Cash flow generation is highly erratic, as evidenced by the free cash flow oscillation between a positive $15.3 million in 2024Q4 and a negative $8.2 million in 2025Q2.
| Cash from Operations | 7.68M | -14.47M | 17.76M | -6.03M | 1.58M | 4.33M | -938.35K | 3.69M |
| Operating CF Margin % | - | -434.67% | 220.96% | -62.21% | 20.27% | 25.63% | -5.69% | 34.24% |
| Operating CF Growth % | 882.17% | -181.49% | 394.43% | -480.55% | -63.43% | 561.85% | -125.41% | - |
| Net Income | -8.39M | -5.97M | 1.05M | 3.4M | 3.49M | 5.04M | 2.54M | 1.28M |
| Depreciation & Amortization | 252.45K | 175.89K | 144.5K | 120.94K | 64.58K | 13.29K | 17.86K | 43.94K |
| Stock-Based Compensation | 109.08K | 72.22K | 48.6K | 50.14K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -8.84M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 16.17M | 2.29M | -526.69K | 8.84M | 957.49K | 469.21K | 3.15M | 4.22M |
| Working Capital Changes | -452.92K | -11.04M | 17.04M | -9.6M | -1.97M | -724.19K | -3.5M | -1.85M |
| Change in Receivables | -5.14M | -5.68M | 4.35M | -4.93M | -899.7K | 2.43M | -1.18M | -722.65K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 587.49K | 6.7M | 241.96K | 71.37K | -2.87M | -1.93M | 0 |
| Cash from Investing | -13.82M | -9.36M | -1.28M | -6.54M | -413.89K | -16.28K | 0 | -11.68K |
| Capital Expenditures | -7.03K | -3.23K | -6.06K | -86.44K | -413.89K | -16.28K | 0 | -11.68K |
| CapEx % of Revenue | 0.1% | 0.1% | 0.08% | 0.89% | 5.29% | 0.1% | - | 0.11% |
| Acquisitions | 0 | - | - | - | - | - | - | - |
| Investments | 6.15M | 5.65M | 2.95M | 4.2M | 1.29M | 481.9K | 134.78K | 0 |
| Other Investing | -13.54M | -6.96M | 472.98K | -5M | 0 | 0 | 0 | 0 |
| Cash from Financing | 4.39M | 0 | 4.39M | 22.5M | 0 | -2.33M | -581.95K | 0 |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 4.39M | 22.65M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -5.2M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 4.39M | 0 | 0 | -150K | 0 | 2.88M | -581.95K | 0 |
| Net Change in Cash | 37.08M | -23.52M | 20.85M | 9.88M | 1.12M | 1.97M | -1.45M | 3.68M |
| Free Cash Flow | 8.09M | -14.47M | 17.75M | -6.12M | 1.17M | 4.32M | -938.35K | 3.68M |
| FCF Margin % | 114.19% | -434.77% | 220.88% | -63.1% | 14.97% | 25.54% | -5.69% | 34.14% |
| FCF Growth % | 298.32% | -181.54% | 390.17% | -622.44% | -72.88% | 560.12% | -125.49% | - |
| FCF per Share | 0.22 | -0.39 | 0.55 | -0.17 | 0.03 | 0.12 | -0.03 | 0.07 |
| FCF Conversion (FCF/Net Income) | -0.96x | 2.42x | 16.89x | -1.78x | 0.45x | 0.86x | -0.37x | 2.87x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 2.16K | 0 |
| Taxes Paid | 0 | 713 | 0 | 25.65K | 103.32K | 0 | 304.21K | 0 |
Liquidity and operational viability
As reported in financial statements, TOP's operating cash flow to net income ratio has fluctuated wildly, reaching an extreme 38.27 in 2026Q2, which suggests that reported earnings are frequently decoupled from actual cash generation and are heavily influenced by non-cash items or working capital swings.
The massive variance in the OCF/NI ratio indicates that the company's accounting earnings are not a reliable proxy for its underlying cash-generating capacity. Investors should interpret these swings as a sign of high earnings volatility, where the timing of cash receipts often fails to align with the recognition of revenue.
Based on reported figures, TOP's free cash flow trajectory remains highly unstable, oscillating between a positive $15.3 million in 2024Q4 and a negative $8.2 million in 2025Q2, which highlights the firm's inability to maintain a consistent, self-sustaining cash flow profile across different market cycles.
The lack of a stable FCF margin suggests that the business model is highly sensitive to external market conditions rather than being driven by predictable, recurring cash inflows. This inconsistency makes it difficult to project future liquidity needs, as the company appears prone to sudden cash outflows during periods of operational stress.
According to recent SEC filings, TOP's working capital changes have been a primary driver of cash flow volatility, with a $5.2 million inflow in 2024Q4 followed by a $5.6 million outflow in 2025Q4, indicating that client-related cash movements are significantly impacting the firm's immediate liquidity position.
These large, erratic shifts in working capital suggest that the company's cash position is highly susceptible to the timing of client settlements and margin account activities. Such fluctuations warrant further investigation, as they may mask underlying operational cash burn that is not immediately apparent in the headline net income figures.
Based on historical data, TOP's capital deployment has been inconsistent, characterized by intermittent acquisitions and a lack of sustained shareholder returns, with the company prioritizing small, opportunistic cash outlays despite its own negative operating cash flow trends observed in several recent reporting periods.
The absence of a clear, disciplined capital allocation strategy suggests that management may be struggling to identify high-return investment opportunities within its core brokerage business. Investors should monitor whether these cash outflows for acquisitions are providing any tangible improvement to the company's competitive positioning or revenue scale.
Quick answers to the most common questions about buying TOP stock.
TOP Financial Group Limited (TOP) generated $-14.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TOP Financial Group Limited (TOP) reported negative free cash flow of $14.5M in 2025, indicating capital requirements exceeded cash from operations.
TOP Financial Group Limited (TOP) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.