What caused RDZN's EPS drop in Q1 2025?

Roadzen's EPS dropped in Q1 2025 due to several key factors:

1. Net Loss Reduction: Roadzen significantly reduced its net loss to $2.5 million in Q1 2025, down from $21.8 million in the previous quarter, reflecting an 88% decrease. This improvement was driven by increased revenue and cost management.
2. Revenue Growth: Although Roadzen reported a revenue increase of 1.8% to $12.1 million in Q3 2025 compared to the previous quarter, this was a decrease of 23% year-over-year, primarily due to the temporary suspension of GAP insurance sales in the U.K. by the Financial Conduct Authority.
3. Expense Management: Roadzen's adjusted EBITDA loss narrowed by approximately 13% sequentially, decreasing to $1.87 million in Q3 2025. This improvement in expense management contributed to the overall financial stability of the company.
4. Strategic Initiatives: Roadzen has been actively managing its balance sheet and reducing expenses. The company eliminated $12.6 million in liabilities over the last six months, utilizing $1.65 million in cash and approximately 1.2 million ordinary shares.

In conclusion, Roadzen's EPS drop in Q1 2025 was primarily caused by the net loss reduction and revenue growth, despite the decrease in revenue due to the suspension of GAP insurance sales in the U.K. The company's strategic initiatives, including expense management and balance sheet strengthening, have contributed to the improvement in financial performance.