VAHANNA TECH EDG(VHNA) - 2025 Q2 - Quarterly Results

Executive Summary Roadzen achieved record Q1 FY2026 revenue growth, significantly narrowed net loss, and improved Adjusted EBITDA, bolstered by strategic initiatives and successful post-quarter capital raising Financial Performance Overview Roadzen achieved record revenue growth in Q1 FY2026, significantly narrowed net loss, and continuously improved Adjusted EBITDA, laying a solid foundation for the fiscal year Key Financial Metrics for Q1 FY2026 | Metric | Q1 FY2026 (USD) | Q1 FY2025 (USD) | Y-o-Y Change (USD) | Change Rate (%) | | :------------------ | :----------------- | :----------------- | :--------- | :------- | | Revenue | $10.9 million | $8.9 million | +$2.0 million | +22% | | Net Loss | $(4.0) million | $(48.4) million | +$44.4 million | -92% | | Adjusted EBITDA Loss | $(1.4) million | $(2.8) million | +$1.4 million | -50% | - Adjusted EBITDA loss improved sequentially for the fourth consecutive quarter[2] Strategic Initiatives & Outlook The company aims to achieve Adjusted EBITDA breakeven within the fiscal year, driven by growth in key markets, expanded partnerships, and continuous AI innovation - The goal is to achieve Adjusted EBITDA breakeven within the current fiscal year[2][6] - Growth drivers include expansion in India and US markets, recovery of UK operations, regulatory tailwinds for DrivebuddyAI in India, and extended partnerships with major global insurers, automakers, and fleets[1][5] - Strategic focus includes strengthening operations, optimizing the balance sheet, building a robust global customer base, implementing stringent cost management, and targeted capital raising[5][6] Capital Strengthening Post-Q1, Roadzen raised approximately $4.5 million through two securities purchase transactions priced above market, demonstrating strong investor confidence in the company's trajectory - Approximately $4.5 million was raised through two securities purchase transactions after the first quarter[3] - The first transaction was priced at $1.25 per share, a 20% premium to market price, led by a major shareholder; the second was priced at $1.30 per share[3] - The premium pricing indicates strong investor confidence in the company's growth trajectory[3] First Fiscal Quarter 2026 Financial Highlights Q1 FY2026 saw 22% revenue growth driven by brokerage solutions, a 74% reduction in operating expenses, and a 92% improvement in operating loss, significantly narrowing net loss Revenue and Key Performance Indicators Q1 FY2026 revenue grew 22% year-over-year, primarily driven by brokerage solutions, while IaaS revenue slightly decreased; customer agreements increased, and gross margin significantly improved Q1 FY2026 Revenue Composition | Category | Q1 FY2026 Revenue (USD) | Percentage of Total Revenue (%) | Y-o-Y Change Rate (%) | | :--------------- | :------------------- | :------------- | :--------- | | Total Revenue | $10.9 million | 100% | +22% | | Brokerage Solutions | Approximately $5.78 million | 53% | +86% | | IaaS Revenue | Approximately $5.12 million | 47% | -12% | Number of Customer Agreements (as of June 30, 2025) | Category | June 30, 2025 | June 30, 2024 | Change | | :----------- | :------------ | :------------ | :----- | | Insurance Clients | 34 | 34 | 0 | | Automotive Clients | 78 | 71 | +7 | | Agent and Fleet Clients | 3,800 | 3,400 | +400 | Key Metrics for Brokerage and IaaS Businesses | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :------------------- | :--------------- | :--------------- | :----- | | Number of Brokerage Policies Sold | 104,675 | 99,695 | +4,980 | | Brokerage Gross Written Premium (GWP) ($) | $13.9 million | $11.5 million | +$2.4 million | | Number of IaaS Claims Processed and Vehicle Inspections | 462,277 | 547,233 | -84,956 | | Gross Margin (%) | 58.9% | 39.2% | +19.7% | Operating Expenses Operating expenses decreased significantly by 74% year-over-year, mainly due to the full recognition of non-cash share-based compensation expenses in the prior fiscal year - Operating expenses (excluding cost of services, depreciation, and amortization) totaled $8.8 million for the three months ended June 30, 2025, a decrease of approximately $25 million or 