Zoomcar Delivers Highest-Ever Contribution Profit, Marking Ninth Straight Profitable Quarter; Adjusted EBITDA Loss Improves 74% YoY; Net Loss Narrows 91% YoY

Zoomcar (OTCQB: ZCAR) reported record quarterly contribution profit of $1.38M (58% margin) for Q3 FY25-26, marking the ninth consecutive quarter of positive contribution profit.

Rhea-AI Summary

Zoomcar (OTCQB: ZCAR) reported record quarterly contribution profit of $1.38M (58% margin) for Q3 FY25-26, marking the ninth consecutive quarter of positive contribution profit. Contribution profit per booking rose 14% to $14.10. Adjusted EBITDA loss improved 74% YoY to $(0.83)M, and loss attributable to shareholders narrowed 91% YoY to $(0.72)M.

GBV was $6.60M (+1% YoY), repeat users made up 58% of bookings, and the company is pursuing a $2M–$10M bridge financing, a tender offer to simplify capital structure, possible uplisting, and debt restructuring.

Positive

• Contribution profit reached $1.38M (58% margin)
• Contribution/booking improved 14% to $14.10
• Adjusted EBITDA loss improved 74% YoY to $(0.83)M
• Loss attributable to shareholders narrowed 91% YoY to $(0.72)M
• Repeat users comprised 58% of bookings

Negative

• GBV growth was modest at +1% YoY ($6.60M)
• Company seeking $2M–$10M bridge financing
• Uplisting and debt restructuring remain pending and uncertain

Argus Feb 17 session

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Delivered $1.38M in contribution profit, with contribution per booking reaching $14.10 in Q3 FY25–26.

BENGALURU, India, Feb. 17, 2026 /PRNewswire/ -- Zoomcar Holdings, Inc. (OTCQB: ZCAR) ("Zoomcar" or the "Company"), India's leading peer-to-peer car-sharing marketplace, today announced results for the quarter ended December 31, 2025 (Q3 FY25-26), underscoring continued execution on profitability and balance sheet priorities.

The Company delivered record contribution profit of $1.38 million (58% margin), also marking the ninth consecutive quarter of positive contribution profit. Contribution profit per booking improved by a significant 14% to $14.10, up from $12.39 in the prior year quarter. Adjusted EBITDA loss improved 74% year over year to $(0.83) million, while loss attributable to shareholders narrowed 91% year over year to $(0.72) million.

"Our Q3 FY25-26 results reflect stronger booking level economics and continued operating discipline," said Deepankar Tiwari, CEO of Zoomcar. "With repeat usage remaining resilient without significant promotion spend, we believe we're well positioned to consolidate India's peer-to-peer mobility market as consumer preferences shift from ownership to access."

Q3 FY25-26 Highlights (Quarter ended Dec 31, 2025)

• Path to Profitability accelerated without performance marketing spends: Ninth straight quarter of positive contribution profit, delivering record quarterly contribution profit of $1.38M (58% margin) and $14.10 contribution profit per booking, achieved with no performance marketing spend for 21+ months.
• Meaningful profitability progress: Adjusted EBITDA loss improved 74% YoY to $(0.83)M.
• Net loss materially reduced: Loss attributable to shareholders improved 91% YoY to $(0.72)M (vs. $(7.92)M prior year).
• Demand quality remained strong: GBV $6.60M (+1% YoY); repeat users contributed 58% of bookings; average guest trip rating reached an all-time high of 4.79/5.

Market Tailwinds + Unit Economics Inflection

Zoomcar believes India presents a compelling long-term opportunity for peer-to-peer car-sharing, driven by low car penetration and rising digital adoption. The Company highlighted projected total addressable market (TAM) expansion from 18.5 million users in 2025 to 65 million users by 2031, alongside continued unit economics improvement, with contribution margin per booking improving from negative levels in December 2023 to +$14.10 in December 2025.

