10-Q · May 15, 2026
For the quarter ending March 31, 2026, Cartesian Growth Corporation III reported a net income of $1,680,417 compared to a net loss of $20,449 in the same period last year, driven primarily by interest income on…
Earnings analysis · 10-Q
FAC earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Factorial remains a development-stage, pre-revenue company with $0 revenue to date and a second-quarter net loss of $11.341 million, up from $10.569 million year over year; however, the six-month net loss improved 15.0%…
Read full summary
Factorial remains a development-stage, pre-revenue company with $0 revenue to date and a second-quarter net loss of $11.341 million, up from $10.569 million year over year; however, the six-month net loss improved 15.0% to $19.916 million. Liquidity was strengthened by approximately $92.0 million of merger and PIPE proceeds, resulting in $112.8 million of cash and management’s estimate of funding into the first quarter of 2028. The outlook remains execution- and capital-intensive, with approximately $12.0 million of planned second-half 2026 capital expenditures, rising expected operating costs, and an unresolved material weakness in internal controls.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- One operating segment; revenue was $0 for the three and six months ended June 30, 2026, with no commercial operations.
What stood out
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Six-Month Net Loss Improved
The company remained pre-revenue, reporting $0 revenue to date. Six-month net loss improved to $19.916 million from $23.439 million in the prior-year period, a $3.523 million or 15.0% improvement.
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Lower Operating Cash Burn
Six-month cash used in operating activities declined to $11.391 million from $13.088 million in the prior-year period, a $1.697 million or 13.0% improvement.
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Post-Merger Liquidity Added
Cash and cash equivalents were $112.8 million at June 30, 2026, including approximately $92.0 million of net proceeds from the merger and PIPE financing.
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Runway Extends Into 2028
Management expects cash and cash equivalents to fund operating expenses and capital expenditures into the first quarter of 2028 under its current operating plan.
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Fabrication Capacity Investment
The company expects approximately $12.0 million of capital expenditures during the remainder of 2026 to expand fabrication lines in South Korea and the United States; the expansion is expected to be completed by the end of 2027.
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Partner Reimbursements Reduced R&D
Research and development expense decreased 36.9% year over year to $8.524 million for the six months ended June 30, 2026, primarily because joint-development-partner reimbursements increased to $3.6 million from $0.2 million.
What to watch
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Material Weakness Remains
Disclosure controls and internal control over financial reporting were not effective as of June 30, 2026 because of a material weakness involving system access, segregation of duties, reconciliations and transaction review. Management expects remediation during 2027 and approximately $0.8 million of associated costs.
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No Revenue and Continuing Losses
The company has generated $0 revenue to date and incurred a $19.916 million net loss and $11.391 million of operating cash burn during the six months ended June 30, 2026, highlighting continued dependence on external financing before commercialization.
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Rising Capital Requirements
Management expects capital expenditures and working-capital requirements to increase materially and plans approximately $12.0 million of capital expenditures during the remainder of 2026. It also states that additional cash may be needed if OEM negotiations, supply chains, competition or regulatory developments worsen.
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Volatile Warrant Liability
The company assumed 6,800,000 private warrants classified as liabilities; the warrant liability was $45.0 million at June 30, 2026, and a 10% increase in expected volatility would increase fair value by approximately $4.4 million.
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Public-Company Cost Expansion
Selling, general and administrative expense increased 37.0% year over year to $6.379 million in the second quarter, driven by higher professional fees and marketing expenses, and management expects public-company expenses to increase significantly in the near term.
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Founder Voting Control
The Legacy Factorial founders collectively held approximately 62.9% of total voting power as of June 30, 2026, giving them control over stockholder matters and potentially limiting other investors’ influence.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. Management states that capital expenditures will be approximately $12.0 million during the remainder of 2026, with fabrication-line expansion expected to be completed by the end of 2027. Based on its current operating plan, cash is estimated to fund operating expenses and capital expenditures into the first quarter of 2028.
Earlier filings 4
10-K · March 23, 2026
Cartesian Growth Corporation III, a blank check company, has reported a net income of $6,219,069 for the year ended December 31, 2025, driven largely by interest income from its $283,377,276 trust account. The company…
10-Q · November 14, 2025
Cartesian Growth Corporation III reported net income of $2,764,627 for Q3 2025, driven entirely by interest income from its Trust Account, with no operational revenue generated. Total cash equivalents in the Trust…
10-Q · August 15, 2025
Cartesian Growth Corporation III reported no revenues for the period ended June 30, 2025, as expected for a blank check company. They achieved a net income of $1,319,166 driven by interest income of $1,767,744 from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.