Senmiao Technology Reports Revenue Decline and Increased Net Losses for Three and Nine Months Ended December 31, 2025

Senmiao Technology Limited has reported its financial results for the three and nine months ended December 31, 2025, revealing a decline in revenue and an increase in net losses compared to the same period in the previous year. The company generated revenues of $358,684 for the three months ended December 31, 2025, a decrease of approximately 20.5% from $451,447 in the same quarter of 2024. For the nine-month period, revenues totaled $1,219,628, down from $1,476,238 in the prior year, marking a decline of about 17.4%. The gross profit for the three months was $49,480, significantly lower than $105,929 in the previous year, while the nine-month gross profit fell to $224,641 from $455,912.

The company's operating expenses surged to $1,146,065 for the three months ended December 31, 2025, compared to $516,970 in the same period last year, primarily due to increased selling, general, and administrative expenses, which rose by approximately 57.9%. The provision for credit losses also increased, reflecting a more cautious approach to receivables management. Consequently, the loss from operations for the three months was $1,096,585, compared to a loss of $411,041 in the prior year. The net loss attributable to the company’s stockholders for the quarter was $1,037,229, up from $565,315 in the same quarter of 2024.

In terms of strategic developments, Senmiao Technology has undergone significant organizational changes, including the discontinuation of its automobile transaction and related services in Sichuan Province, China, as of December 31, 2025. This decision followed the completion of a sale of its subsidiaries in that region to Hu Mao Sheng Tang Holdings Limited for zero consideration, driven by ongoing losses in that market. The company also ceased its online ride-hailing platform services in August 2024, further consolidating its focus on automobile transaction services.

Operationally, the company reported a decrease in the number of automobiles leased, which contributed to the decline in rental income. As of December 31, 2025, Senmiao had 322 automobiles leased, down from 346 in the previous year. The average monthly rental income per automobile also decreased, impacting overall revenue from operating leases. Despite these challenges, the company reported an increase in cash and cash equivalents to $3,508,226 as of December 31, 2025, compared to $701,302 at the end of the previous fiscal period, bolstered by recent financing activities.

Looking ahead, Senmiao Technology's management expressed optimism regarding its liquidity position, citing recent financing transactions that have improved cash flow. The company plans to enhance its marketing efforts and strengthen relationships with partners to drive growth in its automobile leasing business. However, the ongoing challenges in the competitive landscape of the online ride-hailing and automobile financing sectors in China remain a critical focus for the company as it navigates its strategic direction.