Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 72

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 that are reflected in our Unaudited Condensed
Consolidated Statements of Operations. Thus, our contribution profit (loss) should be considered in addition to, not as a substitute for
or in isolation from, gross profit (loss) prepared in accordance with GAAP.

The following tables present reconciliations of gross profit/(loss)
to contribution profit/(loss) and gross margin to contribution margin for each of the periods indicated:

Contribution Profit/(Loss) 

    For the Three Months Ended
 June 30, 

    2025  
    2024 
  
    Net revenue 
    $2,312,753  
    $2,240,985 
  
    Cost of revenue 
     1,313,687  
     1,512,289 
  
    Gross profit 
    $999,066  
    $728,696 
  
    Add: Depreciation and amortization in COR 
     22,966  
     74,873 
  
    Add: Overhead costs in COR (rent, software support, insurance, travel) 
     187,815  
     204,975 
  
    Less: Host Incentives and Marketing costs (excl. brand marketing) 
     71,423  
     549,383 
  
    Less: Host incentives 
     42,388  
     47,621 
  
    Less: Marketing costs (excl. brand marketing) 
     29,035  
     501,761 
  
    Contribution profit 
    $1,138,424  
    $459,161 
  
    Contribution margin 
     49% 
     20%

52

Adjusted EBITDA is a non-GAAP
financial measure that represents our net income or loss adjusted for (i) other income and (expense), net; (ii) depreciation and amortization;(iii)
finance costs; (iv) any other exceptional nonrecurring expenses.

We use adjusted EBITDA in
conjunction with net income or loss, its corresponding GAAP measure, as a performance measure that we use to assess our operating performance
and operating leverage in our business. The above items are excluded from our adjusted EBITDA measure because these items are non-cash
in nature, or because the amount and timing of these items is unpredictable, or they are not driven by core results of operations, thereby
rendering comparisons with prior periods and competitors