Breaking Down Northern Star Investment Corp. II (NSTB) Financial Health: Key Insights for Investors

You're looking at Northern Star Investment Corp. II (NSTB) and trying to figure out what's left of its financial health in late 2025, and the reality is stark: this isn't the SPAC it once was. The most critical financial event wasn't a merger, but a liquidation, which saw the trust fund distributed to remaining shareholders at $10.48 per share for the 1,620,989 shares that didn't redeem, effectively returning the built-in value. This move, executed in early 2024, transformed the company into a tiny, non-traditional public shell, now trading for a fraction of its former value-around $0.0099 per share-with a minimal market capitalization of roughly $116,210 as of the March 31, 2025, earnings date. Here's the quick math: the massive cash cushion is gone, replaced by a speculative listing on the pink sheets, meaning the investment thesis has shifted entirely from a de-SPAC opportunity to a high-risk bet on a second-chance merger. You need to understand the true cost of this shell status, because the financial health story is now all about its minuscule $64.61K in cash and cash equivalents and the hunt for a new, non-traditional target willing to take on a listing without a massive trust war chest.

Revenue Analysis

You need to understand the core reality of Northern Star Investment Corp. II (NSTB): it is a non-operating shell company, which means its revenue profile for the 2025 fiscal year is effectively zero from any business operations. This isn't a sign of failure in a traditional sense, but the natural state of a Special Purpose Acquisition Company (SPAC) that has not completed a merger and subsequently liquidated its trust.

The company's primary function was to raise capital-$400.00 million in its IPO proceeds-to acquire a private business, not to generate revenue from products or services. When the trust was liquidated in early 2024, the main source of income for the company disappeared.

Breakdown of Revenue Sources: None from Operations

For the 2025 fiscal year, Northern Star Investment Corp. II (NSTB) had $0 USD in operational revenue. Its historical revenue, as a blank check company, came exclusively from interest earned on the funds held in its trust account. This is the only 'product' a SPAC sells: a vehicle for a private company to go public. Once the trust was liquidated, this interest income stream ceased to be a significant factor.

To be fair, before the trust liquidation, the company's financial activity was solely administrative. Here's the quick math on its pre-liquidation financial health:

• Primary Revenue Source: Interest income on the trust account.
• Operational Revenue Contribution: $0 USD (no products or services).
• Net Income (Dec 31, 2022): $13.7 million USD (primarily interest income).

The $13.7 million USD in Net Income reported in late 2022 shows the value generated purely from managing the trust assets, not from a business model. This non-operational income stream is now gone.

Year-over-Year Growth and Segment Analysis

Since the operational revenue is $0 USD, the year-over-year revenue growth rate is not a meaningful metric for Northern Star Investment Corp. II (NSTB) in 2025. The company has no business segments to break down, as its sole purpose was to complete a business combination (de-SPAC transaction). That's the simple truth.

What this estimate hides is the potential for a future transaction. The company made the unorthodox move to continue existing as a shell company listed on the pink sheets after distributing the trust at $10.48 per share to holders. This means the shell is still technically a vehicle for a new deal, but its financial statements will continue to reflect minimal (or zero) revenue until a new target is acquired.

Any significant change in revenue streams would only occur if Northern Star Investment Corp. II successfully completes a new merger and acquires a revenue-generating business. Until then, you should treat the revenue line item as a placeholder.

You can learn more about the investors who stayed with the shell company at Exploring Northern Star Investment Corp. II (NSTB) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking at Northern Star Investment Corp. II (NSTB) to understand its financial engine, but here's the direct takeaway: its profitability is not based on selling a product or service. As a Special Purpose Acquisition Company (SPAC) that approved its own dissolution on December 30, 2024, its financial health is measured by its trust account's interest income versus its administrative costs. The company's core operational margins are essentially zero.

For a dissolving SPAC, traditional metrics like Gross Profit and Operating Profit are misleading. The company's revenue from core operations is $0 (or 'n/a'), which means both the Gross Profit Margin and Operating Profit Margin are 0%. This is a feature, not a bug, of a pre-merger or dissolving blank-check company. The real story is in the Net Profit, which comes from the interest earned on its trust assets.

