Persistent cash burn is evident as the company recorded an operating cash outflow of $228.0K in 2026Q1, highlighting a disconnect between accounting net income and actual liquidity.
| Cash from Operations | -529.37K | -504.5K | 0 |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | 0% | - | - |
| Net Income | 2.98M | 4.57M | -255 |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -3.66M | -5.7M | 255 |
| Working Capital Changes | 147.16K | 633.26K | 0 |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 346.79K | 0 | 0 |
| Cash from Investing | -276M | -276M | 0 |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 285.87M | 283.38M | 0 |
| Other Investing | 0 | 0 | 0 |
| Cash from Financing | 277.13M | 277.13M | 0 |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 277.4M | 277.38M | 0 |
| Net Change in Cash | 599.29K | 624.16K | 0 |
| Free Cash Flow | -529.37K | -504.5K | 0 |
| FCF Margin % | - | - | - |
| FCF Growth % | - | - | - |
| FCF per Share | -0.02 | -0.03 | - |
| FCF Conversion (FCF/Net Income) | -0.18x | -0.08x | - |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Target acquisition failure risk
According to the latest financial statements, CGCT reported net income of $1.7M in 2026Q1, yet simultaneously recorded an operating cash outflow of $228.0K, highlighting a significant divergence between accounting profitability and the actual cash resources available to sustain the entity's ongoing search for a target.
The negative OCF/NI ratio of -0.14 underscores that reported earnings are entirely decoupled from operational reality, likely driven by non-cash accounting adjustments rather than core business activity. Investors should monitor this gap, as it suggests that the company's paper profitability provides no liquidity to fund the administrative costs required to maintain its listing.
As reported in the company's quarterly filings, CGCT has consistently generated negative free cash flow, with outflows reaching $228.0K in 2026Q1, confirming that the vehicle remains in a cash-consuming phase without any offsetting revenue streams to support its search for a viable business combination.
The absence of positive FCF margins is expected for a shell company, yet the trend of sustained outflows warrants caution regarding the company's limited runway. This trajectory implies that the entity is entirely dependent on its initial capital or potential sponsor support to remain operational until a merger is finalized.
Based on the provided data, CGCT's working capital dynamics remain minimal, with a reported change of $147.2K in 2025Q2, suggesting that the company's cash position is primarily influenced by administrative expense timing rather than any underlying operational cycle or inventory management typical of an active business.
The lack of meaningful working capital movement reflects the entity's status as a non-operating shell. Analysts should interpret these fluctuations as simple administrative timing differences rather than indicators of operational efficiency or improved liquidity management.
As indicated by the financial data, the cash flow statement obscures the true cost of maintaining the SPAC structure, as the $228.0K outflow in 2026Q1 represents only the visible cash burn, potentially masking future liabilities related to professional fees and regulatory compliance costs required for a merger.
The reported figures do not explicitly detail the potential impact of warrant liabilities or future dilution, which may significantly alter the cash position upon a business combination. Investors should be wary that the current cash burn may accelerate as the search deadline approaches, potentially necessitating further sponsor-led financing.
Quick answers to the most common questions about buying CGCT stock.
Cartesian Growth Corporation III (CGCT) generated $-0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cartesian Growth Corporation III (CGCT) reported negative free cash flow of $0.5M in 2025, indicating capital requirements exceeded cash from operations.
Cartesian Growth Corporation III (CGCT) 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.