NN (NNBR) opened Q1 2026 with revenue of US$118.5 million and a net income loss of US$12.3 million, translating to basic EPS of a US$0.25 loss. The trailing twelve month figures show revenue of US$435.0 million and a net income loss of US$54.1 million, or basic EPS of a US$1.09 loss. Over recent quarters, the company has reported quarterly revenue between US$103.9 million and US$118.5 million, with basic EPS losses ranging from US$0.23 to US$0.51 and trailing twelve month EPS between a US$1.00 loss and a US$1.23 loss. With the stock trading at US$2.76, this set of results keeps attention on how efficiently NN is converting sales into margins and whether that loss profile is tightening.

See our full analysis for NN.

With the latest numbers on the table, the next step is to see how they line up against the key narratives around NN, including its path toward profitability and what sustained losses and revenue trends mean for the business story investors are following.

Losses Still Heavy At US$54.1 Million Over The Year

• On a trailing twelve month basis, NN reported total revenue of US$434.97 million and a net income loss of US$54.09 million, which equates to a basic EPS loss of US$1.09.
• Consensus narrative talks about NN targeting higher margin segments such as medical and electrical, yet the trailing EPS loss of US$1.09 and recent quarterly net losses between US$11.09 million and US$17.60 million show that, so far, higher margin ambitions have not translated into positive earnings.
  • The balanced view points to internal goals of 20% gross margin and a 13 to 14% EBITDA margin in future years, while current trailing results still sit firmly in loss-making territory with US$54.09 million of losses.
  • Analysts also expect revenue growth of 3.8% to 5.8% per year over the next few years, which, combined with ongoing losses, suggests the focus is on improving margins on roughly US$435 million of current sales rather than relying on rapid top line expansion.

Q1 Loss Of US$12.3 Million Tests The Bullish Margin Story

• In Q1 2026, NN generated revenue of US$118.45 million with a net income loss of US$12.27 million, compared with recent quarterly losses that have ranged from US$11.09 million to US$25.18 million on revenue between US$103.88 million and US$107.92 million.
• Bullish investors emphasize opportunities in premium markets and talk about gross margin potentially moving above 20%, yet the Q1 2026 loss of US$12.27 million on US$118.45 million of revenue highlights how dependent that view is on future margin improvement rather than what is currently showing in the reported numbers.
  • Bullish assumptions include revenue growing around 4.1% annually and profit margins moving from a current loss position to 9.9% by around 2028, which is very different from the present run rate of US$1.09 loss per share on a trailing basis.
  • The bullish case also leans on operating efficiencies and cost savings of about US$15 million per year, so watching how quarterly losses like the US$12.27 million figure move over upcoming periods will be key for anyone relying on that thesis.

Bulls argue NN is laying the groundwork for higher margins, but Q1's US$12.27 million loss shows how far that journey still has to run, so if you want to see how optimistic investors join the dots from these numbers to their long term thesis, have a look at the 🐂 NN Bull Case.

Low 0.3x P/S Against DCF Fair Value Of US$6.24

• On the valuation side, NN trades at a P/S of 0.3x compared with 1.7x for peers and 2.1x for the wider US Machinery industry, and the stock price of US$2.76 is below a DCF fair value figure of US$6.24 referenced in the analysis.
• Bears highlight that NN is unprofitable and forecast to remain loss making over the next three years, and that the share price has been volatile in the last three months, which they see as a sign that the low 0.3x P/S and gap to the US$6.24 DCF fair value may be more a reflection of persistent loss risk than a simple bargain.
  • The bearish narrative notes that despite a 3.7% annual reduction in losses over five years, the company is still posting trailing losses of US$54.09 million, so the valuation gap is being weighed against a business that has not yet reached breakeven.
  • At the same time, consensus targets around US$5.50, combined with slower forecast revenue growth of 5.8% per year versus an 11.3% market benchmark, mean investors are being asked to judge whether the low P/S and discount to the US$6.24 DCF fair value offset the risk of continued losses.

Skeptics warn that even with a 0.3x P/S and a price well below the US$6.24 DCF fair value, ongoing losses and recent volatility keep risk front and center, so if you want to see how cautious investors frame that downside case around the same data, check out the 🐻 NN Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NN on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seeing both the bullish and bearish angles side by side, it makes sense to look through the numbers yourself and decide where you stand. If you want a quick way to weigh the downside risks against the potential upside rewards that other investors are focused on, take a look at the 3 key rewards and 2 important warning signs.

See What Else Is Out There

NN is still posting sizeable annual losses of US$54.1 million on about US$435.0 million of revenue, so the profitability story remains unproven.

If you want ideas that put financial resilience ahead of ongoing losses, compare NN with companies in the 74 resilient stocks with low risk scores and see how a stronger risk profile can change your comfort level.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.