Liquidity remains under pressure as evidenced by a 2025Q4 free cash flow margin of -123.9% and a consistent failure to generate positive operating cash flow, which totaled -$790.5K in the most recent quarter.
Top Wealth Group Holding Limited Ordinary Shares (TWG) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | -137.21K | -794.56K | 113.75K | -110.31K | 15.36K | 63.52K |
| Operating CF Margin % | - | -8.7% | 2.4% | -0.65% | 0.18% | 323.81% |
| Operating CF Growth % | -549.42% | -798.54% | 203.11% | -818.3% | -75.82% | - |
| Net Income | -783.06K | 409.18K | -258.81K | 311.42K | 244.91K | -10.99K |
| Depreciation & Amortization | 4.03K | 0 | 7.93K | 29.84K | 22.12K | 2.48K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 11.84K | 0 | 0 | -3.9K | -1K | -5.89K |
| Other Non-Cash Items | 354.12K | 212.78K | 192.8K | 2 | 0 | 1 |
| Working Capital Changes | -3.17M | -1.42M | 171.83K | -447.68K | -250.67K | 77.92K |
| Change in Receivables | -4.83M | -985.85K | 565.1K | -757.76K | -5.14K | -29 |
| Change in Inventory | 153.19K | -454.83K | -173.16K | 245.05K | -232.73K | -249.33K |
| Change in Payables | 63.56K | 60.58K | 0 | -25.62K | 25.62K | 0 |
| Cash from Investing | -1.51M | 525.89K | -2.04M | 0 | -61.45K | -62.72K |
| Capital Expenditures | -15.89M | 0 | -15.89M | 0 | -61.45K | -62.72K |
| CapEx % of Revenue | 689.17% | - | 334.67% | - | 0.72% | 319.77% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 14.37M | 525.89K | 13.85M | 0 | 0 | 0 |
| Cash from Financing | 1.66M | 569.44K | 1.91M | 99.7K | 73.67K | 12 |
| Debt Issued (Net) | -28.73K | 18.88K | -99.69K | 99.36K | 0 | 0 |
| Equity Issued (Net) | -871.22K | 0 | 15.69M | 345 | 73.67K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.56M | 550.56K | -13.68M | 0 | 0 | 10 |
| Net Change in Cash | 54.35K | 301.24K | -11.75K | -10.65K | 27.67K | 804 |
| Free Cash Flow | -137.21K | -794.56K | 113.75K | -110.31K | -46.09K | 792 |
| FCF Margin % | -5.95% | -8.7% | 2.4% | -0.65% | -0.54% | 4.04% |
| FCF Growth % | 92.68% | -798.51% | 203.12% | -139.34% | -5919.44% | - |
| FCF per Share | -0.01 | -0.96 | 0.30 | -0.37 | -0.15 | 0.00 |
| FCF Conversion (FCF/Net Income) | 0.18x | -0.25x | -0.06x | -0.05x | 0.01x | -5.78x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 180.91K | 15.82K | 0 | 0 |
Quick answers to the most common questions about buying TWG stock.
Top Wealth Group Holding Limited Ordinary Shares (TWG) generated $-0.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Top Wealth Group Holding Limited Ordinary Shares (TWG) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
Top Wealth Group Holding Limited Ordinary Shares (TWG) 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.
Key Metrics
Top Statement Risk
Persistent Negative Operating Cash
Persistent Disconnect Between Earnings Cash
As reported in financial statements, TWG consistently fails to convert net income into operating cash flow, evidenced by a negative 7.81 OCF/NI ratio in 2025Q4, which suggests that reported profits are not being realized as actual liquidity within the company's current operational framework.
The recurring divergence between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items or aggressive revenue recognition. Investors should monitor this gap closely, as it suggests that the business model may be generating paper profits while simultaneously consuming cash to sustain its operations.
Negative Free Cash Flow Trajectory
Based on the provided cash flow data, TWG's free cash flow trajectory remains deeply negative, with a 2025Q4 FCF margin of -123.9%, highlighting a structural inability to generate self-sustaining cash flows despite the company's reported revenue growth in previous periods.
The consistent failure to achieve positive free cash flow suggests that the company is currently reliant on external financing or capital preservation to fund its ongoing activities. This trend warrants further investigation into whether the business can ever reach a scale where cash generation exceeds its operational and working capital requirements.
Working Capital Drag on Liquidity
According to recent SEC filings, TWG's working capital changes have been consistently negative, including a $1.1M outflow in 2025Q4, which indicates that the company is struggling to manage its cash conversion cycle effectively within the luxury food distribution sector.
The persistent cash outflows related to working capital suggest that the company is likely tying up significant liquidity in inventory or experiencing delays in collecting receivables from its B2B clients. This dynamic appears to be a primary driver of the company's deteriorating cash position and requires immediate management attention.
Obscured Cash Flow Realities
As indicated by the historical data, the company's cash flow statement obscures the true cost of its operations, as the lack of significant depreciation and amortization relative to its cash outflows suggests that the business is not merely capital-intensive but potentially operationally inefficient.
The absence of meaningful D&A adjustments in the cash flow statement implies that the company's reported net income is not being shielded by non-cash charges, making the negative operating cash flow even more concerning. This suggests that the underlying business may be facing structural challenges that are not fully captured by standard income statement metrics.