Vroom, Inc. (VRM)·Q1 2025 Earnings Summary

Executive Summary

• Vroom’s Q1 2025 shows a structurally transformed balance sheet post recapitalization, with non-GAAP combined net income from continuing operations of $38.64M and adjusted net loss of $(6.67)M; total available liquidity reached $66.9M, aided by a new $25M line of credit and extended warehouse capacity .
• Management introduced full-year 2025 guidance: adjusted net loss of $(30)–$(45)M, year-end total available liquidity of $35–$50M, and indirect origination volume of $460–$490M; no prior numeric guidance to compare, so this represents a new baseline .
• Operating momentum at UACC included completion of its 17th securitization ($324M of ABS), extension of $400M of warehouse agreements, and ~16% YoY growth in indirect origination volume in Q1 2025, partially offset by lower servicing income and persistent realized/unrealized losses .
• Fresh-start accounting from the January 14, 2025 emergence makes direct period comparisons challenging; however, sequential improvement versus late 2024 is evident in adjusted net loss and expense control, while management highlighted portfolio performance initiatives amid macro credit headwinds .

What Went Well and What Went Wrong

What Went Well

• Liquidity strengthened: $66.9M total available liquidity at quarter-end, including $14.6M cash, $27.3M warehouse availability, and a new $25M residual-backed line of credit; UACC warehouse capacity stood at $800M with $686M remaining .
• Capital markets execution: UACC closed its 17th securitization ($324M fixed-rate ABS) and extended $400M of warehouse agreements, supporting funding stability and spreads .
• Management tone positive on portfolio progress: “net loss and Adjusted net loss decreased sequentially, as well as year over year, driven by continued progress in loan portfolio performance at UACC” — CEO Tom Shortt . CFO Sandison added the quarter ended “with total available liquidity(1) of approximately $67 million” .

What Went Wrong

• Realized and unrealized losses remain elevated even with improvement: combined Q1 2025 at $17.89M vs $30.82M in Q1 2024; still a key earnings headwind .
• Servicing income declined YoY: combined Q1 2025 $1.446M vs $2.019M in Q1 2024, reflecting portfolio seasoning and macro factors .
• Management flagged March 2025 delinquencies and timing issues: higher delinquencies, lower utilization of extensions, and delayed tax refund disbursements negatively impacted multivariate loss projections in November 2024 and the March period .

Financial Results

Note: Q1 2025 uses Non-GAAP Combined (Predecessor+Successor) for comparability; fresh-start accounting limits direct comparability to prior GAAP periods .

EPS (GAAP per press release tables; Successor period data shown; combined EPS not provided by the company):

• Q1 2025 Successor diluted EPS: $(1.23) total; continuing ops $(1.25); discontinued ops $0.02 .
• Q1 2024 diluted EPS: total $(37.68); continuing ops $(24.90); discontinued ops $(12.79) .

Segment breakdown (selected items, Non-GAAP Combined Q1 2025 vs Q1 2024):

KPIs and Balance Sheet Highlights:

Guidance Changes

Management indicated reconciliations for forward-looking non-GAAP guidance are not available without unreasonable effort given variability in future costs .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was found; themes below synthesized from press release and slides .

Management Commentary

• CEO Tom Shortt: “In the first quarter of 2025, our net loss and Adjusted net loss decreased sequentially, as well as year over year, driven by continued progress in loan portfolio performance at UACC.”
• CFO Jon Sandison: “We succeeded in executing UACC's 17th securitization transaction, and we've extended $400 million of warehouse capacity since year end 2024… ended the quarter with total available liquidity(1) of approximately $67 million.”

Q&A Highlights

• No Q1 2025 earnings call transcript was available in our document catalog; no published Q&A was found on the IR site. We rely on the press release and slides for narrative and quantitative context .

Estimates Context

Coverage appears limited following the restructuring. S&P Global consensus data for Q1 2025 was not available for EPS and revenue; we therefore cannot assess beats/misses to Wall Street expectations.

Values retrieved from S&P Global.*
Note: The company does not report “Revenue” in the traditional sense; results are presented as interest income, noninterest income, and realized/unrealized losses. Analyst coverage may be limited post-emergence.

Key Takeaways for Investors

• Liquidity and funding access improved materially post recapitalization (new $25M LOC; $400M warehouse extensions; $800M capacity), reducing near-term financing risk and supporting origination growth .
• Earnings quality remains constrained by realized/unrealized losses and lower servicing income; continued credit performance normalization is central to unlocking sustained profitability .
• Noninterest income improved sequentially and YoY in several areas (warranty/GAP), while expense control is evident, particularly at corporate, supporting adjusted net loss improvement trajectory .
• Guidance sets a pragmatic FY 2025 baseline (adjusted net loss $(30)–$(45)M; origination $460–$490M; liquidity $35–$50M), giving investors markers to track execution and portfolio performance .
• CarStory’s shift to positive adjusted net income in Q1 2025, albeit on modest revenues, suggests stabilization and potential incremental contribution to consolidated results over time .
• Fresh-start accounting complicates period comparisons; focus on combined non-GAAP and operational KPIs (origination growth, delinquency trends, warehouse capacity utilization) to assess momentum .
• Near-term trading may key off credit performance indicators (delinquencies, recoveries), securitization spreads, and evidence of continued reduction in adjusted net losses; medium-term thesis hinges on UACC profitability and disciplined underwriting with stable funding.