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Vroom Announces First Quarter 2025 Results

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May 14, 2025

Vroom Completes Recapitalization

Positions the Company for Long-Term Growth

NEW YORK--(BUSINESS WIRE)--May 14, 2025-- Vroom, Inc. (Nasdaq:VRM) today announced financial results for the first quarter ended March 31, 2025.

HIGHLIGHTS OF FIRST QUARTER 2025

  • $66.9 million consolidated total available liquidity(1) as of March 31, 2025
    • $14.6 million cash and cash equivalents as of March 31, 2025
    • $27.3 million of liquidity available to UACC under the warehouse credit facilities
    • $25.0 million of available liquidity from line of credit secured in March 2025 by residual certificates, further strengthening our liquidity position to execute our long-term strategy
  • $(6.5) million net income (loss) from continuing operations for the period from January 15, 2025, to March 31, 2025, and net income (loss) from continuing operations of $45.1 million for the period January 1, 2025 to January 15, 2025
  • $(6.7) million Adjusted net income (loss)(2) for the Combined(4) three months ended March 31, 2025
  • Completed recapitalization of unsecured convertible senior notes on January 14, 2025, resulting in no long-term debt at Vroom, Inc, and strengthening our balance sheet
  • Stockholders' equity was $158.6 million as of March 31, 2025 and tangible book value(3) was $144.8 million as of March 31, 2025
  • Extended $400.0 million of warehouse agreements with two lenders, in negotiations to extend additional capacity in second quarter 2025
  • Closed UACC’s 17th securitization transaction on March 12, 2025; issuing $324.0 million of fixed-rate asset-backed notes

(1)

 

Total available liquidity is a non-GAAP measure and represents $14.6 unrestricted cash and cash equivalents, as well as $27.3 availability from warehouse credit facilities and $25.0 availability from line of credit secured by residual certificates.

(2)

Adjusted net income (loss) is a non-GAAP measure. For definitions and a reconciliation to the most comparable GAAP measure, please see Non-GAAP Financial Measures section below.

(3)

Tangible book value is a non-GAAP measure and represents total stockholders' equity of $158.6 million, excluding intangible assets of $13.8 million as of March 31, 2025.

(4)

The combined results (referenced as “Non-GAAP Combined” or “Combined”) for the three months ended March 31, 2025 represent the sum of the reported amounts for the Predecessor period from January 1, 2025 through January 14, 2025, and the Successor period from January 15, 2025, through March 31, 2025, as described below.

Tom Shortt, Chief Executive Officer of Vroom, said, “In the first quarter of 2025, our net loss and Adjusted net loss decreased sequentially, as well as year over year, driven by continued progress in loan portfolio performance at UACC.”

Jon Sandison, UACC’s Chief Financial Officer, commented, “We succeeded in executing UACC's 17th securitization transaction, and we've extended $400 million of warehouse capacity since year end 2024. We further strengthened our liquidity position by establishing a $25 million line of credit backed by residual interests, and ended the quarter with total available liquidity(1) of approximately $67 million."

Fresh Start Accounting

As a result of emerging from a voluntary proceeding (the “Prepackaged Chapter 11 Case”) under Chapter 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended from time to time, on January 14, 2025, (the "Effective Date") and qualifying for the application of fresh-start accounting, at the Effective Date, Vroom’s assets and liabilities were recorded at their estimated fair values which, in some cases, are significantly different than amounts included in our financial statements prior to the Effective Date. Accordingly, our condensed consolidated financial statements after the Effective Date are not comparable with our condensed consolidated financial statements on or before that date. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to our financial position and results of operations on or before the Effective Date.

The combined results (referenced as “Non-GAAP Combined” or “Combined”) for the three months ended March 31, 2025, represent the sum of the reported amounts for the Predecessor period from January 1, 2025, through January 14, 2025, and the Successor period from January 15, 2025, through March 31, 2025. These combined results are not considered to be prepared in accordance with GAAP and have not been prepared as pro forma results per applicable regulations. The combined operating results do not reflect the actual results we would have achieved absent our emergence from the Prepackaged Chapter 11 Case and are not necessarily indicative of future results. Accordingly, the results for the combined three months ended March 31, 2025, (prepared on a Non-GAAP basis) and three months ended March 31, 2024, (prepared on a GAAP basis) may not be comparable, particularly for statement of operations line items significantly impacted by the reorganization transactions and the impact of fresh start accounting.

FIRST QUARTER 2025 FINANCIAL DISCUSSION

All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.

