Zoomcar Reports 2% Revenue Growth but Increases Net Loss to $5.37 Million

Zoomcar Holdings, Inc. reported its financial results for the quarter ending June 30, 2026, revealing a total revenue of $2.35 million, a slight increase of 2% from $2.31 million in the same period last year. The revenue from services, which constitutes the bulk of the company's income, was $2.29 million, down marginally from $2.30 million in the previous year. The company also saw a significant rise in other revenues, which increased to $64,547 from $12,429, reflecting a 419% increase. Despite the revenue growth, Zoomcar recorded a net loss of $5.37 million, compared to a loss of $4.21 million in the prior year, primarily due to increased finance costs and other expenses.

The company's cost of revenue decreased by 38% to $811,755, down from $1.31 million, attributed to operational efficiencies and cost-cutting measures. Technology and development expenses also fell by 29% to $504,596, while sales and marketing costs decreased by 37% to $112,191. General and administrative expenses were reduced by 4% to $1.80 million. However, finance costs surged to $1.40 million from $432,133, largely due to non-cash expenses related to the issuance of Series A preferred stock and penalties for delayed repayments.

Operationally, Zoomcar reported a total of approximately 183,560 booking days for the quarter, a decrease from 190,931 booking days in the previous year. The Gross Booking Value (GBV) also declined to approximately $5.83 million from $6.47 million. The company continues to focus on enhancing its platform and customer experience, which it believes will drive future growth. As of June 30, 2026, Zoomcar had 8,488,485 shares of common stock outstanding and a total accumulated deficit of $353.16 million.

Looking ahead, Zoomcar's management expressed concerns regarding its liquidity, noting that the company has a critically deficient cash position and is unable to make critical payments to creditors. The company is actively seeking additional funding through various financing arrangements, including a private placement offering of Series A convertible preferred stock and warrants, which aims to raise up to $5 million. The management anticipates that without additional capital, the company may not be able to meet its obligations within the next year, raising substantial doubt about its ability to continue as a going concern.