Roadzen Q1 rev. up 22% YoY to $10.9mln, GAAP EPS $(0.05).

• Roadzen reports Q1 FY26 revenue of $10.9mln, up 22% YoY. • Adjusted EBITDA improves sequentially. • Q1 FY26 GAAP EPS is $(0.05). • Certain media outlets reported inaccurate analyst expectations. • Analysts' expectations were largely consistent with Roadzen's results.

Roadzen (NASDAQ:RDZN), an innovative insurance technology company specializing in AI-powered solutions, reported its Q1 FY26 earnings on July 2, 2025, showcasing significant financial improvements. The company's revenue for the quarter ended June 30, 2025, reached $10.9 million, marking a 22% year-over-year (YoY) increase [1]. This strong performance was driven by a 22% increase in revenue, a 50% improvement in Adjusted EBITDA, and a substantial reduction in net loss to $4.0 million [1].

Key highlights include an impressive 58.9% gross margin, up 19.7 percentage points from the same quarter last year, and a 92% reduction in net loss compared to the prior year [1]. The company's Adjusted EBITDA loss narrowed by 50% to $1.4 million, demonstrating improved operational efficiency [2].

Roadzen's brokerage solutions, which now represent 53% of total revenue, grew by 86% YoY, while the number of policies sold rose 5% and gross written premium increased 21% [1]. However, the IaaS segment experienced a 12% decline in revenue due to a 15% reduction in the number of AI-powered claims and vehicle inspections processed [2].

The company's balance sheet was strengthened through two capital raises totaling $4.5 million in July 2025, at premiums of 20-25% to the market price, indicating investor confidence in the company's growth prospects [1]. Additionally, Roadzen secured several new partnerships, including SHV Energy in India and significant UK market developments, which could drive future growth [2].

Despite the positive results, certain media outlets reported inaccurate analyst expectations. However, analysts' expectations were largely consistent with Roadzen's actual results, with the company's revenue missing the estimate by about 4.4% [1]. The company's GAAP EPS for Q1 FY26 was $(0.05), just below breakeven and a sharp improvement from the prior year’s deep loss [1].

Looking ahead, investors and observers should monitor Roadzen's ability to regain growth in the IaaS segment, sustain brokerage expansion, and successfully convert its strengthening contract pipeline into revenue. Cash preservation and additional capital raises will be essential if negative cash flow trends persist. Regulatory adoption of new safety standards in India and secured UK partnerships may drive future inflection points, but the timing and magnitude remain to be seen.

References:
[1] https://www.nasdaq.com/articles/roadzen-posts-22-q1-revenue-gain-0
[2] https://www.stocktitan.net/news/RDZN/roadzen-reports-best-fiscal-q1-in-company-history-with-22-revenue-hiw0l5nqp7ft.html