 

 

Successor

 

 

Predecessor

 

Non-GAAP
Combined

 

Predecessor

 

Non-GAAP

 

 

Period from
January 15
through
March 31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

Three
Months
Ended
March 31,

 

 

 

 

 

2025

 

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

$ Change

 

 

 

 

 

 

(in thousands)

 

 

 

Interest income

 

$

37,157

 

 

 

$

7,183

 

 

$

44,340

 

 

$

51,077

 

 

$

(6,737

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

 

4,618

 

 

 

 

1,017

 

 

 

5,635

 

 

 

9,471

 

 

 

(3,836

)

Securitization debt

 

 

6,548

 

 

 

 

1,178

 

 

 

7,726

 

 

 

4,869

 

 

 

2,857

 

Total interest expense

 

 

11,166

 

 

 

 

2,195

 

 

 

13,361

 

 

 

14,340

 

 

 

(979

)

Net interest income

 

 

25,991

 

 

 

 

4,988

 

 

 

30,979

 

 

 

36,737

 

 

 

(5,758

)

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

 

11,100

 

 

 

 

6,792

 

 

 

17,892

 

 

 

30,819

 

 

 

(12,927

)

Net interest income (loss) after losses and recoveries

 

 

14,891

 

 

 

 

(1,804

)

 

 

13,087

 

 

 

5,918

 

 

 

7,169

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

 

1,254

 

 

 

 

192

 

 

 

1,446

 

 

 

2,019

 

 

 

(573

)

Warranties and GAP income (loss), net

 

 

4,079

 

 

 

 

307

 

 

 

4,386

 

 

 

(9,642

)

 

 

14,028

 

CarStory revenue

 

 

2,392

 

 

 

 

432

 

 

 

2,824

 

 

 

2,979

 

 

 

(155

)

Other income

 

 

2,481

 

 

 

 

113

 

 

 

2,594

 

 

 

2,784

 

 

 

(190

)

Total noninterest income (loss)

 

 

10,206

 

 

 

 

1,044

 

 

 

11,250

 

 

 

(1,860

)

 

 

13,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

16,067

 

 

 

 

2,823

 

 

 

18,890

 

 

 

24,110

 

 

 

(5,220

)

Professional fees

 

 

5,347

 

 

 

 

297

 

 

 

5,644

 

 

 

3,343

 

 

 

2,301

 

Software and IT costs

 

 

2,402

 

 

 

 

457

 

 

 

2,859

 

 

 

4,622

 

 

 

(1,763

)

Depreciation and amortization

 

 

575

 

 

 

 

1,057

 

 

 

1,632

 

 

 

7,626

 

 

 

(5,994

)

Interest expense on corporate debt

 

 

480

 

 

 

 

176

 

 

 

656

 

 

 

1,391

 

 

 

(735

)

Impairment charges

 

 

4,156

 

 

 

 

—

 

 

 

4,156

 

 

 

2,752

 

 

 

1,404

 

Other expenses

 

 

2,370

 

 

 

 

371

 

 

 

2,741

 

 

 

4,454

 

 

 

(1,713

)

Total expenses

 

 

31,397

 

 

 

 

5,181

 

 

 

36,578

 

 

 

48,298

 

 

 

(11,720

)

 

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before reorganization items and provision for income taxes

 

 

(6,300

)

 

 

 

(5,941

)

 

 

(12,241

)

 

 

(44,240

)

 

 

31,999

 

Reorganization items, net

 

 

—

 

 

 

 

51,036

 

 

 

51,036

 

 

 

—

 

 

 

51,036

 

Income (loss) from continuing operations before provision for income taxes

 

 

(6,300

)

 

 

 

45,095

 

 

 

38,795

 

 

 

(44,240

)

 

 

83,035

 

Provision for income taxes from continuing operations

 

 

150

 

 

 

 

5

 

 

 

155

 

 

 

436

 

 

 

(281

)

Net income (loss) from continuing operations

 

$

(6,450

)

 

 

$

45,090

 

 

$

38,640

 

 

$

(44,676

)

 

$

83,316

 

Net income (loss) from discontinued operations

 

$

99

 

 

 

$

(4

)

 

$

95

 

 

$

(22,941

)

 

$

23,036

 

Net income (loss)

 

$

(6,351

)

 

 

$

45,086

 

 

$

38,735

 

 

$

(67,617

)

 

$

106,352

 

 
 

Results by Segment

UACC

 

Successor

 

 

Predecessor

 

