Operating cash flow remains consistently negative, evidenced by a $131,900 outflow in 2026Q1, highlighting the ongoing depletion of capital required to sustain the entity's listing status.
| Cash from Operations | -809.12K | -903.13K | -54.66M | -58.8M | -1.43M | -2.04M |
| Operating CF Growth % | -140.57% | 98.35% | 7.04% | -4013.01% | 29.95% | - |
| Net Income | 4.6M | 5.02M | -56.45M | -269.56M | 5.98M | 5.13M |
| Depreciation & Amortization | 0 | 0 | 2.74M | 930K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -5.98M | -5.92M | -4.01M | 206.46M | -10.41M | -8.91M |
| Working Capital Changes | 566.91K | 0 | 0 | 0 | 3M | 1.74M |
| Cash from Investing | 0 | 0 | -54.66M | 6.17M | 0 | -345M |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | -1.04B |
| Sale/Maturity of Investments | 0 | 0 | 0 | 8.14M | 0 | 690.16M |
| Net Investment Activity | 0 | 0 | 0 | 8.14M | 0 | -345M |
| Acquisitions | 0 | 0 | -53.5M | 0 | 0 | 0 |
| Other Investing | 0 | 0 | -1.16M | -1.94M | 0 | -484 |
| Cash from Financing | 0 | 0 | 0 | 50.42M | 1.23M | 347.32M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 35.49M | 0 | 0 |
| Stock Issued | 0 | 0 | 6.69M | 2.39M | 0 | 338.6M |
| Net Stock Activity | 0 | 0 | 6.69M | 37.88M | 0 | 338.6M |
| Debt Issuance (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 50.42M | 1.23M | 347.32M |
| Net Change in Cash | -809.12K | -903.13K | 10.8M | -1.9M | -204.66K | 277.58K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 544.79K | 1.45M | 6.42M | 8.32M | 277.58K | 0 |
| Cash at End | 412.91K | 544.79K | 17.22M | 6.42M | 72.92K | 277.58K |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -809.12K | -903.13K | -54.66M | -58.84M | -1.43M | -2.04M |
| FCF Growth % | -100.46% | 98.35% | 7.1% | -4015.45% | 29.95% | - |
Liquidation and redemption risk
According to recent financial filings, FACT's reported net income frequently diverges from operating cash flow, with the company recording positive net income of $1.0M in 2026Q1 while simultaneously reporting a negative operating cash flow of $131.9K, highlighting a fundamental lack of cash-generative operational activity.
The persistent gap between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash accounting adjustments, such as warrant liability revaluations, rather than actual business performance. Investors should monitor this divergence as it indicates that the entity's profitability metrics are essentially decoupled from its underlying cash reality.
As reported in financial statements, FACT has consistently generated negative free cash flow over the last five quarters, with the most recent 2026Q1 figure of -$131.9K underscoring the ongoing depletion of capital required to maintain the entity's listing status in the absence of any operational revenue.
The lack of a positive free cash flow trajectory confirms that the company is currently in a state of capital consumption rather than value creation. This trend appears unsustainable without a significant business combination or external capital infusion, as the current cash burn rate directly threatens the entity's ability to reach a merger deadline.
Based on historical data, FACT's capital deployment has been characterized by erratic share buyback activity, such as the $35.5M outflow in 2024Q3, which stands in stark contrast to the current cash-constrained environment where only $544,791 in cash and equivalents remains available for corporate use.
The historical volatility in capital deployment suggests that management's focus has shifted from active market participation to mere survival as cash reserves have dwindled. This pattern warrants further investigation into whether remaining funds are being prioritized for essential regulatory compliance or if they are being depleted by administrative overhead.
As indicated by the provided financial data, the company's cash flow statement is heavily impacted by non-operating items like stock-based compensation and depreciation, which totaled $497.0K and $2.4M respectively in 2024Q4, effectively masking the true extent of the entity's underlying cash-based administrative burn.
These non-cash adjustments create a misleading impression of the company's financial health by inflating operating cash flow figures that do not reflect actual liquidity. Analysts should be wary of these accounting nuances, as they obscure the reality that the entity is essentially a shell vehicle with no organic capacity to generate cash.
Quick answers to the most common questions about buying FACT stock.
FACT II Acquisition Corp (FACT) generated $-0.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
FACT II Acquisition Corp (FACT) reported negative free cash flow of $0.9M in 2025, indicating capital requirements exceeded cash from operations.
FACT II Acquisition Corp (FACT) 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.