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Roadzen Inc. (RDZN)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue grew 13.3% year-over-year to $11.3M, while net loss narrowed 99% to $(0.1)M, with Adjusted EBITDA loss improving to $(1.6)M; management signaled momentum into FY2026 driven by U.S. and India and a $300M+ pipeline .
  • Versus Wall Street consensus, Roadzen missed on revenue ($11.3M vs $14.9M*) and EPS (-$0.084* vs -$0.05*), reflecting continued normalization after the U.K. GAP suspension and a still-maturing growth mix; Adjusted EBITDA was modestly below consensus (-$1.62M vs -$1.56M*) .
  • Guidance tone constructive: CEO targets Adjusted EBITDA breakeven within the next two quarters, contingent on revenue mix/geography, and notes U.K. GAP relaunch and India regulatory tailwinds as catalysts .
  • Operational and balance-sheet progress: liabilities down ~15%, operating costs down 19%, headcount reduced 19%; deleveraging efforts on listing-related payables continue, with management committed to limiting dilution .
  • Near-term stock reaction catalysts: visible EBITDA breakeven target, resumed U.K. contracts, and AI-led product traction (DrivebuddyAI patents/certifications; MixtapeAI awards), offset by near-term estimate misses .

What Went Well and What Went Wrong

What Went Well

  • Returned to year-over-year top-line growth in Q4 (+13.3% YoY to $11.3M) and reduced net loss to near breakeven ($0.1M), demonstrating operating leverage and disciplined execution .
  • Clear pipeline acceleration ($300M+) and AI product leadership (DrivebuddyAI surpassing 1.8B km, multiple patents; MixtapeAI award), underpinning medium-term growth narrative .
  • Balance-sheet and cost rationalization: total liabilities down ~15% YoY, operating costs down 19%, headcount down 19%; CFO: “We will remain highly disciplined on dilution and focused on protecting our shareholders” .

What Went Wrong

  • Missed Street on revenue and EPS for Q4, with sales still normalizing post U.K. regulator-driven GAP suspension; consensus showed higher expectations than realized *.
  • Gross margin data not disclosed for Q4; while Q3 gross margin improved to 64.6%, lack of Q4 margin transparency limits near-term quality-of-revenue assessment .
  • Continued reliance on non-GAAP adjustments and fair value instrument changes (non-cash), which can create discrepancies versus normalized/consensus EPS readings and complicate comparability .

Financial Results

MetricQ2 FY2025 (ended Sep 30, 2024)Q3 FY2025 (ended Dec 31, 2024)Q4 FY2025 (ended Mar 31, 2025)
Revenue ($USD Millions)$11.874 $12.086 $11.300
Net Loss ($USD Millions)$(21.810) $(2.518) $(0.107)
EPS (Basic/Diluted)$(0.32) $(0.04) -$0.084*
Adjusted EBITDA ($USD Millions)$(2.145) $(1.868) $(1.617)
Adjusted EBITDA Margin %-18.1% (calc from )-15.5% (calc from )-14.3% (calc from )
Gross Margin %—64.6% —

YoY comparison for Q4:

MetricQ4 FY2024Q4 FY2025YoY Change
Revenue ($USD Millions)$10.0 $11.3 +13.3%
Net Loss ($USD Millions)$(34.1) $(0.1) 99% improvement

Estimates vs Actual (Q4 FY2025):

MetricConsensus EstimateActualSurprise
Revenue ($USD Millions)$14.866*$11.300 -$3.566 (-24.0%)*
Primary EPS ($USD)-$0.05*-$0.084*-$0.034*
EBITDA ($USD Millions)$(1.563)*$(1.617) -$0.054*

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA breakeven timingNext two quarters (Q1–Q2 FY2026)Not previously quantifiedTargeting breakeven within next two quarters; contingent on revenue mix/geography Introduced/raised clarity
U.K. GAP programFY2026Suspended in FY2025 due to FCA industrywide action Resumption underway via Vodafone Automotive partnership; dealer onboarding in U.K. Resumed
Operating cost discipline/dilution controlFY2026Ongoing optimizationContinued negotiation down listing-related payables (~25 cents on the dollar achieved to date); disciplined on dilution Maintained with progress
Balance sheet liabilitiesFY2025 exit—Total liabilities reduced ~15% YoY; payables reduced ~21% Achieved reduction

Earnings Call Themes & Trends

Transcript not available for Q4 FY2025; themes compiled from earnings releases.

