Executive Summary

Q1 FY2026 delivered record first-quarter revenue of $10.87M (+22% YoY) with gross margin expanding to 58.9% from 39.2% YoY; Adjusted EBITDA loss improved to $(1.41)M, the fourth straight sequential improvement .
Mix shift toward brokerage (53% of revenue; +$2.6M, +86% YoY) offset IaaS headwinds (47% of revenue; -$0.7M, -12% YoY); India and U.S. strength and U.K. resumption drove topline performance .
EPS of $(0.05) compared to S&P Global consensus of $(0.04)* → EPS slightly missed; Revenue of $10.87M vs consensus $11.41M* → revenue miss; continued opex discipline drove margin gains . Values retrieved from S&P Global.
Management reaffirmed a path to Adjusted EBITDA breakeven in FY2026 and highlighted catalysts: U.K. partnerships (Vodafone Automotive, Motion Finance), India regulatory tailwinds (AIS 184/DDAWS), and expanding enterprise adoption of DrivebuddyAI and MixtapeAI .
Subsequent capital raises of ~$4.5M at a premium (Jul-2025), plus RSU vesting deferral by management, strengthen liquidity and align incentives; balance sheet cleanup initiatives continued from FY2025 .

What Went Well and What Went Wrong

What Went Well

Record Q1 revenue with 22% YoY growth; strong gross margin expansion to 58.9% and fourth straight quarter of Adjusted EBITDA improvement, signaling operating leverage and cost discipline . CEO: “Q1 is typically our slowest quarter…this level of growth marks an important inflection point” .
Brokerage momentum (53% of revenue) and U.K. greenshoots resumed through Vodafone Automotive and Motion Finance partnerships, with embedded insurance distribution via GDN platform . CFO: “We’ve significantly reduced operating expenses and brought more predictability to our financial model” .
India regulatory tailwinds (AIS 184/DDAWS mandate from MoRTH) with ARAI validation; DrivebuddyAI patents and >1.8B km dataset underscore AI leadership and client ROI (accident reduction >72%) .

What Went Wrong

IaaS revenue declined 12% YoY (−$0.7M); claims/inspections processed fell YoY (462,277 vs 547,233), reflecting segment headwinds despite broader revenue gains .
Revenue missed Wall Street consensus ($10.87M vs $11.41M*), and EPS of $(0.05) was slightly below consensus $(0.04)*, suggesting topline and profitability below external expectations; interest expense remained elevated ($1.00M cash paid for interest in Q1) . Values retrieved from S&P Global.
Balance sheet remains heavily leveraged short term: current liabilities $60.61M vs current assets $27.09M; shareholders’ deficit widened to $(28.08)M; cash declined to $3.12M QoQ, indicating ongoing liquidity management needs .

Financial Results

Summary financials vs prior quarters

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD)	$12.09M	$11.30M	$10.87M
Gross Margin (%)	64.6%	N/A	58.9%
Net Loss ($USD)	$(2.52)M	$(0.11)M	$(4.01)M
Diluted EPS ($USD)	$(0.04)	N/A	$(0.05)
Adjusted EBITDA ($USD)	$(1.87)M	$(1.62)M	$(1.41)M

Revenue mix and segment dynamics

Segment	Q1 2026 Mix	YoY Change ($)	YoY Change (%)
Brokerage Solutions	53%	+$2.6M	+86%
IaaS	47%	−$0.7M	−12%

KPIs and operational metrics

KPI	Q1 2026	Q1 2025
Policies Sold	104,675	99,695
Gross Written Premium (GWP)	$13.9M	$11.5M
Claims & Vehicle Inspections Processed	462,277	547,233
Insurance Customer Agreements	34	34
Automotive Customer Agreements	78	71
Agents & Fleet Customer Agreements	~3,800	~3,400
Gross Margin (%)	58.9%	39.2%

Balance sheet highlights (quarter-end)

Metric	Mar 31, 2025	Jun 30, 2025
Cash & Equivalents	$4.84M	$3.12M
Total Current Assets	$26.95M	$27.09M
Total Current Liabilities	$56.94M	$60.61M
Short-term Borrowings	$19.87M	$20.59M
Shareholders’ Deficit	$(25.07)M	$(28.08)M

Cash flow (quarter)

Metric	Q1 2026
Net Cash Used in Operating Activities	$(2.92)M
Net Cash From Financing Activities	$1.44M
Cash Paid for Interest	$1.00M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA Breakeven Timing	FY2026	Targeting breakeven within next two quarters (from Q4 FY2025)	Expect breakeven within this fiscal year; “clear path” to breakeven	Maintained/clarified
U.K. Business Trajectory	FY2026	Resumption expected “next couple of quarters”	Three new UK partnerships (Vodafone Automotive; Motion Finance; large independent retailer) to accelerate growth	Raised confidence via executed partners
Capital/Liquidity Actions	FY2026	Liability reduction and deleveraging plan	~$4.5M raised at premium; management RSU vesting deferred to Sep-2026	Strengthened liquidity/alignment

Earnings Call Themes & Trends

Note: No Q1 FY2026 earnings call transcript was available; themes sourced from primary press releases.

