Vroom Announces Third Quarter 2025 Results | VRM Stock News

11/10/2025 - 04:10 PM Continued Investment in our Long-Term Strategic PlanNEW YORK, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Vroom, Inc. (Nasdaq:VRM) today announced financial results for the third quarter ended September 30, 2025. HIGHLIGHTS OF THIRD QUARTER 2025 $59.2 million consolidated total available liquidity(1) as of September 30, 2025, consisting of: $12.4 million cash and cash equivalents$11.8 million of liquidity available to UACC under the warehouse credit facilities$35.0 million of available liquidity from delayed draw facility, further strengthening our liquidity position to execute our long-term strategy $(27.1) million net loss from continuing operations for the three months ended September 30, 2025$(25.7) millionadjusted net loss(2)for the three months endedSeptember 30, 2025 $(15.3) million unfavorable mark-to-market for the three months ended September 30, 2025 on the fair value portfolio$4.5 million favorable mark-to-market year to date on the fair value portfolio $94.3 million improvement in net loss and $66.8 million improvement in adjusted net loss(2) for the trailing twelve months ended September 30, 2025 compared to trailing twelve months ended September 30, 2024Stockholders' equity was $126.6 million as of September 30, 2025 and tangible book value(3) was $113.8 million as of September 30, 2025Full year expectations are in line with our original beginning of the year adjusted net loss plan of approximately $(56) million, prior to favorable mark-to-market movement in Q1 2025, now substantially offset by unfavorable mark-to-market movement in Q3 2025 (1) Total available liquidity is a non-GAAP measure and represents $12.4 million of unrestricted cash and cash equivalents, as well as $11.8 million of availability from warehouse credit facilities and $35.0 million of availability from delayed draw facility(2)Adjusted net income (loss) is a non-GAAP measure. For definitions and a reconciliation to the most comparable GAAP measure, please see Non-GAAP Financial Measures section below.(3)Tangible book value is a non-GAAP measure and represents total stockholders' equity of $126.6 million, excluding intangible assets of $12.8 million as of September 30, 2025. Tom Shortt, Chief Executive Officer of Vroom, said,“In the third quarter of 2025, our net loss and adjusted net loss decreased year-over-year, driven by our continued focus on our Long-Term Strategic Plan. During the third quarter, our team significantly improved our business intelligence engine and modernized our credit decision engine.” Fresh Start Accounting As a result of emerging from a voluntary proceeding (the “Prepackaged Chapter 11 Case”) under Chapter 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended from time to time, onJanuary 14, 2025, (the "Effective Date") and qualifying for the application of fresh-start accounting, at the Effective Date, Vroom’s assets and liabilities were recorded at their estimated fair values which, in some cases, are significantly different than amounts included in our financial statements prior to the Effective Date. Accordingly, our condensed consolidated financial statements after the Effective Date are not comparable with our condensed consolidated financial statements on or before that date. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to our financial position and results of operations on or before the Effective Date. The combined results (referenced as “Non-GAAP Combined” or “Combined”) for the nine months endedSeptember 30, 2025, represent the sum of the reported amounts for the Predecessor period fromJanuary 1, 2025, throughJanuary 14, 2025, and the Successor period fromJanuary 15, 2025, throughSeptember 30, 2025. These combined results are not considered to be prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and have not been prepared as pro forma results per applicable regulations. The combined operating results do not reflect the actual results we would have achieved absent our emergence from the Prepackaged Chapter 11 Case and are not necessarily indicative of future results. Accordingly, the results