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Vroom Announces Second Quarter 2025 Results

Continued Progress on Operational Initiatives and Improved Portfolio Performance at UACC

NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Vroom, Inc. (Nasdaq:VRM) today announced financial results for the second quarter ended June 30, 2025.

HIGHLIGHTS OF SECOND QUARTER 2025

  • $55.9 million consolidated total available liquidity(1) as of June 30, 2025, consisting of:
    • $14.3 million cash and cash equivalents as of June 30, 2025
    • $16.6 million of liquidity available to UACC under the warehouse credit facilities as of June 30, 2025
    • $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
  • $(8.9) million net loss from continuing operations for the three months ended June 30, 2025
  • $(6.7) million Adjusted net loss(2) for the three months ended June 30, 2025
  • Stockholders' equity was $151.9 million as of June 30, 2025 and tangible book value(3) was $138.6 million as of June 30, 2025
(1)

Total available liquidity is a non-GAAP measure and represents $14.3 million of unrestricted cash and cash equivalents, as well as $16.6 million of availability from warehouse credit facilities and $25.0 million of 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 $151.9 million, excluding intangible assets of $13.3 million as of June 30, 2025.

Tom Shortt, Chief Executive Officer of Vroom, said, “In the second quarter of 2025, our net loss and Adjusted net loss decreased year over year, driven by continued focus on operational execution, efficiency and progress in loan portfolio performance at UACC.”

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 six months ended June 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 June 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 six months ended June 30, 2025, (prepared on a Non-GAAP basis) and six months ended June 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.

SECOND 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 June 30,       Three Months Ended June 30,        
    2025       2024     $ Change  
            (in thousands)        
Interest income   $ 45,748       $ 51,862     $ (6,114 )
                     
Interest expense:                    
Warehouse credit facility     3,259         6,986       (3,727 )
Securitization debt     9,883         7,995       1,888  
Total interest expense     13,142         14,981       (1,839 )
Net interest income     32,606         36,881       (4,275 )
                     
Realized and unrealized losses, net of recoveries     19,500         18,729       771  
Net interest income after losses and recoveries     13,106         18,152       (5,046 )
                     
Noninterest income:                    
Servicing income     1,259         1,587       (328 )
Warranties and GAP income (loss), net     3,645         1,378       2,267  
CarStory revenue     1,846         2,913       (1,067 )
Other income     2,067         3,141       (1,074 )
Total noninterest income     8,817         9,019       (202 )
                     
Expenses:                    
Compensation and benefits     21,091         27,176       (6,085 )
Professional fees     2,013         1,488       525  
Software and IT costs     3,420         4,036       (616 )
Depreciation and amortization     742         7,232       (6,490 )
Interest expense on corporate debt     698         1,549       (851 )
Other expenses     2,832         4,961       (2,129 )
Total expenses     30,796         46,442       (15,646 )
                     
Loss from continuing operations provision for income taxes     (8,873 )       (19,271 )     10,398  
Provision (benefit) for income taxes from continuing operations     59         (167 )     226  
Net loss from continuing operations   $ (8,932 )     $ (19,104 )   $ 10,172  
Net income (loss) from discontinued operations   $ 413       $ (2,084 )   $ 2,497  
Net loss   $ (8,519 )     $ (21,188 )   $ 12,669  


    Successor       Predecessor     Non-GAAP Combined     Predecessor        
    Period from January 15 through June 30,       Period from January 1 through January 14,     Six Months Ended
June 30,
   
Six Months Ended June 30,
    Non-GAAP  
    2025       2025     2025     2024     $ Change  
            (in thousands)              
Interest income   $ 82,905       $ 7,183     $ 90,088     $ 102,939     $ (12,851 )
                                 
Interest expense:                                
Warehouse credit facility     7,877         1,017       8,894       16,457       (7,563 )
Securitization debt     16,431         1,178       17,609       12,864       4,745  
Total interest expense     24,308         2,195       26,503       29,321       (2,818 )
Net interest income     58,597         4,988       63,585       73,618       (10,033 )
                                 
