Zoomcar Accelerates Profit Momentum in FY25 with Record Contribution and 44% EBITDA Improvement

Rhea-AI Summary

Zoomcar Holdings (OTCQX: ZCAR), India's leading car-sharing marketplace, reported significant financial improvements for FY2025. The company achieved a record contribution profit of $4.25 million (47% of revenue), compared to a loss of $(0.98) million in FY24, marking its sixth consecutive profitable quarter on a contribution basis.

Key financial metrics include a 44% improvement in Adjusted EBITDA loss to $(9.91) million, and a 67% reduction in operating loss to $(10.40) million. The company demonstrated strong operational efficiency with a 49% reduction in Cost of Revenue to $5.30 million and a 75% decrease in marketing spend. Total costs decreased from $41.57 million to $19.51 million.

Operational highlights include a 10% YoY growth in bookings to 426,788, an 86% increase in repeat user rate to 13%, and improved guest satisfaction with average trip ratings rising to 4.70. The company also reported a 58% increase in high-quality cars rated 4.5+ on the platform.

Positive

• Record contribution profit of $4.25M (47% of revenue) vs $(0.98)M loss in FY24
• Operating loss reduced by 67% from $(31.67)M to $(10.40)M
• Total costs decreased by 53% from $41.57M to $19.51M
• Bookings grew 10% YoY to 426,788
• Repeat user rate increased by 86% to 13%
• Average Guest trip rating improved to 4.70 from 4.16
• High-quality cars (rated 4.5+) increased by 58% to 49% of inventory

Negative

• Company still operating at a loss with $(9.91)M Adjusted EBITDA loss
• Marketing spend cut by 75% may impact future growth
• Operating loss remains significant at $(10.40)M despite improvements

Host Quality, Repeat Usage, and Cost Optimization Drive Turnaround; Contribution Profit Hits $4.25M, Operating Loss Cut by 67%

BANGALORE, India, June 30, 2025 /PRNewswire/ -- Zoomcar Holdings, Inc. (OTCQX: ZCAR) ("Zoomcar" or "the Company"), India's leading car-sharing marketplace, today announced financial results for its fiscal year ended March 31, 2025.

Deepankar Tiwari, CEO of Zoomcar, said:
"FY 2025 was a pivotal year for Zoomcar as we strengthened our marketplace fundamentals and achieved new financial milestones. We continued to see meaningful improvements in Guest repeat behavior and Host retention; core elements that drive scale and sustainability. With a record contribution profit and a sixth consecutive profitable quarter on a contribution basis, we believe we're moving firmly in the right direction. We remain focused on improving the customer experience and leveraging technology to unlock greater value for our Guests and Hosts."

Key Highlights for FY 2024–2025:

1. Contribution Profit Reaches All-Time High
   Zoomcar reported a record contribution profit of $4.25 million (47% of revenue) for FY25, compared to a loss of $(0.98) million (-10% of revenue) in FY24. Contribution profit per booking increased to $9.96, up from $(2.52) in the previous fiscal year. This marks the sixth consecutive quarter of positive contribution profit.
   
   
2. Sustained Growth in Bookings and Repeat Users
   Bookings grew 10% YoY, from 387,821 in FY24 to 426,788 in FY25. Our repeat user rate increased by 86% (13% in FY25 as compared to 7% in FY24), driven by product enhancements and loyalty initiatives.
   
   
3. Significant Cost Optimization
   Cost of Revenue reduced by 49%, from $10.33 million in FY24 to $5.30 million in FY25, supported by operational efficiencies and dynamic pricing . Marketing spend declined 75%, alongside a 43% reduction in G&A and 32% decrease in technology related expenses. Total costs and expenses decreased from $41.57 million in FY24 to $19.51 million in FY25. These savings directly supported improved unit economics and reduced cash burn.
   
   
4. Strong Operational Metrics Reflect Customer Experience Gains
   Average Guest trip rating rose to 4.70, up from 4.16 in the prior year.  High-quality cars (rated 4.5+) increased by 58% (49% in FY25 as compared to 31% in FY24).
   
   
5. Improved Profitability and Lower Adjusted Losses
   Adjusted EBITDA loss improved by 44%, from $(17.85) million to $(9.91) million. Loss from operations narrowed significantly by 205%, from $(31.67) million in FY24 to $(10.40) million in FY25.
   
   
6. Operational Excellence: Strengthening the Backbone for Scalable Growth
   Zoomcar launched advanced vehicle inspection and GPS safety protocols in partnership with a leading ecosystem player to enhance quality and transparency across host vehicles. We are  also rolling out in the next quarter, new B2B tools to help fleet operators seamlessly manage and scale their inventory on the platform. Early adoption of AI-led support and fraud detection has improved platform efficiency and guest trust, laying a strong foundation for Zoomcar's next phase of tech-driven, high-quality growth.