Here's the quick math on the most recent available profitability data, which reflects the period leading up to its January 2025 dissolution:

The Net Income of $2.43 Million is the critical figure, representing the interest earned on the money held in the trust, minus administrative and operating costs. This is the only profit source for a company that voted to liquidate, and it directly impacts the final distribution to shareholders.

When you compare Northern Star Investment Corp. II's ratios to the 'Shell Companies' industry average, you see a massive difference. The industry average shows a Gross Margin of 71.55% and a Net Profit Margin of 40.59% for a Trailing Twelve Months (TTM) period. NSTB's 0% operational margins tell you it never completed a merger to become a functioning business. Still, its positive Net Income shows it managed its cash effectively enough to earn a return for shareholders before the dissolution process was finalized in early 2025. Operational efficiency for NSTB wasn't about selling more; it was about minimizing administrative drag on the trust's interest income.

The trend over time for NSTB was one of stable, non-operational profitability, driven solely by rising interest rates on its trust assets. This is the only way a SPAC generates a return when a deal falls through. The final action for the company was the dissolution, where stockholders approved the liquidation and received a final distribution, as noted in the January 3, 2025 SEC filing. For more on the strategic implications of this dissolution, you should read our full analysis: Breaking Down Northern Star Investment Corp. II (NSTB) Financial Health: Key Insights for Investors.

• Monitor the final liquidation distribution amount.
• Confirm all administrative costs were covered by interest income.
• Understand the positive Net Income is not a sustainable business model.

Finance: Verify the final per-share liquidation value against the $0.11 TTM EPS to see the full return profile.

Debt vs. Equity Structure

You're looking at Northern Star Investment Corp. II (NSTB)'s capital structure, and the reality is that for a Special Purpose Acquisition Company (SPAC) that has not completed a merger, the financial picture is unique. It's not about financing growth; it's about managing the end-of-life process. The key takeaway for 2025 is that the debt profile is minimal, but the equity position is technically underwater due to the costs of the failed acquisition process.

As of the most recent public data from September 30, 2023, Northern Star Investment Corp. II (NSTB)'s balance sheet shows a negligible debt load. Specifically, the company reported $0 USD in long-term debt, which is standard for a shell company whose primary asset is cash held in a trust. The short-term debt, or Current Debt, stood at approximately $0.42 million (in millions USD), mainly representing operational liabilities and accrued expenses related to the SPAC's existence and eventual liquidation.

Here's the quick math on the capital structure, using the latest concrete figures. Total debt is essentially limited to those short-term operational liabilities. The real story is on the equity side. The Shareholders' Equity, or Total Equity, was reported at approximately -$17.14 million as of the same date. This negative figure reflects the cumulative impact of administrative costs and the final redemptions of public shares that exceeded the remaining assets, a common outcome when a SPAC liquidates without a deal.

This leads to an unusual, but highly informative, Debt-to-Equity (D/E) ratio. If you take the $0.42 million in total debt and divide it by the -$17.14 million in total equity, you get a D/E ratio of about -0.0245. This negative ratio is not a sign of a healthy operating company but a clear signal of a company in the process of winding down. A typical operating company in the Financials sector might have a D/E ratio between 1.0 and 2.0, but for a liquidating SPAC, a near-zero debt and negative equity position is the industry standard for dissolution.

• Debt-to-Equity is -2.45%.
• Long-Term Debt is $0 USD.
• Short-Term Debt is $0.42 million.

You won't find any recent debt issuances, credit ratings, or refinancing activity for Northern Star Investment Corp. II (NSTB) in 2025. The company's financial strategy has shifted entirely from a growth-oriented financing model to a liquidation-focused one. They are not balancing between debt and equity funding for an acquisition; they are using their remaining assets to cover liabilities and distribute the rest to shareholders, as detailed further in Exploring Northern Star Investment Corp. II (NSTB) Investor Profile: Who's Buying and Why?. The zero long-term debt is defintely a non-issue, but the negative equity confirms the capital loss from the SPAC's operational phase.