74% from the prior fiscal year period[10] - Prior fiscal year operating expenses included $26.2 million in non-cash share-based compensation expenses, which were fully recognized in the previous fiscal year[10] - Other expenses totaled approximately $1.5 million, compared to $18 million in the prior year period, which included $17.2 million in non-cash fair value adjustments for financial instruments[8] Net Results The company's operating loss improved by 92%, with a significant reduction in net loss and net loss per share, partly due to lower fair value losses on financial instruments Q1 FY2026 Net Results | Metric | June 30, 2025 (USD) | June 30, 2024 (USD) | Y-o-Y Improvement (%) | | :------------------- | :------------ | :------------ | :------- | | Operating Loss | $(2.5) million | $(30.4) million | 92% | | Net Loss | $(4.0) million | $(48.4) million | 92% | | Net Loss Per Share | $(0.05) | $(0.71) | | | Adjusted EBITDA Loss | $(1.4) million | $(2.8) million | | - Net loss for the prior fiscal year's first quarter included approximately $17.2 million in fair value losses on financial instruments[10] - Adjusted EBITDA loss improved sequentially for the fourth consecutive quarter[10] Operational Highlights Roadzen advanced its DrivebuddyAI platform with a new patent and regulatory alignment, while securing key partnerships for fleet integration and UK market expansion Product Advances and Patent Awards Roadzen's DrivebuddyAI platform is favorably positioned for new Indian road safety regulations, secured a patent for its fatigue detection algorithm, and significantly increased real-world driving data - DrivebuddyAI is poised to benefit from new Indian road safety regulations (AIS 184) mandating Driver Drowsiness and Attention Warning Systems (DDAWS) from April 2026[12] - DrivebuddyAI is the first and only system validated by the Automotive Research Association of India (ARAI) testing agency to comply with the new standards[12] - On June 3, 2025, DrivebuddyAI was granted a patent in India for its real-time driver fatigue detection algorithm[12] - DrivebuddyAI's real-world driving data has exceeded 1.8 billion kilometers, growing 80% in six months, and has helped commercial fleets reduce road accidents by over 72%[13] Key Contracts and Partnerships Roadzen secured significant partnerships in Q1 FY2026, including equipping SHV Energy's truck fleet with DrivebuddyAI and collaborating with Vodafone Automotive to launch integrated vehicle protection solutions in the UK - On June 17, 2025, Roadzen announced that SHV Energy Pvt Ltd (“SUPERGAS”) will equip its truck fleet with DrivebuddyAI, with installations expected to be completed by September 30, 2025[17] - On May 6, 2025, Roadzen's UK subsidiary, Global Insurance Management Limited (“GIM”), partnered with Vodafone Automotive to launch an integrated vehicle protection solution combining real-time telematics asset tracking and Guaranteed Asset Protection (GAP) insurance, expected to restore GIM's business growth in the UK[17] Subsequent Developments (Post June 30, 2025) Post-Q1, Roadzen successfully raised $4.5 million in capital, secured new strategic partnerships in the UK and India, and received industry recognition as a top global FinTech company Capital Raising Activities In July 2025, Roadzen completed two financing rounds totaling $4.5 million through private placements and direct offerings, while management deferred RSU vesting to align with shareholders - On July 24, 2025, $2.25 million was raised through a private placement of 1.8 million common shares to four largest shareholders at $1.25 per share (approximately a 20% premium to the then-market price)[16] - On July 29, 2025, an additional $2.25 million was raised through a direct offering of 1.7 million common shares to institutional investors at $1.30 per share[16] - To align with shareholders, Roadzen's CEO and entire leadership team deferred the vesting of RSUs until September 2026[16] New Contracts and Partnerships Roadzen established GAP insurance partnerships in the UK with Motion Finance and a major independent auto retailer, and launched connected roadside assistance services in India with a top two-wheeler OEM - On August 7, 2025, Roadzen