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Vroom Announces Third Quarter 2025 Results

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Nov 10, 2025
Continued Investment in our Long-Term Strategic Plan

NEW YORK, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Vroom, Inc. (Nasdaq:VRM) today announced financial results for the third quarter ended September 30, 2025.

HIGHLIGHTS OF THIRD QUARTER 2025

  • $59.2 million consolidated total available liquidity(1) as of September 30, 2025, consisting of:
    • $12.4 million cash and cash equivalents        
    • $11.8 million of liquidity available to UACC under the warehouse credit facilities
    • $35.0 million of available liquidity from delayed draw facility, further strengthening our liquidity position to execute our long-term strategy
  • $(27.1) million net loss from continuing operations for the three months ended September 30, 2025
  • $(25.7) million adjusted net loss(2) for the three months ended September 30, 2025
    • $(15.3) million unfavorable mark-to-market for the three months ended September 30, 2025 on the fair value portfolio
    • $4.5 million favorable mark-to-market year to date on the fair value portfolio
  • $94.3 million improvement in net loss and $66.8 million improvement in adjusted net loss(2) for the trailing twelve months ended September 30, 2025 compared to trailing twelve months ended September 30, 2024
  • Stockholders' equity was $126.6 million as of September 30, 2025 and tangible book value(3) was $113.8 million as of September 30, 2025
  • Full year expectations are in line with our original beginning of the year adjusted net loss plan of approximately $(56) million, prior to favorable mark-to-market movement in Q1 2025, now substantially offset by unfavorable mark-to-market movement in Q3 2025

(1)

Total available liquidity is a non-GAAP measure and represents $12.4 million of unrestricted cash and cash equivalents, as well as $11.8 million of availability from warehouse credit facilities and $35.0 million of availability from delayed draw facility
(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 $126.6 million, excluding intangible assets of $12.8 million as of September 30, 2025.


Tom Shortt, Chief Executive Officer of Vroom, said, “In the third quarter of 2025, our net loss and adjusted net loss decreased year-over-year, driven by our continued focus on our Long-Term Strategic Plan. During the third quarter, our team significantly improved our business intelligence engine and modernized our credit decision engine.”

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 nine months ended September 30, 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 September 30, 2025. These combined results are not considered to be prepared in accordance with U.S. generally accepted accounting principles ("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 nine months ended September 30, 2025, (prepared on a Non-GAAP basis) and nine months ended September 30, 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.

THIRD 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        
    Three Months
Ended
September 30,		       Three Months
Ended
September 30,		        
    2025       2024     $ Change  
            (in thousands)        
Interest income   $ 44,829       $ 50,213     $ (5,384 )
                     
Interest expense:                    
Warehouse credit facility     4,544         6,251       (1,707 )
Securitization debt     8,771         9,096       (325 )
Total interest expense     13,315         15,347       (2,032 )
Net interest income     31,514         34,866       (3,352 )
                     
Realized and unrealized losses, net of recoveries     43,202         38,346       4,856  
Net interest income after losses and recoveries     (11,688 )       (3,480 )     (8,208 )
                     
Noninterest income:                    
Servicing income     1,088         1,495       (407 )
Warranties and GAP income (loss), net     3,152         3,917       (765 )
CarStory revenue     1,347         2,890       (1,543 )
Other income     3,924         2,419       1,505  
Total noninterest income     9,511         10,721       (1,210 )
                     
Expenses:                    
Compensation and benefits     16,287         25,365       (9,078 )
Professional fees     1,538         1,587       (49 )
Software and IT costs     3,062         3,360       (298 )
Depreciation and amortization     998         7,105       (6,107 )
Interest expense on corporate debt     706         1,601       (895 )
Impairment charges     —         2,407       (2,407 )
Other expenses     2,230         3,436       (1,206 )
Total expenses     24,821         44,861       (20,040 )
                     
