Executive Summary

Q4 2024 showed sequential improvement in core credit economics: net interest income after losses turned positive to $2.015M from $(3.480)M in Q3, and consolidated Adjusted EBITDA improved to $(18.196)M from $(25.534)M; however, the quarter remained loss-making with net loss from continuing operations of $(36.716)M and diluted EPS (continuing) of $(20.15) .
Liquidity as of 12/31/24 totaled $57.5M (cash and excess warehouse availability), including $29.3M cash and $28.2M available on UACC’s warehouse lines; post quarter-end, the recapitalization eliminated parent-level long-term debt, and management expects post-emergence tangible book value of ~ $150M as of 1/15/25 .
Strategic/financing catalysts: warehouse extension into 2026, UACC’s 17th ABS ($324M) expected to close mid-March 2025, and a new $25M line of credit secured in March, collectively supporting funding and execution of the long-term plan .
No Q4 earnings call transcript was posted; management furnished an earnings presentation. Wall Street consensus from S&P Global for Q4 2024 was not available via our data service at this time, so estimate comparisons are not included (unavailable).

What Went Well and What Went Wrong

What Went Well

Core credit turned the corner in Q4: net interest income after losses improved to +$2.015M from $(3.480)M in Q3, aided by lower realized/unrealized losses sequentially ($31.974M in Q4 vs $38.346M in Q3) .
UACC profitability trend improved: UACC Adjusted EBITDA narrowed to $(2.719)M from $(14.119)M in Q3, with year-over-year improvement vs Q4 2023 $(10.765)M; management emphasized focus on portfolio performance and higher-quality originations .
Balance sheet and funding actions de-risked the story: recap completed Jan 14, 2025 eliminating long-term debt at Vroom, Inc.; warehouse line extended into 2026; $324M ABS deal announced; $25M LOC added in March 2025. CEO: “We successfully wound down our ecommerce...completed the recapitalization and...focus on executing our Long-Term Strategic Plan.” .

What Went Wrong

Bottom line still negative: net loss from continuing operations of $(36.716)M, and diluted EPS (continuing) of $(20.15), worse than Q4 2023 $(26.904)M and $(15.33), respectively .
Noninterest income dropped materially YoY to $8.471M from $26.367M, largely due to no debt extinguishment gains this quarter (vs $18.238M in Q4 2023), and lower servicing income YoY .
Credit cost environment remains a watch item despite sequential relief: realized/unrealized losses were $31.974M in Q4; management’s slides reiterate macro-driven pressure on recoveries and previously observed sequential credit cost increases, though Q4 prints improved vs Q3 .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Interest Income ($USD Millions)	$49.540	$51.862	$50.213	$48.681
Net Interest Income ($USD Millions)	$36.368	$36.881	$34.866	$33.989
Realized & Unrealized Losses, net of recoveries ($USD Millions)	$46.368	$18.729	$38.346	$31.974
Net Interest Income After Losses ($USD Millions)	$(10.000)	$18.152	$(3.480)	$2.015
Total Noninterest Income ($USD Millions)	$26.367	$9.019	$10.721	$8.471
Total Expenses ($USD Millions)	$43.605	$46.442	$44.861	$41.175
Net Loss from Continuing Ops ($USD Millions)	$(26.904)	$(19.104)	$(37.744)	$(36.716)
Diluted EPS (Continuing) ($)	$(15.33)	$(10.61)	$(20.88)	$(20.15)
Adjusted EBITDA ($USD Millions)	$(35.714)	$(7.541)	$(25.534)	$(18.196)

Segment breakdown (selected items):

Segment Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
UACC Adjusted EBITDA ($USD Millions)	$(10.765)	$(2.824)	$(14.119)	$(2.719)
UACC Net Interest Income After Losses ($USD Millions)	$7.509	$17.826	$5.338	$13.369
CarStory Revenue ($USD Millions)	$2.992	$2.913	$2.890	$2.828
CarStory Adjusted EBITDA ($USD Millions)	$1.078	$0.372	$(0.210)	$0.192

KPIs and Liquidity:

KPI	Q4 2023	Q3 2024	Q4 2024
UACC Gross Serviced Portfolio ($USD Billions)	$1.097	$1.060	$1.016
UACC Gross Serviced Accounts (#)	81,149	80,049	78,054
UACC Indirect Origination Volume ($USD Millions)	$113	$100	$91
Cash & Equivalents ($USD Millions)	—	$51.1 (as of 9/30/24)	$29.3 (as of 12/31/24)
Excess Liquidity on UACC Warehouse Lines ($USD Millions)	—	$32.9 (as of 9/30/24)	$28.2 (as of 12/31/24)
Consolidated Total Cash & Excess Liquidity ($USD Millions)	—	—	$57.5 (as of 12/31/24)

Note: No S&P Global consensus comparisons are shown because estimates were unavailable from our data service at the time of analysis.