partnered with Motion Finance, a leading UK automotive finance broker, to offer Return to Invoice (RTI) GAP insurance to its customers[15] - On July 17, 2025, Roadzen announced a partnership with a top global two-wheeler (motorcycle and scooter) OEM to launch real-time connected roadside assistance services for new electric and connected vehicles in India[20] - On July 15, 2025, Roadzen's UK subsidiary GIM partnered with one of the UK's largest independent nearly-new car and van retailers to provide GAP insurance to over 60,000 car buyers annually[20] Industry Recognition Roadzen was recognized by CNBC and Statista as a top global FinTech company for 2025 due to its pioneering role in transforming insurance through AI and advanced data science - On July 16, 2025, Roadzen was recognized by CNBC and Statista as a leading InsurTech company on the 2025 list of top global FinTech companies[18] About Roadzen Inc. Roadzen Inc. is a California-based global technology company transforming auto insurance with advanced AI, serving leading insurers, automakers, and fleets worldwide, aiming to prevent accidents, ensure fair premiums, and expedite claims through AI research - Roadzen Inc. is a global technology company leveraging advanced Artificial Intelligence (AI) to transform auto insurance[18] - Clients include leading global insurance companies, automakers, fleets, dealerships, and auto insurance agents[18] - The company's pioneering work in telematics, generative AI, and computer vision has been recognized by publications such as Forbes, Fortune, and Financial Express[18] - The company's mission is to advance AI research at the intersection of mobility and insurance, aiming for a world where accidents are prevented, premiums are fair, and claims are processed quickly[18] - Headquartered in Burlingame, California, the company has offices globally (US, UK, and India) and employs 323 people[18] Financial Statements The financial statements detail Roadzen's balance sheet as of June 30, 2025, Q1 FY2026 operating results with a $4.01 million net loss, and cash flow activities including a $2.92 million operating outflow Unaudited Condensed Consolidated Balance Sheets As of June 30, 2025, Roadzen reported total assets of $32.96 million and total liabilities of $61.75 million, resulting in a total stockholders' deficit of $28.08 million Unaudited Condensed Consolidated Balance Sheets (as of June 30, 2025) | Item | June 30, 2025 (USD) | March 31, 2025 (USD) | | :------------------------- | :------------ | :------------ | | Assets | | | | Total Current Assets | $27,090,564 | $26,954,896 | | Total Non-Current Assets | $5,866,735 | $5,624,454 | | Total Assets | $32,957,299 | $32,579,350 | | Liabilities and Stockholders' Equity/(Deficit) | | | | Total Current Liabilities | $60,609,693 | $56,935,304 | | Total Non-Current Liabilities | $1,141,357 | $1,334,826 | | Total Liabilities | $61,751,050 | $58,270,130 | | Total Stockholders' Deficit | $(28,082,420)$ | $(25,073,897)$ | | Non-Controlling Interests | $(711,331)$ | $(616,883)$ | | Total Deficit | $(28,793,751)$ | $(25,690,780)$ | | Total Liabilities and Deficit | $32,957,299 | $32,579,350 | Unaudited Condensed Consolidated Statements of Operations For Q1 FY2026, Roadzen reported revenue of $10.87 million, an operating loss of $2.52 million, and a net loss attributable to common stockholders of $4.01 million, or $0.05 per share Unaudited Condensed Consolidated Statements of Operations (for the three months ended June 30, 2025) | Item | June 30, 2025 (USD) | June 30, 2024 (USD) | | :--------------------------------- | :------------ | :------------ | | Revenue | $10,865,545 | $8,931,517 | | Total Costs and Expenses | $13,385,894 | $39,325,817 | | Operating Loss | $(2,520,349)$ | $(30,394,300)$ | | Total Other Income/(Expense) | $(1,500,779)$ | $(17,951,394)$ | | (Loss)/Income Before Income Tax Expense | $(4,021,128)$ | $(48,345,694)$ | | Net Loss Attributable to Common Stockholders | $(4,005,770)$ | $(48,407,025)$ | | Net Loss Per Share Attributable to Common Stockholders (Basic and Diluted) | $(0.05)$ | $(0.71)$ | | Weighted Average Shares Used in Computing Net Loss Per Share | 74,290,986 | 68,440,829 | Unaudited Condensed