for the combined nine months endedSeptember 30, 2025, (prepared on a Non-GAAP basis) and nine months endedSeptember 30, 2024, (prepared on a GAAP basis) may not be comparable, particularly for statement of operations line items significantly impacted by the reorganization transactions and the impact of fresh start accounting. THIRD QUARTER 2025 FINANCIAL DISCUSSION All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited. SuccessorPredecessorThree Months Ended September30,Three Months Ended September30,20252024$ Change(in thousands)Interest income$44,829$50,213$(5,384)Interest expense:Warehouse credit facility4,5446,251(1,707)Securitization debt8,7719,096(325)Total interest expense13,31515,347(2,032)Net interest income31,51434,866(3,352)Realized and unrealized losses, net of recoveries43,20238,3464,856Net interest income after losses and recoveries(11,688)(3,480)(8,208)Noninterest income:Servicing income1,0881,495(407)Warranties and GAP income (loss), net3,1523,917(765)CarStory revenue1,3472,890(1,543)Other income3,9242,4191,505Total noninterest income9,51110,721(1,210)Expenses:Compensation and benefits16,28725,365(9,078)Professional fees1,5381,587(49)Software and IT costs3,0623,360(298)Depreciation and amortization9987,105(6,107)Interest expense on corporate debt7061,601(895)Impairment charges—2,407(2,407)Other expenses2,2303,436(1,206)Total expenses24,82144,861(20,040)Loss from continuing operations before provision for income taxes(26,998)(37,620)10,622Provision (benefit) for income taxes from continuing operations14412420Net loss from continuing operations$(27,142)$(37,744)$10,602Net income (loss) from discontinued operations$366$(1,999)$2,365Net loss$(26,776)$(39,743)$12,967 SuccessorPredecessorNon-GAAP CombinedPredecessorPeriod from January 15 through September 30,Period from January 1 through January 14,Nine MonthsEndedSeptember 30,Nine MonthsEndedSeptember30,Non-GAAP2025202520252024$ Change(in thousands)Interest income$127,734$7,183$134,917$153,152$(18,235)Interest expense:Warehouse credit facility12,4211,01713,43822,708(9,270)Securitization debt25,2021,17826,38021,9604,420Total interest expense37,6232,19539,81844,668(4,850)Net interest income90,1114,98895,099108,484(13,385)Realized and unrealized losses, net of recoveries73,8026,79280,59487,894(7,300)Net interest income after losses and recoveries16,309(1,804)14,50520,590(6,085)Noninterest income:Servicing income3,6011923,7935,101(1,308)Warranties and GAP income (loss), net10,87630711,183(4,347)15,530CarStory revenue5,5854326,0178,782(2,765)Other income8,4721138,5858,344241Total noninterest income28,5341,04429,57817,88011,698Expenses:Compensation and benefits53,4452,82356,26876,651(20,383)Professional fees8,8982979,1956,4182,777Software and IT costs8,8844579,34112,018(2,677)Depreciation and amortization2,3151,0573,37221,963(18,591)Interest expense on corporate debt1,8841762,0604,541(2,481)Impairment charges4,156—4,1565,159(1,003)Other expenses7,4333717,80412,853(5,049)Total expenses87,0155,18192,196139,603(47,407)Loss from continuing operations before reorganization items and provision for income taxes(42,172)(5,941)(48,113)(101,133)53,020Reorganization items, net—51,03651,036—51,036Income (loss) from continuing operations before provision for income taxes(42,172)45,0952,923(101,133)104,056Provision for income taxes from continuing operations3535358393(35)Net income (loss) from continuing operations$(42,525)$45,090$2,565$(101,526)$104,091Net income (loss) from discontinued operations$878$(4)$874$(27,024)$27,898Net income (loss)$(41,647)$45,086$3,439$(128,550)$131,989 Results by Segment UACC SuccessorPredecessorThree Months Ended September30,Three Months EndedSeptember30,20252024Change% Change(in thousands)Interest income$44,829$50,801$(5,972)(11.8)%Interest expense:Warehouse credit facility4,5446,251(1,707)(27.3)%Securitization debt8,7719,096(325)(3.6)%Total interest expense13,31515,347(2,032)(13.2)%Net interest income31,51435,454(3,940)(11.1)%Realized and unrealized losses, net of recoveries43,55030,11713,43344.6%Net interest income after losses and recoveries(12,036)5,337(17,373)(325.5)%Noninterest income:Servicing income1,0881,495(407)(27.2)%Warranties