Realized and unrealized losses, net of recoveries     30,600         6,792       37,392       49,548       (12,156 )
Net interest income after losses and recoveries     27,997         (1,804 )     26,193       24,070       2,123  
                                 
Noninterest income:                                
Servicing income     2,513         192       2,705       3,606       (901 )
Warranties and GAP income (loss), net     7,724         307       8,031       (8,264 )     16,295  
CarStory revenue     4,238         432       4,670       5,892       (1,222 )
Other income     4,548         113       4,661       5,925       (1,264 )
Total noninterest income     19,023         1,044       20,067       7,159       12,908  
                                 
Expenses:                                
Compensation and benefits     37,158         2,823       39,981       51,286       (11,305 )
Professional fees     7,360         297       7,657       4,831       2,826  
Software and IT costs     5,822         457       6,279       8,658       (2,379 )
Depreciation and amortization     1,317         1,057       2,374       14,858       (12,484 )
Interest expense on corporate debt     1,178         176       1,354       2,940       (1,586 )
Impairment charges     4,156               4,156       2,752       1,404  
Other expenses     5,202         371       5,573       9,416       (3,843 )
Total expenses     62,193         5,181       67,374       94,741       (27,367 )
                                 
Loss from continuing operations before reorganization items and provision for income taxes     (15,173 )       (5,941 )     (21,114 )     (63,512 )     42,398  
Reorganization items, net             51,036       51,036             51,036  
Income (loss) from continuing operations before provision for income taxes     (15,173 )       45,095       29,922       (63,512 )     93,434  
Provision for income taxes from continuing operations     209         5       214       269       (55 )
Net income (loss) from continuing operations   $ (15,382 )     $ 45,090     $ 29,708     $ (63,781 )   $ 93,489  
Net income (loss) from discontinued operations   $ 512       $ (4 )   $ 508     $ (25,025 )   $ 25,533  
Net income (loss)   $ (14,870 )     $ 45,086     $ 30,216     $ (88,806 )   $ 119,022  


Results by Segment

UACC

  Successor       Predecessor              
  Three Months Ended June 30,       Three Months Ended June 30,              
  2025       2024     Change     % Change  
          (in thousands)              
Interest income $ 45,748       $ 52,389     $ (6,641 )     (12.7 )%
                         
Interest expense:                        
Warehouse credit facility   3,259         6,986       (3,727 )     (53.3 )%
Securitization debt   9,883         7,995       1,888       23.6 %
Total interest expense   13,142         14,981       (1,839 )     (12.3 )%
Net interest income   32,606         37,408       (4,802 )     (12.8 )%
                         
Realized and unrealized losses, net of recoveries   20,922         19,582       1,340       6.8 %
Net interest income after losses and recoveries   11,684         17,826       (6,142 )     (34.5 )%
                         
Noninterest income:                        
Servicing income   1,259         1,587       (328 )     (20.7 )%
Warranties and GAP income, net   3,673         1,640       2,033       124.0 %
Other income   1,978         2,098       (120 )     (5.7 )%
Total noninterest income   6,910         5,325       1,585       29.8 %
                         
Expenses:                        
Compensation and benefits   17,443         20,539       (3,096 )     (15.1 )%
Professional fees   1,433         575       858       149.2 %
Software and IT costs   2,688         2,605       83       3.2 %
Depreciation and amortization   628         5,630       (5,002 )     (88.8 )%
Interest expense on corporate debt   698         629       69       11.0 %
Other expenses   2,152         3,054       (902 )     (29.5 )%
Total expenses   25,042         33,032       (7,990 )     (24.2 )%
                         
Benefit for income taxes from continuing operations           (234 )     234       100.0 %
                         
Adjusted net loss $ (5,334 )     $ (8,289 )   $ 2,955       35.6 %
                         
Stock compensation expense $ 1,106       $ 865       241       27.8 %
Severance $ 7       $ 493       (486 )     (98.6 )%


