Senmiao Technology 2025 Q4 Earnings Misses Targets as Net Income Widens 11.5%

Senmiao Technology (AIHS) reported its fiscal 2025 Q4 earnings on Jul 10th, 2025. The company missed analysts' expectations in its latest earnings release, with net income showing a substantial decline compared to the previous year. Despite a slight increase in total revenue, the company's net loss widened significantly, reflecting ongoing challenges in its operational landscape. Senmiao's guidance for the next quarter suggests a focus on strategic recovery, aiming for a revenue target of approximately $1 million, slightly below previous expectations.

Revenue
The total revenue of Senmiao Technology increased by 0.6% to $844,347 in 2025 Q4, up from $839,578 in 2024 Q4.

Earnings/Net Income
Senmiao Technology's losses deepened to $0.17 per share in 2025 Q4 from a loss of $0.13 per share in 2024 Q4, marking a 28.6% wider loss. Meanwhile, the company's net loss widened to $-1.91 million in 2025 Q4, representing an 11.5% increase from the $-1.71 million loss recorded in 2024 Q4. The EPS figures indicate ongoing financial difficulties.

Price Action
The stock price of Senmiao Technology has dropped 3.09% during the latest trading day, has climbed 5.30% during the most recent full trading week, and has plummeted 72.56% month-to-date.

Post-Earnings Price Action Review
The investment strategy focused on purchasing Senmiao Technology shares after a revenue drop quarter-over-quarter and holding them for 30 days has proven significantly unprofitable. Over the past three years, this approach has resulted in a loss of 98.17%, underperforming the benchmark by 183.70%. The strategy exhibited a maximum drawdown of 99.16%, coupled with a Sharpe ratio of -0.41, indicating a high level of risk. Despite the volatility of 133.65%, the strategy failed to deliver positive returns, reflecting the inherent challenges in the company's performance and market conditions.

CEO Commentary
Senmiao Technology CEO highlighted the company's ongoing commitment to enhancing operational efficiency amid a challenging market landscape. The CEO emphasized that despite a decline in revenue attributed to increased competition and regulatory scrutiny, the automobile rental segment has shown resilience, driving overall performance improvements. Strategic partnerships in developing AI-backed data management systems aim to streamline operations and enhance customer experience. The leadership remains cautiously optimistic about future growth, focusing on leveraging technology to capture new market opportunities while navigating the complexities of the ride-hailing industry.

Guidance
Senmiao Technology anticipates a revenue target of approximately $1 million for the upcoming quarter, alongside an expected EPS of -$0.05. The company is strategically positioning itself to improve operational efficiency and is committed to maintaining a focus on its core business segments, aiming for gradual recovery in its financial performance. The leadership expects that the integration of new technologies will bolster service capabilities and drive long-term growth, despite the current challenges.

Additional News
In recent developments, Senmiao Technology has entered into a strategic cooperation agreement with Changsha Yipeng Information Technology Co. to jointly develop an AI-backed data management system, aimed at improving the efficiency of online ride-hailing management platforms. The partnership leverages Senmiao's historical data for AI-driven solutions. Additionally, Senmiao Technology signed another strategic agreement with Qinhong International Group to promote services to SMEs in China, enhancing business opportunities. These strategic collaborations highlight Senmiao's commitment to expanding its market presence and securing financing for future growth initiatives.