Free cash flow remains highly volatile, evidenced by a swing from a $2.2M inflow in 2022Q4 to a $3.3M outflow in 2024Q4.
| Cash from Operations | -2.33M | -811.89K | 451.02K | 2.64M | 4.45M | 2.32M |
| Operating CF Margin % | -19.5% | -6.34% | 3.14% | 22.27% | 34.27% | 33.61% |
| Operating CF Growth % | -187.2% | -280.01% | -82.9% | -40.78% | 92.3% | - |
| Net Income | -10.27K | -571.72K | 856.54K | 2.1M | 3.06M | 886.57K |
| Depreciation & Amortization | 585.12K | 649.34K | 387.72K | 259.94K | 411.51K | 204.23K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 55.55K | -10.74K | -23.73K | -23.4K |
| Other Non-Cash Items | -99.84K | 348.2K | 175.87K | -208.76K | 2.02M | -1M |
| Working Capital Changes | -2.81M | -1.24M | -1.02M | 249.16K | 843.15K | 1.09M |
| Change in Receivables | -820.68K | 666.74K | -1.22M | 791.58K | -952.81K | 1.95M |
| Change in Inventory | -792.18K | -117.16K | -676.81K | 217.58K | -382.37K | -41.41K |
| Change in Payables | 623.41K | -65.68K | 273.3K | -238.2K | 301.24K | -331.92K |
| Cash from Investing | -1.26M | -2.78M | -81.75K | 2.69M | -754.24K | -443.46K |
| Capital Expenditures | -730.16K | -2.47M | -43.25K | -105.66K | -153.55K | -1.52M |
| CapEx % of Revenue | 6.11% | 19.26% | 0.3% | 0.89% | 1.18% | 22.04% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -527.29K | -317.12K | -38.49K | 2.96M | -600.69K | 1.08M |
| Cash from Financing | 1M | 2.79M | -2.81M | -3.78M | -9.99K | -503.76K |
| Debt Issued (Net) | 1M | -735.76K | 457.07K | -918.82K | 383.93K | -324.36K |
| Equity Issued (Net) | 0 | 5M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | -517.14K | -1.28M | -1.2M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | -954.58K | -1.99M | 1.18M | -397.35K | -370.52K |
| Net Change in Cash | -1.78M | -1.33M | -2.33M | 1.38M | 3.8M | 414.78K |
| Free Cash Flow | -2.9M | -3.29M | 369.77K | 2.53M | 4.3M | 797.55K |
| FCF Margin % | -24.27% | -25.71% | 2.57% | 21.38% | 33.09% | 11.57% |
| FCF Growth % | 11.9% | -990.81% | -85.4% | -41.12% | 439.28% | - |
| FCF per Share | -0.18 | -0.20 | 0.02 | 0.16 | 0.26 | 0.05 |
| FCF Conversion (FCF/Net Income) | 227.11x | 1.69x | 0.53x | 1.26x | 1.46x | 2.61x |
| Interest Paid | 0 | 66.86K | 91.28K | 155.05K | 193.39K | 126.22K |
| Taxes Paid | 0 | 746.04K | 664.26K | 390.94K | 268.08K | 424.89K |
Cyclical Project Revenue Volatility
As reported in financial statements, TRSG's operating cash flow frequently decouples from net income, evidenced by a 2024Q4 period where the company posted positive net income of $334.0K while simultaneously suffering an operating cash outflow of $811.9K, suggesting significant non-cash accruals or delayed collection cycles.
The persistent gap between accounting profits and cash generation indicates that earnings quality may be lower than headline figures suggest. Investors should monitor whether this divergence stems from aggressive revenue recognition on long-term projects or an inability to convert contract assets into realized cash.
Based on historical data, TRSG's free cash flow trajectory remains highly erratic, swinging from a positive $2.2M in 2022Q4 to a negative $3.3M in 2024Q4, which highlights the company's vulnerability to lumpy project-based cash inflows and sudden spikes in capital expenditure requirements.
The negative FCF margin of 44.7% in 2024Q4 underscores the difficulty of maintaining self-funding operations during periods of revenue contraction. This trend suggests that the business model may require more consistent project throughput to achieve sustainable cash flow neutrality.
According to recent SEC filings, TRSG's capital expenditure reached $2.5M in 2024Q4, representing a significant 33.5% of revenue, which marks a sharp departure from the minimal capital intensity observed in prior periods and suggests a potential shift toward heavy investment in specialized manufacturing infrastructure.
This sudden increase in capital intensity warrants further investigation into whether these expenditures are maintenance-related or represent a strategic pivot toward new production capabilities. If such high levels of spending persist without a corresponding increase in revenue, the company's cash reserves may face accelerated depletion.
As indicated by the company's cash flow statements, working capital changes have been highly inconsistent, ranging from a $1.9M inflow in 2022Q4 to a $1.2M outflow in 2024Q4, reflecting the inherent challenges of managing inventory and receivables within an engineer-to-order manufacturing framework.
The negative working capital impact in recent periods suggests that the company is struggling to optimize its cash conversion cycle, likely due to extended payment terms or inventory build-up. This volatility appears to be a primary driver of the company's inconsistent operating cash flow performance.
Based on reported figures, TRSG has continued to distribute cash to shareholders, including $517.1K in dividends during 2024Q4, despite the company's negative operating cash flow and contracting revenue, which may indicate a management preference for capital return over internal reinvestment or balance sheet preservation.
Prioritizing dividends while the core business is experiencing negative cash flow may limit the company's financial flexibility during industry downturns. Investors should monitor whether this capital allocation strategy is sustainable given the current lack of profitable scale and the need for potential R&D investment.
Quick answers to the most common questions about buying TRSG stock.
Tungray Technologies Inc Class A Ordinary Shares (TRSG) generated $-2.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tungray Technologies Inc Class A Ordinary Shares (TRSG) reported negative free cash flow of $2.9M in 2025, indicating capital requirements exceeded cash from operations.
Tungray Technologies Inc Class A Ordinary Shares (TRSG) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.