Loss from continuing operations before provision for income taxes     (26,998 )       (37,620 )     10,622  
Provision (benefit) for income taxes from continuing operations     144         124       20  
Net loss from continuing operations   $ (27,142 )     $ (37,744 )   $ 10,602  
Net income (loss) from discontinued operations   $ 366       $ (1,999 )   $ 2,365  
Net loss   $ (26,776 )     $ (39,743 )   $ 12,967  


    Successor       Predecessor     Non-GAAP
Combined		     Predecessor          
    Period from
January 15
through
September 30,		       Period from
January 1
through
January 14,		     Nine Months
Ended
September 30,		     Nine Months
Ended
September 30,		     Non-GAAP    
    2025       2025     2025     2024     $ Change    
            (in thousands)                
Interest income   $ 127,734       $ 7,183     $ 134,917     $ 153,152     $ (18,235 )  
                                   
Interest expense:                                  
Warehouse credit facility     12,421         1,017       13,438       22,708       (9,270 )  
Securitization debt     25,202         1,178       26,380       21,960       4,420    
Total interest expense     37,623         2,195       39,818       44,668       (4,850 )  
Net interest income     90,111         4,988       95,099       108,484       (13,385 )  
                                   
Realized and unrealized losses, net of recoveries     73,802         6,792       80,594       87,894       (7,300 )  
Net interest income after losses and recoveries     16,309         (1,804 )     14,505       20,590       (6,085 )  
                                   
Noninterest income:                                  
Servicing income     3,601         192       3,793       5,101       (1,308 )  
Warranties and GAP income (loss), net     10,876         307       11,183       (4,347 )     15,530    
CarStory revenue     5,585         432       6,017       8,782       (2,765 )  
Other income     8,472         113       8,585       8,344       241    
Total noninterest income     28,534         1,044       29,578       17,880       11,698    
                                   
Expenses:                                  
Compensation and benefits     53,445         2,823       56,268       76,651       (20,383 )  
Professional fees     8,898         297       9,195       6,418       2,777    
Software and IT costs     8,884         457       9,341       12,018       (2,677 )  
Depreciation and amortization     2,315         1,057       3,372       21,963       (18,591 )  
Interest expense on corporate debt     1,884         176       2,060       4,541       (2,481 )  
Impairment charges     4,156         —       4,156       5,159       (1,003 )  
Other expenses     7,433         371       7,804       12,853       (5,049 )  
Total expenses     87,015         5,181       92,196       139,603       (47,407 )  
                                   
Loss from continuing operations before reorganization items and provision for income taxes     (42,172 )       (5,941 )     (48,113 )     (101,133 )     53,020    
Reorganization items, net     —         51,036       51,036       —       51,036    
Income (loss) from continuing operations before provision for income taxes     (42,172 )       45,095       2,923       (101,133 )     104,056    
Provision for income taxes from continuing operations     353         5       358       393       (35 )  
Net income (loss) from continuing operations   $ (42,525 )     $ 45,090     $ 2,565     $ (101,526 )   $ 104,091    
Net income (loss) from discontinued operations   $ 878       $ (4 )   $ 874     $ (27,024 )   $ 27,898    
Net income (loss)   $ (41,647 )     $ 45,086     $ 3,439     $ (128,550 )   $ 131,989    


Results by Segment

UACC

  Successor           Predecessor              
  Three Months
Ended
September 30,		           Three Months
Ended
September 30,		              
  2025           2024     Change     %
Change		  
              (in thousands)              
Interest income $ 44,829           $ 50,801     $ (5,972 )     (11.8 )%
                             
Interest expense:                            
Warehouse credit facility   4,544             6,251       (1,707 )     (27.3 )%
Securitization debt   8,771             9,096       (325 )     (3.6 )%
Total interest expense   13,315             15,347       (2,032 )     (13.2 )%
Net interest income   31,514             35,454       (3,940 )     (11.1 )%
                             
Realized and unrealized losses, net of recoveries   43,550             30,117       13,433       44.6 %
Net interest income after losses and recoveries   (12,036 )           5,337       (17,373 )     (325.5 )%
                             
Noninterest income:                            
Servicing income   1,088             1,495       (407 )     (27.2 )%
Warranties and GAP income, net   2,855             2,074       781       37.7 %
Other income   1,883             1,698       185       10.9 %
Total noninterest income   5,826             5,267       559       10.6 %
                             
