EX-99.1 2 vrm-ex99_1.htm EX-99.1 EX-99.1

img63169428_0.jpg

Exhibit 99.1

 

Vroom Announces First Quarter 2026 Results

$98.4 million stockholders' equity as of March 31, 2026

NEW YORK – May 14, 2026 – Vroom, Inc. (Nasdaq:VRM) today announced financial results for the first quarter ended March 31, 2026.

 

HIGHLIGHTS OF FIRST QUARTER 2026

•
$98.4 million stockholders' equity as of March 31, 2026 and $86.5 million tangible book value(1) as of March 31, 2026
•
$56.4 million consolidated total available liquidity(2) as of March 31, 2026, consisting of:
o
$14.5 million cash and cash equivalents
o
$14.9 million of liquidity available to UACC under the warehouse credit facilities
o
$27.0 million of available liquidity from delayed draw facility, further strengthening our liquidity position to execute our long-term strategy
•
$22.5 million preferred stock issued by Vroom Automotive LLC to SPE Holdings in January 2026
•
$(19.6) million net loss attributable to controlling interest and common shareholders for the first quarter 2026
•
$(18.2) million adjusted net loss(3) for the first quarter 2026
•
$11.7 million increase in net loss and $20.6 million decrease in adjusted net loss(3) for the trailing twelve months ended March 31, 2026 compared to trailing twelve months ended March 31, 2025
•
$25.0 to $30.0 million updated full year adjusted net loss guidance(4)
•
$28.5 million existing notes expected to be exchanged for $50.0 million new Senior Secured Delayed Draw Convertible Note due 2032, expected to close in June 2026

(1)

 

Tangible book value is a non-GAAP measure and represents total stockholders' equity of $98.4 million, excluding intangible assets of $11.9 million as of March 31, 2026.

(2)

Total available liquidity is a non-GAAP measure and represents $14.5 million of unrestricted cash and cash equivalents, as well as $14.9 million of availability from warehouse credit facilities and $27.0 million of availability from delayed draw facility.

(3)

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.

(4)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for the full year 2026 Financial Outlook is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future. We have provided a reconciliation of GAAP to non-GAAP financial measures for historical periods in the reconciliation table in the Non-GAAP Financial Measures above.

 

Tom Shortt, Chief Executive Officer of Vroom, said, “During the first quarter 2026 we introduced our new dealer portal Fast Lane, on the same state-of-the-art technology platform as our Credit Decision Engine which was implemented in 2025. We continue to make technology investments and are excited about the additional value we can bring to dealers and consumers as we continue to add new functionality to this platform. Early performance indicators and multivariate loss projections indicate strong performance from vintages underwritten since Q3 2025 under this new model.”

 

 

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 consolidated financial statements after the Effective Date are not comparable with our 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 three months ended March 31, 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 March 31, 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 three months ended March 31, 2025, (prepared on a Non-GAAP basis) and three months ended March 31, 2026, (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.

2

 

FIRST QUARTER 2026 FINANCIAL DISCUSSION

All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.

 

 

Successor

 

 

 

Predecessor

 

 

Non-GAAP Combined

 

 

Non-GAAP

 

 

Non-GAAP

 

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three months ended March 31,

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

 

 

2025

 

 

2025

 

 

$ Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

42,476

 

 

$

37,157

 

 

 

$

7,183

 

 

$

44,340

 

 

$

(1,864

)

 

 

(4.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

 

3,439

 

 

 

4,618

 

 

 

 

1,017

 

 

 

5,635

 

 

 

(2,196

)

 

 

(39.0

)%

Securitization debt

 

 

8,620

 

 

 

6,548

 

 

 

 

1,178

 

 

 

7,726

 

 

 

894

 

 

 

11.6

%

Total interest expense

 

 

12,059

 

 

 

11,166

 

 

 

 

2,195

 

 

 

13,361

 

 

 

(1,302

)

 

 

(9.7

)%

Net interest income

 

 

30,417

 

 

 

25,991

 

 

 

 

4,988

 

 

 

30,979

 

 

 

(562

)

 

 

(1.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

 

24,683

 

 

 

11,100

 

 

 

 

6,792

 

 

 

17,892

 

 

 

6,791

 

 

 