and GAP income, net2,8552,07478137.7%Other income1,8831,69818510.9%Total noninterest income5,8265,26755910.6%Expenses:Compensation and benefits14,07219,819(5,747)(29.0)%Professional fees826875(49)(5.6)%Software and IT costs2,5022,3461566.6%Depreciation and amortization8875,505(4,618)(83.9)%Interest expense on corporate debt664681(17)(2.5)%Impairment charges—2,407(2,407)(100.0)%Other expenses1,7361,991(255)(12.8)%Total expenses20,68733,624(12,937)(38.5)%Benefit for income taxes from continuing operations—99(99)(100.0)%Adjusted net loss$(25,784)$(19,857)$(5,927)29.8%Stock compensation expense$1,112$834$27833.3%Severance$-$20$(20)(100.0)% SuccessorPredecessorNon-GAAP CombinedPredecessorNon-GAAPNon-GAAPPeriod from January 15through September 30,Period fromJanuary 1 through January 14,Nine MonthsEndedSeptember30,Nine MonthsEndedSeptember30,2025202520252024Change% Change(in thousands)Interest income$127,734$7,254$134,988$154,731$(19,743)(12.8)%Interest expense:Warehouse credit facility12,4211,01713,43822,708(9,270)(40.8)%Securitization debt25,2021,17826,38021,9604,42020.1%Total interest expense37,6232,19539,81844,668(4,850)(10.9)%Net interest income90,1115,05995,170110,063(14,893)(13.5)%Realized and unrealized losses, net of recoveries75,1237,64782,77077,4605,3106.9%Net interest income (loss) after losses and recoveries14,988(2,588)12,40032,603(20,203)(62.0)%Noninterest income:Servicing income3,6011923,7935,101(1,308)(25.6)%Warranties and GAP income, net10,09939010,4895,3245,16597.0%Other income6,096666,1626,266(104)(1.7)%Total noninterest income19,79664820,44416,6913,75322.5%Expenses:Compensation and benefits45,2092,39847,60759,146(11,539)(19.5)%Professional fees5,3281725,5002,3263,174136.5%Software and IT costs7,2763677,6438,048(405)(5.0)%Depreciation and amortization1,9948172,81117,156(14,345)(83.6)%Interest expense on corporate debt1,842851,9271,7811468.2%Impairment charges3,479—3,4795,159(1,680)(32.6)%Other expenses5,5582625,8207,569(1,749)(23.1)%Total expenses70,6864,10174,787101,185(26,398)(26.1)%Provision for income taxes from continuing operations39—39301(262)(87.0)%Adjusted net loss$(29,913)$(5,910)$(35,823)$(44,652)$8,82919.8%Stock compensation expense$2,521$127$2,647$1,867$78041.8%Severance$28$4$31$513$(482)(93.9)% CarStory SuccessorPredecessorThree Months Ended September30,Three Months EndedSeptember30,20252024Change% Change(in thousands)Noninterest income:CarStory revenue$1,347$2,890$(1,543)(53.4)%Other income35199(164)(82.4)%Total noninterest income1,3823,089(1,707)(55.3)%Expenses:Compensation and benefits1,3783,127(1,749)(55.9)%Professional fees(108)(112)43.6%Software and IT costs(4)17(21)(123.5)%Depreciation and amortization1111,600(1,489)(93.1)%Other expenses100127(27)(21.3)%Total expenses1,4774,759(3,282)(69.0)%Provision for income taxes from continuing operations2425(1)(4.0)%Adjusted net income (loss)$(72)$(1,636)$1,56495.6%Stock compensation expense$47$59$(12)(20.6)% SuccessorPredecessorNon-GAAP CombinedPredecessorNon-GAAPNon-GAAPPeriod from January 15 through September 30,Period from January 1through January 14,Nine MonthsEndedSeptember30,Nine MonthsEndedSeptember30,2025202520252024Change% Change(in thousands)Noninterest income:CarStory revenue$5,585$432$6,017$8,782$(2,765)(31.5)%Other income13213145562(417)(74.2)%Total noninterest income5,7174456,1629,344(3,182)(34.1)%Expenses:Compensation and benefits4,3193264,6457,802(3,157)(40.5)%Professional fees(175)13(162)90(252)(280.0)%Software and IT costs(1)21205(204)(99.5)%Depreciation and amortization3212405614,807(4,246)(88.3)%Other expenses374203943009431.3%Total expenses4,8386015,43913,204(7,765)(58.8)%Provision for income taxes from continuing operations7357892(14)(15.2)%Adjusted net income (loss)$890$(153)$737$(3,618)$4,355120.4%Stock compensation expense$81$8$89$334$(246)(73.5)% Corporate SuccessorPredecessorThree MonthsEnded September30,Three MonthsEnded September30,20252024Change% Change(in thousands)Interest expense$—$(588)$588100.0%Realized and unrealized losses, net of recoveries(348)8,229(8,577)(104.2)%Net interest loss after losses and recoveries348(8,817)9,165103.9%Noninterest income:Warranties and GAP income, net2971,843(1,546)(83.9)%Other