Operating cash flow remains consistently negative, evidenced by a $275.1K outflow in 2026Q1, which highlights the structural inability of the entity to fund its administrative expenses through internal operations.
| Cash from Operations | -631.31K | -464.69K | -298.39K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -176.54% | -55.73% | - |
| Net Income | 6.32M | 6.62M | 1.04M |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -6.92M | -7.09M | -1.18M |
| Working Capital Changes | -34.39K | 0 | -158.67K |
| Change in Receivables | 0 | 0 | -25K |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 49.65K | 83.63K | 0 |
| Cash from Investing | 0 | 0 | -173.36M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 183.45M | 181.85M | 174.58M |
| Other Investing | 0 | 0 | 0 |
| Cash from Financing | 0 | 0 | 174.9M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 175.53M |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -305.96K |
| Net Change in Cash | -739.81K | -464.69K | 1.24M |
| Free Cash Flow | -631.31K | -464.69K | -298.39K |
| FCF Margin % | - | - | - |
| FCF Growth % | - | -55.73% | - |
| FCF per Share | -0.04 | -0.03 | -0.01 |
| FCF Conversion (FCF/Net Income) | -0.10x | -0.07x | -0.29x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation and capital depletion
According to recent financial statements, NTWO consistently reports positive net income despite negative operating cash flow, with the 2026Q1 period showing a net income of $1.4M against an operating cash outflow of $275.1K, highlighting a complete lack of correlation between accounting profits and actual liquidity.
The persistent divergence 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 operational success. Investors should interpret this disconnect as a signal that the company's reported profitability is purely synthetic and provides no insight into the entity's ability to generate cash.
As reported in historical filings, NTWO has maintained a negative free cash flow trajectory across nearly all observed periods, with the 2025Q4 outflow of $367.0K underscoring the structural inability of the shell entity to sustain its own administrative costs without depleting its limited cash reserves.
The consistent negative free cash flow confirms that the company is in a state of continuous capital consumption to maintain its public listing. This trend appears unsustainable, as the lack of revenue-generating operations means there is no internal mechanism to offset the ongoing cash burn required for deal sourcing and regulatory compliance.
Based on the provided data, working capital fluctuations, such as the $198.9K outflow in 2025Q4, indicate that the company's liquidity is subject to erratic administrative timing rather than operational efficiency, as the entity lacks the underlying business cycles that typically drive working capital management in industrial firms.
These shifts in working capital appear to be driven by the timing of professional service payments and regulatory filings rather than any underlying commercial activity. The volatility warrants further investigation, as it suggests that management's control over cash outflows is limited by the mandatory nature of the costs required to keep the shell entity viable.
Financial disclosures indicate that the company's cash flow statement is heavily obscured by non-cash accounting entries, as evidenced by the significant gap between net income and cash flow, which suggests that the reported figures may mislead investors regarding the true runway available for potential acquisition activities.
The reliance on non-cash adjustments to inflate net income masks the reality that the company is effectively a wasting asset. Analysts should focus exclusively on the cash balance and the burn rate, as the reported net income figures provide no meaningful information regarding the company's capacity to survive until a merger is finalized.
Quick answers to the most common questions about buying NTWO stock.
Newbury Street II Acquisition Corp (NTWO) generated $-0.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Newbury Street II Acquisition Corp (NTWO) reported negative free cash flow of $0.5M in 2025, indicating capital requirements exceeded cash from operations.
Newbury Street II Acquisition Corp (NTWO) 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.