38.0

%

Net interest income (loss) after losses and recoveries

 

 

5,734

 

 

 

14,891

 

 

 

 

(1,804

)

 

 

13,087

 

 

 

(7,353

)

 

 

(56.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

 

1,139

 

 

 

1,254

 

 

 

 

192

 

 

 

1,446

 

 

 

(307

)

 

 

(21.2

)%

Warranties and GAP income, net

 

 

2,686

 

 

 

4,079

 

 

 

 

307

 

 

 

4,386

 

 

 

(1,700

)

 

 

(38.8

)%

CarStory revenue

 

 

1,333

 

 

 

2,392

 

 

 

 

432

 

 

 

2,824

 

 

 

(1,491

)

 

 

(52.8

)%

Other income

 

 

2,041

 

 

 

2,481

 

 

 

 

113

 

 

 

2,594

 

 

 

(553

)

 

 

(21.3

)%

Total noninterest income

 

 

7,199

 

 

 

10,206

 

 

 

 

1,044

 

 

 

11,250

 

 

 

(4,051

)

 

 

(36.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

19,146

 

 

 

16,067

 

 

 

 

2,823

 

 

 

18,890

 

 

 

256

 

 

 

1.4

%

Professional fees

 

 

4,520

 

 

 

5,347

 

 

 

 

297

 

 

 

5,644

 

 

 

(1,124

)

 

 

(19.9

)%

Software and IT costs

 

 

3,161

 

 

 

2,402

 

 

 

 

457

 

 

 

2,859

 

 

 

302

 

 

 

10.6

%

Depreciation and amortization

 

 

1,340

 

 

 

575

 

 

 

 

1,057

 

 

 

1,632

 

 

 

(292

)

 

 

(17.9

)%

Interest expense on corporate debt

 

 

1,212

 

 

 

480

 

 

 

 

176

 

 

 

656

 

 

 

556

 

 

 

84.8

%

Impairment charges

 

 

—

 

 

 

4,156

 

 

 

 

—

 

 

 

4,156

 

 

 

(4,156

)

 

 

(100.0

)%

Other expenses

 

 

2,408

 

 

 

2,370

 

 

 

 

371

 

 

 

2,741

 

 

 

(333

)

 

 

(12.1

)%

Total expenses

 

 

31,787

 

 

 

31,397

 

 

 

 

5,181

 

 

 

36,578

 

 

 

(4,791

)

 

 

(13.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before reorganization items and provision for income taxes

 

 

(18,854

)

 

 

(6,300

)

 

 

 

(5,941

)

 

 

(12,241

)

 

 

(6,613

)

 

 

54.0

%

Reorganization items, net

 

 

—

 

 

 

—

 

 

 

 

51,036

 

 

 

51,036

 

 

 

(51,036

)

 

 

(100.0

)%

(Loss) income from continuing operations before provision for income taxes

 

 

(18,854

)

 

 

(6,300

)

 

 

 

45,095

 

 

 

38,795

 

 

 

(57,649

)

 

 

(148.6

)%

Provision for income taxes from continuing operations

 

 

192

 

 

 

150

 

 

 

 

5

 

 

 

155

 

 

 

37

 

 

 

23.9

%

Net (loss) income from continuing operations

 

$

(19,046

)

 

$

(6,450

)

 

 

$

45,090

 

 

$

38,640

 

 

$

(57,686

)

 

 

(149.3

)%

Net (loss) income from discontinued operations

 

$

(12

)

 

$

99

 

 

 

$

(4

)

 

$

95

 

 

$

(107

)

 

 

(112.6

)%

Net (loss) income

 

$

(19,058

)

 

$

(6,351

)

 

 

$

45,086

 

 

$

38,735

 

 

$

(57,793

)

 

 

(149.2

)%

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

 

(571

)

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

(571

)

 

 

100.0

%

Net (loss) income attributable to controlling interest and common shareholders

 

$

(19,629

)

 

$

(6,351

)

 

 

$

45,086

 

 

$

38,735

 

 

$

(58,364

)

 

 

(150.7

)%

 

3

 

Results by Segment

 

UACC

 

 

Successor

 

 

 

Predecessor

 

 

Non-GAAP Combined

 

 

Non-GAAP

 

 

Non-GAAP

 