income2,0065221,484284.3%Total noninterest income2,3032,365(62)(2.6)%Expenses:Compensation and benefits8372,419(1,582)(65.4)%Professional fees820824(4)(0.5)%Software and IT costs564997(433)(43.4)%Interest expense on corporate debt42920(878)(95.4)%Other expenses3941,318(924)(70.1)%Total expenses2,6576,478(3,821)(59.0)%Provision for income taxes from continuing operations120—120100.0% SuccessorPredecessorNon-GAAP CombinedPredecessorNon-GAAPNon-GAAPPeriod fromJanuary 15throughSeptember 30,Period from January 1 through January 14,Nine Months EndedSeptember30,Nine MonthsEndedSeptember30,2025202520252024Change% Change(in thousands)Interest income (expense)$—$(71)$(71)$(1,579)$1,50895.5%Realized and unrealized losses (gains), net of recoveries(1,321)(855)(2,176)10,434(12,610)(120.9)%Net interest income after losses and recoveries1,3217842,105(12,013)14,119117.5%Noninterest (loss) income:Warranties and GAP income (loss), net777(83)694(9,671)10,365107.2%Other income2,244342,2781,51676250.2%Total noninterest (loss) income3,021(49)2,972(8,155)11,127136.4%Expenses:Compensation and benefits3,917994,0169,703(5,687)(58.6)%Professional fees3,7451123,8574,002(145)(3.6)%Software and IT costs1,609881,6973,765(2,068)(54.9)%Interest expense on corporate debt42911332,760(2,627)(95.2)%Impairment expense677—677—677100.0%Other expenses1,501891,5904,984(3,394)(68.1)%Total expenses11,49147911,97025,214(13,244)(52.5)%Provision for income taxes from continuing operations241—241—241100.0% Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: Adjusted net income (loss), total available liquidity, and tangible book value. Adjusted net income (loss) is a supplemental performance measure that our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted net income (loss) facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. Tangible book value is calculated as stockholders' equity in accordance with GAAP, after subtracting intangible assets. A reconciliation of stockholders' equity to tangible book value is included above. Total available liquidity represents unrestricted cash and cash equivalents, availability from warehouse credit facilities and availability from line of credit secured by residual certificates. These non-GAAP measures have limitations as analytical tools because they do not reflect all of the amounts associated with our results of operations or liquidity as determined in accordance with GAAP. Additionally, they may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for those comparative purposes. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with GAAP. The presentation of these non-GAAP financial measures are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures elsewhere herein. Non-GAAP Combined Nine Months Ended September30, 2025 Our financial results for the periods from January 1, 2025 through January 14, 2025 and the three and nine months ended September30, 2024 are referred to as those of the “Predecessor” periods. Our financial results for the periods from January 15, 2025 through September30, 2025 and the three months ended September30, 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 September30, 2025, separately, management views our operating results for the nine months ended September30, 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 September30, 2025 against any of the previous periods reported in our Condensed Consolidated Financial Statements without combining it with the period from January 1, 2025 through January 14, 2025 and we do not believe that reviewing the results of this period in isolation would be useful in identifying trends in or reaching conclusions regarding our overall operating performance. Management believes that the key performance metrics for the Successor period when combined with the Predecessor period provide more meaningful comparisons to other periods and are useful in identifying current business trends. Accordingly, in addition to presenting our results of operations as reported in our Condensed Consolidated Financial Statements in accordance with GAAP, the tables and discussion below also present the combined results for the nine months ended