Expenses:                            
Compensation and benefits   14,072             19,819       (5,747 )     (29.0 )%
Professional fees   826             875       (49 )     (5.6 )%
Software and IT costs   2,502             2,346       156       6.6 %
Depreciation and amortization   887             5,505       (4,618 )     (83.9 )%
Interest expense on corporate debt   664             681       (17 )     (2.5 )%
Impairment charges   —             2,407       (2,407 )     (100.0 )%
Other expenses   1,736             1,991       (255 )     (12.8 )%
Total expenses   20,687             33,624       (12,937 )     (38.5 )%
                             
Benefit for income taxes from continuing operations   —             99       (99 )     (100.0 )%
                             
Adjusted net loss $ (25,784 )         $ (19,857 )   $ (5,927 )     29.8 %
                             
Stock compensation expense $ 1,112           $ 834     $ 278       33.3 %
Severance $ -           $ 20     $ (20 )     (100.0 )%


  Successor         Predecessor     Non-GAAP
Combined		     Predecessor     Non-GAAP     Non-GAAP  
  Period from
January 15
through
September 30,		         Period from
January 1
through
January 14,		     Nine Months
 Ended
September 30,		     Nine Months
 Ended
September 30,		              
  2025         2025     2025     2024     Change     % Change  
            (in thousands)                    
Interest income $ 127,734         $ 7,254     $ 134,988     $ 154,731     $ (19,743 )     (12.8 )%
                                       
Interest expense:                                      
Warehouse credit facility   12,421           1,017       13,438       22,708       (9,270 )     (40.8 )%
Securitization debt   25,202           1,178       26,380       21,960       4,420       20.1 %
Total interest expense   37,623           2,195       39,818       44,668       (4,850 )     (10.9 )%
Net interest income   90,111           5,059       95,170       110,063       (14,893 )     (13.5 )%
                                       
Realized and unrealized losses, net of recoveries   75,123           7,647       82,770       77,460       5,310       6.9 %
Net interest income (loss) after losses and recoveries   14,988           (2,588 )     12,400       32,603       (20,203 )     (62.0 )%
                                       
Noninterest income:                                      
Servicing income   3,601           192       3,793       5,101       (1,308 )     (25.6 )%
Warranties and GAP income, net   10,099           390       10,489       5,324       5,165       97.0 %
Other income   6,096           66       6,162       6,266       (104 )     (1.7 )%
Total noninterest income   19,796           648       20,444       16,691       3,753       22.5 %
                                       
Expenses:                                      
Compensation and benefits   45,209           2,398       47,607       59,146       (11,539 )     (19.5 )%
Professional fees   5,328           172       5,500       2,326       3,174       136.5 %
Software and IT costs   7,276           367       7,643       8,048       (405 )     (5.0 )%
Depreciation and amortization   1,994           817       2,811       17,156       (14,345 )     (83.6 )%
Interest expense on corporate debt   1,842           85       1,927       1,781       146       8.2 %
Impairment charges   3,479           —       3,479       5,159       (1,680 )     (32.6 )%
Other expenses   5,558           262       5,820       7,569       (1,749 )     (23.1 )%
Total expenses   70,686           4,101       74,787       101,185       (26,398 )     (26.1 )%
                                       
Provision for income taxes from continuing operations   39           —       39       301       (262 )     (87.0 )%
                                       
Adjusted net loss $ (29,913 )       $ (5,910 )   $ (35,823 )   $ (44,652 )   $ 8,829       19.8 %
                                       
Stock compensation expense $ 2,521         $ 127     $ 2,647     $ 1,867     $ 780       41.8 %
Severance $ 28         $ 4     $ 31     $ 513     $ (482 )     (93.9 )%


CarStory

  Successor         Predecessor              
  Three Months
Ended
September 30,		         Three Months
Ended
September 30,		              
  2025         2024     Change     % Change  
          (in thousands)          
Noninterest income:                          
CarStory revenue $ 1,347         $ 2,890     $ (1,543 )     (53.4 )%
Other income   35           199       (164 )     (82.4 )%
Total noninterest income   1,382           3,089       (1,707 )     (55.3 )%
                           
