Caro Holdings Inc (CAHO) reported Q2 2025 results showing a sharp QoQ deterioration in revenue and continued heavy losses, underscored by a structurally leveraged balance sheet and negative equity. Reported revenue was $5.626 million ( USD thousands in the dataset ), with gross profit matching revenue, yielding a 100% gross margin. However, operating expenses of $46.125 million, coupled with $48.336 million of interest expense, produced an operating loss of $40.499 million and a net loss of $68.155 million for the quarter. Earnings per share stood at -$0.0019 on 36.788 million weighted-average shares. EBITDA was negative at -$10.609 million, and the company booked negative total other income of $27.656 million, driving pretax losses to -$68.155 million. On the liquidity side, cash flow from operations was negative at -$15.774 million, while financing activities contributed +$54.500 million, culminating in a net cash increase of $20.721 million for the period and an ending cash balance of $26.536 million. The balance sheet reveals a highly leveraged construct with total liabilities of $1,039.329 million against total assets of $475.420 million and a negative stockholders’ equity of -$563.909 million. Short-term debt stands at $856.067 million, and intangible assets total $230.358 million, with current liabilities at $1,039.329 million and a current ratio of 0.236. Efficiency metrics show limited asset turnover (0.0118) and a ~92.9 day DSO, consistent with a low-visibility, asset-intensive balance sheet typical of shell-company constructs in financial services. Given the lack of substantive profitability and the fragile equity base, the near-term investment thesis remains highly cautious, pending strategic actions such as debt restructuring, asset monetization, or a pivot toward a viable business model.