Non-GAAP
Combined

 

Predecessor

 

Non-GAAP

 

Non-GAAP

 

Period
from
January 15
through
March 31,

 

 

Period
from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

Three
Months
Ended
March 31,

 

 

 

 

 

 

2025

 

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

Change

 

% Change

 

 

 

 

 

 

(in thousands)

 

 

 

 

Interest income

$

37,157

 

 

 

$

7,254

 

 

$

44,411

 

 

$

51,541

 

 

$

(7,130

)

 

(13.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

4,618

 

 

 

 

1,017

 

 

 

5,635

 

 

 

9,471

 

 

 

(3,836

)

 

(40.5)%

Securitization debt

 

6,548

 

 

 

 

1,178

 

 

 

7,726

 

 

 

4,869

 

 

 

2,857

 

 

58.7%

Total interest expense

 

11,166

 

 

 

 

2,195

 

 

 

13,361

 

 

 

14,340

 

 

 

(979

)

 

(6.8)%

Net interest income

 

25,991

 

 

 

 

5,059

 

 

 

31,050

 

 

 

37,201

 

 

 

(6,151

)

 

(16.5)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

12,691

 

 

 

 

7,647

 

 

 

20,338

 

 

 

27,761

 

 

 

(7,423

)

 

(26.7)%

Net interest income (loss) after losses and recoveries

 

13,300

 

 

 

 

(2,588

)

 

 

10,712

 

 

 

9,439

 

 

 

1,273

 

 

13.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

1,254

 

 

 

 

192

 

 

 

1,446

 

 

 

2,019

 

 

 

(573

)

 

(28.4)%

Warranties and GAP income, net

 

3,571

 

 

 

 

390

 

 

 

3,961

 

 

 

1,610

 

 

 

2,351

 

 

146.0%

Other income

 

2,235

 

 

 

 

66

 

 

 

2,301

 

 

 

2,470

 

 

 

(169

)

 

(6.8)%

Total noninterest income

 

7,060

 

 

 

 

648

 

 

 

7,708

 

 

 

6,099

 

 

 

1,609

 

 

26.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

13,694

 

 

 

 

2,398

 

 

 

16,092

 

 

 

18,788

 

 

 

(2,696

)

 

(14.3)%

Professional fees

 

3,069

 

 

 

 

172

 

 

 

3,241

 

 

 

876

 

 

 

2,365

 

 

270.0%

Software and IT costs

 

2,086

 

 

 

 

367

 

 

 

2,453

 

 

 

3,097

 

 

 

(644

)

 

(20.8)%

Depreciation and amortization

 

479

 

 

 

 

817

 

 

 

1,296

 

 

 

6,021

 

 

 

(4,725

)

 

(78.5)%

Interest expense on corporate debt

 

480

 

 

 

 

85

 

 

 

565

 

 

 

471

 

 

 

94

 

 

20.0%

Impairment charges

 

3,479

 

 

 

 

—

 

 

 

3,479

 

 

 

2,752

 

 

 

727

 

 

26.4%

Other expenses

 

1,670

 

 

 

 

262

 

 

 

1,932

 

 

 

2,523

 

 

 

(591

)

 

(23.4)%

Total expenses

 

24,957

 

 

 

 

4,101

 

 

 

29,058

 

 

 

34,529

 

 

 

(5,471

)

 

(15.8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

39

 

 

 

 

—

 

 

 

39

 

 

 

436

 

 

 

(397

)

 

(91.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

(834

)

 

 

$

(5,910

)

 

$

(6,744

)

 

$

(16,506

)

 

$

9,762

 

 

59.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

$

302

 

 

 

$

127

 

 

$

429

 

 

$

168

 

 

 

261

 

 

155.8%

Severance

$

21

 

 

 

$

4

 

 

$

25

 

 

$

—

 

 

 

25

 

 

100.0%

 
 

CarStory

 

Successor

 

 

Predecessor

 

Non-GAAP
Combined

 

Predecessor

 

Non-GAAP

 

Non-GAAP

 

Period from
January 15
through
March 31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

Three
Months
Ended
March 31,

 

 

 

 

 

 

2025

 

 

 

 

2025

 

 

 

2025

 

 

2024

 

 

Change

 

% Change

 

 

 

 

 

 

(in thousands)

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

CarStory revenue

$

2,392

 

 

 

$

432

 

 

$

2,824

 

$

2,979

 

 

$

(155

)

 

(5.2)%

Other income

 

62

 

 

 

 