Expenses:                          
Compensation and benefits   1,378           3,127       (1,749 )     (55.9 )%
Professional fees   (108 )         (112 )     4       3.6 %
Software and IT costs   (4 )         17       (21 )     (123.5 )%
Depreciation and amortization   111           1,600       (1,489 )     (93.1 )%
Other expenses   100           127       (27 )     (21.3 )%
Total expenses   1,477           4,759       (3,282 )     (69.0 )%
                           
Provision for income taxes from continuing operations   24           25       (1 )     (4.0 )%
                           
Adjusted net income (loss) $ (72 )       $ (1,636 )   $ 1,564       95.6 %
                           
Stock compensation expense $ 47         $ 59     $ (12 )     (20.6 )%


  Successor           Predecessor     Non-GAAP Combined     Predecessor     Non-GAAP     Non-GAAP  
  Period from
January 15
through
September 30,		           Period from
January 1
through
January 14,		     Nine Months
 Ended
September 30,		     Nine Months
 Ended
September 30,		              
  2025           2025     2025     2024     Change     % Change  
              (in thousands)                    
Noninterest income:                                        
CarStory revenue $ 5,585           $ 432     $ 6,017     $ 8,782     $ (2,765 )     (31.5 )%
Other income   132             13       145       562       (417 )     (74.2 )%
Total noninterest income   5,717             445       6,162       9,344       (3,182 )     (34.1 )%
                                         
Expenses:                                        
Compensation and benefits   4,319             326       4,645       7,802       (3,157 )     (40.5 )%
Professional fees   (175 )           13       (162 )     90       (252 )     (280.0 )%
Software and IT costs   (1 )           2       1       205       (204 )     (99.5 )%
Depreciation and amortization   321             240       561       4,807       (4,246 )     (88.3 )%
Other expenses   374             20       394       300       94       31.3 %
Total expenses   4,838             601       5,439       13,204       (7,765 )     (58.8 )%
                                         
Provision for income taxes from continuing operations   73             5       78       92       (14 )     (15.2 )%
                                         
Adjusted net income (loss) $ 890           $ (153 )   $ 737     $ (3,618 )   $ 4,355       120.4 %
                                         
Stock compensation expense $ 81           $ 8     $ 89     $ 334     $ (246 )     (73.5 )%


Corporate

  Successor           Predecessor              
  Three Months
Ended
September 30,		           Three Months
Ended
September 30,		              
  2025           2024     Change     % Change  
            (in thousands)          
Interest expense $ —           $ (588 )   $ 588       100.0 %
                             
Realized and unrealized losses, net of recoveries   (348 )           8,229       (8,577 )     (104.2 )%
Net interest loss after losses and recoveries   348             (8,817 )     9,165       103.9 %
                             
Noninterest income:                            
Warranties and GAP income, net   297             1,843       (1,546 )     (83.9 )%
Other income   2,006             522       1,484       284.3 %
Total noninterest income   2,303             2,365       (62 )     (2.6 )%
                             
Expenses:                            
Compensation and benefits   837             2,419       (1,582 )     (65.4 )%
Professional fees   820             824       (4 )     (0.5 )%
Software and IT costs   564             997       (433 )     (43.4 )%
Interest expense on corporate debt   42             920       (878 )     (95.4 )%
Other expenses   394             1,318       (924 )     (70.1 )%
Total expenses   2,657             6,478       (3,821 )     (59.0 )%
                             
Provision for income taxes from continuing operations   120             —       120       100.0 %


  Successor         Predecessor     Non-GAAP
Combined		     Predecessor     Non-GAAP     Non-GAAP  
  Period from
 January 15
through
September 30,		         Period from
January 1
through
January 14,		     Nine Months
Ended
September 30,		     Nine Months
Ended
September 30,		              
  2025         2025     2025     2024     Change     % Change  
            (in thousands)                    
Interest income (expense) $ —         $ (71 )   $ (71 )   $ (1,579 )   $ 1,508       95.5 %
                                       