Guidance Changes

Metric	Period	Previous Guidance	Current Update	Change
Parent-level long-term debt	Post-emergence (Jan 14, 2025)	N/A	Eliminated at Vroom, Inc. level post recap; UACC remains with ABS/related obligations	New structural update
Tangible Book Value (post-emergence)	As of Jan 15, 2025	N/A	~ $150M expected	New metric
Warehouse Facilities	2025–2026	N/A	One $200M warehouse extended into 2026; negotiations to extend additional facilities in Q2 2025	New/updated
Securitization (UACC 17th)	Mid-March 2025 close expected	N/A	$324M fixed-rate ABS announced Mar 3, 2025	New
Line of Credit	March 2025	N/A	Secured $25M LOC	New

No quantitative revenue/EPS margin guidance was provided in Q4 materials.

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was posted; management provided a slide presentation and press release.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Credit Tightening/Portfolio Performance	Expect originations since early 2023 to perform at pre-pandemic levels; credit tightening benefits emerging	Noted sequential increase in realized/unrealized losses, with macro headwinds and lower recovery rates; ongoing migration to higher-quality credits	Slides reiterate portfolio performance initiatives and migration toward higher-quality credit	Stabilizing with focus on quality; sequential losses improved in Q4 by reported numbers
Liquidity & Capital Markets	Completed ABS in April 2024	$825M warehouse capacity, $503M excess capacity at Q3; liquidity focus	$825M capacity; $465M remaining capacity at year-end; $324M ABS announced; $25M LOC; warehouse extension	Improving funding optionality
Restructuring/Capital Structure	—	Agreement to recap unsecured notes via prepackaged Ch. 11	Recap completed Jan 14, 2025; no parent long-term debt; expected ~$150M tangible book value	De-risked balance sheet
CarStory/AI Analytics	Ongoing services, modest growth focus	CarStory revenue stable; mixed EBITDA	CarStory revenue $2.828M; modest positive Adj. EBITDA $0.192M	Stable
Macro/Recoveries	—	Cited macro weakening and lower recoveries	Slides still cite macro/recovery pressures; Q4 losses improved sequentially	Watch item

Management Commentary

“The last year was pivotal. We successfully wound down our ecommerce used vehicle dealership business, developed a Long-Term Strategic Plan to capitalize on our remaining assets including UACC, CarStory and the Vroom ecommerce technology and IP, began the process of recapitalizing our business and ended the year with $57.5 million of consolidated total cash and excess liquidity. We enter 2025 having completed the recapitalization and with continued focus on executing our Long-Term Strategic Plan.” — CEO Tom Shortt .
Post-emergence positioning highlights: no parent long-term debt, warehouse extension into 2026, $324M ABS announced, and expected tangible book value of ~ $150M as of Jan 15, 2025 .

Q&A Highlights

No Q4 2024 earnings call transcript was posted; no Q&A to report. Management furnished an earnings presentation and 8‑K/press release detailing results and strategic updates .

Estimates Context

S&P Global consensus for Q4 2024 (EPS/Revenue/EBITDA) was not available via our data service at this time; therefore, comparisons to Wall Street estimates are not included. We will update this section once S&P data access is restored.

Key Takeaways for Investors

Core credit metrics improved sequentially: net interest income after losses moved to +$2.015M from $(3.480)M, and realized/unrealized losses fell to $31.974M from $38.346M, signaling early traction from credit tightening and portfolio management .
Profitability trajectory better, but still negative: consolidated Adjusted EBITDA improved to $(18.196)M vs $(25.534)M in Q3; UACC Adjusted EBITDA narrowed to $(2.719)M from $(14.119)M .
Balance sheet/risk profile markedly cleaner post-recap: no long-term debt at the parent and an expected ~$150M post-emergence tangible book value provide a foundation for funding UACC and CarStory growth initiatives .
Funding momentum/catalysts in 1H25: warehouse extension into 2026, $324M ABS expected close mid-March, and $25M LOC expand liquidity and capacity to originate and finance assets through cycles .
Watch the macro and recoveries: while Q4 showed sequential loss improvement, management still flags recovery-rate pressure; performance of 2021–2022 vintages and post-2023 tighter credit vintages will be key to earnings normalization .
Noninterest income volatility likely persists absent one-time gains: Q4 noninterest income fell YoY due to lack of debt extinguishment gains; investors should focus on sustainable fee trends (servicing, warranties/GAP, CarStory) .
Near-term trading setup: de-levered equity with improving credit metrics and imminent ABS/LOC/warehouse milestones could catalyze sentiment; conversely, any relapse in losses or funding tightness could pressure shares.

Vroom, Inc. (VRM)·Q4 2024 Earnings Summary