Ares Acquisition Corporation II Reports Significant Decline in Net Income for Q2 2025

Ares Acquisition Corporation II (AACT) reported its financial results for the second quarter of 2025, revealing a net income of $326,643 for the three months ending June 30, 2025, a significant decrease from $6,585,367 in the same period of the previous year. For the first half of 2025, the company recorded a net income of $3,319,438, down from $12,978,757 in the first half of 2024. The decline in profitability was primarily attributed to a substantial increase in general and administrative expenses, which rose to $5,506,346 for the quarter, compared to $373,422 in the prior year. The company generated $5,832,989 in investment income from its Trust Account during the second quarter, a decrease from $6,958,789 in the same quarter of 2024.

As of June 30, 2025, AACT's total assets amounted to $560,977,962, a slight increase from $551,901,020 at the end of 2024. The Trust Account held investments of $558,149,739, primarily in U.S. government securities. However, the company faced a working capital deficit of $9,332,370, with only $137,896 in cash outside the Trust Account. Current liabilities surged to $12,160,593, up from $740,569 at the end of 2024, largely due to accrued expenses and the issuance of a working capital loan.

Strategically, AACT is in the process of completing a business combination with Kodiak Robotics Inc., which was announced on April 14, 2025. The agreement has been approved by the boards of both companies and is subject to shareholder approval and regulatory conditions. In connection with this transaction, AACT has also entered into subscription agreements with PIPE investors for $60 million worth of shares in the post-business combination entity. The company extended its deadline to complete the business combination to January 26, 2026, following shareholder approval on April 22, 2025.

Operationally, AACT has seen changes in its share structure, including the conversion of 12,500,000 Class B ordinary shares into Class A shares, resulting in 12,500,000 Class A shares outstanding as of June 30, 2025. The company also reported that 49,359,712 Class A shares are subject to possible redemption, reflecting a redemption value of $558,049,739. The company’s management has expressed concerns regarding its ability to continue as a going concern, given the extended timeline for completing the business combination and the associated financial obligations.

Looking ahead, AACT's management remains focused on finalizing the business combination with Kodiak Robotics and addressing its liquidity needs. The company anticipates that it will continue to incur significant costs related to its public company status and the pursuit of the business combination. However, there is no assurance that the plans to complete the initial business combination will be successful within the extended timeframe.