September30, 2025. The combined results for the nine months ended September30, 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 September30, 2025. These combined results are not considered to be prepared in accordance with GAAP and have not been prepared as pro forma results per applicable regulations. The combined operating results do not reflect the actual results we would have achieved absent our emergence from the Prepackaged Chapter 11 Case and are not necessarily indicative of future results. Accordingly, the results for the combined nine months ended September30, 2025 (prepared on a Non-GAAP basis) and nine months ended September30, 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): SuccessorPredecessorThree Months Ended September30,Three Months Ended September30,20252024Net loss from continuing operations$(27,142)$(37,744)Adjusted to exclude the following:Stock compensation expense1,4441,244Severance expense—763Impairment charges—2,407Adjusted net loss$(25,698)$(33,330) SuccessorPredecessorNon-GAAP CombinedPredecessorPeriod fromJanuary 15 through September 30,Period from January 1through January 14,Nine MonthsEndedSeptember30,Nine MonthsEndedSeptember30,2025202520252024(in thousands)Net income (loss) from continuing operations$(42,525)$45,090$2,565$(101,526)Adjusted to exclude the following:Stock compensation expense3,7711443,9155,014Severance expense38843922,448Bankruptcy costs (post-emergence)913—913—Reorganization items, net—(51,036)(51,036)—Impairment charges4,156—4,1565,159Adjusted net loss$(33,297)$(5,798)$(39,095)$(88,905) SuccessorSuccessorSuccessorPredecessorNon-GAAP CombinedPredecessorPredecessorPredecessorPredecessorPredecessorPeriod from July 1 through September 30,Period from April 1 through June 30,Period fromJanuary 15 through March31,Period from January 1 through January 14,Three Months EndedMarch 31,Three Months EndedDecember 31,Three Months EndedSeptember 30,Three Months EndedJune 30,Three Months EndedMarch 31,Three Months EndedDecember 31,2025202520252025202520242024202420242023Net income (loss) from continuing operations(27,142)(8,932)(6,450)45,09038,640(36,716)(37,744)(19,104)(44,676)(26,904)Stock compensation expense1,4441,8364911446359351,2442,4461,3241,767Severance expense-367214252877631,685--Bankruptcy costs (post-emergence)--913-9133,582----Reorganization items, net---(51,036)(51,036)5,564----Gain on extinguishment of debt---------(18,238)Impairment charges--4,156-4,156-2,407-2,752-Adjusted Net Loss(25,698)(6,729)(869)(5,798)(6,667)(26,348)(33,330)(14,973)(40,600)(43,375) About Vroom (Nasdaq: VRM) Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. Prior to January 2024, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our internal adjusted net income plan, the restructuring, including its impact and intended benefits, our strategic initiatives and long-term strategy, future results of operations and financial position, adjusted net income (loss) and our total available liquidity, and the timing of any of the foregoing. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Investor Relations: VroomJon Sandisoninvestors@vroom.com VROOM, INC.CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts)(unaudited) SuccessorPredecessorAs of September 30,As of December 31,20252024ASSETSCash and cash equivalents$12,412$29,343Restricted cash (including restricted cash of consolidated VIEs of $54.3 million and $48.1 million, respectively)55,02649,026Finance receivables at fair value (including finance receivables of consolidated VIEs of $794.6 million and $467.3 million, respectively)817,711503,848Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $0.0 and $310.0 million, respectively)—318,192Interest receivable (including interest receivables of consolidated VIEs of $12.5 million and $13.3 million, respectively)12,82514,067Property and equipment, net5,6364,064Intangible assets, net12,846104,869Operating lease right-of-use assets6,0656,872Other assets (including other assets of consolidated VIEs of $11.6 million and $10.8 million, respectively)26,66735,472Assets from discontinued operations—943Total assets$949,188$1,066,696LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)Warehouse