NN, Inc. (NNBR) Cash Flow Statement

The gap between net income and operating cash flow is the central signal here, and the ratio swings from negative to positive reflect sign flips rather than a stable conversion relationship. Positive operating cash flow alongside losses may be driven by depreciation of roughly $9.3M per quarter and working capital movements, which contributed both large inflows and outflows across the period. Investors should monitor whether operating cash generation persists once working capital normalizes, since the current quarter's conversion may not be repeatable.

Free cash flow has alternated between positive and negative outcomes, with margins ranging from roughly -10.1% to 11.8% across the period, which limits the reliability of any single quarter as a run-rate. The latest quarter's positive result appears to coincide with low capital expenditure of $8.5M against a much larger operating base, suggesting it may partly reflect timing. Warrants further investigation into whether the recent improvement is sustained or reflects the reversal of earlier outflows.

Depreciation and amortization of roughly $9.2M to $11.8M per quarter exceeds most reported capex levels, which may suggest the asset base is being consumed faster than it is being replaced over much of the period. The sharp swings in capex intensity make it difficult to separate maintenance from growth spending using these figures alone. Data on the split between maintenance and growth capex is not provided, so that classification remains unavailable.

The single $70.0M buyback in the latest quarter is large relative to the company's recent free cash flow and loss-making earnings base, which may indicate a deliberate capital return decision funded by balance sheet resources rather than organic cash generation. Capital allocation of this scale while reporting net losses warrants scrutiny of the funding source. Investors should monitor whether this repurchase reflects a one-time action or the start of a recurring pattern.

Summing reported net losses over the period produces a materially negative earnings base, whereas operating cash flow has been net positive on balance, which suggests non-cash charges and working capital are doing much of the work. This divergence may reflect accounting and timing effects rather than durable cash earnings power. The data does not extend far enough to establish whether cash generation can offset the accumulated losses over a full cycle.