may be facing challenges in timing its collections and managing inventory levels relative to project-based revenue recognition. Such instability in cash flow timing appears to exacerbate the company's existing liquidity constraints, leaving little room for operational error.
As indicated by historical cash flow filings, NINE's capital expenditure remains a persistent drain on resources, with CapEx/Revenue ratios reaching as high as 5.9% in 2023Q4, which appears disproportionately high given the company's inability to generate consistent positive operating cash flow to cover these essential investments.
The necessity of maintaining high-wear assets like coiled tubing and wireline units forces a continuous capital outlay that the current business model struggles to fund internally. This capital intensity appears to be a structural hurdle that prevents the company from achieving meaningful free cash flow, even during periods of relative market stability.
Quick answers to the most common questions about buying NINE stock.
Nine Energy Service, Inc. (NINE) generated $-7.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nine Energy Service, Inc. (NINE) reported negative free cash flow of $23.3M in 2025, indicating capital requirements exceeded cash from operations.
Nine Energy Service, Inc. (NINE) spent $15.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.