Free cash flow remains consistently negative, with a $260.5K outflow in 2026Q1 and a negative OCF/NI ratio of -1.23, indicating a fundamental disconnect between accounting earnings and actual cash availability.
| Cash from Operations | -795.69K | -660.47K | -391 |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -1206.06% | -168819.18% | - |
| Net Income | 1.33M | 1.57M | 309 |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -2.15M | -2.23M | -651 |
| Working Capital Changes | 22.61K | 0 | -49 |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | 16.05M | 16.33M | -69.34K |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 0 | 0 | 58.33M |
| Other Investing | 16.05M | 16.33M | -69.34K |
| Cash from Financing | -15.51M | -16.03M | 70.21K |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -15.51M | -16.03M | 70.21K |
| Net Change in Cash | -260.79K | -355.5K | 0 |
| Free Cash Flow | -795.69K | -660.47K | -391 |
| FCF Margin % | - | - | - |
| FCF Growth % | -76.3% | -168819.18% | - |
| FCF per Share | -0.19 | -0.12 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.60x | -0.42x | -0.00x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Liquidity and Regulatory Constraints
As reported in financial statements, RDAC exhibits a consistent negative OCF/NI ratio, reaching -1.23 in 2026Q1, which highlights a fundamental disconnect between accounting net income and the actual cash outflows required to sustain the company's administrative and regulatory search operations during the pre-merger phase.
The recurring positive net income figures appear to be driven by non-operating accounting adjustments that fail to reflect the underlying cash burn. Investors should interpret this divergence as a signal that the company's reported profitability is not supported by operational cash generation, potentially masking the true cost of maintaining the shell.
Based on recent SEC filings, RDAC's free cash flow has remained consistently negative throughout the observed period, with a 2026Q1 outflow of $260.5K, underscoring the company's reliance on external capital to fund its ongoing search for a viable business combination target.
The lack of positive free cash flow is characteristic of a SPAC in its search phase, yet the magnitude of these outflows relative to the reported cash balance warrants caution. This trajectory suggests that the company may face significant pressure to secure additional financing or consummate a merger before its liquidity is fully exhausted.
According to the provided data, working capital changes have been negligible, with a minor $22.6K adjustment in 2025Q2, indicating that the company's cash flow is primarily driven by administrative expenses rather than operational working capital cycles typical of an active industrial business.
The absence of meaningful working capital movement confirms that the entity is not currently engaged in trade-related activities. Any future shifts in these metrics should be monitored closely as they would likely signal the commencement of operational activity following a successful business combination.
As indicated by the financial statements, the company's cash flow statement fails to account for the potential impact of shareholder redemptions, which could significantly alter the $37,174 cash position and jeopardize the company's ability to fund future due diligence and regulatory compliance costs.
The reported cash flow figures do not capture the structural risks associated with the SPAC model, specifically the potential for capital depletion through redemptions. This omission suggests that the current cash flow analysis may provide an overly optimistic view of the company's ability to sustain its search operations without immediate external capital injections.
Quick answers to the most common questions about buying RDAC stock.
Rising Dragon Acquisition Corp. (RDAC) generated $-0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rising Dragon Acquisition Corp. (RDAC) reported negative free cash flow of $0.7M in 2025, indicating capital requirements exceeded cash from operations.
Rising Dragon Acquisition Corp. (RDAC) 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.