Zoomcar (ZCAR) Q3 25/26 earnings summary

Executive summary

• Achieved ninth consecutive quarter of positive contribution profit, reaching $1.38M for Q3 FY25-26, with a 58% margin and $14.10 per booking, up 14% year-over-year.

• Adjusted EBITDA loss improved by 74% year-over-year to $(0.83)M, and net loss narrowed by 91% to $(0.72)M.

• Repeat users accounted for 58% of bookings, reflecting strong customer retention and platform advocacy.

• Booking Days increased to 197,327 for the quarter, up from 170,830 year-over-year.

• Operates a peer-to-peer car sharing platform in India, Egypt, and Indonesia, connecting car owners with renters.

Financial highlights

• Net revenue for the quarter was $2.37M, down 3% year-over-year; gross profit was $1.28M (54% margin); gross booking value grew 1% to $6.60M.

• Contribution margin improved to 58% from 52% year-over-year.

• Adjusted EBITDA loss for the quarter was $(0.83)M, improved from $(3.15)M a year ago; net loss for the quarter was $(0.72)M, down from $(7.92)M.

• Cost of revenue, technology, sales/marketing, and G&A all declined year-over-year, reflecting cost optimization.

• Cash and cash equivalents at period end were $0.21M, with negative working capital of $28.28M and accumulated deficit of $338.89M.

Outlook and guidance

• Actively raising growth capital through private placement bridge rounds and warrant exchange offers, targeting $2M–$10M.

• Engaged an investment bank to evaluate a potential uplist to a premier U.S. exchange.

• Management expects continued net losses and significant cash outflows for at least the next 12 months.

• Cost reduction and operational efficiency initiatives are expected to continue.

• Continuing debt restructuring to improve sustainability and work toward positive net worth.