Zoomcar (ZCAR) Q1 25/26 earnings summary

Executive summary

• Achieved seventh consecutive quarter of positive contribution profit, reaching $1.14 million, up from $0.46 million year-over-year, with contribution profit per booking rising to $10.89 from $4.07.

• Net revenue for Q2 2025 was $2.31 million, up 3% year-over-year, with improved gross and contribution margins driven by cost reductions and operational efficiencies.

• Repeat user rates rose to 13% from 9% last year; high-quality host rates increased to 46% from 30%.

• Operational focus on customer experience, partnerships, and cost optimization drove improved host and guest metrics.

• The company continues to face substantial doubt about its ability to continue as a going concern due to critical cash deficiencies and ongoing defaults on debt obligations.

Financial highlights

• Gross booking value reached $6.47 million, up 4% year-over-year despite a 7% decline in bookings.

• Contribution margin improved from 20% to 49% year-over-year.

• Loss from operations declined 48% to $1.76 million from $3.37 million year-over-year.

• Adjusted EBITDA loss improved by 47% year-over-year to $1.73 million from $3.26 million.

• Gross profit improved to $1.00 million (43% margin) from $0.73 million (33% margin) year-over-year.

Outlook and guidance

• Positioned to achieve breakeven in the near term, supported by operational efficiency and cost management.

• Management expects continued net losses and significant cash outflows for at least the next 12 months, with additional capital required imminently to meet obligations.

• Ongoing efforts to raise additional capital through bridge financing or a public offering.

• Current cash is expected to support operations only through September 30, 2025, assuming no payments on outstanding indebtedness.