  Successor       Predecessor     Non-GAAP Combined     Predecessor     Non-GAAP     Non-GAAP  
  Period from January 15 through June 30,       Period from January 1 through January 14,     Six Months Ended
June 30,
    Six Months Ended
June 30,
             
  2025       2025     2025     2024     Change     % Change  
          (in thousands)                    
Interest income $ 82,905       $ 7,254     $ 90,159     $ 103,930     $ (13,771 )     (13.2 )%
                                     
Interest expense:                                    
Warehouse credit facility   7,877         1,017       8,894       16,457       (7,563 )     (46.0 )%
Securitization debt   16,431         1,178       17,609       12,864       4,745       36.9 %
Total interest expense   24,308         2,195       26,503       29,321       (2,818 )     (9.6 )%
Net interest income   58,597         5,059       63,656       74,609       (10,953 )     (14.7 )%
                                     
Realized and unrealized losses, net of recoveries   33,612         7,647       41,259       47,343       (6,084 )     (12.9 )%
Net interest income (loss) after losses and recoveries   24,985         (2,588 )     22,397       27,266       (4,869 )     (17.9 )%
                                     
Noninterest income:                                    
Servicing income   2,513         192       2,705       3,606       (901 )     (25.0 )%
Warranties and GAP income, net   7,244         390       7,634       3,250       4,384       134.9 %
Other income   4,213         66       4,279       4,568       (289 )     (6.3 )%
Total noninterest income   13,970         648       14,618       11,424       3,194       28.0 %
                                     
Expenses:                                    
Compensation and benefits   31,137         2,398       33,535       39,327       (5,792 )     (14.7 )%
Professional fees   4,502         172       4,674       1,451       3,223       222.1 %
Software and IT costs   4,774         367       5,141       5,702       (561 )     (9.8 )%
Depreciation and amortization   1,107         817       1,924       11,651       (9,727 )     (83.5 )%
Interest expense on corporate debt   1,178         85       1,263       1,100       163       14.8 %
Impairment charges   3,479               3,479       2,752       727       26.4 %
Other expenses   3,822         262       4,084       5,577       (1,493 )     (26.8 )%
Total expenses   49,999         4,101       54,100       67,560       (13,460 )     (19.9 )%
                                     
Provision for income taxes from continuing operations   39               39       202       (163 )     (80.7 )%
                                     
Adjusted net loss $ (6,168 )     $ (5,910 )   $ (12,078 )   $ (24,795 )   $ 12,717       51.3 %
                                     
Stock compensation expense $ 1,282       $ 127     $ 1,408     $ 1,033       375       36.3 %
Severance $ 24       $ 4     $ 28     $ 493       (465 )     (94.4 )%


CarStory

  Successor         Predecessor              
  Three Months Ended June 30,         Three Months Ended June 30,              
  2025         2024     Change     % Change  
          (in thousands)          
Noninterest income:                          
CarStory revenue $ 1,846         $ 2,913     $ (1,067 )     (36.6 )%
Other income   35           190       (155 )     (81.6 )%
Total noninterest income   1,881           3,103       (1,222 )     (39.4 )%
                           
Expenses:                          
Compensation and benefits   1,581           2,461       (880 )     (35.8 )%
Professional fees   (67 )         80       (147 )     (183.8 )%
Software and IT costs   3           21       (18 )     (85.7 )%
Depreciation and amortization   114           1,602       (1,488 )     (92.9 )%
Other expenses   136           55       81       147.3 %
Total expenses   1,767           4,219       (2,452 )     (58.1 )%
                           
Provision for income taxes from continuing operations   33           28       5       17.9 %
                           
Adjusted net income (loss) $ 124         $ (1,068 )   $ 1,192       111.6 %
                           
Stock compensation expense $ 43         $ 76       (33 )     (43.3 )%


  Successor         Predecessor     Non-GAAP Combined     Predecessor     Non-GAAP     Non-GAAP  
  Period from January 15 through June 30,         Period from January 1 through January 14,    
Six Months Ended
June 30,
   
