Roadzen (RDZN -2.52%), an insurance technology company specializing in artificial intelligence-powered solutions for underwriting, claims, and telematics, released its Q1 FY2026 earnings results on Aug. 13, 2025. The company posted its highest-ever Q1 revenue (GAAP) at $10.9 million, a 22% increase in GAAP revenue from the previous year. However, this missed consensus estimates by nearly half, with GAAP revenue of $10.9 million coming in 48.7% below the analysts' estimate of $21.26 million, as analysts expected $21.3 million (GAAP). Earnings also missed forecasts, with a net loss per share of $(0.05) (GAAP) versus expectations for a $0.01 gain (GAAP). Gross margin (GAAP) improved by 19.7 percentage points. and net loss (GAAP) narrowed sharply compared to last year. The period showed substantial internal progress, but execution lagged external expectations, especially in key product areas.
| Metric | Q1 Fiscal 2026 (Ended June 30, 2025) | Q1 Estimate | Q1 Fiscal 2025 (Ended June 30, 2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.05) | $0.01 | $(0.71) | N/A |
| Revenue (GAAP) | $10.9 million | N/A | $8.9 million | 22.1% |
| Gross Margin | 58.9 % | 39.2 % | 19.7 pp | |
| Net Loss | $(4.0) million | $(48.4) million | N/A | |
| Adjusted EBITDA | $(1.4) million | $(2.8) million | N/A |
Source: Roadzen. Note: Analysts' consensus estimates provided by FactSet.
Roadzen's Business and Current Focus
Roadzen operates at the intersection of insurance and technology. Its core offering is an artificial intelligence (AI)-powered Insurance as a Service (IaaS) platform that supports underwriting, claims automation, and telematics—real-time data collection in vehicles. The company provides software that powers touchless claims processing and usage-based insurance for automotive, insurance, and fleet clients across India, the United States, the United Kingdom, and Europe.
Recent efforts have centered on embedding AI throughout the insurance value chain and expanding global partnerships. Success hinges on continuing to win and scale with major insurance carriers, automakers, and logistics fleets, while navigating complex regulatory environments. Roadzen relies on a capital-light model—developing technology and partnerships, but not underwriting insurance risk itself—which makes strong client relationships and continued innovation critical to growth.
Quarter Highlights: Record Revenue, Missed Expectations, Segment Shifts
The period brought Roadzen's highest Q1 revenue on record, up 22% year-over-year. While the top line hit new highs internally, it fell short of analyst forecasts by 48.7% (GAAP), missing by $10.362 million. Net loss (GAAP) narrowed substantially to $4.0 million, and earnings per share (GAAP) came in at $(0.05), just below breakeven and a sharp improvement from the prior year’s deep loss. Still, Both revenue (GAAP) of $10.9 million and earnings (GAAP EPS of -0.05) missed expectations by wide margins, putting particular scrutiny on growth forecasts and execution.
Gross margin surged to 58.9%, up nearly 20 percentage points from the same quarter last year. Adjusted EBITDA, a non-GAAP metric that excludes interest, tax, depreciation, and amortization and is often used by companies to show operating performance, improved significantly for the fourth consecutive quarter. Lower operating expenses, down 74% year over year excluding depreciation and amortization, drove much of this improvement.
Roadzen’s technology, notably its DrivebuddyAI suite (an advanced driver assistance and telematics platform), remains central. The company secured a key patent for real-time driver drowsiness detection in June 2025 and became the first system certified under new Indian safety rules coming in April 2026. Its AI systems processed 462,277 IaaS claims and inspections, down from 547,233 in the prior year—a rare decline that management did not directly address in the release. This reduction in claims negatively impacted IaaS revenue, which fell 12%.
Meanwhile, brokerage solutions—where Roadzen distributes insurance products but does not underwrite risk—grew rapidly and accounted for 53% of the company’s total revenue. Brokerage revenue jumped 86% year-over-year to approximately $5.8 million, while the number of policies sold rose 5% year-over-year, and gross written premium increased 21% year-over-year. The total number of automotive agreements rose to 78, agent and fleet agreements hit 3,800, while insurance customer agreements held steady at 34.
Several notable global partnerships were inked or expanded in the period. In India, SHV Energy announced plans to equip its truck fleet with DrivebuddyAI, with installation on track for completion by September 30, 2025, and a partnership with a leading motorcycle manufacturer covers over 100 million vehicles globally. In the United Kingdom, Roadzen resumed growth after a prior regulatory pause, launching partnerships at Vodafone Automotive (May 2025), Motion Finance (August 2025), and a leading car retailer (July 2025). While the strategic signings are material, the release did not specify when these deals will generate revenue or by how much, making near-term financial impacts uncertain.
On the balance sheet side, Roadzen added approximately $4.5 million in capital via two placements at a 20% premium to market price in the last week of July 2025, subsequent to the quarter—a move pitched as demonstrating investor confidence. Leadership delayed vesting of executive compensation to align incentives. However, underscoring risks to liquidity without continued funding.
Regulatory trends remain a double-edged sword. The company resumed U.K. operations after resolving prior issues affecting GAP (Guaranteed Asset Protection) product sales in May 2025 and regaining its backlog, but these events highlight exposure to rule changes. In India, pending road safety regulations should favor DrivebuddyAI, which is already certified—a first mover advantage—but the regulation does not take effect until April 2026, making its impact medium-term.
Roadzen does not currently pay a dividend.
Looking Ahead: Guidance and Key Watch Areas
Management told investors it now has a clear path to reach Adjusted EBITDA breakeven. The absence of explicit forecasts is notable, given the large miss against previously modeled GAAP expectations.
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 U.K. partnerships may drive future inflection points, but the timing and magnitude remain to be seen.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