What this estimate hides is the final, precise cash distribution to shareholders, which is the ultimate determinant of investor return in this scenario. The focus is purely on asset realization and liability settlement, not on capital structure optimization.

Liquidity and Solvency

You're looking at Northern Star Investment Corp. II (NSTB) and trying to figure out its ability to cover near-term obligations. This is crucial because NSTB is no longer a typical Special Purpose Acquisition Company (SPAC); it liquidated its trust and is now operating as a shell company on the OTC market, so its financial health is fundamentally different from an operating business.

The direct takeaway is that Northern Star Investment Corp. II's liquidity is extremely weak by traditional measures, with a deeply negative working capital position. This is expected given the company's status after distributing its trust assets, but it presents a significant risk for any new business combination.

Current and Quick Ratios: A Liquidity Red Flag

When we look at the latest available financial data, which is from the third quarter of 2023 (Q3 '23), the liquidity ratios are stark. The current ratio and quick ratio (acid-test ratio) are both far below the healthy 1.0:1 benchmark. A ratio below 1.0 means current liabilities outweigh current assets, suggesting the company cannot cover its short-term debts with its short-term assets.

Here's the quick math based on the Q3 2023 balance sheet figures (in millions USD):

• Current Ratio (Total Current Assets / Total Current Liabilities): $0.09M / $2.73M $\approx$ 0.033:1
• Quick Ratio (Cash & Equivalents / Total Current Liabilities): $0.06M / $2.73M $\approx$ 0.022:1

A ratio of 0.033:1 is defintely a flashing red light. It tells you that for every dollar of short-term debt, the company only holds about 3 cents in current assets. This isn't a sign of operational inefficiency; it's the financial reality of a shell entity that has already distributed the bulk of its cash reserves from the trust to shareholders. The company is essentially running on fumes.

Working Capital Trends and Analysis

The working capital position (Current Assets minus Current Liabilities) confirms the liquidity strain. For Q3 2023, Northern Star Investment Corp. II reported a negative working capital of -$2.64 million. This massive deficit reflects the remaining liabilities-primarily administrative, legal, and other expenses-against a minimal cash balance after the trust liquidation. The trend is a sharp decline from its SPAC-era peak when the trust held hundreds of millions in assets, which is a necessary but painful step in its transition to a shell company.

What this estimate hides is that the company's future is entirely dependent on its ability to secure a new deal or financing. The negative working capital is a structural issue now, not a temporary cash crunch.

Cash Flow Statements Overview

Analyzing the cash flow statement for a shell company like Northern Star Investment Corp. II is less about operations and more about the wind-down process. The cash flow trends are dominated by the life cycle of a SPAC.

• Operating Cash Flow (CFO): This is typically negligible or slightly negative, reflecting ongoing general and administrative expenses as the company maintains its public listing status. A shell company generates no revenue, so all operational cash flow is an outflow for overhead.
• Investing Cash Flow (CFI): This is essentially zero. There are no capital expenditures (CapEx) or significant acquisitions, as the company is a non-operating entity.
• Financing Cash Flow (CFF): This has been the most volatile and significant section. In early 2024, the company distributed the trust fund to public shareholders at $10.48 per share, which was a massive, one-time cash outflow. Any future CFF would be from new financing, like a PIPE (Private Investment in Public Equity), to fund a new merger.

The current cash flow structure shows a company that has completed its primary financing obligation (the trust liquidation) and is now in a holding pattern, burning a small amount of cash on administrative costs while it searches for a new target. If you want to dive deeper into the players involved in this unique situation, you can read Exploring Northern Star Investment Corp. II (NSTB) Investor Profile: Who's Buying and Why?

Valuation Analysis

Honestly, when you look at Northern Star Investment Corp. II (NSTB), the question isn't whether it's overvalued or undervalued; it's about the near-total loss of capital for common shareholders. The stock's current price of just $0.0100 per share as of February 28, 2025, is the clearest signal you can get. This suggests the company, which is a Special Purpose Acquisition Company (SPAC), has failed to complete a de-SPAC transaction or has liquidated its trust value, leaving the common stock essentially worthless.

