Revenue volatility remains a primary concern, with gross margins swinging from 100% in 2023Q4 to a negative 96.2% in 2024Q4, indicating that direct costs frequently overwhelm commission-based income.
| Sales/Revenue | 7.09M | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - |
| Gross Profit | 1.34M | 246.23K | 4.35M | 5.87M | 4.53M | 5.95M | 3.37M | 10.78M |
| Gross Margin % | 18.98% | 7.4% | 54.14% | 60.51% | 57.92% | 35.21% | 20.42% | 100% |
| Gross Profit Growth % | - | -94.34% | -25.83% | 29.52% | -23.9% | 76.68% | -68.76% | - |
| Operating Expenses | 10.93M | 5.81M | 3.36M | 2.44M | 949.76K | 836.72K | 771.43K | 9.26M |
| OpEx % of Revenue | - | 174.61% | 41.85% | 25.14% | 12.14% | 4.95% | 4.68% | 85.85% |
| Selling, General & Admin | 9.17M | 3.08M | 3.07M | 2.44M | 949.76K | 836.72K | 771.43K | 995.29K |
| SG&A % of Revenue | - | 92.4% | 38.23% | 25.14% | 12.14% | 4.95% | 4.68% | 9.23% |
| Research & Development | 0 | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - |
| Operating Income | -6.8M | -5.57M | 987.85K | 3.43M | 3.58M | 5.12M | 2.6M | 1.53M |
| Operating Margin % | -95.96% | -167.21% | 12.29% | 35.37% | 45.78% | 30.26% | 15.74% | 14.15% |
| Operating Income Growth % | - | -663.53% | -71.19% | -4.21% | -30.02% | 96.94% | 70.2% | - |
| EBITDA | -6.55M | -5.39M | 1.13M | 3.55M | 3.64M | 5.13M | 2.62M | 0 |
| EBITDA Margin % | -92.39% | -161.93% | 14.09% | 36.62% | 46.6% | 30.34% | 15.85% | - |
| EBITDA Growth % | -174.7% | -576.09% | -68.1% | -2.59% | -28.94% | 96.1% | - | - |
| D&A (Non-Cash Add-back) | 252.45K | 175.89K | 144.5K | 120.94K | 64.58K | 13.29K | 17.86K | -1.53M |
| EBIT | -10.58M | -5.57M | 987.85K | 3.43M | 3.58M | 5.12M | 2.6M | 19.58M |
| Net Interest Income | 682.91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 682.91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - |
| Pretax Income | -8.24M | -5.82M | 987.85K | 3.43M | 3.58M | 5.12M | 2.6M | 1.53M |
| Pretax Margin % | -116.24% | -174.91% | 12.29% | 35.37% | 45.78% | 30.26% | 15.74% | 14.15% |
| Income Tax | 157.83K | 146.1K | -63.69K | 31.52K | 88.65K | 70.77K | 58.44K | 241.25K |
| Effective Tax Rate % | -1.92% | -2.51% | -6.45% | 0.92% | 2.48% | 1.38% | 2.25% | 15.81% |
| Net Income | -8.39M | -5.97M | 1.05M | 3.4M | 3.49M | 5.04M | 2.54M | 1.28M |
| Net Margin % | -118.47% | -179.3% | 13.08% | 35.04% | 44.64% | 29.84% | 15.39% | 11.91% |
| Net Income Growth % | -186.63% | -667.68% | -69.05% | -2.68% | -30.79% | 98.68% | 97.61% | - |
| Net Income (Continuing) | -8.39M | -5.97M | 1.05M | 3.4M | 3.49M | 5.04M | 2.54M | 1.28M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.23 | -0.16 | 0.03 | 0.10 | 0.10 | 0.14 | 0.07 | 0.03 |
| EPS Growth % | -180.94% | -590.8% | -66.43% | -0.61% | -30.21% | 97.18% | 176.26% | - |
| EPS (Basic) | - | -0.16 | 0.03 | 0.10 | 0.10 | 0.14 | 0.07 | 0.03 |
| Diluted Shares Outstanding | 37.06M | 37.02M | 32.28M | 35M | 35.75M | 35.75M | 35.75M | 50M |
| Basic Shares Outstanding | 37.06M | 37.02M | 32.28M | 35M | 35.75M | 35.75M | 35.75M | 50M |
| Dividend Payout Ratio | - | - | - | - | - | 103.13% | - | - |
Operational scale and liquidity
As reported in financial statements, TOP's revenue trajectory has exhibited extreme instability, with quarterly figures fluctuating from a high of $8.2 million in 2021Q4 to a low of $887.8K in 2024Q4, highlighting a lack of recurring revenue and high sensitivity to cyclical trading volumes.
The absence of a stable, subscription-based revenue stream leaves the firm entirely dependent on market volatility, which appears to have failed to materialize in recent periods. This erratic performance suggests that the company's brokerage model lacks the client stickiness required to maintain a consistent top-line floor.
Based on reported figures, the company's gross margin profile has deteriorated significantly, swinging from historical highs of 100% to a negative 96.2% in 2024Q4, which indicates that direct execution costs are frequently outpacing the commission revenue generated from client trading activities.
This margin compression suggests that the firm's cost of revenue is not effectively managed relative to its transaction volume. Investors should monitor whether these negative margins are a result of temporary clearing fee spikes or a permanent structural disadvantage in the firm's execution cost base.
According to recent SEC filings, TOP's operating margin collapsed to -160.3% in 2024Q4, demonstrating that the firm's fixed administrative and compensation expenses are far too high to be supported by its current, diminished level of gross profit generation.
The inability to scale operating income alongside revenue suggests that the company's overhead structure is rigid and poorly aligned with its current business scale. Without a substantial increase in trading volume or a drastic reduction in fixed costs, the firm appears to face a persistent path of operating losses.
As noted in the income statement data, the company's net income has swung violently between profitability and significant losses, with EPS dropping to -0.15 in 2025Q4, a trend that is further complicated by the intermittent recognition of stock-based compensation expenses.
The inconsistency in bottom-line results suggests that reported earnings are heavily influenced by non-operating factors or erratic trading gains rather than core brokerage performance. The reliance on equity-based incentives during periods of operational distress warrants further investigation into the alignment of management compensation with shareholder value creation.
Based on the provided financial snapshot, the company's $12.2 million cash position appears insufficient to sustain prolonged operating losses, raising concerns that the firm may be forced into dilutive financing or drastic operational restructuring to maintain its ongoing viability as a going concern.
While the balance sheet shows minimal debt, the rapid cash burn rate observed in recent quarters suggests that the firm's liquidity is more precarious than the debt-to-equity ratio implies. Short-term investors should be wary of the potential for capital raises that could significantly dilute existing equity holders.
Quick answers to the most common questions about buying TOP stock.
TOP Financial Group Limited (TOP) reported a net loss of $6.0M for the fiscal year ending 2025.
TOP Financial Group Limited (TOP) reported an operating income of $-5.6M, resulting in an operating profit margin of -167.2%. This margin reflects the operational efficiency of the business before interest and taxes.
TOP Financial Group Limited (TOP) generated $0.2M in gross profit for the year, representing a gross profit margin of 7.4%. This demonstrates the company's core pricing power and production efficiency.