Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 309

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 309
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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) stock based compensation; (v) 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 less meaningful.

We believe that adjusted
EBITDA provides useful information to investors and others in understanding and evaluating the results of our operations, as well as provides
a useful measure for period-to-period comparisons of our business performance. Moreover, we have included adjusted EBITDA because it is
a key measurement used by our management internally to make operating decisions, including those related to analyzing operating expenses,
evaluating performance, and performing strategic planning and annual budgeting.

Our adjusted EBITDA loss
reduced to $1.28 million during the three months ended on September 30, 2025, as compared to an adjusted EBITDA loss of $1.47 million
during the three months ended on September 30, 2024.  This improvement is a direct result of broad-based cost reduction and optimization
initiatives. These initiatives successfully lowered our cost of revenue, technology and development costs, sales and marketing costs,
and general and administrative costs (as detailed in the preceding section). It is also notable that this reduction occurred despite incurring
an RSU cost of $0.69 million during the three-month period ended September 30, 2025, compared to $ nil expense during the same period
in 2024.

Our adjusted EBITDA loss
has reduced to $2.99 million during the six months ended on September 30, 2025, as compared to an adjusted EBITDA loss of $4.73 million
during the six months ended on September 30, 2024.This improvement is a direct result of broad-based cost reduction and optimization initiatives.
These initiatives successfully lowered our cost of revenue, technology and development costs,