Realized and unrealized losses (gains), net of recoveries   (1,321 )         (855 )     (2,176 )     10,434       (12,610 )     (120.9 )%
Net interest income after losses and recoveries   1,321           784       2,105       (12,013 )     14,119       117.5 %
                                       
Noninterest (loss) income:                                      
Warranties and GAP income (loss), net   777           (83 )     694       (9,671 )     10,365       107.2 %
Other income   2,244           34       2,278       1,516       762       50.2 %
Total noninterest (loss) income   3,021           (49 )     2,972       (8,155 )     11,127       136.4 %
                                       
Expenses:                                      
Compensation and benefits   3,917           99       4,016       9,703       (5,687 )     (58.6 )%
Professional fees   3,745           112       3,857       4,002       (145 )     (3.6 )%
Software and IT costs   1,609           88       1,697       3,765       (2,068 )     (54.9 )%
Interest expense on corporate debt   42           91       133       2,760       (2,627 )     (95.2 )%
Impairment expense   677           —       677       —       677       100.0 %
Other expenses   1,501           89       1,590       4,984       (3,394 )     (68.1 )%
Total expenses   11,491           479       11,970       25,214       (13,244 )     (52.5 )%
                                       
Provision for income taxes from continuing operations   241           —       241       —       241       100.0 %


Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: Adjusted net income (loss), total available liquidity, 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.

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

Total available liquidity represents unrestricted cash and cash equivalents, availability from warehouse credit facilities and availability from line of credit secured by residual certificates.

These non-GAAP measures have limitations as analytical tools because they do not reflect all of the amounts associated with our results of operations or liquidity as determined in accordance with GAAP. Additionally, they 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, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with GAAP. The presentation of these non-GAAP financial measures are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures elsewhere herein.

Non-GAAP Combined Nine Months Ended September 30, 2025

Our financial results for the periods from January 1, 2025 through January 14, 2025 and the three and nine months ended September 30, 2024 are referred to as those of the “Predecessor” periods. Our financial results for the periods from January 15, 2025 through September 30, 2025 and the three months ended September 30, 2025 are referred to as those of the “Successor” periods. 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 September 30, 2025, separately, management views our operating results for the nine months ended September 30, 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 September 30, 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 we do 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 nine months ended September 30, 2025. The combined results for the nine months ended September 30, 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 September 30, 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 nine months ended September 30, 2025 (prepared on a Non-GAAP basis) and nine months ended September 30, 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 loss

We calculate Adjusted net 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 GAAP measure (in thousands):

    Successor       Predecessor  
    Three Months
Ended
September 30,		       Three Months
Ended
September 30,		  
    2025       2024  
Net loss from continuing operations   $ (27,142 )     $ (37,744 )
Adjusted to exclude the following:              
Stock compensation expense     1,444         1,244  
Severance expense     —         763  
Impairment charges     —         2,407  
Adjusted net loss   $ (25,698 )     $ (33,330 )


    Successor       Predecessor     Non-GAAP
Combined		     Predecessor  
    Period from
January 15
through
September 30,		       Period from
January 1
through
January 14,		     Nine Months
 Ended
September 30,		     Nine Months
Ended
September 30,		  
    2025       2025     2025     2024  
            (in thousands)        
Net income (loss) from continuing operations   $ (42,525 )     $ 45,090     $ 2,565     $ (101,526 )
Adjusted to exclude the following:                          
Stock compensation expense     3,771         144       3,915       5,014  
Severance expense     388         4       392       2,448  
Bankruptcy costs (post-emergence)     913         —       913       —  
Reorganization items, net     —         (51,036 )     (51,036 )     —  
Impairment charges     4,156         —       4,156       5,159  
Adjusted net loss   $ (33,297 )     $ (5,798 )   $ (39,095 )   $ (88,905 )