Fundraising and Uplisting Update

Zoomcar is in the process of raising additional capital to support growth initiatives, including a private placement bridge financing with a minimum raise of $2 million and up to $10 million, including an overallotment option. The Company has also launched a tender offer to exchange existing investor warrants for shares of common stock as part of efforts to simplify its capital structure. Zoomcar is also evaluating a possible uplisting to a U.S. national securities exchange and continues to restructure existing debt obligations to strengthen its balance sheet and improve long-term financial sustainability.

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 car-sharing. 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 in 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 December 31, 2025 as compared to December 31, 2024.

	For the Three Months Ended Dec 31,		For the Nine Months Ended Dec 31,
	2025	2024	2025	2024
Net (Loss)	$           (721,472)	$      (7,922,063)	$        (5,720,934)	$   (13,805,617)
Add/ (deduct)
Stock-based compensation	618,227	-	1,303,279	-
Depreciation and amortization	25,315	90,521	95,795	305,658
Finance costs	474,036	4,050,856	1,377,849	6,127,161
Other (income)/expense, net	(1,226,383)	757,826	(799,361)	(29,297)
Gain on troubled debt restructuring	-	(124,299)	(72,912)	(476,746)
Adjusted EBITDA	$           (830,277)	$       (3,147,159)	$        (3,816,284)	$      (7,878,841)

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

Contribution Profit/(Loss)

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

	For the Three Months Ended Dec 31,		For the Nine Months Ended Dec 31,
	2025	2024	2025	2024
Net revenue	$         2,365,059	$        2,449,368	$          6,964,922	$       6,937,250
Cost of revenue	1,080,116	1,499,282	3,591,092	4,224,993
Gross profit	1,284,943	950,086	3,373,830	2,712,257
Add: Depreciation and amortization in COR	13,258	73,683	58,985	222,862
Add: Stock-based compensation in COR	53,251	-	88,067	-
Add: Overhead costs in COR  (rent, software support, insurance, travel)	106,366	286,639	433,341	636,960
Less: Host Incentives and Marketing costs (excl. brand marketing)	81,099	26,414	242,253	621,158
Less: Host incentives	16,412	32,800	93,567	110,664
Less: Marketing costs (excl. brand marketing)	64,687	(6,386)	148,686	510,494
Contribution profit	$          1,376,719	$         1,283,994	$           3,711,970	$        2,950,921
Contribution margin	58 %	52 %	53 %	43 %

We define contribution profit (loss) as our gross profit/(loss)  plus (a) depreciation expense included in cost of revenue,(b) Stock- based compensation 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Zoomcar (ZCAR) Q3 FY25-26 contribution profit and margin?

Zoomcar delivered a record contribution profit of $1.38M with a 58% margin. According to the company, this marks the ninth consecutive quarter of positive contribution profit and reflects improved booking-level economics versus the prior year.

How did Zoomcar's adjusted EBITDA and net loss change in Q3 FY25-26 for ZCAR?

Adjusted EBITDA loss improved 74% YoY to $(0.83)M, and loss attributable to shareholders narrowed 91% YoY to $(0.72)M. According to the company these improvements signal progress toward sustained profitability and stronger operating discipline.

What is Zoomcar's contribution profit per booking and how did it change by Dec 31, 2025?

Contribution profit per booking rose 14% to $14.10 as of Dec 31, 2025. According to the company, this improvement came alongside resilient repeat usage and without performance marketing spend for over 21 months.

What fundraising and capital-structure actions did Zoomcar (ZCAR) announce on Feb 17, 2026?

Zoomcar is pursuing a private placement bridge financing of at least $2M up to $10M and launched a tender offer to exchange warrants for common stock. According to the company, these steps aim to simplify capital structure and support growth.

How strong was demand for Zoomcar (ZCAR) in Q3 FY25-26 and what user metrics were reported?

Gross booking value was $6.60M (up 1% YoY) and repeat users made up 58% of bookings. According to the company, average guest trip rating hit an all-time high of 4.79/5, indicating strong demand quality.

Is Zoomcar evaluating an uplisting and what balance-sheet actions are in progress for ZCAR?

Yes — Zoomcar said it is evaluating a possible uplisting to a U.S. national exchange while restructuring debt. According to the company, these measures are intended to strengthen the balance sheet and improve long-term sustainability.