 

Three months ended March 31,

 

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three months ended March 31,

 

 

 

 

 

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

2025

 

 

Change

 

 

% Change

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

42,476

 

 

 

$

37,157

 

 

 

$

7,254

 

 

$

44,411

 

 

$

(1,935

)

 

 

(4.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

3,439

 

 

 

 

4,618

 

 

 

 

1,017

 

 

 

5,635

 

 

 

(2,196

)

 

 

(39.0

)%

Securitization debt

 

8,620

 

 

 

 

6,548

 

 

 

 

1,178

 

 

 

7,726

 

 

 

894

 

 

 

11.6

%

Total interest expense

 

12,059

 

 

 

 

11,166

 

 

 

 

2,195

 

 

 

13,361

 

 

 

(1,302

)

 

 

(9.7

)%

Net interest income

 

30,417

 

 

 

 

25,991

 

 

 

 

5,059

 

 

 

31,050

 

 

 

(633

)

 

 

(2.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

24,823

 

 

 

 

12,691

 

 

 

 

7,647

 

 

 

20,338

 

 

 

4,485

 

 

 

22.1

%

Net interest income (loss) after losses and recoveries

 

5,594

 

 

 

 

13,300

 

 

 

 

(2,588

)

 

 

10,712

 

 

 

(5,118

)

 

 

(47.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

1,139

 

 

 

 

1,254

 

 

 

 

192

 

 

 

1,446

 

 

 

(307

)

 

 

(21.2

)%

Warranties and GAP income, net

 

2,765

 

 

 

 

3,571

 

 

 

 

390

 

 

 

3,961

 

 

 

(1,196

)

 

 

(30.2

)%

Other income

 

2,007

 

 

 

 

2,235

 

 

 

 

66

 

 

 

2,301

 

 

 

(294

)

 

 

(12.8

)%

Total noninterest income

 

5,911

 

 

 

 

7,060

 

 

 

 

648

 

 

 

7,708

 

 

 

(1,797

)

 

 

(23.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

16,737

 

 

 

 

13,694

 

 

 

 

2,398

 

 

 

16,092

 

 

 

645

 

 

 

4.0

%

Professional fees

 

3,364

 

 

 

 

3,069

 

 

 

 

172

 

 

 

3,241

 

 

 

123

 

 

 

3.8

%

Software and IT costs

 

2,965

 

 

 

 

2,086

 

 

 

 

367

 

 

 

2,453

 

 

 

512

 

 

 

20.9

%

Depreciation and amortization

 

1,235

 

 

 

 

479

 

 

 

 

817

 

 

 

1,296

 

 

 

(61

)

 

 

(4.7

)%

Interest expense on corporate debt

 

761

 

 

 

 

480

 

 

 

 

85

 

 

 

565

 

 

 

196

 

 

 

34.7

%

Impairment charges

 

—

 

 

 

 

3,479

 

 

 

 

—

 

 

 

3,479

 

 

 

(3,479

)

 

 

(100.0

)%

Other expenses

 

1,967

 

 

 

 

1,670

 

 

 

 

262

 

 

 

1,932

 

 

 

35

 

 

 

1.8

%

Total expenses

 

27,029

 

 

 

 

24,957

 

 

 

 

4,101

 

 

 

29,058

 

 

 

(2,029

)

 

 

(7.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

—

 

 

 

 

39

 

 

 

 

—

 

 

 

39

 

 

 

(39

)

 

 

(100.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

(571

)

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

(571

)

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net loss

$

(14,976

)

 

 

$

(834

)

 

 

$

(5,910

)

 

$

(6,744

)

 

$

(8,232

)

 

 

122.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

$

1,118

 

 

 

$

302

 

 

 

$

127

 

 

$

429

 

 

$

689

 

 

 

160.7

%

Severance

$

—

 

 

 

$

21

 

 

 

$

4

 

 

$

25

 

 

$

(25

)

 

 

(100.0

)%

 

4

 

CarStory

 

 

Successor

 

 

 

Predecessor

 

 

Non-GAAP Combined

 

 

Non-GAAP

 

 

Non-GAAP

 

 

Three months ended March 31,

 

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three months ended March 31,

 

 

 

 

 

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

2025

 

 

