The entity exhibits a persistent negative free cash flow trajectory, with quarterly outflows reaching $261,200 in 2025Q1 and cash reserves dwindling to a nominal $4,600 by 2026Q1.
| Cash from Operations | -324.52K | -543.16K | -171.29K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | 121.53% | -217.1% | - |
| Net Income | 2.95M | 2.98M | 356 |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 333 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -4.15M | -3.57M | -171.98K |
| Working Capital Changes | 220.38K | 49.2K | 6 |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 13.42K | 0 | 0 |
| Cash from Investing | 0 | 0 | -85.21M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 90.23M | 89.44M | 85.87M |
| Other Investing | 0 | 0 | 0 |
| Cash from Financing | 142.88K | 100.88K | 85.83M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 86.11M |
| Dividends Paid | -2.68M | -3.57M | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 2.68M | 3.57M | 0 |
| Net Change in Cash | -181.63K | -442.28K | 447.42K |
| Free Cash Flow | -324.52K | -543.16K | -228 |
| FCF Margin % | - | - | - |
| FCF Growth % | -24.14% | -238130.26% | - |
| FCF per Share | -0.03 | -0.06 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.11x | -0.18x | -481.44x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidity and Merger Failure
As reported in financial statements, CHARR consistently records positive net income despite negative operating cash flow, with the 2026Q1 period showing a $699.9K profit alongside a $42.5K cash outflow, highlighting a complete lack of correlation between accounting earnings and actual liquidity generation for this shell entity.
The persistent divergence between reported net income and operating cash flow suggests that earnings are driven by non-cash accounting adjustments rather than operational performance. Investors should monitor this gap, as it indicates that the company's profitability metrics are essentially decoupled from its ability to sustain operations through internal cash generation.
Based on recent SEC filings, CHARR has maintained a negative free cash flow trajectory throughout the 2025-2026 period, with quarterly outflows peaking at $261.2K in 2025Q1, confirming that the entity is currently consuming rather than generating capital while it searches for a viable acquisition target.
The consistent negative free cash flow reflects the ongoing administrative and regulatory costs required to maintain the shell's public status. This trend appears unsustainable without external capital injections or sponsor support, as the company lacks any revenue-generating activities to offset these recurring cash outflows.
According to the provided data, working capital changes have been erratic, with a $44.1K positive adjustment in 2026Q1 following significant fluctuations in prior quarters, suggesting that the company's cash position is highly sensitive to timing differences in the settlement of administrative and professional service liabilities.
The reliance on working capital shifts to manage liquidity suggests that the company may be deferring payments to preserve its minimal cash balance. This practice warrants further investigation, as it may indicate underlying pressure on the entity's ability to meet its short-term obligations without sponsor intervention.
As reported in financial statements, CHARR utilized significant capital for dividends throughout 2025, with outflows reaching $916.0K in 2025Q3, a move that appears counterintuitive given the company's lack of operational revenue and its reliance on external funding to cover basic administrative and regulatory expenses.
The decision to pay dividends while operating at a cash deficit suggests a capital allocation strategy that may prioritize short-term shareholder distributions over the preservation of liquidity for future acquisition activities. This approach appears to exacerbate the company's vulnerability, as it depletes the very capital needed to execute a de-SPAC transaction.
Based on reported figures, the cash flow statement obscures the true extent of the company's obligations, as the $5,135 cash balance fails to account for potential sponsor loans or deferred liabilities that are likely to crystallize only upon the successful completion of a business combination.
The cash flow statement provides a limited view of the company's financial health, as it does not explicitly detail the terms of sponsor support or the potential dilution from future warrant exercises. Analysts should be wary that the current cash position may be artificially supported by temporary arrangements that do not reflect the long-term viability of the entity.
Quick answers to the most common questions about buying CHARR stock.
Charlton Aria Acquisition Corporation (CHARR) generated $-0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Charlton Aria Acquisition Corporation (CHARR) reported negative free cash flow of $0.5M in 2025, indicating capital requirements exceeded cash from operations.
Charlton Aria Acquisition Corporation (CHARR) 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.
In 2025, Charlton Aria Acquisition Corporation (CHARR) returned $3.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.