Six Months Ended
June 30,
             
  2025         2025     2025     2024     Change     % Change  
            (in thousands)                    
Noninterest income:                                      
CarStory revenue $ 4,238         $ 432     $ 4,670     $ 5,892     $ (1,222 )     (20.7 )%
Other income   97           13       110       363       (253 )     (69.7 )%
Total noninterest income   4,335           445       4,780       6,255       (1,475 )     (23.6 )%
                                       
Expenses:                                      
Compensation and benefits   2,941           326       3,267       4,674       (1,407 )     (30.1 )%
Professional fees   (67 )         13       (54 )     202       (256 )     (126.7 )%
Software and IT costs   3           2       5       188       (183 )     (97.3 )%
Depreciation and amortization   210           240       450       3,207       (2,757 )     (86.0 )%
Other expenses   274           20       294       173       121       69.9 %
Total expenses   3,361           601       3,962       8,444       (4,482 )     (53.1 )%
                                       
Provision for income taxes from continuing operations   49           5       54       67       (13 )     (19.4 )%
                                       
Adjusted net income (loss) $ 963         $ (153 )   $ 810     $ (1,980 )   $ 2,790       140.9 %
                                       
Stock compensation expense $ 30         $ 8     $ 38     $ 276       (238 )     (86.3 )%


Corporate

  Successor         Predecessor              
  Three Months Ended June 30,         Three Months Ended June 30,              
  2025         2024     Change     % Change  
          (in thousands)          
Interest expense $         $ (527 )   $ 527       100.0 %
                           
Realized and unrealized losses, net of recoveries   (1,422 )         (853 )     (569 )     66.8 %
Net interest loss after losses and recoveries   1,422           325       1,096       336.8 %
                           
Noninterest income:                          
Warranties and GAP loss, net   (28 )         (262 )     234       89.3 %
Other income   54           853       (799 )     (93.7 )%
Total noninterest income   26           591       (565 )     (95.6 )%
                           
Expenses:                          
Compensation and benefits   2,067           4,176       (2,109 )     (50.5 )%
Professional fees   647           833       (186 )     (22.3 )%
Software and IT costs   729           1,410       (681 )     (48.3 )%
Interest expense on corporate debt             920       (920 )     (100.0 )%
Other expenses   544           1,852       (1,308 )     (70.6 )%
Total expenses   3,987           9,191       (5,204 )     (56.6 )%
                           
Provision for income taxes from continuing operations   26           39       (13 )     (33.3 )%


  Successor         Predecessor     Non-GAAP Combined     Predecessor     Non-GAAP     Non-GAAP  
  Period from January 15 through June 30,         Period from January 1 through January 14,    
Six Months Ended
June 30,
   
Six Months Ended
June 30,
             
  2025         2025     2025     2024     Change     % Change  
            (in thousands)                    
Interest income (expense) $         $ (71 )   $ (71 )   $ (991 )   $ 920       92.8 %
                                       
Realized and unrealized losses (gains), net of recoveries   (3,012 )         (855 )     (3,867 )     2,205       (6,072 )     (275.4 )%
Net interest income after losses and recoveries   3,012           784       3,796       (3,196 )     6,992       218.8 %
                                       
Noninterest (loss) income:                                      
Warranties and GAP income (loss), net   480           (83 )     397       (11,514 )   $ 11,911       103.4 %
Other income   238           34       272       994       (722 )     (72.6 )%
Total noninterest (loss) income   718           (49 )     669       (10,520 )     11,189       106.4 %
                                       
Expenses:                                      
Compensation and benefits   3,080           99       3,179       7,285       (4,106 )     (56.4 )%
Professional fees   2,925           112       3,037       3,178       (141 )     (4.4 )%
Software and IT costs   1,045           88       1,133       2,768       (1,635 )     (59.1 )%
Interest expense on corporate debt             91       91       1,840       (1,749 )     (95.1 )%
Impairment expense   677                 677             677       100.0 %
Other expenses   1,106           89       1,195       3,666       (2,471 )     (67.4 )%
Total expenses   8,833           479       9,312       18,737       (9,425 )     (50.3 )%
                                       
