Contribution margin reaches 70% of net revenue, up 2,100 basis points; Adjusted EBITDA loss narrows 65% to the lowest level in eleven quarters

BENGALURU, India, Aug. 14, 2026 /PRNewswire/ -- Zoomcar Holdings, Inc. (OTCQB:ZCAR), India's largest peer-to-peer car-sharing marketplace, today reported results for the fiscal first quarter ended June 30, 2026.

Net revenue rose 2% to $2.35 million while contribution profit rose 45% to $1.65 million, the distance between those two numbers is the quarter. Contribution margin reached 70% of net revenue from 49%, an expansion of 2,100 basis points. Contribution profit per booking reached $18.75, up 72% from $10.89, in the eleventh consecutive quarter of positive contribution profit. Adjusted EBITDA loss narrowed 65% to $0.61 million, the lowest in the eleven quarters presented, and loss from operations narrowed 50% to $0.88 million.

Zoomcar has now completed more than 5.1 million lifetime trips across 109 cities for over 2.0 million unique customers. This was the quarter that scale showed up in the economics rather than only in the volume.

"Five million trips is not a vanity number, it is the reason the margin moved," said Deepankar Tiwari, Chief Executive Officer of Zoomcar. "You do not learn to price a booking, screen a host or resolve a dispute cheaply until you have done it several million times. This quarter a booking was worth $18.75 after everything it cost to serve. Three years ago that number was negative."

Zoomcar earns in Indian rupees and reports in U.S. dollars, and the rupee weakened against the dollar over the period, so the reported figures understate the underlying business. Bookings declined 16% to 88,160 and gross booking value declined 10% to $5.83 million as reported, while net revenue rose 2% to $2.35 million; in rupee terms, the decline in gross booking value was considerably smaller and net revenue grew at a double-digit rate. The lower booking count is deliberate: Zoomcar has been steering the marketplace toward longer, higher-value trips rather than pursuing booking volume, on the view that a single extended trip earns more than several short ones against broadly the same operational cost to serve. Value per booking rose approximately 7% to $66, and contribution profit rose to 70% of the Net GAAP revenue. Cost of revenue fell 38% to $0.81 million, driven principally by a reduction in losses from accidental damage and theft following changes to insurance coverage and loss-prevention measures, lifting gross profit to 65%.

Demand quality improved. Average guest trip rating rose to 4.8 out of 5 from 4.73, hosts rated 4.5 or above grew 3%, and repeat users rose to 58% of bookings from 51%, achieved without significant discounting and held above prior-year levels for more than six quarters.

The Company took its first vehicle category beyond cars during the quarter, with a two-wheeler pilot live in-app in Bengaluru. The matching, screening and dispute-resolution infrastructure was built across 5.1 million car trips; extending it to a second category costs a fraction of building it.

Zoomcar is actively raising growth capital. A private placement bridge round with a $1 million minimum and up to $10 million including overallotment has raised approximately $1.8 million to date. A warrant exchange tender offer to simplify the capital structure was approved by shareholders at the annual meeting, and the Company has engaged an investment bank to support a potential uplisting to a premier U.S. national securities exchange. Debt restructuring continues, with the objective of reducing finance costs and moving toward positive net worth.

Securities Disclaimer

This press release is not an offer to sell or a solicitation of an offer to buy any securities. The bridge financing securities mentioned herein or any securities to be issued upon conversion thereof have not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold absent registration or an applicable exemption. They are restricted securities offered exclusively to verified accredited investors under Section 4(a)(2) and/or Rule 506(c) of Regulation D. The Company takes reasonable steps to verify accredited status. These securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Join Us for Our Q1 FY 26-27 Earnings Call

Join Zoomcar's leadership team for a discussion on Q1 FY26-27 business performance, operational updates, and strategic initiatives. Register to attend live.

Please register here: https://us06web.zoom.us/webinar/register/WN_xOwJUilBQ3iy-2AXlCLO4A

About Zoomcar

Founded in 2013 and headquartered in Bengaluru, Zoomcar is India's largest peer-to-peer car-sharing marketplace. Read about Zoomcar's journey at https://investor-relations.zoomcar.com/in/.

Forward Looking Statement

This press release contains certain historical data and forward-looking statements under the Private Securities Litigation Reform Act of 1995 regarding future operations, strategy, and performance. Words such as "believes," "expects," "intends," "plans," "will," or similar expressions identify these statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially. Key risk factors are detailed in Zoomcar's SEC filings, including its latest Form 10-K and Form 10-Q, available at www.sec.gov. Zoomcar assumes no obligation to update these statements, except as required by law.

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, 2026 as compared to June 30, 2025.

	For the Three Months ended June 30,
	2026	2025
Net (Loss)	$ (5,369,599)	$ (4,205,313)
Add/ (deduct)
Stock-based compensation	246,654	-
Depreciation and amortization	21,094	35,428
Finance costs	1,397,779	432,133
Other expense, net	3,092,972	2,084,669
Gain on troubled debt restructuring	-	(72,912)
Adjusted EBITDA	$ (611,100)	$ (1,725,995)

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 2026 as compared to June 30, 2025.

	For the Three Months ended June 30,
	2026	2025
Net revenue	$ 2,351,329	$ 2,312,753
Cost of revenue	811,755	1,313,687
Gross profit/(loss)	1,539,574	999,066
Add: Depreciation and amortization in COR	9,900	22,966
Add: Stock-based compensation in COR	18,256	-
Add: Overhead costs in COR (rent, software support, insurance, travel)	132,296	187,757
Less: Host Incentives and Marketing costs (excl. brand marketing)	47,070	71,423
Less: Host incentives	6,191	42,388
Less: Marketing costs (excl. brand marketing)	40,879	29,035
Contribution profit	$1,652,956	$ 1,138,366
Contribution margin	70 %	49 %

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