Caro Holdings Inc (CAHO) Q3 2025 Earnings Report

Caro Holdings Inc (CAHO) reported a highly distressed QQ3 2025 quarter with a modest revenue base of $4.41 million but a drastically negative gross margin of -$4.81 million and an EBITDA of -$148.6 million. The quarter culminated in a net loss of -$267.2 million and an EPS of -$0.0072, driven primarily by a heavy interest burden of $109.39 million and substantial operating expenses. The company’s liquidity position remains severely stressed, with a current ratio of 0.20 and cash ratio of 0.0194, and it carries negative shareholders’ equity (-$807.3 million) on reported assets of roughly $481 million. These dynamics indicate that CAHO is operating far from break-even and is heavily reliant on financing activity to sustain liquidity in the near term.

The quarter’s performance, underpinned by a massive mismatch between revenue generation and funding costs, signals elevated credit, liquidity, and solvency risks. Management commentary is not available in the provided transcript dataset, limiting visibility into strategic pivots or explicit guidance. Absent a meaningful scale-up in sustainable revenue or a material restructuring of the balance sheet (including debt, equity, or asset monetization), the investment case remains highly speculative and skewed toward downside risks. Investors should monitor debt maturities, potential refinancing proposals, any asset divestitures, and the company’s ability to stabilize cash burn going forward.