{"id":2612,"date":"2025-08-14T11:01:11","date_gmt":"2025-08-14T11:01:11","guid":{"rendered":"https:\/\/press.zoomcar.com\/?p=2612"},"modified":"2025-08-14T11:09:33","modified_gmt":"2025-08-14T11:09:33","slug":"zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48","status":"publish","type":"post","link":"https:\/\/press.zoomcar.com\/in\/zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48\/","title":{"rendered":"Zoomcar Achieves $1.14M Contribution Profit with Nearly 50% Margin, Operating Loss Down 48%"},"content":{"rendered":"<p><b>Repeat usage surges, costs drop double-digits, and EBITDA loss narrows nearly 50% as Zoomcar sharpens its path to profitability<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Bangalore, India \u2013 August 14, 2025 \u2013 Zoomcar Holdings, Inc. (OTCQX: ZCAR) (\u201cZoomcar\u201d or \u201cthe Company\u201d), India\u2019s leading car-sharing marketplace, today announced financial results for its fiscal quarter ended June 30, 2025.<\/span><\/p>\n<p><b>Deepankar Tiwari, CEO of Zoomcar<\/b><span style=\"font-weight: 400;\">, said:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><i><span style=\"font-weight: 400;\">\u201cFQ-1 2025 was a pivotal quarter for Zoomcar as we strengthened our marketplace fundamentals and achieved new financial milestones. We continued to see <\/span><\/i><b><i>meaningful improvements in Guest repeat behavior<\/i><\/b><i><span style=\"font-weight: 400;\"> and <\/span><\/i><b><i>Host retention<\/i><\/b><i><span style=\"font-weight: 400;\">; core elements that drive scale and sustainability. With a <\/span><\/i><b><i>record contribution profit and a seventh consecutive profitable quarter<\/i><\/b><i><span style=\"font-weight: 400;\"> on a contribution basis, we believe we\u2019re 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.\u201d<\/span><\/i><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_57 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table Of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-69dac314daec9\" ><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #444243;color:#444243\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #444243;color:#444243\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-69dac314daec9\"  type=\"checkbox\" id=\"item-69dac314daec9\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='insert-page-1 insert-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/press.zoomcar.com\/in\/zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48\/#Key_Highlights_for_FQ-1_2025%E2%80%932026\" title=\"Key Highlights for FQ-1 2025\u20132026:\">Key Highlights for FQ-1 2025\u20132026:<\/a><\/li><li class='insert-page-1 insert-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/press.zoomcar.com\/in\/zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48\/#Join_Us_for_Our_FQ-1_25_Earnings_Call\" title=\"Join Us for Our FQ-1 25 Earnings Call\">Join Us for Our FQ-1 25 Earnings Call<\/a><\/li><li class='insert-page-1 insert-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/press.zoomcar.com\/in\/zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48\/#About_Zoomcar\" title=\"About Zoomcar\">About Zoomcar<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Key_Highlights_for_FQ-1_2025%E2%80%932026\"><\/span><b>Key Highlights for FQ-1 2025\u20132026:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<ol>\n<li><b> Contribution Profit soars to $1.14M, Nearly 50% Margin, and 7-Quarter Profitability Streak <\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li><b> Sustained Growth in Bookings and Repeat Users<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li><b> Disciplined Cost Management Supports Record Profitability and Reduced Cash Burn<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">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&amp;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.<\/span><\/li>\n<li><b> Strong Operational Metrics Reflect Customer Experience Gains<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Average Guest trip rating rose to 4.73, up from 4.71 in the prior year.\u00a0 High-quality cars (rated 4.5+) increased by 54% quarter over quarter (46% in FQ1 2025 as compared to 30% in FQ1 2024).<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li><b> Zoomcar Continues Path to Profitability With Nearly 50% Reduction in Losses<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li><b>Strategic Partnerships Strengthen Competitive Advantage<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>ZoomPro<\/b><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"Join_Us_for_Our_FQ-1_25_Earnings_Call\"><\/span><b>Join Us for Our FQ-1 25 Earnings Call<\/b><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">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<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">For more information, including the full investor deck and filings, please visit: https:\/\/investor-relations.zoomcar.com\/in\/<\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"About_Zoomcar\"><\/span><b>About Zoomcar<\/b><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Founded in 2013 and headquartered in Bengaluru, Zoomcar is India\u2019s 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\u2019s mission is to promote smarter, shared mobility that is both economically empowering and environmentally sustainable.<\/span><\/p>\n<p><b>Forward Looking Statement:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">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 \u201cplans,\u201d \u201cexpects,\u201d \u201cbelieves,\u201d \u201canticipates,\u201d 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.<\/span><\/p>\n<p><b>Non-GAAP Financial Measure:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><b>Reconciliation of GAAP to Non-GAAP Metrics<\/b><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-2617\" src=\"https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-300x125.png\" alt=\"\" width=\"720\" height=\"auto\" srcset=\"https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-300x125.png 300w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-1024x425.png 1024w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-768x319.png 768w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-1536x638.png 1536w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-1200x498.png 1200w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM-500x208.png 500w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.23.46\u202fPM.png 2009w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><b>Contribution Profit\/(Loss)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-2624\" src=\"https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM-300x143.png\" alt=\"\" width=\"810\" height=\"auto\" srcset=\"https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM-300x143.png 300w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM-1024x490.png 1024w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM-768x367.png 768w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM-500x239.png 500w, https:\/\/press.zoomcar.com\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-14-at-4.28.57\u202fPM.png 1192w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">We define contribution profit (loss) as our gross profit\/(loss)\u00a0 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).<\/span><\/p>\n<p><b>Contact<\/b><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">investors@zoomcar.com<\/span><span style=\"font-weight: 400;\">\u00a0 <\/span><span style=\"font-weight: 400;\">press@zoomcar.com<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Repeat usage surges, costs drop double-digits, and EBITDA loss narrows nearly 50% as Zoomcar sharpens its path to profitability Bangalore, India \u2013 August 14, 2025 \u2013 Zoomcar Holdings, Inc. (OTCQX: ZCAR) (\u201cZoomcar\u201d or \u201cthe Company\u201d), India\u2019s leading car-sharing marketplace, today &hellip; <a href=\"https:\/\/press.zoomcar.com\/in\/zoomcar-achieves-1-14m-contribution-profit-with-nearly-50-margin-operating-loss-down-48\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":2203,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-blog.php","format":"standard","meta":{"_mbp_gutenberg_autopost":false,"footnotes":""},"categories":[585,594],"tags":[],"language_code":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Zoomcar Achieves $1.14M Contribution Profit with Nearly 50% Margin, Operating Loss Down 48% -<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zoomcar Achieves $1.14M Contribution Profit with Nearly 50% Margin, Operating Loss Down 48% -\" \/>\n<meta property=\"og:description\" content=\"Repeat usage surges, costs drop double-digits, and EBITDA loss narrows nearly 50% as Zoomcar sharpens its path to profitability Bangalore, India \u2013 August 14, 2025 \u2013 Zoomcar Holdings, Inc. 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