Roadzen (RDZN) - 2025 Q2 - Quarterly Results

Fiscal Q1 2026 Highlights and Executive Summary Roadzen reported record Q1 financial performance with strong revenue growth, reduced net loss, and improved Adjusted EBITDA Key Financial and Operational Achievements Roadzen reported its strongest first fiscal quarter in company history, achieving a 22% increase in revenue, a 92% reduction in net loss, and a 50% improvement in Adjusted EBITDA. The company also strengthened its balance sheet through capital raises at a premium Fiscal Q1 2026 Key Financial Highlights (YoY) | Metric | Q1 FY26 ($) | Q1 FY25 ($) | Change (%) | | :------------------- | :---------- | :---------- | :--------- | | Revenue | $10.9M | $8.9M | +22% | | Net Loss | $(4.0)M | $(48.4)M | -92% | | Adjusted EBITDA Loss | $(1.4)M | $(2.8)M | -50% | - Subsequent to Q1 end, Roadzen closed two securities purchase transactions totaling $4.5 million, priced at a 20% premium to market, indicating strong investor confidence[3] CEO's Strategic Outlook CEO Rohan Malhotra highlighted the record Q1 growth as an important inflection point, driven by stronger operations, a cleaner balance sheet, and a robust global client base. He emphasized multiple catalysts ahead, including U.K. business greenshoots, regulatory tailwinds in India for DrivebuddyAI, and expanding partnerships, positioning Roadzen for its best year ever - Q1 growth marks an important inflection point, despite it typically being the slowest quarter due to seasonality[5] - Key catalysts for future growth include U.K. business opportunities, regulatory tailwinds for DrivebuddyAI in India, and expanding partnerships with major insurers, automakers, and fleets[5] - Investors are encouraged to track growth towards breakeven, continued strengthening of the balance sheet, and innovations reinforcing leadership in AI for insurance[5] CFO's Financial Commentary CFO Jean-Noël Gallardo attributed the quarter's results to financial rigor and structural improvements, including significantly reduced operating expenses and increased predictability in the financial model. He outlined a clear path to Adjusted EBITDA breakeven through disciplined cost management and targeted capital raises, expecting continued margin expansion and improved cash flow - The company has significantly reduced operating expenses and improved financial model predictability[6] - A clear path to Adjusted EBITDA breakeven is established through disciplined cost management and targeted capital raises[6] - Expectations include continued margin expansion and improved cash flow dynamics as revenue expands and costs remain controlled[6] First Fiscal Quarter 2026 Financial Performance Roadzen achieved record Q1 revenue, significantly reduced operating expenses, and improved net results and profitability Revenue and Key Performance Indicators Roadzen achieved record first-quarter revenue of $10.9 million, a 22% increase year-over-year, driven by growth in the U.S. and India. Brokerage solutions accounted for 53% of total revenue, growing 86%, while IaaS revenue accounted for 47%, decreasing 12%. Customer agreements for automotive, agents, and fleets showed increases, though IaaS claims processed decreased Q1 FY26 Revenue Breakdown and Growth | Revenue Segment | Q1 FY26 Revenue ($) | % of Total Revenue | YoY Change (%) | | :---------------- | :------------------ | :----------------- | :------------- | | Total Revenue | $10.9M | 100% | +22% | | Brokerage Solutions | | 53% | +86% | | IaaS Revenue | | 47% | -12% | Q1 FY26 Key Performance Indicators | Indicator | As of June 30, 2025 | As of June 30, 2024 | YoY Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Insurance Customer Agreements | 34 | 34 | 0% | | Automotive Customer Agreements | 78 | 71 | +10% | | Agents and Fleet Customer Agreements | ~3,800 | ~3,400 | +12% | | Policies Sold (Brokerage) | 104,675 | 99,695 | +5% | | Gross Written Premium (GWP) | $13.9M | $11.5M | +21% | | Claims & Vehicle Inspections (IaaS) | 462,277 | 547,233 | -16% | Operating Expenses Operating expenses for the three months ended June 30, 2025, excluding Cost of Service and Depreciation and Amortization, totaled $8.8 million, representing a significant decrease of approximately $25.0 million or 74% from the prior fiscal first quarter. This reduction was primarily due to the full recognition of non-cash equity compensation expense related to RSUs in the last fiscal year Q1 FY26 Operating Expenses (Excluding CoS, D&A) | Metric | Q1 FY26 ($) | Q1 FY25 ($) | YoY Change (%) | | :---------------- | :---------- | :---------- | :--------- | | Operating Expenses | $8.8M | $33.8M | -74% | - The substantial decrease in operating expenses was largely due to $26.2 million of non-cash equity compensation expense from RSUs being fully recognized in the prior fiscal year[10] Net Results and Profitability Roadzen significantly improved its financial results, with loss from operations decreasing by 92% to $2.5 million and net loss narrowing to $(4.0) million, or $(0.05) per share. Adjusted EBITDA loss improved by 50% to $(1.4) million, marking the fourth consecutive quarter of sequential gains. Gross margin also saw a substantial increase to 58.9% from 39.2% in the prior year Q1 FY26 Net Results and Profitability | Metric | Q1 FY26 | Q1 FY25 | YoY Change | | :-------------------------- | :---------- | :---------- | :--------- | | Gross Margin | 58.9% | 