Vroom Announces Second Quarter 2025 Results
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 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
