The entity exhibits a persistent negative OCF/NI ratio of -0.28 in 2026Q1, indicating that reported earnings are decoupled from actual cash generation.
| Cash from Operations | -1.52M | -1.2M | -391.55K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -857.53% | -206.47% | - |
| Net Income | 7.93M | 8.35M | 3.05M |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -9.6M | -9.55M | -3.3M |
| Working Capital Changes | 151.63K | 0 | -133.42K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | 0 | 0 | -231.15M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 246.41M | 244.26M | 234.5M |
| Other Investing | 0 | 0 | 0 |
| Cash from Financing | 1.06M | 450K | 232.34M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 232.65M |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 610K | 450K | 0 |
| Net Change in Cash | -462.18K | -749.99K | 798.45K |
| Free Cash Flow | -1.52M | -1.2M | -391.55K |
| FCF Margin % | - | - | - |
| FCF Growth % | - | -206.47% | - |
| FCF per Share | -0.07 | -0.05 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.19x | -0.14x | -0.13x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidation and deal failure
As reported in financial statements, POLEW exhibits a persistent negative OCF/NI ratio, which reached -0.28 in 2026Q1, indicating that reported net income is entirely decoupled from cash generation and is likely driven by non-cash accounting adjustments rather than operational performance or underlying business value creation.
The consistent divergence between positive net income and negative operating cash flow suggests that the company's accounting results are heavily influenced by non-cash items, such as warrant liability revaluations. Investors should interpret this as a signal that the entity's reported profitability is purely technical and does not reflect the actual cash resources available for business combination activities.
Based on the company's reported figures, free cash flow has remained consistently negative, with a 2026Q1 outflow of $508.0K, highlighting the structural reality that the entity is consuming its limited capital reserves to fund administrative maintenance while failing to generate any internal cash flow.
The persistent negative FCF trajectory underscores the entity's reliance on external capital or sponsor support to sustain its operations. This trend warrants further investigation into how long the current cash position can support the search mandate before the entity faces a liquidity crisis or forced liquidation.
According to recent SEC filings, working capital changes have been erratic, swinging from a $158.1K inflow in 2025Q4 to a $241.4K outflow in 2024Q3, which suggests that the entity's cash management is highly sensitive to the timing of administrative payments and professional service fees.
The lack of a stable working capital cycle is typical for a shell company, yet the volatility observed may indicate difficulty in managing cash outflows against a shrinking liquidity pool. This instability implies that the company's ability to manage its day-to-day obligations is increasingly precarious as the search for a target continues.
As indicated by the financial data, the company's net income is consistently positive while operating cash flow remains negative, suggesting that non-cash warrant accounting is masking the true cash-burning nature of the shell's administrative operations and the ongoing depletion of its limited liquid assets.
The reliance on non-cash income to present a positive bottom line may mislead market participants regarding the entity's actual financial health. Analysts should monitor the cash flow statement exclusively to assess the true burn rate, as the income statement appears to provide an incomplete picture of the company's operational viability.
Quick answers to the most common questions about buying POLEW stock.
Andretti Acquisition Corp. II (POLEW) generated $-1.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Andretti Acquisition Corp. II (POLEW) reported negative free cash flow of $1.2M in 2025, indicating capital requirements exceeded cash from operations.
Andretti Acquisition Corp. II (POLEW) 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.