Executive Summary
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.
Key Performance Indicators
QoQ: -77.36% | YoY:38.45%
QoQ: -46.80% | YoY:62.43%
QoQ: -46.15% | YoY:61.22%
Key Insights
Revenue: $5.626m; QoQ: -70.10%; YoY: N/A
Gross Profit: $5.626m; Gross Margin: 100.00%; QoQ: -41.41%; YoY: N/A
Operating Income: -$40.499m; Operating Margin: -7.20%; QoQ: -77.36%; YoY: +38.45%
Net Income: -$68.155m; Net Margin: -12.11%; QoQ: -46.80%; YoY: +62.43%
EPS (Diluted): -$0.00190; QoQ: -46.15%; YoY: +61.22%
Cash Flow: Net cash from operating activities -$15.774m; Free cash flow -$15.774m; Net cash from financing activities +$54.500m; FX impact on cash -$16.136m; Net change in cash +$...
Financial Highlights
Revenue: $5.626m; QoQ: -70.10%; YoY: N/A
Gross Profit: $5.626m; Gross Margin: 100.00%; QoQ: -41.41%; YoY: N/A
Operating Income: -$40.499m; Operating Margin: -7.20%; QoQ: -77.36%; YoY: +38.45%
Net Income: -$68.155m; Net Margin: -12.11%; QoQ: -46.80%; YoY: +62.43%
EPS (Diluted): -$0.00190; QoQ: -46.15%; YoY: +61.22%
Cash Flow: Net cash from operating activities -$15.774m; Free cash flow -$15.774m; Net cash from financing activities +$54.500m; FX impact on cash -$16.136m; Net change in cash +$20.721m; Cash at end of period $26.536m; Cash at beginning $5.815m
Balance Sheet: Total assets $475.420m; Total liabilities $1,039.329m; Total stockholders’ equity -$563.909m; Cash $26.536m; Short-term debt $856.067m; Intangible assets $230.358m; Retained earnings -$1,217.534m; Accumulated OCI -$26.238m
Key Ratios (selected): Current ratio 0.236; Quick ratio 0.236; Debt ratio 1.801; Debt-to-equity -1.518; Asset turnover 0.0118; ROA -0.143%; ROE 0.121%; ROCE 0.0718; EPS Diluted -0.0019
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.63K |
N/A |
-70.10% |
| Gross Profit |
5.63K |
N/A |
-41.41% |
| Operating Income |
-40.50K |
38.45% |
-77.36% |
| Net Income |
-68.16K |
62.43% |
-46.80% |
| EPS |
0.00 |
61.22% |
-46.15% |
Key Financial Ratios
operatingProfitMargin
-720%
operatingCashFlowPerShare
$-0
priceEarningsRatio
-418.33
Management Commentary
No earnings call transcript data provided for QQ2 2025. Management quotes and thematic insights could not be extracted from the supplied material. Please supply the QQ2 2025 earnings call transcript to enable a quotes-based synthesis by theme (strategy, operations, market conditions).
No earnings call transcript data available for QQ2 2025.
— N/A
Forward Guidance
There is no explicit forward guidance in the provided dataset for QQ2 2025. Given the current financial profile—a large short-term debt burden, negative equity, ongoing operating losses, and limited revenue scale—any credible forward plan would need to address liquidity sustainability (debt refinancing/caturity management), monetization or write-downs of intangible assets, and a credible path to profitability. Investors should monitor any management updates on debt restructuring, asset monetization strategies, potential business-model pivots, and covenant relief discussions. Key watch factors include debt maturities in the next 12–24 months, potential asset disposals or monetization, and any revised guidance on revenue traction or cost structure.