Consolidated Statements of Cash Flow In Q1 FY2026, Roadzen's net cash outflow from operating activities was $2.92 million, while financing activities generated $1.44 million, leading to a net decrease in cash and cash equivalents of $1.71 million Unaudited Condensed Consolidated Statements of Cash Flow (for the period ended June 30, 2025) | Item | June 30, 2025 (USD) | June 30, 2024 (USD) | | :--------------------------------- | :------------ | :------------ | | Net Cash Outflow from Operating Activities | $(2,921,507)$ | $(5,666,680)$ | | Net Cash Outflow from Investing Activities | $(200,940)$ | $1,226,351$ | | Net Cash Inflow from Financing Activities | $1,436,949$ | $1,033,154$ | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | $(24,586)$ | $(3,519)$ | | Net (Decrease)/Increase in Cash and Cash Equivalents | $(1,710,084)$ | $(3,410,694)$ | | Cash and Cash Equivalents at End of Period | $3,343,570$ | $8,154,394$ | Non-GAAP Financial Measures This section defines Adjusted EBITDA as a non-GAAP metric for operational performance, detailing its reconciliation and outlining the inherent limitations of using such non-GAAP measures Adjusted EBITDA Definition and Reconciliation Adjusted EBITDA is a non-GAAP metric used to assess operational performance by excluding financial costs, taxes, depreciation, amortization, and certain non-recurring items, with the Q1 FY2026 loss improving to $1.41 million - Adjusted EBITDA is a non-GAAP financial measure that excludes financial costs, taxes, depreciation, amortization, and certain non-recurring items to provide operating profit/loss without non-cash D&A impacts, helping investors understand business sustainability and trends[27] Reconciliation of Net Loss to Adjusted EBITDA (for the three months ended June 30, 2025) | Item | June 30, 2025 (USD) | June 30, 2024 (USD) | | :--------------------------------- | :------------ | :------------ | | Net Loss (including non-controlling interests) | $(4,005,770)$ | $(48,407,025)$ | | Adjustments: | | | | 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 | $125,000$ | $480,349$ | | Share-based compensation expense | $71,358$ | $26,230,989$ | | Non-cash expenses | $306,714$ | $285,060$ | | Non-recurring expenses | $516,102$ | $524,758$ | | Adjusted EBITDA (USD) | $(1,405,838)$ | $(2,827,825)$ | Limitations of Non-GAAP Measures Non-GAAP financial measures have limitations as analytical tools and should not be considered substitutes for or used in isolation from GAAP financial information, as different companies may use varying calculation methods - Non-GAAP financial measures have limitations as analytical tools and should not be considered substitutes for or used in isolation from GAAP financial information[28] - Adjusted EBITDA does not represent cash flow from operating activities as defined by GAAP and should not be used as a measure of liquidity[27] - Investors should review the relevant GAAP financial measures and their reconciliation to non-GAAP financial measures, and not rely solely on a single financial measure to evaluate the company's business[28] Cautionary Statement Regarding Forward Looking Statements This press release contains forward-looking statements subject to known and unknown risks, uncertainties, and assumptions, where actual results may differ materially from expectations, and the company undertakes no obligation to update these statements unless explicitly required by applicable securities laws - This press release contains forward-looking statements regarding expected benefits of products and solutions, revenue from partnerships, business growth in the US, UK, and India, timing of Adjusted EBITDA breakeven, strategies, product demand, expansion plans, and future operational and financial performance[19] - These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions that could cause actual results, activity levels, performance, or achievements to differ materially from those expressed or implied[19] - All forward-looking statements are made only as of the date of this release, and the company undertakes no intention or obligation to update or revise any forward-looking statements, except as expressly required by applicable securities laws[19]