Stoneridge, Inc. (SRI) Cash Flow Statement

The 2026Q3 net loss of $22.9M was accompanied by operating cash outflow of $9.3M, suggesting part of the loss may be non-cash, yet the 2025Q4 loss of $76.9M came with positive operating cash flow of $8.8M, which points to large non-cash or non-recurring charges rather than a steady operating deficit. The ratio instability means the quality of earnings warrants further investigation before any conclusion about underlying cash generation is drawn.

The trend shows FCF compression from late-2024 levels, with the 2026Q1 outflow driven by an operating cash deficit of $14.7M that appears to be largely working-capital related given the $6.6M WC drag alongside negative operating income. The near-zero FCF margin in the latest quarter suggests the business is generating little discretionary cash, leaving limited internal capacity to absorb further earnings deterioration.

The large working-capital inflow in 2026Q3 coincided with a negative net income of $22.9M, which may indicate liquidation of receivables or inventory or favorable payables timing rather than sustainable cash generation. Investors should monitor whether these inflows reverse in subsequent periods, as they appear to be flattering operating cash flow relative to underlying earnings power.

Capex consistently running below D&A in most quarters suggests the company is not replacing depreciating assets at full rate, which may support near-term cash flow but could erode productive capacity over time. The low capex intensity during contracting revenue is consistent with a defensive posture, though it warrants further investigation into whether deferred spending creates future catch-up requirements.