Provision for income taxes from continuing operations   121                 121             121       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 Six Months Ended June 30, 2025

Our financial results for the periods from January 1, 2025 through January 14, 2025 and the three and six months ended June 30, 2024 are referred to as those of the “Predecessor” periods. Our financial results for the periods from January 15, 2025 through June 30, 2025 and the three months ended June 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 June 30, 2025 separately, management views our operating results for the six months ended June 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 June 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 six months ended June 30, 2025. The combined results for the six months ended June 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 June 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 six months ended June 30, 2025 (prepared on a Non-GAAP basis) and six months ended June 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 June 30,       Three Months Ended June 30,  
    2025       2024  
Net loss from continuing operations   $ (8,932 )     $ (19,104 )
Adjusted to exclude the following:              
Stock compensation expense     1,836         2,446  
Severance expense     367         1,685  
Adjusted net loss   $ (6,729 )     $ (14,973 )


    Successor       Predecessor     Non-GAAP Combined     Predecessor  
    Period from January 15 through June 30,       Period from January 1 through January 14,    
Six Months Ended
June 30,
   
Six Months Ended
June 30,
 
    2025       2025     2025     2024  
            (in thousands)        
Net income (loss) from continuing operations   $ (15,382 )     $ 45,090     $ 29,708     $ (63,781 )
Adjusted to exclude the following:                          
Stock compensation expense     2,327         144       2,471       3,770  
Severance expense     388         4       392       1,685  
Bankruptcy costs (post-emergence)     913               913        
Reorganization items, net             (51,036 )     (51,036 )      
Impairment charges     4,156               4,156       2,752  
Adjusted net loss   $ (7,598 )     $ (5,798 )   $ (13,396 )   $ (55,574 )


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.

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 June 30,       As of December 31,  
    2025       2024  
ASSETS              
Cash and cash equivalents   $ 14,262       $ 29,343  
Restricted cash (including restricted cash of consolidated VIEs of $52.0 million and $48.1 million, respectively)     52,901         49,026  
Finance receivables at fair value (including finance receivables of consolidated VIEs of $815.0 million and $467.3 million, respectively)     849,041         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)     13,047         14,067  
Property and equipment, net     3,955         4,064  
Intangible assets, net     13,321         104,869  
Operating lease right-of-use assets     6,336         6,872  
Other assets (including other assets of consolidated VIEs of $11.0 million and $10.8 million, respectively)     26,891         35,472  
Assets from discontinued operations             943  
Total assets   $ 979,754       $ 1,066,696  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)              
Warehouse credit facilities of consolidated VIEs   $ 205,822       $ 359,912  
Long-term debt (including securitization debt of consolidated VIEs of $526.7 million at fair value as of June 30, 2025 and $210.7 million at amortized cost and $142.6 million at fair value as of December 31, 2024)     563,702         381,366  
Operating lease liabilities     9,762         11,065  
Other liabilities (including other liabilities of consolidated VIEs of $17.3 million and $13.8 million, respectively)     46,252         49,699  
Liabilities subject to compromise (Note 6)             291,577  
Liabilities from discontinued operations     2,272         4,022  
Total liabilities     827,810         1,097,641  
Commitments and contingencies (Note 12)              
Stockholders’ equity (deficit) :              
Common stock, $0.001 par value; 250,000,000 shares authorized as of June 30, 2025 and 500,000,000 shares authorized as of December 31, 2024; 5,199,568 and 1,822,532 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively     5         2  
Additional paid-in-capital     166,809         2,094,889  
Accumulated deficit     (14,870 )       (2,125,836 )
Total stockholders’ equity (deficit)     151,944         (30,945 )
Total liabilities and stockholders’ equity (deficit)   $ 979,754       $ 1,066,696  


 
VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
 
    Successor       Predecessor  
    Three Months Ended June 30,       Three Months Ended June 30,  
    2025       2024  
Interest income   $ 45,748       $ 51,862  
               
