The firm exhibits a severe disconnect between accounting profits and cash generation, evidenced by an OCF/NI ratio of 7.38 in 2026Q1 and a history of dividend payments reaching $739.5K in 2025Q3 despite negative free cash flow.
| Cash from Operations | -971.84K | -1.04M | -110.47K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -19.92% | -840.39% | - |
| Net Income | 1.31M | 1.81M | 142.88K |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -2.31M | -2.89M | -344.53K |
| Working Capital Changes | 34.65K | 41.72K | 91.19K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | 33.43M | -690K | -69M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 39.39M | 72.92M | 69.34M |
| Other Investing | -790K | -690K | 0 |
| Cash from Financing | -32.81M | 1.09M | 69.76M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 70.1M |
| Dividends Paid | -2.75M | -2.89M | -344.53K |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -30.75M | 2.99M | 1.72K |
| Net Change in Cash | -355.19K | -638.8K | 646.72K |
| Free Cash Flow | -971.84K | -1.04M | -110.47K |
| FCF Margin % | - | - | - |
| FCF Growth % | - | -840.39% | - |
| FCF per Share | -0.55 | -0.15 | -0.01 |
| FCF Conversion (FCF/Net Income) | -0.74x | -0.57x | -0.77x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Imminent liquidity and insolvency
As reported in financial statements, HSPT consistently records negative operating cash flow despite intermittent net income, with the OCF/NI ratio reaching 7.38 in 2026Q1, highlighting a fundamental disconnect between accounting profits and the actual cash required to sustain the entity's ongoing administrative and regulatory obligations.
The persistent negative operating cash flow indicates that the company is consuming capital to maintain its listing status rather than generating value from operations. This divergence suggests that reported net income is likely influenced by non-cash accounting adjustments that fail to reflect the underlying cash burn.
Based on recent SEC filings, the company's free cash flow remains consistently negative, with a quarterly burn rate that peaked at $338.7K in 2025Q2, underscoring the lack of self-sustaining cash generation typical of a pre-combination shell company in the current market environment.
The absence of positive free cash flow confirms that the vehicle is entirely dependent on external sponsor support to cover its fixed costs. Investors should monitor whether the current cash balance of $7,917 can support the firm's existence through the next reporting cycle without further capital infusions.
According to historical data, HSPT has prioritized significant dividend payments, reaching $739.5K in 2025Q3, which appears to have accelerated the depletion of available cash reserves despite the company's lack of operational revenue or a finalized business combination target.
The decision to distribute capital while the entity is in a cash-burning phase warrants further investigation into the sponsor's capital allocation strategy. This pattern suggests that the vehicle may be prioritizing short-term distributions over the preservation of liquidity required for future acquisition activities.
As indicated by the provided financial data, the company's cash flow statement obscures the full extent of its liabilities, as professional fees and regulatory costs continue to drain the remaining $7,917 in cash without any corresponding investment in productive assets or growth initiatives.
The lack of capitalized costs or significant working capital changes suggests that the company is operating in a state of suspended animation. The reliance on sponsor-funded administrative maintenance may mask the true cost of the vehicle's inability to secure a merger target in a timely manner.
Quick answers to the most common questions about buying HSPT stock.
Horizon Space Acquisition II Corp. (HSPT) generated $-1.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Horizon Space Acquisition II Corp. (HSPT) reported negative free cash flow of $1.0M in 2025, indicating capital requirements exceeded cash from operations.
Horizon Space Acquisition II Corp. (HSPT) 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, Horizon Space Acquisition II Corp. (HSPT) returned $2.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.