13

 

 

 

75

 

 

173

 

 

 

(98

)

 

(56.6)%

Total noninterest income

 

2,454

 

 

 

 

445

 

 

 

2,899

 

 

3,152

 

 

 

(253

)

 

(8.0)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,360

 

 

 

 

326

 

 

 

1,686

 

 

2,214

 

 

 

(528

)

 

(23.8)%

Professional fees

 

—

 

 

 

 

13

 

 

 

13

 

 

122

 

 

 

(109

)

 

(89.3)%

Software and IT costs

 

—

 

 

 

 

2

 

 

 

2

 

 

167

 

 

 

(165

)

 

(98.8)%

Depreciation and amortization

 

96

 

 

 

 

240

 

 

 

336

 

 

1,605

 

 

 

(1,269

)

 

(79.1)%

Other expenses

 

138

 

 

 

 

20

 

 

 

158

 

 

118

 

 

 

40

 

 

33.9%

Total expenses

 

1,594

 

 

 

 

601

 

 

 

2,195

 

 

4,226

 

 

 

(2,031

)

 

(48.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

16

 

 

 

 

5

 

 

 

21

 

 

39

 

 

 

(18

)

 

(46.2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

839

 

 

 

$

(153

)

 

$

686

 

$

(913

)

 

$

1,599

 

 

175.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

$

(5

)

 

 

$

8

 

 

$

3

 

$

200

 

 

 

(197

)

 

(98.5)%

 
 

Corporate

 

Successor

 

 

Predecessor

 

Non-GAAP Combined

 

Predecessor

 

Non-GAAP

 

Non-GAAP

 

Period from
January 15
through
March 31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

Three
Months
Ended
March 31,

 

 

 

 

 

 

2025

 

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

Change

 

% Change

 

 

 

 

 

 

(in thousands)

 

 

 

 

Interest income

$

—

 

 

 

$

(71

)

 

$

(71

)

 

$

(464

)

 

$

393

 

 

84.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

(1,591

)

 

 

 

(855

)

 

 

(2,446

)

 

 

3,058

 

 

 

(5,504

)

 

(180.0)%

Net interest income (loss) after losses and recoveries

 

1,591

 

 

 

 

784

 

 

 

2,375

 

 

 

(3,521

)

 

 

5,896

 

 

170.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Warranties and GAP income (loss), net

 

508

 

 

 

 

(83

)

 

 

425

 

 

 

(11,252

)

 

 

11,677

 

 

103.8%

Other income

 

184

 

 

 

 

34

 

 

 

218

 

 

 

141

 

 

 

77

 

 

54.3%

Total noninterest income

 

692

 

 

 

 

(49

)

 

 

643

 

 

 

(11,111

)

 

 

11,754

 

 

105.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,013

 

 

 

 

99

 

 

 

1,112

 

 

 

3,109

 

 

 

(1,997

)

 

(64.2)%

Professional fees

 

2,278

 

 

 

 

112

 

 

 

2,390

 

 

 

2,345

 

 

 

45

 

 

1.9%

Software and IT costs

 

316

 

 

 

 

88

 

 

 

404

 

 

 

1,358

 

 

 

(954

)

 

(70.3)%

Interest expense on corporate debt

 

—

 

 

 

 

91

 

 

 

91

 

 

 

920

 

 

 

(829

)

 

(90.1)%

Impairment charges

 

677

 

 

 

 

—

 

 

 

677

 

 

 

—

 

 

 

677

 

 

100.0%

Other expenses

 

562

 

 

 

 

89

 

 

 

651

 

 

 

1,813

 

 

 

(1,162

)

 

(64.1)%

Total expenses

 

4,846

 

 

 

 

479

 

 

 

5,325

 

 

 

9,544

 

 

 

(4,219

)

 

(44.2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

95

 

 

 

 

—

 

 

 

95

 

 

 

(38

)

 

 

133

 

 

350.0%

 

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: Adjusted net income (loss) and tangible book value. Adjusted net income (loss) is a supplemental performance measure that our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted net income (loss) facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes.

Adjusted net income (loss) has limitations as an analytical tool because it does not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Additionally, it may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for those comparative purposes. Because of these limitations, this non-GAAP financial measure should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled this non-GAAP financial measure with the most directly comparable U.S. GAAP financial measure below.

Tangible book value is calculated as stockholders' equity in accordance with U.S. GAAP, after subtracting intangible assets. A reconciliation of stockholders' equity to tangible book value is included above.