39.2% | +19.7 pp | | Loss from Operations | $(2.5)M | $(30.4)M | -92% | | Net Loss | $(4.0)M | $(48.4)M | -92% | | Net Loss Per Share (Basic) | $(0.05) | $(0.71) | -93% | | Adjusted EBITDA Loss | $(1.4)M | $(2.8)M | -50% | - The improvement in net loss was partly due to the prior year including approximately $17.2 million of fair value loss calculation on financial instruments[10] - This quarter marks Roadzen's fourth sequential improvement in quarterly Adjusted EBITDA[10] Operational Highlights and Strategic Developments Roadzen advanced products, secured patents, strengthened finances through capital raises, and expanded global partnerships Product Advances and Patent Awards Roadzen's DrivebuddyAI platform achieved significant milestones, including being positioned to benefit from new Indian road safety regulations, receiving a patent for its real-time driver drowsiness detection algorithm, and surpassing 1.8 billion kilometers of real-world driving data, leading to a 72% reduction in commercial fleet accidents - DrivebuddyAI is positioned to benefit from India's new road safety regulations (AIS 184) mandating Driver Drowsiness and Attention Warning Systems, being the only system validated by ARAI to meet the new standard[12] - DrivebuddyAI was awarded a patent in India for its real-time driver drowsiness detection algorithm, leveraging AI and computer vision[12] - The platform surpassed 1.8 billion kilometers of real-world driving data, an 80% increase in six months, and helped commercial fleets reduce on-road accidents by over 72%[13] Subsequent Financial and Operational Developments Following the fiscal quarter, Roadzen successfully raised $4.5 million through private placements and a registered direct offering, with shares priced at a premium, and its leadership team deferred RSU vesting to align with shareholders. The company also announced several strategic partnerships in the U.K. and India, expanding its global distribution network and product offerings Capital Raising and Shareholder Alignment Roadzen raised $4.5 million at a premium and leadership deferred RSU vesting, aligning with shareholder interests Subsequent Capital Raises (July 2025) | Transaction Type | Amount Raised ($) | Shares Issued (M) | Price Per Share ($) | Premium to Market (%) | | :--------------- | :------------ | :------------ | :-------------- | :---------------- | | Private Placement | $2.25M | 1.8M | $1.25 | ~20% | | Registered Direct Offering | $2.25M | 1.7M | $1.30 | | - Roadzen's CEO and entire leadership team deferred the vesting of their RSUs until September 2026, demonstrating alignment with shareholders[16] Key Partnerships and Contract Wins Roadzen secured strategic partnerships in the U.K. and India, expanding its distribution network and AI solutions - Roadzen onboarded Motion Finance, a leading U.K. automotive finance broker, to deliver Return to Invoice (RTI) GAP Insurance via its Global Distribution Network (GDN) platform[15] - Partnered with Vodafone Automotive in the U.K. to deliver an integrated vehicle protection solution combining telematics-enabled asset tracking with GAP insurance[17] - SHV Energy Pvt Ltd (SUPERGAS) will equip its truck fleet with DrivebuddyAI, with installation on track for completion by September 30, 2025[17] - Announced partnership with a top global two-wheeler OEM in India to launch real-time connected roadside assistance for new electric and connected vehicles[20] - GIM partnered with one of the U.K.'s largest independent retailers of nearly new cars and vans to offer GAP Insurance to its 60,000+ annual vehicle buyers, powered by Roadzen's GDN platform[20] Company Overview and Forward-Looking Statements Roadzen Inc. is a global AI technology company transforming auto insurance, with a cautionary note on forward-looking statements About Roadzen Inc. Roadzen Inc. is a global technology company leveraging advanced artificial intelligence (AI) to transform auto insurance. It serves a diverse client base, including leading insurers, carmakers, and fleets, with technology for product development, sales, claims processing, and road safety. The company's mission is to advance AI research at the intersection of mobility and insurance to prevent accidents, ensure fair premiums, and expedite claims - Roadzen is a global technology company transforming auto insurance using advanced artificial intelligence (AI)[18] - Its technology is used by thousands of clients, including leading insurers, carmakers, and fleets, for new product development, insurance sales, claims processing, and road safety[18] - Roadzen's mission is to advance AI research in mobility and insurance to prevent accidents, ensure fair premiums, and process claims rapidly[18] - The company was named a leading company in the Insurtech category of CNBC and Statista's 2025 list of the World's Top Fintech Companies[18] Cautionary Statement Regarding Forward-Looking Statements This section advises that the press release contains forward-looking statements based on current expectations and projections, which are subject to known and unknown risks, uncertainties, and assumptions. These factors could cause actual results to differ materially from those expressed or implied, and readers are urged to consider these risks, particularly those detailed in SEC filings - The press release includes forward-looking statements based on current expectations