Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 307

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 307
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 on September 30, 2025, versus a contribution profit of $1.21 million during the
three months ended on September 30, 2024. Our gross profit improved to $1.09 million during the three months ended on September 30, 2025,
versus $1.03 million during the three months ended on September 30, 2024.

We recorded a contribution
profit of $2.34 million during the six months ended on September 30, 2025, versus a contribution profit of $1.67 million during the six
months ended on September 30, 2024. Our gross profit improved to $2.09 million during the six months ended on September 30, 2025, versus
$1.76 million during the six months ended on September 30, 2024, which was driven by reductions in cost of revenue due to the overall
improvements in Companywide operational efficiencies accomplished over the past few quarters. In addition, host incentives and marketing
costs (excl. brand marketing) were reduced significantly to $0.16 million during the six months ended on September 30, 2025, versus $0.59
million during the same period in 2024, which further contributed to the Company achieving contribution profit as compared to contribution
loss in the previous comparable period.

61

Contribution profit (loss)
and contribution margin are non-GAAP financial measures with certain limitations regarding their usefulness; they should be considered
as supplemental in nature and are not meant as substitutes for gross profit /(loss) and gross margin, which are measures prepared in accordance
with GAAP. For purposes of calculating the non-GAAP financial measures, we utilize the GAAP financial measure of gross profit (loss),
which is defined as revenue minus cost of revenue, each of which is presented in our audited consolidated statements of operations. Our
definitions of contribution profit (loss) and contribution margin may differ from the definitions used by other companies in our industry
and, therefore, comparability may be limited. In addition, other companies may not publish these or other similar metrics. Further, our
definition of contribution profit (loss) does not include the impact of certain expenses 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