Interest expense:              
Warehouse credit facility     3,259         6,986  
Securitization debt     9,883         7,995  
Total interest expense     13,142         14,981  
Net interest income     32,606         36,881  
               
Realized and unrealized losses, net of recoveries     19,500         18,729  
Net interest income after losses and recoveries     13,106         18,152  
               
Noninterest income:              
Servicing income     1,259         1,587  
Warranties and GAP income, net     3,645         1,378  
CarStory revenue     1,846         2,913  
Other income     2,067         3,141  
Total noninterest income     8,817         9,019  
               
Expenses:              
Compensation and benefits     21,091         27,176  
Professional fees     2,013         1,488  
Software and IT costs     3,420         4,036  
Depreciation and amortization     742         7,232  
Interest expense on corporate debt     698         1,549  
Other expenses     2,832         4,961  
Total expenses     30,796         46,442  
               
Loss from continuing operations before provision for income taxes     (8,873 )       (19,271 )
Provision (benefit) for income taxes from continuing operations     59         (167 )
Net loss from continuing operations   $ (8,932 )     $ (19,104 )
Net income (loss) from discontinued operations   $ 413       $ (2,084 )
Net loss   $ (8,519 )     $ (21,188 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted     (1.73 )     $ (10.61 )
Net income (loss) per share attributable to common stockholders, discontinued operations, basic and diluted     0.08         (1.16 )
Total net loss per share attributable to common stockholders, basic and diluted   $ (1.65 )     $ (11.77 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted     5,174,381         1,800,486  


 
VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(in thousands, except share and per share amounts)
(unaudited)
 
  Successor       Predecessor  
  Period from January 15 through June 30,       Period from January 1 through January 14,    
Six Months Ended
June 30,
 
  2025       2025     2024  
Interest income $ 82,905       $ 7,183     $ 102,939  
                   
Interest expense:                  
Warehouse credit facility   7,877         1,017       16,457  
Securitization debt   16,431         1,178       12,864  
Total interest expense   24,308         2,195       29,321  
Net interest income   58,597         4,988       73,618  
                   
Realized and unrealized losses, net of recoveries   30,600         6,792       49,548  
Net interest income (loss) after losses and recoveries   27,997         (1,804 )     24,070  
                   
Noninterest income:                  
Servicing income   2,513         192       3,606  
Warranties and GAP income (loss), net   7,724         307       (8,264 )
CarStory revenue   4,238         432       5,892  
Other income   4,548         113       5,925  
Total noninterest income   19,023         1,044       7,159  
                   
Expenses:                  
Compensation and benefits   37,158         2,823       51,286  
Professional fees   7,360         297       4,831  
Software and IT costs   5,822         457       8,658  
Depreciation and amortization   1,317         1,057       14,858  
Interest expense on corporate debt   1,178         176       2,940  
Impairment charges   4,156               2,752  
Other expenses   5,202         371       9,416  
Total expenses   62,193         5,181       94,741  
                   
Loss from continuing operations before reorganization items and provision for income taxes   (15,173 )       (5,941 )     (63,512 )
Reorganization items, net           51,036        
(Loss) income from continuing operations before provision for income taxes   (15,173 )       45,095       (63,512 )
Provision for income taxes from continuing operations   209         5       269  
Net income (loss) from continuing operations $ (15,382 )     $ 45,090     $ (63,781 )
Net income (loss) from discontinued operations $ 512       $ (4 )   $ (25,025 )
Net (loss) income $ (14,870 )     $ 45,086     $ (88,806 )


  Successor       Predecessor  
  Period from January 15 through June 30,       Period from January 1 through January 14,    
Six Months Ended
June 30,
 
