The persistent discrepancy between earnings and liquidity is highlighted by a -1.06 OCF/NI ratio in 2025Q2, indicating that reported figures fail to translate into sustainable cash generation.
| Cash from Operations | 1.66M | 897.89K | 994.3K | -198.76K | -1.36M | -48.17K | 229.05K | 1.37M | 498.83K |
| Operating CF Growth % | 501.88% | -9.7% | 600.25% | 85.43% | -2731.57% | -121.03% | -83.34% | 175.56% | - |
| Operating CF / Revenue % | 21.36% | 27.89% | 79.91% | -14.7% | -48.88% | -1.48% | 11.44% | 44.52% | 32.58% |
| Net Income | -858.88K | -3.99M | -2.45M | -4.68M | -1.94M | 634.1K | 175.79K | 1.12M | 963.32K |
| Depreciation & Amortization | 213.14K | 168.7K | 79.76K | 208.27K | 255.11K | 227.54K | 34.71K | 30.3K | 10.94K |
| Stock-Based Compensation | 739.55K | 2.82M | 1.45M | 2.89M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.13M | 1.68M | 8.18K | 123.65K | 696 | 0 | 0 | 31 | -2.13K |
| Working Capital Changes | 1.03M | 220.25K | 1.91M | 1.26M | 324.83K | -909.81K | 18.55K | 222.78K | -473.31K |
| Cash from Investing | -37.92M | -1.82M | -992.72K | -28.9M | -7.5M | -3.46K | 37.01K | -9.62K | -258.08K |
| Capital Expenditures | -1.12K | 0 | 0 | -2.35K | -3.41K | -3.46K | -12.01K | -9.62K | -41.34K |
| Acquisitions | 84.99K | 77.89K | 0 | 0 | 0 | 0 | 0 | 0 | -216.74K |
| Purchase of Investments | -27.78M | -28.14M | -27.78M | -29.01M | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | -528.56K | 1000K | 1000K | 116.66K | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -9.7M | -1.36M | -300K | 0 | -7.5M | 0 | 49.02K | 0 | 0 |
| Cash from Financing | 1.11M | 1.19M | -283 | 0 | 32.64M | -478.25K | -871.32K | 6.49M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 36.86M | -366.08K | -493.44K | 6.09M | 0 |
| Debt Issuance (Net) | -75.29K | 1000K | -283 | 0 | -378.21K | -112.16K | -377.88K | 396.55K | 0 |
| Other Financing | 1.19M | 0 | 0 | 0 | -3.84M | 0 | -493.44K | 6.09M | 0 |
| Net Change in Cash | -22.96M | 301.16K | -167 | -30.15M | 23.92M | -43.09K | -660.85K | 7.38M | 243.76K |
| Exchange Rate Effect | -1.01M | 35.53K | -1.47K | -1000K | 145.01K | 486.78K | -55.59K | -471.03K | 3.01K |
| Cash at Beginning | 996.24K | 695.08K | 695.24K | 30.84M | 6.92M | 6.97M | 7.63M | 246.95K | 3.19K |
| Cash at End | 269.18K | 996.24K | 695.08K | 695.24K | 30.84M | 6.92M | 6.97M | 7.63M | 246.95K |
| Free Cash Flow | 1.66M | 897.89K | 994.3K | -201.11K | -1.37M | -51.63K | 33.93K | 1.36M | 457.49K |
| FCF Growth % | 187.1% | -9.7% | 594.42% | 85.29% | -2548.57% | -252.17% | -97.51% | 198.35% | - |
| FCF Margin % | 21.34% | 27.89% | 79.91% | -14.88% | -49% | -1.59% | 1.69% | 44.21% | 29.88% |
| FCF per Share | 0.03 | 0.03 | 0.08 | -0.02 | -0.2 | -0.01 | 0.01 | 0.34 | 0.11 |
Severe liquidity and solvency
As reported in financial statements, TIRX generated $527.3K in operating cash flow during 2025Q2, yet the persistent volatility in claims payments, which reached $599.9K in the same period, suggests that the company's underwriting cash generation is highly sensitive to unpredictable loss events within its niche commercial portfolio.
The erratic nature of cash inflows relative to claims suggests that the company lacks a stable float mechanism to buffer against operational volatility. Investors should monitor whether the current cash generation is sufficient to cover future claims obligations without requiring further capital injections.
Based on historical data, the company's investment portfolio activity has been characterized by sporadic large-scale purchases, such as the $29M investment in 2022Q4, which contrasts sharply with the lack of meaningful investment activity in recent quarters, indicating a potential shift toward preserving minimal liquidity.
The absence of consistent investment income suggests that the firm is not effectively utilizing its float to generate meaningful returns. This lack of portfolio activity may indicate that management is prioritizing immediate cash preservation over long-term asset growth, which warrants further investigation into their capital allocation strategy.
According to recent SEC filings, the persistent discrepancy between net income and operating cash flow, exemplified by the -1.06 OCF/NI ratio in 2025Q2, suggests that reported earnings are heavily influenced by non-cash accruals that fail to translate into actual liquidity for the insurance brokerage operations.
The consistent failure of net income to align with cash generation implies that the company's accounting practices may be masking underlying operational weaknesses. This divergence suggests that the firm's reported profitability is not reflective of its actual ability to sustain its business model through internal cash generation.
As indicated by the company's reported figures, the extremely low cash balance of $297,288 relative to its operational burn rate suggests that the cash flow statement may be obscuring significant solvency risks that could threaten the company's ability to maintain its regulatory and operational requirements.
The reliance on transactional commission income without a robust cash buffer suggests that the firm is vulnerable to even minor disruptions in its brokerage pipeline. Investors should be cautious, as the current cash position appears insufficient to support the company's ongoing expansion and fixed-cost obligations.
Quick answers to the most common questions about buying TIRX stock.
Tian Ruixiang Holdings Ltd (TIRX) generated $0.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Tian Ruixiang Holdings Ltd (TIRX) generated $0.9M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Tian Ruixiang Holdings Ltd (TIRX) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.