Change

 

 

% Change

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CarStory revenue

$

1,333

 

 

 

$

2,392

 

 

 

$

432

 

 

$

2,824

 

 

$

(1,491

)

 

 

(52.8

)%

Other income

 

34

 

 

 

 

62

 

 

 

 

13

 

 

 

75

 

 

 

(41

)

 

 

(54.7

)%

Total noninterest income

 

1,367

 

 

 

 

2,454

 

 

 

 

445

 

 

 

2,899

 

 

 

(1,532

)

 

 

(52.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,243

 

 

 

 

1,360

 

 

 

 

326

 

 

 

1,686

 

 

 

(443

)

 

 

(26.3

)%

Professional fees

 

52

 

 

 

 

—

 

 

 

 

13

 

 

 

13

 

 

 

39

 

 

 

300.0

%

Software and IT costs

 

2

 

 

 

 

—

 

 

 

 

2

 

 

 

2

 

 

 

—

 

 

 

0.0

%

Depreciation and amortization

 

105

 

 

 

 

96

 

 

 

 

240

 

 

 

336

 

 

 

(231

)

 

 

(68.8

)%

Other expenses

 

93

 

 

 

 

138

 

 

 

 

20

 

 

 

158

 

 

 

(65

)

 

 

(41.1

)%

Total expenses

 

1,495

 

 

 

 

1,594

 

 

 

 

601

 

 

 

2,195

 

 

 

(700

)

 

 

(31.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

26

 

 

 

 

16

 

 

 

 

5

 

 

 

21

 

 

 

5

 

 

 

23.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

(130

)

 

 

$

839

 

 

 

$

(153

)

 

$

686

 

 

$

(816

)

 

 

(119.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

$

24

 

 

 

$

(5

)

 

 

$

8

 

 

$

3

 

 

$

21

 

 

 

698.8

%

 

5

 

 

Corporate

 

 

Successor

 

 

 

Predecessor

 

 

Non-GAAP Combined

 

 

Non-GAAP

 

 

Non-GAAP

 

 

Three months ended March 31,

 

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three months ended March 31,

 

 

 

 

 

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

2025

 

 

Change

 

 

% Change

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense)

$

—

 

 

 

$

—

 

 

 

$

(71

)

 

$

(71

)

 

$

71

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses (gains), net of recoveries

 

(140

)

 

 

 

(1,591

)

 

 

 

(855

)

 

 

(2,446

)

 

 

2,306

 

 

 

94.3

%

Net interest income after losses and recoveries

 

140

 

 

 

 

1,591

 

 

 

 

784

 

 

 

2,375

 

 

 

(2,235

)

 

 

(94.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warranties and GAP income (loss), net

 

(79

)

 

 

 

508

 

 

 

 

(83

)

 

 

425

 

 

 

(504

)

 

 

(118.6

)%

Other income

 

—

 

 

 

 

184

 

 

 

 

34

 

 

 

218

 

 

 

(218

)

 

 

(100.0

)%

Total noninterest (loss) income

 

(79

)

 

 

 

692

 

 

 

 

(49

)

 

 

643

 

 

 

(722

)

 

 

(112.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,166

 

 

 

 

1,013

 

 

 

 

99

 

 

 

1,112

 

 

 

54

 

 

 

4.9

%

Professional fees

 

1,104

 

 

 

 

2,278

 

 

 

 

112

 

 

 

2,390

 

 

 

(1,286

)

 

 

(53.8

)%

Software and IT costs

 

194

 

 

 

 

316

 

 

 

 

88

 

 

 

404

 

 

 

(210

)

 

 

(52.0

)%

Interest expense on corporate debt

 

451

 

 

 

 

—

 

 

 

 

91

 

 

 

91

 

 

 

360

 

 

 

395.6

%

Impairment charges

 

—

 

 

 

 

677

 

 

 

 

—

 

 

 

677

 

 

 

(677

)

 

 

(100.0

)%

Other expenses

 

348

 

 

 

 

562

 

 

 

 

89

 

 

 

651

 

 

 

(303

)

 

 

(46.5

)%

Total expenses

 

3,263

 

 

 

 

4,846

 

 

 

 

479

 

 

 

5,325

 

 

 

(2,062

)

 

 

(38.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

166

 

 

 

 

95

 

 

 

 

—

 

 

 

95

 

 

 

71

 

 

 

74.7

%

 

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 available liquidity from delayed draw facility. A reconciliation of unrestricted cash and cash equivalents to total available liquidity is included above.

