Zoomcar Achieves $1.14M Contribution Profit with Nearly 50% Margin, Operating Loss Down 48%

Rhea-AI Summary

Zoomcar (OTCQX: ZCAR), India's leading car-sharing marketplace, reported strong financial improvements in FQ1 2025. The company achieved a contribution profit of $1.14 million (49% margin), marking its seventh consecutive profitable quarter on a contribution basis.

Key metrics include a 48% reduction in operating losses to $1.76 million, a 47% decrease in adjusted EBITDA loss to $1.73 million, and significant cost reductions across marketing (-78%), G&A (-22%), and technology expenses (-21%). While bookings declined 7% to 104,549, the company saw a 45% increase in repeat user rate and improved guest ratings to 4.73.

Strategic initiatives include partnerships with Google Cloud AI for enhanced safety, CARS24 for verified vehicles, and the launch of ZoomPro for business fleet partners.

Positive

• Record contribution profit of $1.14M with 49% margin, up from $0.46M (20% margin) YoY
• Operating loss reduced by 48% to $1.76M from $3.37M YoY
• 45% increase in repeat user rate (13% vs 9% YoY)
• Total costs decreased 27% to $4.07M from $5.61M YoY
• 54% increase in high-quality cars rated 4.5+ (46% vs 30% QoQ)

Negative

• 7% decline in total bookings to 104,549 from 112,944 YoY
• Continued operating losses of $1.76M despite improvements
• Negative adjusted EBITDA of $1.73M

Repeat usage surges, costs drop double-digits, and EBITDA loss narrows nearly 50% as Zoomcar sharpens its path to profitability

BENGALURU, India, Aug. 14, 2025 /PRNewswire/ -- Zoomcar Holdings, Inc. (OTCQX: ZCAR) ("Zoomcar" or "the Company"), India's leading car-sharing marketplace, today announced financial results for its fiscal quarter ended June 30, 2025.

Deepankar Tiwari, CEO of Zoomcar, said:
"FQ-1 2025 was a pivotal quarter 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 seventh 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 FQ-1 2025–2026:

1. Contribution Profit soars to $1.14M, Nearly 50% Margin, and 7-Quarter Profitability Streak 
   Zoomcar reported a contribution profit of $1.14 million (49% of GAAP revenue) for FQ1 2025, compared to $0.46 million (20% of GAAP revenue) in FQ1 2024. Contribution profit per booking increased to $10.89, up from $4.07 in the previous fiscal quarter ending June 30, 2024. This marks the seventh consecutive quarter of positive contribution profit.
   
   
2. Sustained Growth in Bookings and Repeat Users
   Bookings declines marginally by 7% to 104,549 for FQ1 2025 as compared to 112,944 for comparable quarter however our repeat user rate increased by 45% Quarter over Quarter (13% in FQ1 2025 as compared to 9% in FQ1 2024), driven by product enhancements and loyalty initiative and all of this was achieved without Dollar investments in performance marketing for more than a year.
   
   
3. Disciplined Cost Management Supports Record Profitability and Reduced Cash Burn
   Cost of Revenue reduced by 13%, to $1.31 million in FQ1 2025 from $1.51 million in FQ1 2024, supported by operational efficiencies and dynamic pricing. Marketing spend declined 78%, alongside a 22% reduction in G&A and 21% decrease in technology related expenses. Total costs and expenses decreased to $4.07 million in FQ1 2025 down from $5.61 million in FQ1 2024. 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 4.73, up from 4.71 in the prior year.  High-quality cars (rated 4.5+) increased by 54% quarter over quarter (46% in FQ1 2025 as compared to 30% in FQ1 2024).
   
   
5. Zoomcar Continues Path to Profitability With Nearly 50% Reduction in Losses
   Adjusted EBITDA loss significantly reduced by 47%, from $(3.26) million to $(1.73) million. Loss from operations narrowed significantly by 48%, from $(3.37) million in FQ1 2024 to $(1.76) million in FQ1 2025. The significant reduction in Losses during the current quarter is on top of a material decline of 44% and 67% in Adjusted EBITDA and Loss from operations respectively that the Company achieved during the recently concluded Fiscal year ended March 31, 2025.
   
   
6. Strategic Partnerships Strengthen Competitive Advantage
   Integrated Google Cloud AI to speed onboarding and enhance safety signals, teamed with CARS24 for verified, GPS-enabled host vehicles, and expanded Home Delivery via driver networks to lift coverage and conversion. We also launched ZoomPro for business fleet partners, a unified toolkit for multi-car hosts and operators with real-time fleet insights, pricing controls, and earnings dashboards that improve quality and scale.

Join Us for Our FQ-1 25 Earnings Call

Zoomcar will host its FQ-1 25 earnings call on Thursday, August 14, 2025, at 8:00 AM ET / 5:30 PM IST. Please register here: https://us06web.zoom.us/webinar/register/WN_ZOJqb4FBQcOcx0yXeEL06A#/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 carsharing. 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 quarter ending June 30, 2025 as compared to June 30, 2024.

	For the Three Months Ended June 30,
	2025	2024
Net Loss	$                       (4,205,313)	$                   (2,531,579)
Add/ (deduct)
Depreciation and amortization	35,428	113,327
Finance costs	297,551	551,003
Other expense/(income), net	2,219,251	(1,393,992)
Gain on troubled debt restructuring	(72,912)	-
Adjusted EBITDA	$                        (1,725,995)	$                   (3,261,241)

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

Contribution Profit/(Loss)

The following is the calculation of Contribution Profit/(Loss) to the most comparable GAAP measure for the quarter ending June 30 2025 as compared to June 30, 2024.

	For the Three Months Ended June 30,
	2025	2024
Net revenue	$                         2,312,753	$                     2,240,985
Cost of revenue	1,313,687	1,512,289
Gross profit	999,066	728,696
Add: Depreciation and amortization in COR	22,966	74,873
Add: Overhead costs in COR  (rent, software support, insurance, travel)	187,815	204,975
Less: Host Incentives and Marketing costs (excl. brand marketing)	71,423	549,383
Less: Host incentives	42,388	47,621
Less: Marketing costs (excl. brand marketing)	29,035	501,761
Contribution profit	$                          1,138,424	$                         459,161
Contribution margin	49 %	20 %

We define contribution profit (loss) as our gross profit/(loss)  plus (a) depreciation expense included in cost of revenue,(b) 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 was Zoomcar's (ZCAR) contribution profit in Q1 2025?

Zoomcar achieved a contribution profit of $1.14 million with a 49% margin in Q1 2025, compared to $0.46 million (20% margin) in Q1 2024, marking its seventh consecutive profitable quarter on a contribution basis.

How much did Zoomcar reduce its operating losses in Q1 2025?

Zoomcar reduced its operating losses by 48%, from $3.37 million in Q1 2024 to $1.76 million in Q1 2025.

What was Zoomcar's repeat user rate growth in Q1 2025?

Zoomcar's repeat user rate increased by 45% year-over-year, rising from 9% in Q1 2024 to 13% in Q1 2025, achieved without dollar investments in performance marketing.

How did Zoomcar's cost reduction initiatives perform in Q1 2025?

Zoomcar significantly reduced costs across all categories: marketing spend declined 78%, G&A reduced 22%, technology expenses decreased 21%, and total costs decreased to $4.07 million from $5.61 million YoY.

What strategic partnerships did Zoomcar announce in Q1 2025?

Zoomcar partnered with Google Cloud AI for improved onboarding and safety, CARS24 for verified GPS-enabled vehicles, and launched ZoomPro for business fleet partners with real-time fleet insights and management tools.