Non-GAAP Combined Three Months Ended March 31, 2025

Our financial results for the periods from January 1, 2025 through January 14, 2025 and the three months ended March 31, 2024 are referred to as those of the “Predecessor” period. Our financial results for the period from January 15, 2025 through March 31, 2025 are referred to as those of the “Successor” period. Our results of operations as reported in our Condensed Consolidated Financial Statements for these periods are prepared in accordance with GAAP. Although GAAP requires that we report our results for the period from January 1, 2025 through January 14, 2025 and the period from January 15, 2025 through March 31, 2025 separately, management views our operating results for the three months ended March 31, 2025 by combining the results of the applicable Predecessor and Successor periods because such presentation provides the most meaningful comparison of our results to prior periods. We believe we cannot adequately benchmark the operating results of the period from January 15, 2025 through March 31, 2025 against any of the previous periods reported in our Condensed Consolidated Financial Statements without combining it with the period from January 1, 2025 through January 14, 2025 and does not believe that reviewing the results of this period in isolation would be useful in identifying trends in or reaching conclusions regarding our overall operating performance. Management believes that the key performance metrics for the Successor period when combined with the Predecessor period provide more meaningful comparisons to other periods and are useful in identifying current business trends. Accordingly, in addition to presenting our results of operations as reported in our Condensed Consolidated Financial Statements in accordance with GAAP, the tables and discussion below also present the combined results for the three months ended March 31, 2025. The combined results for the three months ended March 31, 2025 represent the sum of the reported amounts for the Predecessor period from January 1, 2025 through January 14, 2025 and the Successor period from January 15, 2025 through March 31, 2025. These combined results are not considered to be prepared in accordance with GAAP and have not been prepared as pro forma results per applicable regulations. The combined operating results do not reflect the actual results we would have achieved absent our emergence from Prepackaged Chapter 11 Case and are not necessarily indicative of future results. Accordingly, the results for the combined three months ended March 31, 2025 (prepared on a Non-GAAP basis) and three months ended March 31, 2024 (prepared on a GAAP basis) may not be comparable, particularly for statement of operations line items significantly impacted by the Reorganization transactions and the impact of fresh start accounting.

Adjusted net income (loss)

We calculate Adjusted net income (loss) as net income (loss) from continuing operations adjusted for stock compensation expense, severance expense, bankruptcy costs (which represent professional fees incurred related to the bankruptcy prior to filing of the petition and post-emergence), reorganization items, net (which relate to certain charges incurred during the bankruptcy proceedings, such as legal and professional fees incurred directly as a result of the bankruptcy proceeding, the write-off of deferred financing costs and discount on debt subject to compromise and other related charges), operating lease right-of-use assets impairment and long-lived asset impairment charges.

The following table presents a reconciliation of Adjusted net income (loss) to net income (loss) from continuing operations, which is the most directly comparable U.S. GAAP measure (in thousands):

 

 

Successor

 

 

Predecessor

 

Non-GAAP
Combined

 

Predecessor

 

 

Period from
January 15
through
March 31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

Three
Months
Ended
March 31,

 

 

 

2025

 

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

Net income (loss) from continuing operations

 

$

(6,450

)

 

 

$

45,090

 

 

$

38,640

 

 

$

(44,676

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

491

 

 

 

 

144

 

 

 

635

 

 

 

1,324

 

Severance expense

 

 

21

 

 

 

 

4

 

 

 

25

 

 

 

—

 

Bankruptcy costs (post-emergence)

 

 

913

 

 

 

 

—

 

 

 

913

 

 

 

—

 

Reorganization items, net

 

 

—

 

 

 

 

(51,036

)

 

 

(51,036

)

 

 

—

 

Impairment charges

 

 

4,156

 

 

 

 

—

 

 

 

4,156

 

 

 

2,752

 

Adjusted net loss

 

$

(869

)

 

 

$

(5,798

)

 

$

(6,667

)

 

$

(40,600

)

 

Financial Outlook

For the full year 2025 we expect the following results:

  • Adjusted net income (loss)(2)(5)(6): ($30) - ($45) million
  • Year end total available liquidity(1)(6): $35 - $50 million
  • Indirect origination volume(6)(7): $460 - $490 million

(5)

Adjusted net income (loss) for the full year 2025 includes Non-GAAP Combined adjusted net loss for the three months ended March 31, 2025. See footnote (4) above.

(6)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for the full year 2025 Financial Outlook is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future. We have provided a reconciliation of GAAP to non-GAAP financial measures for historical periods in the reconciliation table in the Non-GAAP Financial Measures above.