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

6

 

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 Three Months Ended March 31, 2025

 

Our financial results for the periods from January 1, 2025 through January 14, 2025 and the three months ended March 31, 2025 are referred to as those of the “Predecessor” periods. Our financial results for the periods from January 15, 2025 through March 31, 2025 and the three months ended March 31, 2025 are referred to as those of the “Successor” periods. Our results of operations as reported in our 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 March 31, 2025, separately, management views our operating results for the three months ended March 31, 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 March 31, 2025 against any of the previous or future periods reported in our 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 Consolidated Financial Statements in accordance with GAAP, the tables and discussion below also present the combined results for the three months ended March 31, 2025. The combined results for the three months ended March 31, 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 March 31, 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 three months ended March 31, 2026 (prepared on a GAAP basis) and three months ended March 31, 2025 (prepared on a Non-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 less preferred stock dividends attributable to noncontrolling interests of subsidiary, 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.

7

 

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

 

 

Non-GAAP Combined

 

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

 

 

2025

 

 

2025

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

$

(19,046

)

 

$

(6,450

)

 

 

$

45,090

 

 

$

38,640

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

 

(571

)

 

 

—

 

 

 

 

—

 

 

 

—

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

1,427

 

 

 

491

 

 

 

 

144

 

 

 

635

 

Severance expense

 

 

—

 

 

 

21

 

 

 

 

4

 

 

 

25

 

Bankruptcy costs (prepetition filing and post-emergence)

 

 

—

 

 

 

913

 

 

 

 

—

 

 

 

913

 

Reorganization items, net

 

 

—

 

 

 

—

 

 

 

 

(51,036

)

 

 

(51,036

)

Impairment charges

 

 

—

 

 

 

4,156

 

 

 

 

—

 

 

 

4,156

 

Adjusted net loss

 

$

(18,190

)

 

$

(869

)

 

 

$

(5,798

)

 

$

(6,667

)

 

8

 

 

 

 

Successor

 

 

Successor

 

 

Successor

 

 

Successor

 

 

Successor

 

 

 

Predecessor

 

 

Non-GAAP Combined

 

 

Predecessor

 

 

Predecessor

 

 

Predecessor

 

 

 

Period from January 1 through March 31,

 

 

Period from October 1 through December 31,

 

 

Period from July 1 through September 30,

 

 

Period from April 1 through June 30,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

Three Months Ended
March 31,

 

 

Three Months Ended
December 31,

 

 

Three Months Ended
September 30,

 

 

Three Months Ended
June 30,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

 

 

2025

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

 

(19,046

)

 

$

(11,521

)

 

 

(27,142

)

 

 

(8,932

)

 

 

(6,450

)

 

 

 

45,090

 

 

 

38,640

 

 

 

(36,716

)

 

 

(37,744

)

 

 

(19,104

)

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

 

(571

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock compensation expense

 

 

1,427

 

 

 

1,410

 

 

 

1,444

 

 

 

1,836

 

 

 

491

 

 

 

 

144

 

 

 

635

 

 

 

935

 

 

 

1,244

 

 

 

2,446

 

Severance expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

367

 

 

 

21

 

 

 

 

4

 

 

 

25

 

 

 

287

 

 

 

763

 

 

 

1,685

 

Bankruptcy costs (prepetition filing and post-emergence)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

913

 

 

 

 

-

 

 

 

913

 

 

 

3,582

 

 

 

-

 

 

 

-

 

Reorganization items, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

(51,036

)

 

 

(51,036

)

 

 

5,564

 

 

 

-

 

 

 

-

 

Gain on extinguishment of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Impairment charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,156

 

 

 

 

-

 

 

 

4,156

 

 

 

-

 

 

 

2,407

 

 

 

-

 

Adjusted Net Loss

 

 

(18,190

)

 

 

(10,111

)

 

 

(25,698

)

 

 

(6,729

)

 

 

(869

)

 

 

 

(5,798

)

 

 

(6,667

)

 

 

(26,348

)

 

 

(33,330

)

 

 

(14,973

)

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

Financial Outlook

For the full year 2026 we expect the following updated guidance:

Indirect origination volume(5): $475 - $515 million

Adjusted net income (loss)(3)(4)): ($25) - ($30) million

(5) Represents retail installment sale contracts originated through third-party dealers.

