The company reports zero operational revenue, with net income figures like the $1.6M recorded in 2026Q1 appearing to be driven by non-operating warrant liability revaluations rather than fundamental business performance.
| Sales/Revenue | 0 | - | - | - |
| Revenue Growth % | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - |
| COGS % of Revenue | - | - | - | - |
| Gross Profit | 0 | 0 | 0 | 0 |
| Gross Margin % | - | - | - | - |
| Gross Profit Growth % | - | - | - | - |
| Operating Expenses | 1.09M | 1.04M | 670.43K | 211.58K |
| OpEx % of Revenue | - | - | - | - |
| Selling, General & Admin | 48.3K | 1.04M | 670.43K | 211.58K |
| SG&A % of Revenue | - | - | - | - |
| Research & Development | 0 | - | - | - |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - |
| Operating Income | -1.09M | -1.04M | -670.43K | -211.58K |
| Operating Margin % | - | - | - | - |
| Operating Income Growth % | - | -54.94% | -216.86% | - |
| EBITDA | -1.09M | -1.04M | -670.43K | 0 |
| EBITDA Margin % | - | - | - | - |
| EBITDA Growth % | -15.18% | -54.94% | - | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 211.58K |
| EBIT | 1.54M | -1.04M | -670.43K | -211.58K |
| Net Interest Income | -2.25M | 8.94M | 8.89M | 0 |
| Interest Income | -2.25M | 8.94M | 8.89M | 0 |
| Interest Expense | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - |
| Pretax Income | 7.56M | 7.9M | 8.22M | -211.58K |
| Pretax Margin % | - | - | - | - |
| Income Tax | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% |
| Net Income | 7.56M | 7.9M | 8.22M | -211.58K |
| Net Margin % | - | - | - | - |
| Net Income Growth % | -21.53% | -3.87% | 3983.09% | - |
| Net Income (Continuing) | 7.56M | 7.9M | 8.22M | -211.58K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.37 | 0.31 | 0.32 | -0.04 |
| EPS Growth % | -22.03% | -3.13% | 880.49% | - |
| EPS (Basic) | - | 0.31 | 0.32 | -0.01 |
| Diluted Shares Outstanding | 20.68M | 20.68M | 20.68M | 5.12M |
| Basic Shares Outstanding | 20.68M | 20.68M | 20.68M | 20.68M |
| Dividend Payout Ratio | - | - | - | - |
Liquidation and regulatory compliance
As reported in financial statements, LEGT maintains zero operational revenue, reflecting its status as a pre-combination special purpose vehicle where growth is entirely contingent upon the successful identification and acquisition of a target business rather than organic expansion of existing commercial activities or service offerings.
The lack of revenue is structural and expected for a shell entity, meaning traditional growth metrics are irrelevant until a business combination occurs. Investors should monitor the search deadline, as the absence of revenue growth highlights the temporal pressure on management to deploy capital before the vehicle reaches its expiration.
Based on recent SEC filings, LEGT's SG&A expenses have fluctuated significantly, reaching $356.9K in 2026Q1, which underscores the ongoing administrative burden of maintaining a public listing without the offsetting benefit of operational income to cover these necessary regulatory and professional service expenditures.
The volatility in SG&A suggests that costs are driven by episodic legal and accounting requirements rather than a steady-state operational model. This burn rate necessitates careful oversight of the sponsor's at-risk capital, as the entity lacks internal cash generation to sustain these costs indefinitely.
According to the provided income statement data, LEGT reports consistent net income figures, such as the $1.6M recorded in 2026Q1, which appear to be driven by non-operating items like warrant liability revaluations rather than any underlying fundamental business performance or operational profitability.
These non-cash gains mask the true economic reality of the entity, which is currently consuming capital to fund its search mandate. Analysts should strip out these accounting adjustments to isolate the actual cash burn, as the reported net income provides a misleading view of the company's financial health.
As indicated by the reported operating cash of $839,838, LEGT faces a narrowing runway for administrative expenses, which may force management into a suboptimal merger or liquidation if a suitable target is not secured within the remaining timeframe allowed by the current regulatory environment.
The market's current valuation near trust value suggests a high skepticism regarding the sponsor's ability to execute a deal that provides value beyond the cash-equivalent floor. Investors should consider that the combination of rising compliance costs and limited operating cash creates a precarious situation that could lead to a forced liquidation.
Quick answers to the most common questions about buying LEGT stock.
Legato Merger Corp. III (LEGT) is profitable, generating $7.9M in net income for the fiscal year ending 2025.