credit facilities of consolidated VIEs$269,773$359,912Long-term debt (including securitization debt of consolidated VIEs of $458.9 million at fair value as of September 30, 2025 and $210.7 million at amortized cost and $142.6 million at fair value as of December 31, 2024)492,144381,366Related party note (Note 11)10,000—Operating lease liabilities9,45511,065Other liabilities (including other liabilities of consolidated VIEs of $16.5 million and $13.8 million, respectively)41,01649,699Liabilities subject to compromise (Note 6)—291,577Liabilities from discontinued operations1884,022Total liabilities822,5761,097,641Commitments and contingencies (Note 12)Stockholders’ equity (deficit):Common stock, $0.001 par value; 250,000,000 shares authorized as of September 30, 2025 and 500,000,000 shares authorized as of December 31, 2024; 5,199,599 and 1,822,532 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively52Additional paid-in-capital168,2532,094,889Accumulated deficit(41,646)(2,125,836)Total stockholders’ equity (deficit)126,612(30,945)Total liabilities and stockholders’ equity (deficit)$949,188$1,066,696 VROOM, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share amounts)(unaudited) SuccessorPredecessorThree Months Ended September30,Three Months Ended September30,20252024Interest income$44,829$50,213Interest expense:Warehouse credit facility4,5446,251Securitization debt8,7719,096Total interest expense13,31515,347Net interest income31,51434,866Realized and unrealized losses, net of recoveries43,20238,346Net interest income after losses and recoveries(11,688)(3,480)Noninterest income:Servicing income1,0881,495Warranties and GAP income, net3,1523,917CarStory revenue1,3472,890Other income3,9242,419Total noninterest income9,51110,721Expenses:Compensation and benefits16,28725,365Professional fees1,5381,587Software and IT costs3,0623,360Depreciation and amortization9987,105Interest expense on corporate debt7061,601Impairment charges—2,407Other expenses2,2303,436Total expenses24,82144,861Loss from continuing operations before provision for income taxes(26,998)(37,620)Provision for income taxes from continuing operations144124Net loss from continuing operations$(27,142)$(37,744)Net income (loss) from discontinued operations$366$(1,999)Net loss$(26,776)$(39,743)Net loss per share attributable to common stockholders, continuing operations, basic and diluted$(5.22)$(20.88)Net income (loss) per share attributable to common stockholders, discontinued operations, basic and diluted$0.07$(1.11)Total net loss per share attributable to common stockholders, basic and diluted$(5.15)$(21.99)Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted5,199,5811,807,398 VROOM, INC.CONSOLIDATED STATEMENTS OF OPERATIONS (continued)(in thousands, except share and per share amounts)(unaudited) SuccessorPredecessorPeriod from January 15 through September 30,Period from January 1 through January 14,Nine Months EndedSeptember 30,202520252024Interest income$127,734$7,183$153,152Interest expense:Warehouse credit facility12,4211,01722,708Securitization debt25,2021,17821,960Total interest expense37,6232,19544,668Net interest income90,1114,988108,484Realized and unrealized losses, net of recoveries73,8026,79287,894Net interest income (loss) after losses and recoveries16,309(1,804)20,590Noninterest income:Servicing income3,6011925,101Warranties and GAP income (loss), net10,876307(4,347)CarStory revenue5,5854328,782Other income8,4721138,344Total noninterest income28,5341,04417,880Expenses:Compensation and benefits53,4452,82376,651Professional fees8,8982976,418Software and IT costs8,88445712,018Depreciation and amortization2,3151,05721,963Interest expense on corporate debt1,8841764,541Impairment charges4,156—5,159Other expenses7,43337112,853Total expenses87,0155,181139,603Loss from continuing operations before reorganization items and provision for income taxes(42,172)(5,941)(101,133)Reorganization items, net—51,036—(Loss) income from continuing operations before provision for income taxes(42,172)45,095(101,133)Provision for income taxes from continuing operations3535393Net income (loss) from continuing operations$(42,525)$45,090$(101,526)Net