The traditional valuation metrics (multiples) for a SPAC like Northern Star Investment Corp. II (NSTB) are often distorted or irrelevant because it's a shell company with no significant operations. Still, we have to look at the numbers to see the picture.

Here's the quick math on the key valuation multiples based on the latest available 2025 data:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is effectively near zero or not calculable due to negative or near-zero trailing twelve-month earnings, which is typical for a pre-merger SPAC. One estimate puts the P/E at 0.11, which is extremely low, but this number is meaningless when the underlying earnings are not from an operating business.
• Price-to-Book (P/B) Ratio: The Book Value Per Share is reported as negative, at -$1.48. A negative book value makes the P/B ratio negative and, therefore, not a useful valuation tool for this stock.
• Enterprise Value-to-EBITDA (EV/EBITDA): Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is not available (n/a), so the EV/EBITDA multiple is also not applicable. This is expected since the company has no significant operating revenue.

What this estimate hides is the context: the stock is trading like a failed investment vehicle, not a cheap operating company. You can read more about the implications of this situation in our full post: Breaking Down Northern Star Investment Corp. II (NSTB) Financial Health: Key Insights for Investors.

Looking at the stock price trend over the last 12 months (or longer) is defintely more telling than the multiples. Northern Star Investment Corp. II (NSTB) had a 52-week high of $10.70, but by February 28, 2025, it had plummeted to $0.0100. That's a 12-month change of about -99.90%. This dramatic drop is the real story, indicating a massive capital destruction for common stock holders, likely tied to a liquidation event or a failed merger attempt that resulted in the trust value being returned only to public share holders who redeemed their shares, leaving the common stock with minimal or no value.

In terms of shareholder returns, Northern Star Investment Corp. II (NSTB) does not pay a dividend. The dividend yield is 0%, and the payout ratio is not applicable. This is standard for a SPAC that is not an operating company.

The analyst consensus on Northern Star Investment Corp. II (NSTB) reflects this distressed state. As of early 2025, the stock was largely considered a Hold Candidate with a technical score of 0.00, which is essentially a neutral rating that advises awaiting further development rather than a strong buy or sell. The lack of a clear 'Buy' or 'Sell' consensus underscores the stock's status as a low-liquidity, high-risk situation where the only development left is often final delisting.

Risk Factors

You're looking at Northern Star Investment Corp. II (NSTB) today, and you have to understand that the primary risk is no longer a typical SPAC risk. It's the risk of a post-liquidation shell company that has to find a viable path forward with severely limited resources and a regulatory overhang. The biggest takeaway: This is a high-risk, speculative bet on a long-shot merger, not a traditional investment.

The company liquidated its trust account on January 26, 2024, distributing approximately $10.48 per share to holders of the remaining 1,620,989 shares. It retained its public shell status, now trading on the pink sheets, which is a significant downgrade from its original NYSE listing. This move fundamentally alters the risk profile.

Operational and Strategic Risks: The Shell Game

The core strategic risk for Northern Star Investment Corp. II (NSTB) is its severely diminished ability to attract a quality merger target. Without the trust's capital, the company can only offer a public listing, and that listing is now on an over-the-counter (OTC) market, not a major exchange. A desirable target company typically wants a prestigious listing and a large capital infusion, neither of which NSTB can currently provide.

Here's the quick math on the financial constraints, based on the last available filing data from September 30, 2023, before the liquidation event: Cash and Equivalents stood at only $0.06 million (or $60,000). Plus, Total Liabilities were substantial at $34 million. This negative financial position means any potential merger partner would need to bring nearly all the capital and assume significant existing liabilities. It's a tough sell. The stock price, reflecting this reality, is trading around $0.0001 per share as of November 2025. That's a clear signal of market skepticism.

• Limited capital: Cannot fund a major acquisition.
• Low-tier listing: Deters high-quality merger candidates.
• High liabilities: Forces a merger partner to absorb debt.
• Warrant overhang: Outstanding warrants dilute future equity.