Join Us for Our FY24-25 Earnings Call

Zoomcar will host its FY24-25 earnings call on Monday, June 30, 2025, at 8:00 AM ET / 5:30 PM IST.
Please register here: https://us06web.zoom.us/webinar/register/WN_gCU972PFSBmRtLaDcqpjGw#/registration 
For more information, including the full investor deck and filings, please visit: https://investor-relations.zoomcar.com/in/ 

About Zoomcar

Founded in 2013 and headquartered in Bengaluru, Zoomcar is India's largest peer-to-peer car-sharing marketplace. Through its digital-first platform, Zoomcar connects individual vehicle owners (Hosts) with users (Guests), offering flexible access to vehicles for self-drive rentals. The company's mission is to promote smarter, shared mobility that is both economically empowering and environmentally sustainable.

Forward Looking Statement:

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," and similar words are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning our expected revenue growth and improved profitability, and our financial forecasts. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by us, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

Non-GAAP Financial Measure:

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: contribution margin, and adjusted EBITDA. A reconciliation of GAAP to adjusted non-GAAP financial measures is included as an attachment to this press release. We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information. While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Reconciliation of GAAP to Non-GAAP Metrics

The following is the reconciliation of adjusted EBITDA to the most comparable GAAP measure for the year ending March 31, 2025 as compared to March 31, 2024.

	For the Years Ended March 31,
	2025	2024
Net (Loss) / Income	$ (25,622,302)	$ (34,277,252)
Add/ (deduct)
SPAC transaction closing costs	-	7,061,350
Stock-based compensation	52,461	1,883,733
Depreciation and amortization	433,906	1,001,621
Finance costs	8,607,173	13,898,735
Finance costs to related parties	-	38,203
Other expense/(income), net	7,785,291	(11,316,471)
Other income from related parties	-	(11,224)
Gain on troubled debt restructuring	(1,171,161)	-
Impairment of balances with government authorities	-	3,875,767
Adjusted EBITDA	$   (9,914,632)	$ (17,845,538)

Adjusted EBITDA is a non-GAAP financial measure that represents our net income or loss adjusted for (i) Exceptional non-recurring expenses (ii)  stock-based compensation expense,(iii) depreciation and amortization (iv) finance costs, (v) Gain on troubled debt restructuring and (vi) Other income/Expense.

Contribution Profit/(Loss)

The following is the calculation of Contribution Profit/(Loss) to the most comparable GAAP measure for the year ending March 31 2025 as compared to March 31, 2024.

	For the Years Ended March 31,
	2025	2024
Net revenue	$     9,105,891	$    9,897,233
Cost of revenue	5,296,841	10,331,595
Gross profit/(loss)	3,809,050	(434,362)
Add: Depreciation and amortization in COR	340,188	828,111
Add: Stock-based compensation in COR	3,650	134,883
Add: Overhead costs in COR  (rent, software support, insurance, travel)	840,289	1,218,583
Less: Host Incentives and Marketing costs (excl. brand marketing)	742,399	2,726,369
Less: Host incentives	147,180	403,069
Less: Marketing costs (excl. brand marketing)	595,219	2,323,300
Contribution profit / (loss)	$     4,250,778	$       (979,154)
Contribution margin	47 %	-10 %

We define contribution profit (loss) as our gross profit/(loss)  plus (a) depreciation expense included in cost of revenue, (b) stock-based compensation expense included in cost of revenue, (c) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive payments and (ii) marketing and promotional expenses (excluding brand marketing).

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SOURCE Zoomcar

FAQ

What were Zoomcar's (ZCAR) key financial achievements in FY2025?

Zoomcar achieved a record contribution profit of $4.25 million, reduced operating loss by 67% to $(10.40)M, and improved Adjusted EBITDA loss by 44% to $(9.91)M.

How much did Zoomcar (ZCAR) improve its cost structure in FY2025?

Zoomcar reduced total costs by 53% from $41.57M to $19.51M, with Cost of Revenue down 49% to $5.30M and marketing spend reduced by 75%.

What was Zoomcar's (ZCAR) booking growth and repeat user rate in FY2025?

Bookings grew 10% YoY to 426,788, while the repeat user rate increased by 86% to 13% compared to 7% in FY24.

How did Zoomcar's (ZCAR) operational metrics improve in FY2025?

Average Guest trip rating improved to 4.70 from 4.16, and the percentage of high-quality cars (rated 4.5+) increased by 58% to 49% of inventory.

Is Zoomcar (ZCAR) profitable as of FY2025?

While Zoomcar achieved positive contribution profit of $4.25M, it still reported an Adjusted EBITDA loss of $(9.91)M and operating loss of $(10.40)M.