The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of May 14, 2026 and are subject to substantial uncertainty. See “Forward-Looking Statements” below.

 

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 financial outlook for the full year 2026, including expected indirect origination volume and adjusted net loss guidance, anticipated performance of recently underwritten loan vintages, expected benefits of our technology platform and dealer portal, the restructuring, including its impact and intended benefits, our strategic initiatives and long-term strategy, planned technology investments, future results of operations and financial position, our total available liquidity, our liquidity position 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, 2025, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which are 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

 

 

 

10

 

 

VROOM, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

As of
March 31,

 

 

As of
December 31,

 

 

 

2026

 

 

2025

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,478

 

 

$

10,384

 

Restricted cash (including restricted cash of consolidated VIEs of $59.1 million and $55.8 million, respectively)

 

 

59,221

 

 

 

55,914

 

Finance receivables at fair value (including finance receivables of consolidated VIEs of $778.5 million and $777.0 million, respectively)

 

 

804,613

 

 

 

808,636

 

Interest receivable (including interest receivables of consolidated VIEs of $11.2 million and $12.4 million, respectively)

 

 

11,527

 

 

 

12,834

 

Property and equipment, net

 

 

7,415

 

 

 

6,744

 

Intangible assets, net

 

 

11,895

 

 

 

12,370

 

Operating lease right-of-use assets

 

 

5,530

 

 

 

5,792

 

Other assets (including other assets of consolidated VIEs of $10.1 million and $9.8 million, respectively)

 

 

23,144

 

 

 

24,665

 

Assets from discontinued operations

 

 

—

 

 

 

46

 

Total assets

 

$

937,823

 

 

$

937,385

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

Warehouse credit facilities of consolidated VIEs

 

$

159,483

 

 

$

318,655

 

Related party line of credit (Note 19)

 

 

18,500

 

 

 

18,500

 

Long-term debt (including securitization debt of consolidated VIEs of $551.0 million and $393.2 million, respectively)

 

 

577,968

 

 

 

423,197

 

Related party note (Note 19)

 

 

10,000

 

 

 

10,000

 

Operating lease liabilities

 

 

8,825

 

 

 

9,142

 

Other liabilities (including other liabilities of consolidated VIEs of $15.6 million and $15.7 million, respectively)

 

 

43,187

 

 

 

41,149

 

Liabilities from discontinued operations

 

 

223

 

 

 

124

 

Total liabilities

 

 

818,186

 

 

 

820,767

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

 

 

 

 

Preferred units, no par value, 15,000 series A units and 7,500 series B units authorized and issued to noncontrolling interests of subsidiary (Note 13)

 

 

21,221

 

 

 

—

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

Common stock, $0.001 par value; 250,000,000 shares authorized as of March 31, 2026 and December 31, 2025, respectively; 5,206,492 and 5,199,641 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

 

 

5

 

 

 

5

 

Additional paid-in-capital

 

 

171,090

 

 

 

169,663

 

Accumulated deficit

 

 

(72,679

)

 

 

(53,050

)

Total stockholders’ equity (deficit)

 

 

98,416

 

 

 

116,618

 

Total liabilities, mezzanine equity and stockholders’ equity (deficit)

 

$

937,823

 

 

$

937,385

 

 

 

 

11

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

 

Successor

 

 

 

Predecessor

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

2026

 

 

2025

 

 

 

2025

 

Interest income

$

42,476

 

 

$

37,157

 

 

 

$

7,183

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

3,439

 

 

 

4,618

 

 

 

 

1,017

 

Securitization debt

 

8,620

 

 

 

6,548

 

 

 

 

1,178

 

Total interest expense

 

12,059

 

 

 

11,166

 

 

 

 

2,195

 

Net interest income

 

30,417

 

 

 

25,991

 

 

 

 

4,988

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

24,683

 

 

 

11,100

 

 

 

 

6,792

 