Honestly, without a capital injection, the shell company's runway is defintely short.

Regulatory and Financial Overhang

A major internal risk is the regulatory settlement with the Securities and Exchange Commission (SEC) announced in January 2024. The SEC charged Northern Star Investment Corp. II for making misleading statements in its initial public offering (IPO) disclosures regarding pre-IPO discussions with a target company. While the company settled without admitting or denying the findings, there is a clear financial penalty attached to any future success.

The agreement requires Northern Star Investment Corp. II to pay a $1.5 million penalty to the SEC if it manages to close a merger transaction. This is a direct financial hit that will reduce the net proceeds for any future deal, making the economics less favorable for the target company and existing shareholders. This penalty is a unique, concrete financial risk that must be factored into any valuation model for a potential business combination.

Mitigation strategies are simple but difficult: The company must secure a merger target willing to accept a pink sheet listing, assume significant liabilities, and structure a deal that accounts for the $1.5 million SEC penalty. This requires a unique, highly motivated private company, which is a significant hurdle. You can review the company's stated goals at Mission Statement, Vision, & Core Values of Northern Star Investment Corp. II (NSTB).

Growth Opportunities

You need to understand that Northern Star Investment Corp. II (NSTB) is not a traditional operating company; it's a non-operational shell company (a former Special Purpose Acquisition Company, or SPAC) currently trading on the Pink Sheets (OTCMKTS). The only real future growth prospect is a successful merger or acquisition (M&A) with a private operating business.

The company liquidated its trust in January 2024, distributing $10.48 per share to public shareholders, but it kept its corporate existence and public listing structure. This means its entire growth thesis hinges on finding a new target willing to use a Pink Sheet-listed shell for a public debut. That's a fundamentally different, and much riskier, proposition than a traditional SPAC deal.

Analysis of Key Growth Drivers

The primary driver for Northern Star Investment Corp. II (NSTB) is the management team's ability to source and close a new deal, essentially a reverse merger. The team, led by media entrepreneur Joanna Coles and seasoned executive Jonathan Ledecky, has a track record with multiple SPAC vehicles, which is its main asset.

The company originally targeted businesses in the media, technology, beauty, e-commerce, and online sectors. We should assume any new target will likely come from these same high-growth sectors, but the lower-tier exchange listing limits the size and quality of potential partners. The key growth drivers are:

• New Business Combination: Securing a private company willing to merge with the shell to gain a public listing.
• PIPE Financing: Arranging a Private Investment in Public Equity (PIPE) or other securities-based financing to fund the new deal, since the trust is empty.
• Sector Focus: Leveraging the management's expertise in the digital and consumer-facing technology space.

The company's stock price, which was trading around $0.0001 as of January 13, 2025, reflects the immense risk and lack of an operating business.

Future Revenue and Earnings Estimates

Honestly, you cannot apply traditional revenue growth projections or earnings estimates here. Northern Star Investment Corp. II (NSTB) has no significant operations and has not generated any revenue. Its financial health is that of a minimal-asset shell.

Here's the quick math: As of late 2023, the company's Cash & Equivalents were reported at only about $0.06 million (or $60,000). That's just enough to cover administrative costs while they search for a new merger. Any future revenue and earnings will be entirely dependent on the financial performance of the unidentified target company, which makes any 2025 fiscal year projection impossible to calculate with precision. What this estimate hides is the potential for significant dilution if a new deal requires issuing a large amount of stock to the target company's owners.

Strategic Initiatives and Competitive Advantages

The company's strategic initiative is straightforward: find a new partner and execute a reverse merger. This process is now more complex because the company is no longer a premium NYSE-listed SPAC with a large trust fund. The competitive advantage is purely the management team's network and experience in the M&A world, which is still valuable even on the Pink Sheets.

The team's ability to arrange a PIPE (private financing) is defintely the most critical strategic initiative now. A successful deal would effectively create a new company, giving shareholders a stake in an operating business. If you are looking for more details on who might be interested, you should be Exploring Northern Star Investment Corp. II (NSTB) Investor Profile: Who's Buying and Why?