    Successor     Successor     Successor       Predecessor     Non-GAAP Combined     Predecessor     Predecessor     Predecessor     Predecessor     Predecessor  
    Period
from
July 1
through September
30,		     Period
from
April 1
through June
30,		     Period
from
January 15
through March
31,		       Period
from
January 1 through
January
14,		     Three
Months
Ended
March
31,		     Three
Months Ended
December
31,		     Three
Months Ended
September
30,		     Three
Months Ended
June
30,		     Three
Months Ended
March
31,		     Three
Months Ended
December
31,		  
    2025     2025     2025       2025     2025     2024     2024     2024     2024     2023  
                                                               
Net income (loss) from continuing operations     (27,142 )     (8,932 )     (6,450 )       45,090       38,640       (36,716 )     (37,744 )     (19,104 )     (44,676 )     (26,904 )
Stock compensation expense     1,444       1,836       491         144       635       935       1,244       2,446       1,324       1,767  
Severance expense     -       367       21         4       25       287       763       1,685       -       -  
Bankruptcy costs (post-emergence)     -       -       913         -       913       3,582       -       -       -       -  
Reorganization items, net     -       -       -         (51,036 )     (51,036 )     5,564       -       -       -       -  
Gain on extinguishment of debt     -       -       -         -       -       -       -       -       -       (18,238 )
Impairment charges     -       -       4,156         -       4,156       -       2,407       -       2,752       -  
Adjusted Net Loss     (25,698 )     (6,729 )     (869 )       (5,798 )     (6,667 )     (26,348 )     (33,330 )     (14,973 )     (40,600 )     (43,375 )


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 internal adjusted net income plan, the restructuring, including its impact and intended benefits, our strategic initiatives and long-term strategy, future results of operations and financial position, 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.

Investor Relations:

Vroom
Jon Sandison
investors@vroom.com

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

    Successor       Predecessor  
    As of
September 30,		       As of
December 31,		  
    2025       2024  
ASSETS              
Cash and cash equivalents   $ 12,412       $ 29,343  
Restricted cash (including restricted cash of consolidated VIEs of $54.3 million and $48.1 million, respectively)     55,026         49,026  
Finance receivables at fair value (including finance receivables of consolidated VIEs of $794.6 million and $467.3 million, respectively)     817,711         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 $12.5 million and $13.3 million, respectively)     12,825         14,067  
Property and equipment, net     5,636         4,064  
Intangible assets, net     12,846         104,869  
Operating lease right-of-use assets     6,065         6,872  
Other assets (including other assets of consolidated VIEs of $11.6 million and $10.8 million, respectively)     26,667         35,472  
Assets from discontinued operations     —         943  
Total assets   $ 949,188       $ 1,066,696  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)              
Warehouse credit facilities of consolidated VIEs   $ 269,773       $ 359,912  
Long-term debt (including securitization debt of consolidated VIEs of $458.9 million at fair value as of September 30, 2025 and $210.7 million at amortized cost and $142.6 million at fair value as of December 31, 2024)     492,144         381,366  
Related party note (Note 11)     10,000         —  
Operating lease liabilities     9,455         11,065  
Other liabilities (including other liabilities of consolidated VIEs of $16.5 million and $13.8 million, respectively)     41,016         49,699  
Liabilities subject to compromise (Note 6)     —         291,577  
Liabilities from discontinued operations     188         4,022  
Total liabilities     822,576         1,097,641  
Commitments and contingencies (Note 12)              
Stockholders’ equity (deficit):              
Common stock, $0.001 par value; 250,000,000 shares authorized as of September 30, 2025 and 500,000,000 shares authorized as of December 31, 2024; 5,199,599 and 1,822,532 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively     5         2  
Additional paid-in-capital     168,253         2,094,889  
Accumulated deficit     (41,646 )       (2,125,836 )
Total stockholders’ equity (deficit)     126,612         (30,945 )
Total liabilities and stockholders’ equity (deficit)   $ 949,188       $ 1,066,696  


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

    Successor       Predecessor  
    Three Months
Ended
September 30,		       Three Months
Ended
September 30,		  
    2025       2024  
Interest income   $ 44,829       $ 50,213  
               
