Persistent cash burn is evidenced by a negative $92.9K free cash flow in 2026Q1 and an OCF/NI ratio of -0.12, highlighting the disconnect between reported accounting profits and actual cash generation.
| Cash from Operations | -681.99K | -774.26K | -545.23K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -318.1% | -42% | - |
| Net Income | 4.74M | 5.54M | 4.21M |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -6.8M | -7.01M | -4.56M |
| Working Capital Changes | 1.38M | 701.2K | -195.09K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 30.74K | 0 | 41.25K |
| Cash from Investing | -3.25M | -3.25M | -160M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 172.92M | 171.41M | 164.41M |
| Other Investing | -3.25M | -3.25M | 0 |
| Cash from Financing | 3.25M | 3.18M | 161.42M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | -327.12K |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 162M |
| Net Change in Cash | -678.91K | -846.18K | 878.25K |
| Free Cash Flow | -681.99K | -774.26K | -545.23K |
| FCF Margin % | - | - | - |
| FCF Growth % | 6.94% | -42.01% | - |
| FCF per Share | -0.04 | -0.05 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.14x | -0.14x | -0.13x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation Deadline Pressure
As reported in financial statements, MACI exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio reaching -0.12 in 2026Q1, indicating that reported accounting profits are entirely decoupled from the company's actual ability to generate cash from its core search activities.
The consistent reporting of positive net income alongside negative operating cash flow suggests that non-operating items, likely interest income from the trust, are obscuring the underlying cash burn. Investors should monitor this gap, as it implies that the company's reported profitability is a function of accounting treatment rather than operational success.
Based on recent SEC filings, MACI's free cash flow has remained consistently negative, with a quarterly outflow of $92.9K in 2026Q1, reflecting the ongoing costs of maintaining the shell entity while failing to achieve any meaningful progress toward a business combination or revenue-generating operations.
The persistent negative FCF trajectory highlights the structural reality that the company is consuming its limited liquidity to fund administrative overhead. This trend appears unsustainable without external capital injections or a successful merger, as the current cash burn rate continues to erode the company's already thin liquidity buffer.
According to reported figures, MACI experienced significant working capital fluctuations, including a $646.4K inflow in 2026Q1, which suggests that the company is managing its limited liquidity through timing differences in payables rather than through any predictable or sustainable operational cycle or efficient cash management strategy.
These erratic swings in working capital appear to be a defensive mechanism to preserve cash for essential compliance and legal costs. Analysts should interpret these movements as a sign of financial strain, as the company lacks the operational scale to manage working capital in a traditional, value-accretive manner.
Financial data indicates that the cash flow statement obscures the true cost of the search process, as the company's reliance on non-cash accounting adjustments masks the reality that the entity is effectively a cash-burning vehicle with no internal mechanism to offset its rising administrative search expenses.
The lack of transparency regarding the specific nature of these search costs warrants further investigation, as they may be accumulating as off-balance-sheet liabilities or sponsor-funded debt. This suggests that the true cost of the acquisition search is likely higher than the headline cash flow figures would otherwise imply.
Quick answers to the most common questions about buying MACI stock.
Melar Acquisition Corp. I (MACI) generated $-0.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Melar Acquisition Corp. I (MACI) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
Melar Acquisition Corp. I (MACI) 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.