Vroom Announces Second Quarter 2025 Results

Continued Progress on Operational Initiatives and Improved Portfolio Performance at UACC August 07, 2025 16:10 ET | Source: Vroom, Inc. 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, 2025Stockholders' 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 EndedJune 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 EndedJune 30, Six Months EndedJune 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 EndedJune 30, Six Months EndedJune 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) $527 100.0% Realized and unrealized losses, net of recoveries (1,422) (853) (569) 66.8%Net interest loss after losses and recoveries 1,422 325 1,096 336.8% Noninterest income: Warranties and GAP loss, net (28) (262) 234 89.3%Other income 54 853 (799) (93.7)%Total noninterest income 26 591 (565) (95.6)% Expenses: Compensation and benefits 2,067 4,176 (2,109) (50.5)%Professional fees 647 833 (186) (22.3)%Software and IT costs 729 1,410 (681) (48.3)%Interest expense on corporate debt — 920 (920) (100.0)%Other expenses 544 1,852 (1,308) (70.6)%Total expenses 3,987 9,191 (5,204) (56.6)% Provision for income taxes from continuing operations 26 39 (13) (33.3)% Successor Predecessor Non-GAAP Combined Predecessor Non-GAAP Non-GAAP Period from January 15 through June 30, Period from January 1 through January 14, Six Months EndedJune 30, Six Months EndedJune 30, 2025 2025 2025 2024 Change % Change (in thousands) Interest income (expense)$— $(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 EndedJune 30, Six Months EndedJune 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: VroomJon Sandisoninvestors@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 EndedJune 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 $(88,806) Successor Predecessor Period from January 15 through June 30, Period from January 1 through January 14, Six Months EndedJune 30, 2025 2025 2024 Net (loss) income per share attributable to common stockholders, basic: Continuing operations (2.98) 24.74 (35.49)Discontinued operations 0.10 (0.00) (13.92)Basic$(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 EndedJune 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

Vroom Announces Second Quarter 2025 Results

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