FACT II Acquisition Corp. Reports Q1 2026 Financial Results with Decreased Net Income

FACT II Acquisition Corp. reported its financial results for the first quarter of 2026, revealing a net income of $1,034,133, a decrease from $1,447,897 in the same period of the previous year. The decline in net income is attributed to a reduction in interest income from cash held in the Trust Account, which fell to $1,548,784 from $1,785,684 year-over-year. General and administrative expenses increased to $517,616 from $364,345, reflecting the company's ongoing operational costs as it prepares for a potential business combination.

As of March 31, 2026, FACT II Acquisition Corp. reported total assets of $185,815,214, a slight increase from $184,422,847 at the end of 2025. The company's cash and cash equivalents decreased to $412,909 from $544,791, while cash held in the Trust Account rose to $185,334,240 from $183,785,456. The increase in Trust Account cash is primarily due to the interest earned, despite the overall decrease in cash and cash equivalents.

The company has not yet commenced any operations and continues to focus on identifying a target for its initial business combination. On November 26, 2025, FACT II entered into a Business Combination Agreement with Precision Aerospace & Defense Group, Inc. This agreement outlines plans for the company to domesticate as a Delaware corporation and merge with Precision Aerospace, which will become a wholly-owned subsidiary. The completion of this transaction is subject to shareholder approval and other customary conditions.

Operationally, FACT II Acquisition Corp. has maintained a consistent number of shares outstanding, with 988,125 Class A ordinary shares and 5,833,333 Class B ordinary shares as of March 31, 2026. The company has not reported any significant changes in customer counts or user statistics, as it has not yet engaged in revenue-generating activities. The company’s management has indicated that it will continue to incur costs related to its search for a business combination and anticipates using the funds held in the Trust Account for this purpose.

Looking ahead, FACT II Acquisition Corp. faces challenges related to market conditions and geopolitical uncertainties that could impact its ability to complete a business combination. The company has until November 27, 2026, to finalize a deal, or it will be required to liquidate. Management remains focused on identifying suitable acquisition targets and executing its business strategy while navigating the complexities of the current economic environment.