  2025       2025     2024  
Net (loss) income per share attributable to common stockholders, basic:                  
Continuing operations   (2.98 )       24.74       (35.49 )
Discontinued operations   0.10         (0.00 )     (13.92 )
Basic $ (2.88 )     $ 24.74     $ (49.41 )
Net (loss) income per share attributable to common stockholders, diluted:                  
Continuing operations   (2.98 )       23.89       (35.49 )
Discontinued operations   0.10         (0.00 )     (13.92 )
Diluted $ (2.88 )     $ 23.89     $ (49.41 )
Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders:                  
Basic   5,169,251         1,822,541       1,797,394  
Diluted   5,169,251         1,887,371       1,797,394  


 
VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
    Successor       Predecessor  
    Period from January 15 through June 30,       Period from January 1 through January 14,    
Six Months Ended
June 30,
 
    2025       2025     2024  
Operating activities                    
Net (loss) income from continuing operations   $ (15,382 )     $ 45,090     $ (63,781 )
Adjustments to reconcile net (loss) income to net cash used in operating activities:                    
Impairment charges     4,156               2,752  
Profit share receivable     (78 )             11,405  
Depreciation and amortization     1,317         1,057       14,858  
Losses on finance receivables and securitization debt, net     40,357         4,762       65,255  
Losses on Warranties and GAP     3,709         407       4,175  
Stock-based compensation expense     2,327         144       3,937  
Provision to record finance receivables held for sale at lower of cost or fair value                   (4,434 )
Amortization of unearned discounts on finance receivables at fair value             (416 )     (9,772 )
Non-cash reorganization items, net             (51,741 )      
Other, net     (966 )       193       (2,845 )
Changes in operating assets and liabilities:                    
Finance receivables, held for sale                    
Originations of finance receivables, held for sale             (14,337 )     (231,639 )
Principal payments received on finance receivables, held for sale             6,481       85,905  
Other             169       2,811  
Interest receivable     1,184         (164 )     (489 )
Other assets     (1,836 )       5,178       5,605  
Other liabilities     457         (2,627 )     (9,740 )
Net cash provided by (used in) operating activities from continuing operations     35,245         (5,804 )     (125,997 )
Net cash (used in) provided by operating activities from discontinued operations     (729 )       (207 )     82,820  
Net cash provided by (used in) operating activities     34,516         (6,011 )     (43,177 )
Investing activities                    
Finance receivables, held for investment at fair value                    
Purchases of finance receivables, held for investment at fair value     (223,059 )              
Principal payments received on finance receivables, held for investment at fair value     158,482         2,985       65,523  
Principal payments received on beneficial interests     840         147       1,421  
Purchase of property and equipment     (3,190 )       (151 )     (926 )
Net cash (used in) provided by investing activities from continuing operations     (66,927 )       2,981       66,018  
Net cash provided by investing activities from discontinued operations     637               10,834  
Net cash (used in) provided by investing activities     (66,290 )       2,981       76,852  
Financing activities                    
Proceeds from borrowings under secured financing agreements     307,780               296,569  
Principal repayment under secured financing agreements     (120,548 )       (16,676 )     (135,017 )
Proceeds from financing of beneficial interests in securitizations     16,223               15,821  
Principal repayments of financing of beneficial interests in securitizations     (6,589 )       (1,028 )     (6,281 )
Proceeds from warehouse credit facilities     182,300         11,900       193,400  
Repayments of warehouse credit facilities     (340,196 )       (8,094 )     (343,884 )
Other financing activities     (1,474 )             (326 )
Net cash provided by (used in) financing activities from continuing operations     37,496         (13,898 )     20,282  
Net cash used in financing activities from discontinued operations                   (151,178 )
Net cash provided by (used in) financing activities     37,496         (13,898 )     (130,896 )
Net increase (decrease) in cash, cash equivalents and restricted cash     5,722         (16,928 )     (97,221 )
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   $ 67,163       $ 61,441     $ 111,598  


 
VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
 
Supplemental disclosure of cash flow information:                    
Cash paid for interest   $ 22,067       $ 4,534     $ 29,321  
Cash paid for reorganization items, net   $       $ 1,705     $  
Cash paid for income taxes   $ 606       $     $ 373  

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