Net interest income (loss) after losses and recoveries

 

5,734

 

 

 

14,891

 

 

 

 

(1,804

)

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Servicing income

 

1,139

 

 

 

1,254

 

 

 

 

192

 

Warranties and GAP income (loss), net

 

2,686

 

 

 

4,079

 

 

 

 

307

 

CarStory revenue

 

1,333

 

 

 

2,392

 

 

 

 

432

 

Other income

 

2,041

 

 

 

2,481

 

 

 

 

113

 

Total noninterest income

 

7,199

 

 

 

10,206

 

 

 

 

1,044

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

19,146

 

 

 

16,067

 

 

 

 

2,823

 

Professional fees

 

4,520

 

 

 

5,347

 

 

 

 

297

 

Software and IT costs

 

3,161

 

 

 

2,402

 

 

 

 

457

 

Depreciation and amortization

 

1,340

 

 

 

575

 

 

 

 

1,057

 

Interest expense on corporate debt

 

1,212

 

 

 

480

 

 

 

 

176

 

Impairment charges

 

—

 

 

 

4,156

 

 

 

 

—

 

Other expenses

 

2,408

 

 

 

2,370

 

 

 

 

371

 

Total expenses

 

31,787

 

 

 

31,397

 

 

 

 

5,181

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before reorganization items and provision for income taxes

 

(18,854

)

 

 

(6,300

)

 

 

 

(5,941

)

Reorganization items, net

 

—

 

 

 

—

 

 

 

 

51,036

 

(Loss) income from continuing operations before provision for income taxes

 

(18,854

)

 

 

(6,300

)

 

 

 

45,095

 

Provision for income taxes from continuing operations

 

192

 

 

 

150

 

 

 

 

5

 

Net (loss) income from continuing operations

$

(19,046

)

 

$

(6,450

)

 

 

$

45,090

 

Net (loss) income from discontinued operations

 

(12

)

 

 

99

 

 

 

 

(4

)

Net (loss) income

$

(19,058

)

 

$

(6,351

)

 

 

$

45,086

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

$

(571

)

 

$

—

 

 

 

$

—

 

Net (loss) income attributable to controlling interest and common shareholders

$

(19,629

)

 

$

(6,351

)

 

 

$

45,086

 

 

12

 

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (continued)

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

2026

 

 

2025

 

 

 

2025

 

 Net (loss) income per share attributable to common stockholders, basic:

 

 

 

 

 

 

 

 

 

 Continuing operations

 

(3.77

)

 

 

(1.25

)

 

 

 

24.74

 

 Discontinued operations

 

—

 

 

 

0.02

 

 

 

 

(0.00

)

 Basic

$

(3.77

)

 

$

(1.23

)

 

 

$

24.74

 

 Net (loss) income per share attributable to common stockholders, diluted:

 

 

 

 

 

 

 

 

 

 Continuing operations

 

(3.77

)

 

 

(1.25

)

 

 

 

23.89

 

 Discontinued operations

 

—

 

 

 

0.02

 

 

 

 

(0.00

)

 Diluted

$

(3.77

)

 

$

(1.23

)

 

 

$

23.89

 

 Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 Basic

 

5,201,905

 

 

 

5,163,109

 

 

 

 

1,822,541

 

 Diluted

 

5,201,905

 

 

 

5,163,109

 

 

 

 

1,887,370

 

 

13

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

 

2026

 

 

2025

 

 

 

2025

 

Operating activities

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

$

(19,046

)

 

$

(6,450

)

 

 

$

45,090

 

Adjustments to reconcile net (loss) income to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

Impairment charges

 

 

—

 

 

 

4,156

 

 

 

 

—

 

Depreciation and amortization

 

 

1,340

 

 

 

575

 

 

 

 

1,057

 

Losses on finance receivables and securitization debt, net

 

 

28,862

 

 

 

17,575

 

 

 

 

4,762

 

Losses on Warranties and GAP

 

 

1,764

 

 

 

1,780

 

 

 

 

407

 

Stock-based compensation expense

 

 

1,427

 

 

 

491

 

 

 

 

144

 

Amortization of unearned discounts on finance receivables at fair value

 

 

—

 

 

 

—

 

 

 

 

(416

)

Non-cash reorganization items, net

 