TopicPrevious Mentions (Q2 FY2025)Previous Mentions (Q3 FY2025)Current Period (Q4 FY2025)Trend
AI initiatives (DrivebuddyAI, MixtapeAI)MixtapeAI launch; cost optimization using AI AIS184 certification; 1B+ km data; MixtapeAI adoption MixtapeAI award (“Best AI in Deep Tech”); DrivebuddyAI patents; 1.8B+ km Strengthening
Regional trends (U.S., India, U.K.)U.S./India growth; U.K. resumption plans Expected U.K. resumption; added U.S. clients Strong U.S./India performance; U.K. GAP relaunch via Vodafone Automotive Improving
Regulatory/legalFCA-driven U.K. GAP suspension impact AIS184 compliance; regulatory tailwinds in India MoRTH safety mandates expected; EU GSR context in subsequent updates Positive tailwinds
R&D/product executionProduct roadmap highlighted; MixtapeAI rollout MixtapeAI integration with DeepSeek; DMS certifications Continued patent awards; platform expansion Executing
Balance sheet/expense disciplinePayables reduced; lock-up extension; RSU non-cash Liability reductions; equity raises; cleanup progress Liabilities down 15%; operating costs down 19%; focus on dilution Progressing

Management Commentary

  • CEO: “We returned to 13.3% year-over-year growth in Q4… and almost achieved GAAP breakeven… targeting Adjusted EBITDA breakeven within the next two quarters, depending on revenue mix and geography” .
  • CEO: “DrivebuddyAI is gaining strong commercial traction and regulatory validation… unlocking over $200 million worth of revenue opportunities over time” .
  • CFO: “Total liabilities were reduced by approximately 15%… operating costs decreased by 19%… we will remain highly disciplined on dilution and focused on protecting our shareholders” .

Q&A Highlights

Earnings call transcript for Q4 FY2025 was not available; no Q&A highlights could be reviewed [List: earnings-call-transcript returned none].

Estimates Context

  • Revenue and EPS missed consensus for Q4 FY2025; Roadzen printed $11.3M revenue vs $14.9M*, and EPS of -$0.084* vs -$0.05*, highlighting a slower-than-expected recovery cadence post U.K. GAP suspension and mix/geography transition *.
  • Adjusted EBITDA modestly below consensus (-$1.62M actual vs -$1.56M*), but sequential Adjusted EBITDA margin improved versus Q2/Q3, consistent with cost discipline *.
  • Note: Company-reported Q4 net loss was $(0.1)M , while S&P’s “Primary EPS” may reflect normalization/definitions that diverge from GAAP quarterly diluted EPS; investors should reconcile non-cash items (RSU, fair value changes) when comparing to estimates *.

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Q4 inflection on growth and profitability trajectory: YoY revenue growth and near-breakeven net loss, with improving Adjusted EBITDA margin sequentially, support the path to EBITDA breakeven in the next two quarters .
  • Estimate misses likely temper near-term sentiment; watch U.K. GAP relaunch pace and U.S./India contract conversion to close the gap vs consensus *.
  • AI moat deepening: DrivebuddyAI patents/certifications and MixtapeAI accolades support durable differentiation and pricing power as regulatory mandates (India AIS184; EU GSR) expand TAM .
  • Balance-sheet risk moderating: liabilities and payables down meaningfully, continued deleveraging and discipline on dilution reduce financial overhangs .
  • Monitor quarterly KPIs: policy sales, claims/inspections volume, gross margin disclosure, and customer counts to validate operating leverage and quality of revenue .
  • Near-term trading setup: catalysts include confirmed U.K. partner launches, incremental enterprise wins, and evidence of sequential EBITDA improvement; risks include execution timing on backlog, mix impacts, and any delays in regulatory-driven adoption .
  • Medium-term thesis: AI-enabled insurance/mobility stack with embedded distribution, data scale, and regulatory tailwinds can drive multi-geography growth and margin expansion as mix shifts and non-cash headwinds fade .