Persistent negative free cash flow, including a $108.2K outflow in 2026Q1, highlights the structural inability of the entity to sustain operations without external funding.
| Cash from Operations | -328.52K | -372.23K | -584.72K | -10.97K | -95.06K | 0 |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | 162.78% | 36.34% | -5230.15% | 88.46% | - | - |
| Net Income | 11.14M | 11.89M | 8.67M | -14.04K | -30.84K | -48 |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -11.88M | -12.44M | -9.24M | 1.07K | -50.16K | 0 |
| Working Capital Changes | 408.93K | 179.69K | -19.75K | 2K | -14.05K | 48 |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 0 | 0 | -287.5M | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - |
| Investments | 311.9M | 309.18M | 296.74M | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 71.38K | 1.31K | 288.57M | 10.42K | 94.05K | 0 |
| Debt Issued (Net) | 0 | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 282.5M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -43.63K | 1.31K | 6.3M | 10 | -50.16K | 0 |
| Net Change in Cash | -257.14K | -370.91K | 482.36K | -550 | -1.01K | 0 |
| Free Cash Flow | -328.52K | -372.23K | -584.72K | -10.97K | -95.06K | 0 |
| FCF Margin % | - | - | - | - | - | - |
| FCF Growth % | 52.29% | 36.34% | -5230.15% | 88.46% | - | - |
| FCF per Share | -0.01 | -0.01 | -0.03 | -0.00 | -0.00 | - |
| FCF Conversion (FCF/Net Income) | -0.03x | -0.03x | -0.07x | 0.78x | 3.08x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidation and deal-sourcing failure
According to recent financial filings, GPAT reported a net income of $2.2M in 2026Q1, yet simultaneously generated an operating cash outflow of $108.2K, highlighting a profound disconnect between accounting profits and the actual cash resources available to the entity for its ongoing operational requirements.
The persistent negative OCF/NI ratio suggests that the reported net income is largely driven by non-operating accounting adjustments rather than cash-generative activities. Investors should interpret this divergence as a signal that the company's reported profitability provides no cushion for the actual cash burn required to sustain the sponsor's deal-sourcing operations.
As reported in quarterly financial statements, GPAT has consistently recorded negative free cash flow over the last ten quarters, with the most recent 2026Q1 outflow of $108.2K underscoring the structural inability of the shell vehicle to generate self-sustaining cash flows prior to a business combination.
The lack of a positive FCF trajectory confirms that the entity remains entirely dependent on external capital or sponsor support to cover administrative expenses. This trend suggests that the company's financial health is tethered to its ability to secure a target before the current cash runway is fully exhausted.
Based on the company's reported figures, working capital fluctuations have been erratic, with a notable $457.0K swing in 2026Q1, indicating that the entity's cash position is highly sensitive to the timing of professional fee payments and other administrative liabilities inherent in the SPAC structure.
These swings in working capital appear to be the primary driver of short-term liquidity volatility rather than operational efficiency. The reliance on these movements suggests that management may be managing cash outflows tactically to preserve the limited $112,660 in cash and equivalents currently held on the balance sheet.
As highlighted in recent SEC filings, the cash flow statement obscures the true cost of deal-sourcing efforts by grouping them within administrative outflows, which may mask the intensity of the sponsor's efforts to identify a viable target before the looming liquidation deadline forces a sub-optimal outcome.
The absence of capitalized costs or significant investment activity suggests that the sponsor is currently minimizing upfront expenditures, potentially to avoid further diluting the trust value. This strategy warrants further investigation, as it may indicate a lack of high-conviction targets currently under active, capital-intensive due diligence.
Quick answers to the most common questions about buying GPAT stock.
GP-Act III Acquisition Corp. (GPAT) generated $-0.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GP-Act III Acquisition Corp. (GPAT) reported negative free cash flow of $0.4M in 2025, indicating capital requirements exceeded cash from operations.
GP-Act III Acquisition Corp. (GPAT) 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.