Sparta Commercial Services (SRCO) reported QQ2 2025 results with revenue of 47,808 (USD thousands) and a gross margin of approximately 90.3%, underscoring a strong core gross profit base. However, the quarter is characterized by a deep operating and net loss driven by a substantial fixed cost base and sizeable finance charges. Operating income stood at -328,896 and net income at -417,532, with EBITDA of -209,824, reflecting heavy depreciation, interest expense, and overhead. Free cash flow remained negative, with operating cash flow of -626,566 and a net cash change of +89,278, ending the period with cash of 93,840. The balance sheet reveals a highly leveraged and negatively equity-funded position (total liabilities of 10,802,513 vs. total assets of 635,850 and stockholders’ equity of -11,171,586), signaling material solvency and liquidity challenges. The company generated financing cash inflows (624,489) primarily from equity-related activity (common stock issued) and debt management, offsetting the operating cash burn. The trailing four-quarter data show a company still in a cash-usage phase despite modest QoQ revenue upticks, implying earnings quality remains fragile until cost structure and financing costs are meaningfully addressed. Looking ahead, investors should monitor debt refinancing progress, working capital dynamics, and any concretely communicated strategic pivots around cost optimization and monetization of SRCO’s software and digital-platform assets. This report synthesizes the quantitative results with expected management emphasis in the absence of an explicit earnings call transcript in the provided data.