Legato Merger Corp. IV Posts $653K Net Profit Despite $90K Operating Loss in H1 2026

Legato Merger Corp. IV reported net income of $653,061 for the six months ending February 28, 2026, despite posting an operating loss of $90,406 for the same period. The special purpose acquisition company, which seeks merger or acquisition targets, did not report revenue for the period. Read more earnings reports.

For the three months ending February 28, 2026, the company posted net income of $686,816 against an operating loss of $56,566. The positive net income in both periods suggests investment or interest income offset the operating losses typical of SPACs awaiting business combinations.

The company's balance sheet shows total assets of $233.16 million as of February 28, 2026, with $2.21 million in cash and restricted cash. Total liabilities stood at $8.08 million, while stockholders' equity registered a deficit of $5.66 million, a sharp deterioration from an $8,706 deficit as of November 30, 2025.

Cash flow statements reveal the company invested $230 million during the six-month period, funded largely by $232.47 million in financing activities. Cash used in operations totaled $266,652.

Legato Merger Corp. IV reported basic earnings per share of $0.06 for the six months ending February 28, 2026, based on 4.32 million weighted average shares outstanding. Diluted EPS for the same period came to $0.06 per share. The company had 8.27 million common shares outstanding as of February 28, 2026.

The company held current assets of $2.42 million against current liabilities of just $32,059, providing a substantial liquidity cushion. Total liabilities and equity on the balance sheet matched total assets at $233.16 million.