(7)

Represents retail installment sale contracts originated through third-party dealers.

The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of May 14, 2025 and are subject to substantial uncertainty. See “Forward-Looking Statements” below.

About Vroom (Nasdaq: VRM)

Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. Prior to January 2024, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our full year 2025 guidance, the restructuring, including its impact and intended benefits, our strategic initiatives and long-term strategy, cost-savings and their expected benefits, our expectations regarding UACC's business our available liquidity under the warehouse credit facilities and extensions of these facilities, future results of operations and financial position, including origination income, adjusted net income (loss) and our total available liquidity, and the timing of any of the foregoing. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

 

VROOM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)

 
 

 

 

Successor

 

 

Predecessor

 

 

As of
March 31,

 

 

As of
December 31,

 

 

 

2025

 

 

 

 

2024

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

14,565

 

 

 

$

29,343

 

Restricted cash (including restricted cash of consolidated VIEs of $52.1 million and $48.1 million, respectively)

 

 

53,003

 

 

 

 

49,026

 

Finance receivables at fair value (including finance receivables of consolidated VIEs of $810.4 million and $467.3 million, respectively)

 

 

858,200

 

 

 

 

503,848

 

Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $0.0 and $310.0 million, respectively)

 

 

—

 

 

 

 

318,192

 

Interest receivable (including interest receivables of consolidated VIEs of $11.7 million and $13.3 million, respectively)

 

 

12,788

 

 

 

 

14,067

 

Property and equipment, net

 

 

2,501

 

 

 

 

4,064

 

Intangible assets, net

 

 

13,796

 

 

 

 

104,869

 

Operating lease right-of-use assets

 

 

6,605

 

 

 

 

6,872

 

Other assets (including other assets of consolidated VIEs of $9.4 million and $10.8 million, respectively)

 

 

28,490

 

 

 

 

35,472

 

Assets from discontinued operations

 

 

8

 

 

 

 

943

 

Total assets

 

$

989,956

 

 

 

$

1,066,696

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

Warehouse credit facilities of consolidated VIEs

 

$

114,187

 

 

 

$

359,912

 

Long-term debt (including securitization debt of consolidated VIEs of $613.9 million at fair value as of March 31, 2025 and $210.7 million at amortized cost and $142.6 million at fair value as of December 31, 2024)

 

 

655,430

 

 

 

 

381,366

 

Operating lease liabilities

 

 

10,198

 

 

 

 

11,065

 

Other liabilities (including other liabilities of consolidated VIEs of $16.4 million and $13.8 million, respectively)

 

 

48,544

 

 

 

 

49,699

 

Liabilities subject to compromise (Note 6)

 

 

—

 

 

 

 

291,577

 

Liabilities from discontinued operations

 

 

2,970

 

 

 

 

4,022

 

Total liabilities

 

 

831,329

 

 

 

 

1,097,641

 

Commitments and contingencies (Note 12)

 

 

 

 

 

Stockholders’ equity (deficit) :

 

 

 

 

 

Common stock, $0.001 par value; 250,000,000 shares authorized as of March 31, 2025 and 500,000,000 shares authorized as of December 31, 2024; 5,163,109 and 1,822,532 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

 

 

5

 

 

 

 

2

 

Additional paid-in-capital

 

 

164,973

 

 

 

 

2,094,889

 

Accumulated deficit

 

 

(6,351

)

 

 

 

(2,125,836

)

Total stockholders’ equity (deficit)

 

 

158,627

 

 

 

 

(30,945

)

Total liabilities and stockholders’ equity (deficit)

 

$

989,956

 

 

 

$

1,066,696

 

 

VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)

 
 

 

 

Successor

 

 

Predecessor

 

 

Period from
January 15
through
March 31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

 

 

2025

 

 

 

 

2025

 

 

 

2024

 

Interest income

 

$

37,157

 

 

 

$

7,183

 

 

$

51,077

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

Warehouse credit facility

 

 

4,618

 

 

 

 

1,017

 

 

 

9,471

 

Securitization debt

 

 

6,548

 

 

 

 

1,178

 

 

 

4,869

 

Total interest expense

 

 

11,166

 

 

 

 

2,195

 

 

 

14,340

 

Net interest income

 

 

25,991

 

 

 

 

4,988

 

 

 

36,737

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

 

11,100

 

 

 

 

6,792

 

 

 

30,819

 

Net interest income (loss) after losses and recoveries

 

