Executive Summary
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.
Key Performance Indicators
QoQ: -21.67% | YoY:745.87%
QoQ: -185.44% | YoY:-1 022.65%
QoQ: -232.20% | YoY:-73.94%
QoQ: -292.05% | YoY:-130.57%
QoQ: -278.95% | YoY:-84.62%
Key Insights
Revenue: $4.41 million for QQ3 2025, YoY +745.9%, QoQ -21.7%. Gross Profit: -$4.81 million, YoY -1,022.7%, QoQ -185.4%; Gross Margin: -109.1% (grossProfitMargin: -1.0908). Operating Income: -$134.54 million, YoY -73.9%, QoQ -232.2%. Net Income: -$267.20 million, YoY -130.6%, QoQ -292.1%. EPS: -$0.0072, YoY -84.6%, QoQ -278.9%.
Key efficiency and liquidity metrics show material deteriorations: current ratio 0.202, quick ratio 0.202, cash ratio 0.0194, and days sales outstanding ~1,489.6 days, i...
Financial Highlights
Revenue: $4.41 million for QQ3 2025, YoY +745.9%, QoQ -21.7%. Gross Profit: -$4.81 million, YoY -1,022.7%, QoQ -185.4%; Gross Margin: -109.1% (grossProfitMargin: -1.0908). Operating Income: -$134.54 million, YoY -73.9%, QoQ -232.2%. Net Income: -$267.20 million, YoY -130.6%, QoQ -292.1%. EPS: -$0.0072, YoY -84.6%, QoQ -278.9%.
Key efficiency and liquidity metrics show material deteriorations: current ratio 0.202, quick ratio 0.202, cash ratio 0.0194, and days sales outstanding ~1,489.6 days, indicating extreme liquidity stress. Asset turnover 0.0092 and ROE/ROA negative, reflecting heavy leverage and earnings volatility. Net cash provided by operating activities: -$155.04 million; free cash flow: -$155.04 million. Financing activities contributed +$143.00 million, but cash and cash equivalents declined modestly by -$1.58 million in the period.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.41K |
745.87% |
-21.67% |
| Gross Profit |
-4.81K |
-1 022.65% |
-185.44% |
| Operating Income |
-134.54K |
-73.94% |
-232.20% |
| Net Income |
-267.20K |
-130.57% |
-292.05% |
| EPS |
-0.01 |
-84.62% |
-278.95% |
Key Financial Ratios
grossProfitMargin
-109.1%
operatingProfitMargin
-3053%
operatingCashFlowPerShare
$-0
priceEarningsRatio
-63.65
Management Commentary
There is no earnings call transcript data provided for QQ3 2025 in the supplied material. As a result, thematic highlights and management quotes cannot be drawn from the transcript. The forward-looking assessment below cautions that management commentary and guidance terms are not verifiable from the given dataset.
Forward Guidance
No formal QQ3 2025 forward guidance is presented in the provided data. Given the heavy debt load (short-term debt of approximately $1.094 billion) and negative equity, the company’s ability to sustain operations hinges on capital market access, potential debt restructuring, or strategic asset monetization. In the absence of revenue scale-up or operational pivot, the path to stabilization depends on: (1) securing cost discipline to reduce cash burn beyond the current rate, (2) refinancing or restructuring near-term debt maturities, and (3) monetization of intangible assets or non-core assets. Investors should monitor any management commentary on strategic alternatives, liquidity runway, debt covenants, and potential asset sales. Key factors to watch include refinancing outcomes, working capital improvements, and any changes in the shell-company structure that could unlock value or mitigate liabilities.