Topic	Previous Mentions (Q3 FY2025)	Previous Mentions (Q4 FY2025)	Current Period (Q1 FY2026)	Trend
AI/Technology Initiatives	Launched MixtapeAI; AIS 184 compliance for DrivebuddyAI	DeepSeekR1 upgrade; MixtapeAI award; DrivebuddyAI patents	DrivebuddyAI patent (drowsiness detection); dataset >1.8B km; CNBC/Statista recognition	Strengthening product depth and recognition
Regulatory/Legal (India)	First AIS 184 approval; mandate expected by 2026	MoRTH regulations expected imminently	DDAWS required under AIS 184; Roadzen validated by ARAI	Tailwinds firming
U.K. Market Resumption	Anticipated resumption next couple of quarters	Vodafone Automotive partnership; dealers onboarding	Motion Finance onboarding; embedded GAP via GDN; independent retailer rollout	Execution translating to growth
Balance Sheet/Deleveraging	Eliminated $12.6M liabilities; equity financing	Liabilities −15% YoY; opex −19%; headcount −19%	$4.5M raised at premium; RSU deferral; path to breakeven	Continued cleanup and alignment
Regional Demand (U.S./India)	Sequential revenue growth; expanding U.S./India pipeline	Q4 YoY growth led by U.S./India	Q1 growth driven by U.S./India; U.K. resuming	Sustained execution

Management Commentary

CEO (Rohan Malhotra): “Q1 is typically our slowest quarter…this level of growth marks an important inflection point…stronger operations, a cleaner balance sheet, and a robust global client base—positions us to deliver the best year in our history” .
CEO: “We ask investors to track three things this year: our growth on the path to breakeven, the continued strengthening of our balance sheet, and the innovations that reinforce our leadership” .
CFO (Jean-Noël Gallardo): “We’ve significantly reduced operating expenses and brought more predictability to our financial model…we now have a clear path to reach Adjusted EBITDA breakeven” . “As our revenue base expands and costs remain controlled, we expect continued margin expansion and improved cash flow dynamics” .
Prior period context: CEO targeted Adjusted EBITDA breakeven “within the next two quarters” in Q4 FY2025; pipeline >$300M; deleveraging progress noted .

Q&A Highlights

No Q1 FY2026 earnings call transcript was available to extract Q&A highlights or guidance clarifications.

Estimates Context

Metric	Consensus (S&P Global)*	Actual (Company)	Surprise
Revenue ($USD)	$11.41M*	$10.87M	MISS: $(0.54)M
Primary EPS ($USD)	$(0.04)*	$(0.05)	MISS: $(0.01)

Values retrieved from S&P Global.

Implications: External estimates appear too high on topline given IaaS softness and seasonality; opex discipline and margin expansion partially offset but not enough to beat EPS consensus this quarter .

Key Takeaways for Investors

Mix shift toward brokerage and strong gross margin expansion suggest operating leverage; watch if IaaS volumes stabilize as U.K. resumes and India mandates ramp .
Despite the revenue/EPS miss vs consensus*, sequential Adjusted EBITDA improvement and reiterated breakeven path make margin trajectory the near-term stock driver; monitor opex and interest expense cadence . Values retrieved from S&P Global.
U.K. distribution partnerships and embedded GAP via GDN should provide incremental revenue visibility; track dealer onboarding pace and policy issuance conversion .
India regulatory adoption (AIS 184/DDAWS) and OEM partnerships for connected roadside assistance are medium-term catalysts; watch commercialization timelines and fleet deployments .
Balance sheet remains a swing factor: high current liabilities vs current assets necessitate ongoing capital discipline; premium equity raises and RSU deferrals are positive signals, but working capital pressures persist .
Near-term trading: sentiment likely hinges on margin momentum and contract flow rather than pure topline beats; any confirmation of breakeven timing could be a catalyst .
Medium-term thesis: AI differentiation (DrivebuddyAI/MixtapeAI), regulatory tailwinds, and embedded distribution position Roadzen for durable growth; execution on U.K./India and continued deleveraging are key to rerating .

Notes on Prior Quarters Read

Q4 FY2025: $11.3M revenue (+13.3% YoY), net loss near breakeven $(0.1)M, Adjusted EBITDA loss $(1.6)M; pipeline >$300M; deleveraging and opex reduction noted .
Q3 FY2025: $12.1M revenue (+1.8% QoQ), net loss $(2.5)M, Adjusted EBITDA loss $(1.87)M; AIS 184 approval and MixtapeAI launch; balance sheet cleanup progress .

Additional Subsequent Events (Q1 FY2026)

~$4.5M equity raised at premium ($1.25 and $1.30 per share); management deferred RSU vesting to Sep-2026 .

Roadzen Inc. (RDZN)·Q1 2026 Earnings Summary