Vroom Announces Second Quarter 2025 Results

Rhea-AI Summary

Vroom (NASDAQ:VRM) reported Q2 2025 financial results, showing continued progress in operational initiatives and improved portfolio performance at UACC. The company posted a net loss from continuing operations of $8.9 million, significantly improved from a $19.1 million loss in Q2 2024. Key financial metrics include consolidated total available liquidity of $55.9 million and stockholders' equity of $151.9 million.

The results reflect Vroom's post-bankruptcy performance, following its emergence from Chapter 11 proceedings on January 14, 2025. The company's financial statements incorporate fresh-start accounting, making year-over-year comparisons complex. Notable improvements include reduced interest expenses, lower operating costs, and enhanced portfolio performance at UACC, though interest income declined by 12.7% year-over-year.

Positive

• Net loss from continuing operations improved by $10.2 million year-over-year
• Total expenses reduced by $15.6 million compared to Q2 2024
• Warranties and GAP income increased by 124% to $3.7 million
• Interest expense decreased by 12.3% to $13.1 million

Negative

• Interest income declined 12.7% year-over-year to $45.7 million
• Net interest income after losses decreased by 34.5% to $11.7 million
• CarStory revenue dropped 36.6% to $1.8 million
• Realized and unrealized losses increased by 6.8% to $20.9 million

Insights

Financial Analyst

Vroom shows narrowing losses and improved liquidity despite challenging financial position following bankruptcy reorganization.

Vroom's Q2 2025 results show the company is making incremental progress in its post-bankruptcy recovery, with net losses from continuing operations narrowing to $8.9 million from $19.1 million in Q2 2024. This 53% improvement signals better operational execution, though the company remains unprofitable. Total available liquidity stands at $55.9 million, providing some breathing room for continued operations.

The company's financial health indicators show a mixed picture. On one hand, UACC (United Auto Credit Corporation) - Vroom's auto finance segment - showed a 35.6% improvement in adjusted net loss year-over-year. On the other hand, interest income declined by 12.7%, suggesting a shrinking loan portfolio. The reduction in warehouse credit facility expenses by 53.3% indicates decreased borrowing needs, which is positive for cash preservation.

Notably, warranties and GAP income showed significant improvement, increasing 124% year-over-year for the quarter. This suggests better underwriting or pricing in these ancillary products. Simultaneously, cost reductions are evident across multiple categories, with total expenses down 24.2% at UACC and 58.1% at CarStory (Vroom's data analytics segment).

The company's tangible book value of $138.6 million and stockholders' equity of $151.9 million provide a foundation for potential recovery, though investors should note that Vroom emerged from Chapter 11 bankruptcy in January 2025, and these financials reflect fresh start accounting - making year-over-year comparisons complex. The narrowing losses indicate management's cost-cutting efforts are having an impact, but achieving sustainable profitability remains a significant challenge.

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

FAQ

What was Vroom's (VRM) net loss in Q2 2025?

Vroom reported a net loss from continuing operations of $8.9 million for Q2 2025, improved from a $19.1 million loss in Q2 2024.

How much liquidity does Vroom (VRM) have as of June 2025?

Vroom had total available liquidity of $55.9 million, consisting of $14.3 million in cash, $16.6 million available under warehouse facilities, and $25.0 million from a line of credit.

What was Vroom's stockholders' equity in Q2 2025?

Vroom's stockholders' equity was $151.9 million with a tangible book value of $138.6 million as of June 30, 2025.

How did Vroom's UACC segment perform in Q2 2025?

UACC's performance showed mixed results with interest income declining 12.7% but improved efficiency as total expenses decreased by 24.2% year-over-year.

When did Vroom emerge from bankruptcy?

Vroom emerged from its Prepackaged Chapter 11 Case on January 14, 2025, implementing fresh-start accounting from that date.