The 2026Q1 OCF/NI ratio of -3.64 highlights a severe disconnect between reported accounting income and the actual cash resources available to fund ongoing search activities.
| Cash from Operations | -641.97K | -561.4K | -89.5K |
| Operating CF Margin % | - | - | - |
| Operating CF Growth % | -1257.97% | -527.26% | - |
| Net Income | 2.37M | 3.37M | 3.16M |
| Depreciation & Amortization | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | -3.44M | -4.46M | -3.46M |
| Working Capital Changes | 557.07K | 532.26K | 215.68K |
| Change in Receivables | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 121.28K | 0 | 0 |
| Cash from Investing | 54.95M | 71.46M | -115.58M |
| Capital Expenditures | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - |
| Acquisitions | 0 | - | - |
| Investments | 41M | 40.64M | 87.3M |
| Other Investing | -38.92K | 71.46M | -29.09M |
| Cash from Financing | -55.03M | -71.52M | 116.62M |
| Debt Issued (Net) | 0 | - | - |
| Equity Issued (Net) | -55.23M | -54.78M | 117.08M |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | -55.23M | -54.78M | 0 |
| Other Financing | 191.29K | -16.74M | -453.45K |
| Net Change in Cash | -726.51K | -621.4K | 958.79K |
| Free Cash Flow | -641.97K | -561.4K | -89.5K |
| FCF Margin % | - | - | - |
| FCF Growth % | -163.01% | -527.26% | - |
| FCF per Share | -0.13 | -0.05 | -0.01 |
| FCF Conversion (FCF/Net Income) | -0.27x | -0.22x | -0.03x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Binary merger execution failure
As reported in financial statements, RFAI exhibits a persistent divergence between net income and operating cash flow, with the 2026Q1 OCF/NI ratio of -3.64 highlighting that reported accounting gains are entirely decoupled from the actual cash resources available to fund the company's ongoing search activities.
The consistent negative OCF/NI ratio suggests that the company's reported net income is driven by non-cash accounting adjustments rather than operational success. Investors should interpret this as a signal that the entity is consuming cash to maintain its listing while accounting figures provide a misleading picture of financial health.
Based on RFAI's reported figures, the company has consistently generated negative free cash flow, with the most recent 2026Q1 outflow of $267.6K underscoring a deteriorating liquidity position that leaves little room for error in the search for a viable business combination target.
The persistent negative FCF trajectory indicates that the shell is effectively burning through its remaining capital to cover administrative and regulatory costs. This trend warrants close monitoring, as the lack of positive cash generation increases the probability of dilutive financing or a forced liquidation.
According to recent SEC filings, RFAI's working capital changes have been erratic, swinging from a $358.9K inflow in 2025Q4 to a $72.8K inflow in 2026Q1, which suggests that the company is managing its limited liquidity through timing differences rather than sustainable operational efficiency.
The reliance on working capital fluctuations to manage cash flow suggests that the company lacks a stable source of internal funding. This volatility may indicate that management is struggling to balance the costs of maintaining the SPAC structure against the dwindling cash reserves.
As reported in financial statements, RFAI's capital deployment has been characterized by a significant $55.2M share repurchase in 2025Q4, which appears to contradict the company's stated need to preserve cash for the identification and acquisition of a target business in the deep-tech sector.
This large-scale capital outflow raises questions regarding the sponsor's commitment to the stated acquisition mandate. Investors should investigate whether this deployment was a necessary structural adjustment or a premature return of capital that undermines the SPAC's ability to close a meaningful deal.
Based on the provided data, the cash flow statement obscures the true administrative burn rate by failing to isolate the impact of warrant liabilities and other non-cash items, which frequently distort the perceived financial stability of the entity in the eyes of retail investors.
The absence of clear operational cash flow metrics makes it difficult to assess the true cost of the search phase. Analysts should look past the headline net income to focus on the actual cash depletion, which appears to be accelerating as the search period for a target continues.
Quick answers to the most common questions about buying RFAI stock.
RF Acquisition Corp II Ordinary Shares (RFAI) generated $-0.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RF Acquisition Corp II Ordinary Shares (RFAI) reported negative free cash flow of $0.6M in 2025, indicating capital requirements exceeded cash from operations.
RF Acquisition Corp II Ordinary Shares (RFAI) 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, RF Acquisition Corp II Ordinary Shares (RFAI) spent $54.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.