Total Revenue

Declined approximately 20% YoY (from USD 307.8 million in Q1 2024 to USD 244.7 million in Q1 2025)

Lower sales performance and ongoing operational challenges—the current period’s revenue decline continues from previously high sales levels in Q1 2024, reflecting pressures from decreased unit sales and macroeconomic headwinds that have increasingly impacted the company. " "

Gross Profit

Fell from USD 82.6 million in Q1 2024 to USD 67.2 million in Q1 2025

Narrowed margins due to reduced sales volume and pricing pressures—the decline in gross profit mirrors the revenue drop, where lower volumes and ongoing cost pressures led to a diminished margin, continuing the trend observed in previous periods. " "

Operating Income

Dropped from USD 5.2 million in Q1 2024 to USD 3.8 million in Q1 2025

Worsening operating performance—even though net loss slightly improved, reduced revenue and the inability to fully offset fixed costs resulted in a lower operating income, signaling that operational efficiencies from the previous period were not enough to counteract a tougher business environment. " "

Net Loss

Improved slightly from USD 10.3 million in Q1 2024 to USD 9.7 million in Q1 2025

Marginal improvement in bottom-line performance—despite the challenging revenue and margin environment, cost-cutting measures saw a slight reduction in net loss compared to Q1 2024, though the improvement was modest relative to the overall decline in top-line performance. " "

Cash Flow from Operating Activities

Shifted from an inflow of USD 3.0 million in Q1 2024 to an outflow of USD 6.9 million in Q1 2025 (a 140.6% decline)

Deteriorating working capital management and operational stress—the reversal in operating cash flow is attributable to worsening receivables, inventory and other working capital components that reversed previous period improvements, significantly impacting cash generation. " "

Stockholders' Equity

Dropped from USD 92.7 million in Q1 2024 to USD 26.9 million in Q1 2025

Substantial erosion driven by sustained losses and reduced additional capital—the marked decline in equity reflects the cumulative impact of ongoing net losses, a growing accumulated deficit, and reduced liquidity that has undermined previous period equity levels. " "

Cash

Decreased from USD 50.3 million in Q1 2024 to USD 41.1 million in Q1 2025

Liquidity constraints amid lower operational cash flow and debt repayments—the reduction in cash reserves is linked to the shift from positive to negative operating cash flow, along with the impact of strategic debt repayments and the inability to generate sufficient inflows compared to the previous period. " "

Inventory Levels

FY 2025

no prior guidance

Approximately the same as the end of 2024, possibly slightly higher due to normal inflationary factors "

no prior guidance

Tariff Environment

FY 2025

no prior guidance

Anticipates a resolution of tariff-related uncertainties within 45 days with OEMs absorbing tariff costs "

no prior guidance

Wholesale Express Segment

FY 2025

no prior guidance

Expected to take a large step back compared to 2024, but positioned for sustainable long-term growth "

no prior guidance

Adjusted SG&A Expenses

FY 2025

no prior guidance

For Q1 2025, adjusted SG&A expenses were 85.6% of gross profit with a long-term target of 75% of gross profit "

no prior guidance

Capital Structure Optimization

FY 2025

no prior guidance

Actively evaluating opportunities to optimize capital structure, lower cost of capital, and extend debt maturity "

no prior guidance

Preowned Inventory Strategy

FY 2025

no prior guidance

Plans to leverage the Cash Offer tool to acquire high-quality preowned inventory aligned with consumer demand "

no prior guidance

Preowned Segment Performance

Preowned unit sales were around 4,500 with a 19% decline and gross margins of 12.1% (down from 13.6%), yet there was optimism about the segment’s margin potential. " "

Unit sales came in at 4,307 with a 13.9% decline; demand was described as robust with strong margins and an increased gross profit per unit, reflecting consumer shift toward quality preowned vehicles. " " "

Consistent focus with improved performance and sentiment as margins and sales declines moderate. " " " "

Cash Offer Platform

The tool was presented as a reengineered competitive advantage for acquiring preowned inventory efficiently. "

It is now described as a tool that can be used aggressively when inventory quality is right, continuing its role in inventory acquisition management. "

Consistent focus with evolving emphasis based on inventory quality conditions. " "

Inventory Management

Emphasis was on aggressive reduction initiatives with a $50 million target, aided by OEM collaboration, and faced margin compression due to overstock challenges. " "

The focus remains on inventory optimization through initiatives like “Project Diet” with normal seasonal increases noted, signaling continued prioritization of controlled inventory levels. " "

Consistent focus with operational adjustments and a maintained reduction strategy. " " "

OEM Partnerships

Primarily mentioned for its role in supporting inventory reduction by resetting inventory profiles and managing days supply effectively. " "

OEM partners now also play a role in mitigating tariff impacts along with supporting inventory strategies, reflecting an expanded role. " "

Expanded role from pure inventory management to also addressing tariff-related challenges. " " " "

Tariff Impact

Not mentioned in Q3 2024. "

Discussed as a source of market volatility and uncertainty, with OEMs absorbing tariff costs, and an expectation that the issue should resolve in about 45 days. " " "

New topic in Q1 2025, marking a shift in focus with increased concern over market uncertainty. " " "

Consumer Demand and New Unit Sales

New unit sales were noted to be around 9,700 with a 10.2% decline; while overstock issues were discussed, the headwind was less explicit. " "

New unit sales declined by 23.7%; consumer demand was characterized as weak due to macroeconomic challenges and tariff-induced pricing pressures, prompting a shift toward preowned products. " " "

Increased focus with more negative sentiment as the decline deepens and consumer headwinds become more pronounced. " " "

Cost Optimization and Annualized Savings

Highlighted prominently with $30 million in annualized cost savings, improved adjusted SG&A metrics, and a continuous improvement approach toward further cost reductions. " " "

There is no specific mention of cost optimization efforts or annualized savings initiatives, although general operational cost-saving measures were referenced. " "

No longer explicitly mentioned in Q1 2025 despite operational efficiencies being pursued. " "

Liquidity and Capital Structure

Reported a strong liquidity position with $66.7 million cash, additional credit facilities, and new capital infusions from shareholders, along with amendments in debt covenants. " " "

The liquidity story remains robust with $56.2 million in cash and total liquidity of $171.4 million; debt repayments and refinancing discussions are underway to optimize the capital structure. "

Consistent focus with slight refinements in strategy and liquidity details between periods. " " " "

Margin Pressure and Profitability Sustainability

Discussed margin compression due to inventory reductions with new unit margins falling to 11.3% (from 13.8%) and preowned margins down to 12.1% (from 13.6%), alongside clear cost-saving targets. " " "

New unit margins improved to 13.5% while preowned margins reported at 16.3% (noting prior high margins were artificially elevated); SG&A expenses were reduced and operational improvements were highlighted to sustain profitability. " "

Consistent cross-cutting focus with improved sentiment on profit margins, thanks to cost-saving measures and operational refinements. " " " "