Interest expense:              
Warehouse credit facility     4,544         6,251  
Securitization debt     8,771         9,096  
Total interest expense     13,315         15,347  
Net interest income     31,514         34,866  
               
Realized and unrealized losses, net of recoveries     43,202         38,346  
Net interest income after losses and recoveries     (11,688 )       (3,480 )
               
Noninterest income:              
Servicing income     1,088         1,495  
Warranties and GAP income, net     3,152         3,917  
CarStory revenue     1,347         2,890  
Other income     3,924         2,419  
Total noninterest income     9,511         10,721  
               
Expenses:              
Compensation and benefits     16,287         25,365  
Professional fees     1,538         1,587  
Software and IT costs     3,062         3,360  
Depreciation and amortization     998         7,105  
Interest expense on corporate debt     706         1,601  
Impairment charges     —         2,407  
Other expenses     2,230         3,436  
Total expenses     24,821         44,861  
               
Loss from continuing operations before provision for income taxes     (26,998 )       (37,620 )
Provision for income taxes from continuing operations     144         124  
Net loss from continuing operations   $ (27,142 )     $ (37,744 )
Net income (loss) from discontinued operations   $ 366       $ (1,999 )
Net loss   $ (26,776 )     $ (39,743 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted   $ (5.22 )     $ (20.88 )
Net income (loss) per share attributable to common stockholders, discontinued operations, basic and diluted   $ 0.07       $ (1.11 )
Total net loss per share attributable to common stockholders, basic and diluted   $ (5.15 )     $ (21.99 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted     5,199,581         1,807,398  


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

  Successor       Predecessor  
  Period from
January 15
through
September 30,		       Period from
January 1
through
January 14,		     Nine Months
Ended
September 30,		  
  2025       2025     2024  
Interest income $ 127,734       $ 7,183     $ 153,152  
                   
Interest expense:                  
Warehouse credit facility   12,421         1,017       22,708  
Securitization debt   25,202         1,178       21,960  
Total interest expense   37,623         2,195       44,668  
Net interest income   90,111         4,988       108,484  
                   
Realized and unrealized losses, net of recoveries   73,802         6,792       87,894  
Net interest income (loss) after losses and recoveries   16,309         (1,804 )     20,590  
                   
Noninterest income:                  
Servicing income   3,601         192       5,101  
Warranties and GAP income (loss), net   10,876         307       (4,347 )
CarStory revenue   5,585         432       8,782  
Other income   8,472         113       8,344  
Total noninterest income   28,534         1,044       17,880  
                   
Expenses:                  
Compensation and benefits   53,445         2,823       76,651  
Professional fees   8,898         297       6,418  
Software and IT costs   8,884         457       12,018  
Depreciation and amortization   2,315         1,057       21,963  
Interest expense on corporate debt   1,884         176       4,541  
Impairment charges   4,156         —       5,159  
Other expenses   7,433         371       12,853  
Total expenses   87,015         5,181       139,603  
                   
Loss from continuing operations before reorganization items and provision for income taxes   (42,172 )       (5,941 )     (101,133 )
Reorganization items, net   —         51,036       —  
(Loss) income from continuing operations before provision for income taxes   (42,172 )       45,095       (101,133 )
Provision for income taxes from continuing operations   353         5       393  
Net income (loss) from continuing operations $ (42,525 )     $ 45,090     $ (101,526 )
Net income (loss) from discontinued operations   878         (4 )     (27,024 )
Net (loss) income $ (41,647 )     $ 45,086     $ (128,550 )


  Successor       Predecessor  
  Period from
January 15
through
September 30,		       Period from
January 1
through
January 14,		     Nine Months
Ended
September 30,		  
  2025       2025     2024  
Net (loss) income per share attributable to common stockholders, basic:                  
Continuing operations   (8.21 )       24.74       (56.38 )
Discontinued operations   0.17         (0.00 )     (15.01 )
Basic $ (8.04 )     $ 24.74     $ (71.39 )
Net (loss) income per share attributable to common stockholders, diluted:                  
Continuing operations   (8.21 )       23.89       (56.38 )
Discontinued operations   0.17         (0.00 )     (15.01 )
Diluted $ (8.04 )     $ 23.89     $ (71.39 )
Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders:                  
Basic   5,179,023         1,822,541       1,800,729  
Diluted   5,179,023         1,887,371       1,800,729  


