Persistent negative free cash flow, including a $215.0K burn in 2026Q1, is exacerbated by significant capital outflows such as the $588.1K dividend payment during the same period.
| 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 | -2.28M | -2.85M | -344.53K |
| Working Capital Changes | 0 | 0 | 91.19K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | 34.12M | 0 | -69M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 0 | 0 | 69.34M |
| Other Investing | -100K | 0 | 0 |
| Cash from Financing | -34.59M | -690K | 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 | -31.84M | 2.2M | 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 | -0.14 |
| FCF Conversion (FCF/Net Income) | -0.74x | -0.57x | -0.77x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation and Funding Risk
As reported in financial statements, the persistent divergence between net income and operating cash flow, exemplified by the 2025Q4 period where a $500.1K profit coincided with a $158.7K cash outflow, suggests that reported earnings are entirely decoupled from the company's actual cash-generating capabilities.
The consistent negative operating cash flow despite occasional positive net income figures indicates that accounting adjustments, likely related to warrant liabilities, are creating a misleading picture of financial health. Investors should interpret these earnings as non-operational artifacts that provide no insight into the company's ability to fund its search for a target.
Based on the company's historical filings, the free cash flow trajectory remains consistently negative, with the firm reporting a $215.0K cash burn in 2026Q1, confirming that the entity is consuming capital to maintain its shell status rather than generating any internal value.
The lack of any positive free cash flow over the observed ten-quarter period underscores the company's reliance on external capital injections. This trajectory suggests that the entity is effectively a capital-consuming vehicle that will continue to erode its remaining cash reserves until a business combination is successfully executed.
According to recent SEC filings, the company's capital deployment is characterized by significant dividend payments, such as the $588.1K outflow in 2026Q1, which appears to be depleting the firm's liquidity far faster than its administrative search costs would otherwise dictate.
The decision to prioritize dividend outflows while maintaining a minimal cash balance of $7,917 warrants further investigation into the sponsor's capital allocation strategy. This pattern suggests that the vehicle may be structured to return capital to stakeholders prematurely, potentially undermining the liquidity required to secure a viable aerospace target.
As evidenced by the cumulative financial data, the widening gap between reported net income and operating cash flow highlights a structural inability to convert accounting profits into liquid assets, a trend that has persisted throughout the company's operational history as a publicly traded shell.
The persistent negative operating cash flow relative to net income suggests that the company's accounting framework is designed to reflect non-cash valuation changes rather than operational success. This divergence serves as a warning that the company's reported profitability is not a reliable indicator of its underlying financial viability.
Quick answers to the most common questions about buying HSPTU stock.
Horizon Space Acquisition II Corp. (HSPTU) 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. (HSPTU) reported negative free cash flow of $1.0M in 2025, indicating capital requirements exceeded cash from operations.
Horizon Space Acquisition II Corp. (HSPTU) 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. (HSPTU) returned $2.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.