 

—

 

 

 

—

 

 

 

 

(51,741

)

Other, net

 

 

88

 

 

 

(652

)

 

 

 

193

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Finance receivables, held for sale

 

 

 

 

 

 

 

 

 

 

Originations of finance receivables, held for sale

 

 

—

 

 

 

—

 

 

 

 

(14,337

)

Principal payments received on finance receivables, held for sale

 

 

—

 

 

 

—

 

 

 

 

6,481

 

Other

 

 

—

 

 

 

—

 

 

 

 

169

 

Interest receivable

 

 

1,307

 

 

 

1,443

 

 

 

 

(164

)

Other assets

 

 

859

 

 

 

(3,575

)

 

 

 

5,178

 

Other liabilities

 

 

1,674

 

 

 

1,946

 

 

 

 

(2,627

)

Net cash provided by (used in) operating activities from continuing operations

 

 

18,275

 

 

 

17,289

 

 

 

 

(5,804

)

Net cash provided by (used in) operating activities from discontinued operations

 

 

133

 

 

 

(452

)

 

 

 

(207

)

Net cash provided by (used in) operating activities

 

 

18,408

 

 

 

16,837

 

 

 

 

(6,011

)

Investing activities

 

 

 

 

 

 

 

 

 

 

Finance receivables, held for investment at fair value

 

 

 

 

 

 

 

 

 

 

Purchases of finance receivables, held for investment at fair value

 

 

(113,495

)

 

 

(120,528

)

 

 

 

—

 

Principal payments received on finance receivables, held for investment at fair value

 

 

85,765

 

 

 

73,217

 

 

 

 

2,985

 

Principal payments received on beneficial interests

 

 

217

 

 

 

446

 

 

 

 

147

 

Purchase of property and equipment

 

 

(1,536

)

 

 

(1,469

)

 

 

 

(151

)

Net cash (used in) provided by investing activities from continuing operations

 

 

(29,049

)

 

 

(48,334

)

 

 

 

2,981

 

Net cash provided by investing activities from discontinued operations

 

 

—

 

 

 

637

 

 

 

 

—

 

Net cash (used in) provided by investing activities

 

 

(29,049

)

 

 

(47,697

)

 

 

 

2,981

 

Financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings under secured financing agreements

 

 

225,000

 

 

 

307,780

 

 

 

 

—

 

Principal repayment under secured financing agreements

 

 

(65,916

)

 

 

(34,281

)

 

 

 

(16,676

)

Proceeds from financing of beneficial interests in securitizations

 

 

—

 

 

 

16,223

 

 

 

 

—

 

Principal repayments of financing of beneficial interests in securitizations

 

 

(3,018

)

 

 

(2,045

)

 

 

 

(1,028

)

Proceeds from warehouse credit facilities

 

 

87,200

 

 

 

88,500

 

 

 

 

11,900

 

Repayments of warehouse credit facilities

 

 

(246,372

)

 

 

(338,031

)

 

 

 

(8,094

)

Proceeds from preferred units issued to noncontrolling interests of subsidiary, net of issuance costs

 

 

21,221

 

 

 

—

 

 

 

 

—

 

Other financing activities

 

 

(73

)

 

 

(1,159

)

 

 

 

—

 

Net cash provided by (used in) financing activities

 

 

18,042

 

 

 

36,987

 

 

 

 

(13,898

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

7,401

 

 

 

6,127

 

 

 

 

(16,928

)

Cash, cash equivalents and restricted cash at the beginning of period

 

 

66,298

 

 

 

61,441

 

 

 

 

78,369

 

Cash, cash equivalents and restricted cash at the end of period

 

$

73,699

 

 

$

67,568

 

 

 

$

61,441

 

 

14

 

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in thousands)

(unaudited)

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

13,106

 

 

$

9,221

 

 

 

$

4,534

 

Cash paid for reorganization items, net

 

$

—

 

 

$

—

 

 

 

$

1,705

 

Accrued and unpaid preferred stock dividends attributable to noncontrolling interests of subsidiary

 

$

571

 

 

$

—

 

 

 

$

—

 

Cash paid for income taxes, net of (refunds)

 

$

(391

)

 

$

(137

)

 

 

$

—

 

 

 

15