 

14,891

 

 

 

 

(1,804

)

 

 

5,918

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

Servicing income

 

 

1,254

 

 

 

 

192

 

 

 

2,019

 

Warranties and GAP income (loss), net

 

 

4,079

 

 

 

 

307

 

 

 

(9,642

)

CarStory revenue

 

 

2,392

 

 

 

 

432

 

 

 

2,979

 

Other income

 

 

2,481

 

 

 

 

113

 

 

 

2,784

 

Total noninterest income (loss)

 

 

10,206

 

 

 

 

1,044

 

 

 

(1,860

)

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Compensation and benefits

 

 

16,067

 

 

 

 

2,823

 

 

 

24,110

 

Professional fees

 

 

5,347

 

 

 

 

297

 

 

 

3,343

 

Software and IT costs

 

 

2,402

 

 

 

 

457

 

 

 

4,622

 

Depreciation and amortization

 

 

575

 

 

 

 

1,057

 

 

 

7,626

 

Interest expense on corporate debt

 

 

480

 

 

 

 

176

 

 

 

1,391

 

Impairment charges

 

 

4,156

 

 

 

 

—

 

 

 

2,752

 

Other expenses

 

 

2,370

 

 

 

 

371

 

 

 

4,454

 

Total expenses

 

 

31,397

 

 

 

 

5,181

 

 

 

48,298

 

 

 

 

 

 

 

 

 

Loss from continuing operations before reorganization items and provision for income taxes

 

 

(6,300

)

 

 

 

(5,941

)

 

 

(44,240

)

Reorganization items, net

 

 

—

 

 

 

 

51,036

 

 

 

—

 

Income (loss) from continuing operations before provision for income taxes

 

 

(6,300

)

 

 

 

45,095

 

 

 

(44,240

)

Provision for income taxes from continuing operations

 

 

150

 

 

 

 

5

 

 

 

436

 

Net income (loss) from continuing operations

 

$

(6,450

)

 

 

$

45,090

 

 

$

(44,676

)

Net income (loss) from discontinued operations

 

$

99

 

 

 

$

(4

)

 

$

(22,941

)

Net income (loss)

 

$

(6,351

)

 

 

$

45,086

 

 

$

(67,617

)

 

VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(in thousands, except share and per share amounts)
(unaudited)

 
 

Net income (loss) per share attributable to common stockholders, basic:

 

 

 

 

 

 

 

Continuing operations

 

 

(1.25

)

 

 

 

24.74

 

 

 

(24.90

)

Discontinued operations

 

 

0.02

 

 

 

 

(0.00

)

 

 

(12.79

)

Basic

 

$

(1.23

)

 

 

$

24.74

 

 

$

(37.68

)

Net income (loss) per share attributable to common stockholders, diluted:

 

 

 

 

 

 

 

Continuing operations

 

 

(1.25

)

 

 

 

23.89

 

 

 

(24.90

)

Discontinued operations

 

 

0.02

 

 

 

 

(0.00

)

 

 

(12.79

)

Diluted

 

$

(1.23

)

 

 

$

23.89

 

 

$

(37.68

)

Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

 

5,163,109

 

 

 

 

1,822,541

 

 

 

1,794,303

 

Diluted

 

 

5,163,109

 

 

 

 

1,887,371

 

 

 

1,794,303

 

 

VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

 
 

 

 

Successor

 

 

Predecessor

 

 

Period from
January 15
through
31,

 

 

Period from
January 1
through
January 14,

 

Three
Months
Ended
March 31,

 

 

 

2025

 

 

 

 

2025

 

 

 

2024

 

Operating activities

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

$

(6,450

)

 

 

$

45,090

 

 

$

(44,676

)

Adjustments to reconcile net (loss) income to net cash used in operating activities:

 

 

 

 

 

 

 

Impairment charges

 

 

4,156

 

 

 

 

—

 

 

 

2,752

 

Profit share receivable

 

 

(274

)

 

 

 

—

 

 

 

9,642

 

Depreciation and amortization

 

 

575

 

 

 

 

1,057

 

 

 

7,626

 

Losses on finance receivables and securitization debt, net

 

 

17,575

 

 

 

 

4,762

 

 

 

35,323

 

Losses on Warranties and GAP

 

 

1,780

 

 

 

 

407

 

 

 

2,175

 

Stock-based compensation expense

 

 

491

 

 

 

 

144

 

 

 

1,324

 

Provision to record finance receivables held for sale at lower of cost or fair value

