Senmiao Technology Reports 25.5% Revenue Growth but Wider Net Loss in Q2 Fiscal 2025

Senmiao Technology Limited has reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $936,344 for the three months ended September 30, 2025, a 25.5% increase from $745,880 in the same period last year. For the six months ended September 30, 2025, total revenue reached $1,796,443, up from $1,624,889 in the prior year. The company reported a gross profit of $274,088 for the quarter, compared to $96,899 in the previous year, while the gross profit for the six-month period was $471,043, an increase from $349,869.

Despite the increase in revenue, Senmiao Technology recorded a net loss of $723,730 for the quarter, widening from a loss of $238,739 in the same period last year. The loss for the six months was $1,000,168, slightly higher than the loss of $974,624 reported for the same period in 2024. The increase in losses was attributed to a significant rise in selling, general, and administrative expenses, which totaled $907,255 for the quarter, up from $530,651 a year earlier. The company also noted a provision for credit losses of $125,046, down from $181,995 in the previous year.

Operationally, Senmiao Technology has focused on its automobile transaction and related services, which include operating leases and service fees from new energy vehicle (NEV) leasing. The company reported leasing over 710 automobiles during the quarter, with an average monthly rental income of approximately $402 per vehicle. The average utilization rate of these vehicles increased to 91.9%, compared to 80.4% in the same quarter last year. The company has also seen a rise in service fees from NEV leasing, which amounted to $111,115 for the quarter, compared to $51,694 in the previous year.

Looking ahead, Senmiao Technology is actively seeking to improve its financial position through various financing strategies, including a recent securities purchase agreement that is expected to generate approximately $2.8 million in gross proceeds. However, the company has expressed substantial doubt about its ability to continue as a going concern, citing a working capital deficit of approximately $2.6 million as of September 30, 2025, and an accumulated deficit of approximately $45.9 million. Management is focused on securing additional financing and enhancing operational efficiencies to mitigate these challenges.