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

    Successor       Predecessor  
    Period from
January 15
through
September 30,		       Period from
January 1
through
January 14,		     Nine Months
Ended
September 30,		  
    2025       2025     2024  
Operating activities                    
Net (loss) income from continuing operations   $ (42,525 )     $ 45,090     $ (101,526 )
Adjustments to reconcile net (loss) income to net cash used in operating activities:                    
Impairment charges     4,156         —       5,159  
Profit share receivable     (260 )       —       10,899  
Depreciation and amortization     2,315         1,057       21,963  
Losses on finance receivables and securitization debt, net     85,752         4,762       96,556  
Losses on Warranties and GAP     5,416         407       6,226  
Stock-based compensation expense     3,771         144       4,949  
Provision to record finance receivables held for sale at lower of cost or fair value     —         —       (3,586 )
Amortization of unearned discounts on finance receivables at fair value     —         (416 )     (12,674 )
Non-cash reorganization items, net     —         (51,741 )     —  
Other, net     (967 )       193       (534 )
Changes in operating assets and liabilities:                    
Finance receivables, held for sale                    
Originations of finance receivables, held for sale     —         (14,337 )     (322,967 )
Principal payments received on finance receivables, held for sale     —         6,481       133,920  
Other     —         169       1,243  
Interest receivable     1,406         (164 )     460  
Other assets     1,336         5,178       13,955  
Other liabilities     (4,046 )       (2,627 )     (8,197 )
Net cash provided by (used in) operating activities from continuing operations     56,354         (5,804 )     (154,154 )
Net cash (used in) provided by operating activities from discontinued operations     (2,446 )       (207 )     79,257  
Net cash provided by (used in) operating activities     53,908         (6,011 )     (74,897 )
Investing activities                    
Finance receivables, held for investment at fair value                    
Purchases of finance receivables, held for investment at fair value     (319,736 )       —       —  
Principal payments received on finance receivables, held for investment at fair value     239,198         2,985       92,217  
Principal payments received on beneficial interests     1,135         147       1,953  
Purchase of property and equipment     (5,394 )       (151 )     (2,111 )
Net cash (used in) provided by investing activities from continuing operations     (84,797 )       2,981       92,059  
Net cash provided by investing activities from discontinued operations     637         —       15,908  
Net cash (used in) provided by investing activities     (84,160 )       2,981       107,967  
Financing activities                    
Proceeds from borrowings under secured financing agreements     307,780         —       296,145  
Principal repayment under secured financing agreements     (191,617 )       (16,676 )     (194,746 )
Proceeds from financing of beneficial interests in securitizations     16,223         —       15,821  
Principal repayments of financing of beneficial interests in securitizations     (10,335 )       (1,028 )     (9,958 )
Proceeds from warehouse credit facilities     256,000         11,900       257,200  
Repayments of warehouse credit facilities     (349,945 )       (8,094 )     (356,656 )
Proceeds from issuance of related party note     10,000         —       —  
Other financing activities     (1,857 )       —       (356 )
Net cash provided by (used in) financing activities from continuing operations     36,249         (13,898 )     7,450  
Net cash used in financing activities from discontinued operations     —         —       (151,178 )
Net cash provided by (used in) financing activities     36,249         (13,898 )     (143,728 )
Net increase (decrease) in cash, cash equivalents and restricted cash     5,997         (16,928 )     (110,658 )
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   $ 67,438       $ 61,441     $ 98,161  


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

Supplemental disclosure of cash flow information:                    
Cash paid for interest   $ 35,078       $ 4,534     $ 43,669  
Cash paid for reorganization items, net   $ —       $ 1,705     $ —  
Cash paid for income taxes   $ —       $ —     $ 351  



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Source: Vroom, Inc.