and projections about future events[19] - These statements are subject to known and unknown risks, uncertainties, and assumptions that may cause actual results to differ materially[19] - Readers are urged to consider risk factors described in SEC filings, including the annual report on Form 10-K[19] Financial Statements This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows Unaudited Condensed Consolidated Balance Sheets As of June 30, 2025, Roadzen's total assets increased slightly to $32.96 million from $32.58 million as of March 31, 2025. Total liabilities also increased to $61.75 million from $58.27 million, leading to an increased total shareholders' deficit of $(28.08) million Unaudited Condensed Consolidated Balance Sheets (Key Figures) | Particulars | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :-------------------------- | :------------------ | :------------------- | | Total assets | $32,957,299 | $32,579,350 | | Total liabilities | $61,751,050 | $58,270,130 | | Total shareholders' deficit | $(28,082,420) | $(25,073,897) | - Current assets increased slightly, primarily driven by prepayments and other current assets, while cash and cash equivalents decreased[22] - Current liabilities saw an increase, mainly in accounts payable and accrued expenses, and short-term borrowings[22] Unaudited Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, revenue increased 22% to $10.87 million. The company significantly reduced its net loss to $(4.01) million from $(48.41) million in the prior year, primarily due to a substantial decrease in general and administrative expenses and fair value losses on financial instruments Unaudited Condensed Consolidated Statements of Operations (Key Figures) | Particulars | For the three months ended June 30, 2025 ($) | For the three months ended June 30, 2024 ($) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Revenue | $10,865,545 | $8,931,517 | | Total costs and expenses | $13,385,894 | $39,325,817 | | Loss from operations | $(2,520,349) | $(30,394,300) | | Net Loss attributable to Ordinary shareholders | $(4,005,770) | $(48,407,025) | | Net loss per share (Basic and Diluted) | $(0.05) | $(0.71) | - General and administrative expenses decreased significantly from $25.83 million to $2.58 million, contributing to the narrowed loss[24] - Fair value losses in financial instruments decreased substantially from $(17.15) million to $(0.51) million[24] Unaudited Condensed Consolidated Statements of Cash Flow Net cash used in operating activities decreased to $(2.92) million in Q1 FY26 from $(5.67) million in Q1 FY25, driven by reduced net loss and changes in working capital. Cash flows from financing activities generated $1.44 million, primarily from the issue of ordinary shares, while investing activities used $(0.20) million Unaudited Condensed Consolidated Statements of Cash Flow (Key Figures) | Particulars | For the Period ended June 30, 2025 ($) | For the Period ended June 30, 2024 ($) | | :------------------------------------------ | :--------------------------------- | :--------------------------------- | | Net cash used in operating activities | $(2,921,507) | $(5,666,680) | | Net cash used in investing activities | $(200,940) | $1,226,351 | | Net cash generated from financing activities | $1,436,949 | $1,033,154 | | Net (decrease)/increase in cash and cash equivalents | $(1,710,084) | $(3,410,694) | | Cash and cash equivalents at the end of the period | $3,343,570 | $8,154,394 | - The decrease in cash used in operating activities was aided by lower stock-based compensation and fair value losses compared to the prior year[26] - Proceeds from the issue of ordinary shares were a significant contributor to financing cash flow in Q1 FY26[26] Non-GAAP Financial Measures This section provides the reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to clarify operating performance Adjusted EBITDA Reconciliation Adjusted EBITDA is presented as a non-GAAP financial measure to provide insight into operating profit/loss by excluding non-cash depreciation and amortization, finance costs, taxes, and certain non-recurring items. For Q1 FY26, Adjusted EBITDA loss improved by 50% to $(1.41) million from $(2.83) million in the prior year, reflecting the company's progress towards breakeven - Adjusted EBITDA is a non-GAAP financial measure that excludes finance costs, taxes, depreciation, amortization, and certain other items from reported net profit or loss[27] - It helps investors by providing an operating profit/loss without the impact of non-cash and non-recurring items, clarifying sustainability and business trends[27] Adjusted EBITDA Reconciliation | Particulars | For the three months ended June 30, 2025 ($) | For the three months ended June 30, 2024 ($) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Net loss (Including Non Controlling Interest) | $(4,005,770) | $(48,407,025) | | Adjusted for: | | | | Other (income)/expense net | $47,922 | $(22,352) | | Interest (income)/expense | $941,319 | $821,686 | | Fair value changes in financial instruments | $511,538 | $17,152,060 | | Tax (benefit)/expense | $79,979 | $106,650 | | Depreciation and amortization | $125,000 | $480,349 | | Stock based compensation expense | $71,358 | $26,230,989 | | Non-cash expenses | $306,714 | $285,060 | | Non-recurring expenses | $516,102 | $524,758 | | Adjusted EBITDA | $(1,405,838) | $(2,827,825) |