FACT II Acquisition Corp. Reports Decrease in Net Income and Increased Expenses for Q2 2026

FACT II Acquisition Corp. reported its financial results for the second quarter of 2026, revealing a net income of $859,927 for the three months ending June 30, 2026, a decrease from $1,631,524 in the same period of the previous year. For the first half of 2026, the company recorded a net income of $1,894,060, down from $3,079,421 in the first half of 2025. The decline in profitability is attributed to a significant increase in general and administrative expenses, which rose to $700,265 for the second quarter of 2026, compared to $199,558 in the same quarter of 2025. For the six-month period, these expenses totaled $1,217,881, up from $563,903 in the prior year.

As of June 30, 2026, FACT II Acquisition Corp. reported total assets of $187.1 million, a slight increase from $184.4 million at the end of 2025. The company’s cash and cash equivalents decreased significantly to $170,477 from $544,791 at the end of the previous year. The cash held in the Trust Account, which is designated for future business combinations, increased to $186.9 million from $183.8 million. The company’s liabilities also rose, with current liabilities increasing to $150,943 from $23,507 at the end of 2025, primarily due to accrued expenses.

In terms of strategic developments, FACT II Acquisition Corp. had been pursuing a business combination with Precision Aerospace & Defense Group, Inc. However, this agreement was terminated on July 16, 2026, with no termination fee payable by either party. Following this termination, the company plans to continue identifying and evaluating potential business combination opportunities. The company must complete a business combination by November 27, 2026, unless an extension is granted.

Operationally, FACT II Acquisition Corp. has not yet commenced any operations and has not generated any revenue from business activities. The company’s activities have been limited to organizational tasks and efforts to identify a target for its initial business combination. As of June 30, 2026, the company had 988,125 Class A ordinary shares and 5,833,333 Class B ordinary shares issued and outstanding. The company’s management has expressed concerns regarding its liquidity, noting that the current cash on hand may not be sufficient to cover operating expenses for the next twelve months.

Looking ahead, FACT II Acquisition Corp. remains focused on completing a business combination and is actively seeking suitable targets. However, the company acknowledges the challenges posed by current market conditions and geopolitical uncertainties, which could impact its ability to finalize a business combination within the required timeframe. The management has indicated that it will continue to monitor its financial position closely and explore all available options to ensure the successful completion of its strategic objectives.