 

 

—

 

 

 

 

—

 

 

 

306

 

Amortization of unearned discounts on finance receivables at fair value

 

 

—

 

 

 

 

(416

)

 

 

(4,792

)

Non-cash reorganization items, net

 

 

—

 

 

 

 

(51,741

)

 

 

—

 

Other, net

 

 

(652

)

 

 

 

193

 

 

 

(1,078

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Finance receivables, held for sale

 

 

 

 

 

 

 

Originations of finance receivables, held for sale

 

 

—

 

 

 

 

(14,337

)

 

 

(130,404

)

Principal payments received on finance receivables, held for sale

 

 

—

 

 

 

 

6,481

 

 

 

40,387

 

Other

 

 

—

 

 

 

 

169

 

 

 

404

 

Interest receivable

 

 

1,443

 

 

 

 

(164

)

 

 

342

 

Other assets

 

 

(3,301

)

 

 

 

5,178

 

 

 

4,991

 

Other liabilities

 

 

1,946

 

 

 

 

(2,627

)

 

 

635

 

Net cash provided by (used in) operating activities from continuing operations

 

 

17,289

 

 

 

 

(5,804

)

 

 

(75,043

)

Net cash (used in) provided by operating activities from discontinued operations

 

 

(452

)

 

 

 

(207

)

 

 

98,167

 

Net cash provided by (used in) operating activities

 

 

16,837

 

 

 

 

(6,011

)

 

 

23,124

 

Investing activities

 

 

 

 

 

 

 

Finance receivables, held for investment at fair value

 

 

 

 

 

 

 

Purchases of finance receivables, held for investment at fair value

 

 

(120,528

)

 

 

 

—

 

 

 

—

 

Principal payments received on finance receivables, held for investment at fair value

 

 

73,217

 

 

 

 

2,985

 

 

 

35,195

 

Principal payments received on beneficial interests

 

 

446

 

 

 

 

147

 

 

 

773

 

Purchase of property and equipment

 

 

(1,469

)

 

 

 

(151

)

 

 

(644

)

Net cash (used in) provided by investing activities from continuing operations

 

 

(48,334

)

 

 

 

2,981

 

 

 

35,324

 

Net cash provided by investing activities from discontinued operations

 

 

637

 

 

 

 

—

 

 

 

5,747

 

Net cash (used in) provided by investing activities

 

 

(47,697

)

 

 

 

2,981

 

 

 

41,071

 

Financing activities

 

 

 

 

 

 

 

Proceeds from borrowings under secured financing agreements

 

 

307,780

 

 

 

 

—

 

 

 

—

 

Principal repayment under secured financing agreements

 

 

(34,281

)

 

 

 

(16,676

)

 

 

(73,647

)

Proceeds from financing of beneficial interests in securitizations

 

 

16,223

 

 

 

 

—

 

 

 

—

 

Principal repayments of financing of beneficial interests in securitizations

 

 

(2,045

)

 

 

 

(1,028

)

 

 

(2,651

)

Proceeds from warehouse credit facilities

 

 

88,500

 

 

 

 

11,900

 

 

 

125,100

 

Repayments of warehouse credit facilities

 

 

(338,031

)

 

 

 

(8,094

)

 

 

(30,092

)

Other financing activities

 

 

(1,159

)

 

 

 

—

 

 

 

(40

)

Net cash provided by (used in) financing activities from continuing operations

 

 

36,987

 

 

 

 

(13,898

)

 

 

18,670

 

Net cash used in financing activities from discontinued operations

 

 

—

 

 

 

 

—

 

 

 

(151,178

)

Net cash provided by (used in) financing activities

 

 

36,987

 

 

 

 

(13,898

)

 

 

(132,508

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

6,127

 

 

 

 

(16,928

)

 

 

(68,313

)

Cash, cash equivalents and restricted cash at the beginning of period

 

 

61,441

 

 

 

 

78,369

 

 

 

208,819

 

Cash, cash equivalents and restricted cash at the end of period

 

$

67,568

 

 

 

$

61,441

 

 

$

140,506

 

 

VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)

 
 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

9,221

 

 

 

$

4,534

 

 

$

13,497

 

Cash paid for reorganization items, net

 

$

—

 

 

 

$

1,705

 

 

$

—

 

Cash paid for income taxes

 

$

137

 

 

 

$

—

 

 

$

—

 

 

Investor Relations:

Vroom
Jon Sandison
investors@vroom.com

Source: Vroom, Inc.