Caro Holdings Inc. Reports 70% Revenue Decline and $118.2 Million Net Loss for Six Months Ending September 30, 2025

Caro Holdings Inc. reported a significant decline in financial performance for the six months ending September 30, 2025, with revenues dropping to $7.2 million from $24.4 million in the same period last year, marking a decrease of approximately 70%. The company also experienced a net loss of $118.2 million, slightly higher than the $114.6 million loss reported for the same period in 2024. The decrease in revenue was attributed to reduced customer engagement and operational challenges, while the increase in net loss was primarily due to higher interest expenses and costs associated with convertible notes.

In terms of operational metrics, Caro Holdings saw a decrease in customer activity, with revenues for the three months ending September 30, 2025, falling to $1,229 from $5,626 in the previous year, a decline of 78%. Operating expenses also decreased by 25% to $34.5 million, down from $46.1 million, largely due to reduced advertising and consulting fees. However, other expenses surged by 76% to $48.5 million, driven by increased interest expenses related to convertible notes. The company's total current assets increased slightly to $264.1 million, while current liabilities rose to $1.73 billion, resulting in a working capital deficiency of $1.46 billion.

Strategically, Caro Holdings has been focusing on expanding its digital presence and enhancing its product offerings. The company is in the process of acquiring a marketplace provider in the spirits industry, which is expected to be completed in the first quarter of 2026. This acquisition involves issuing up to 12.55 million shares based on the achievement of specific revenue milestones. Additionally, the company has developed a full-cycle AI automation framework aimed at improving operational efficiency for small and mid-sized businesses, which is currently being piloted with select clients.

Caro Holdings continues to face challenges related to its accumulated deficit, which stood at $1.91 billion as of September 30, 2025. The company has indicated that its ability to continue as a going concern is contingent upon raising additional capital and successfully implementing its business plan. Management has expressed optimism about securing funding and believes that ongoing product development and strategic partnerships will provide opportunities for growth. However, there are no assurances that additional funds will be available when needed or on terms acceptable to the company.