income (loss) from discontinued operations878(4)(27,024)Net (loss) income$(41,647)$45,086$(128,550) SuccessorPredecessorPeriod from January 15 through September 30,Period from January 1 through January 14,Nine Months EndedSeptember30,202520252024Net (loss) income per share attributable to common stockholders, basic:Continuing operations(8.21)24.74(56.38)Discontinued operations0.17(0.00)(15.01)Basic$(8.04)$24.74$(71.39)Net (loss) income per share attributable to common stockholders, diluted:Continuing operations(8.21)23.89(56.38)Discontinued operations0.17(0.00)(15.01)Diluted$(8.04)$23.89$(71.39)Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders:Basic5,179,0231,822,5411,800,729Diluted5,179,0231,887,3711,800,729 VROOM, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) SuccessorPredecessorPeriod from January 15 through September 30,Period from January 1 through January 14,Nine Months EndedSeptember 30,202520252024Operating activitiesNet (loss) income from continuing operations$(42,525)$45,090$(101,526)Adjustments to reconcile net (loss) income to net cash used in operating activities:Impairment charges4,156—5,159Profit share receivable(260)—10,899Depreciation and amortization2,3151,05721,963Losses on finance receivables and securitization debt, net85,7524,76296,556Losses on Warranties and GAP5,4164076,226Stock-based compensation expense3,7711444,949Provision to record finance receivables held for sale at lower of cost or fair value——(3,586)Amortization of unearned discounts on finance receivables at fair value—(416)(12,674)Non-cash reorganization items, net—(51,741)—Other, net(967)193(534)Changes in operating assets and liabilities:Finance receivables, held for saleOriginations of finance receivables, held for sale—(14,337)(322,967)Principal payments received on finance receivables, held for sale—6,481133,920Other—1691,243Interest receivable1,406(164)460Other assets1,3365,17813,955Other liabilities(4,046)(2,627)(8,197)Net cash provided by (used in) operating activities from continuing operations56,354(5,804)(154,154)Net cash (used in) provided by operating activities from discontinued operations(2,446)(207)79,257Net cash provided by (used in) operating activities53,908(6,011)(74,897)Investing activitiesFinance receivables, held for investment at fair valuePurchases of finance receivables, held for investment at fair value(319,736)——Principal payments received on finance receivables, held for investment at fair value239,1982,98592,217Principal payments received on beneficial interests1,1351471,953Purchase of property and equipment(5,394)(151)(2,111)Net cash (used in) provided by investing activities from continuing operations(84,797)2,98192,059Net cash provided by investing activities from discontinued operations637—15,908Net cash (used in) provided by investing activities(84,160)2,981107,967Financing activitiesProceeds from borrowings under secured financing agreements307,780—296,145Principal repayment under secured financing agreements(191,617)(16,676)(194,746)Proceeds from financing of beneficial interests in securitizations16,223—15,821Principal repayments of financing of beneficial interests in securitizations(10,335)(1,028)(9,958)Proceeds from warehouse credit facilities256,00011,900257,200Repayments of warehouse credit facilities(349,945)(8,094)(356,656)Proceeds from issuance of related party note10,000——Other financing activities(1,857)—(356)Net cash provided by (used in) financing activities from continuing operations36,249(13,898)7,450Net cash used in financing activities from discontinued operations——(151,178)Net cash provided by (used in) financing activities36,249(13,898)(143,728)Net increase (decrease) in cash, cash equivalents and restricted cash5,997(16,928)(110,658)Cash, cash equivalents and restricted cash at the beginning of period61,44178,369208,819Cash, cash equivalents and restricted cash at the end of period$67,438$61,441$98,161 VROOM, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)(in thousands)(unaudited) Supplemental disclosure of cash flow information:Cash paid for interest$35,078$4,534$43,669Cash paid for reorganization items, net$—$1,705$—Cash paid for income taxes$—$—$351