Vroom, Inc. (VRM) Market Cap
Vroom, Inc. has a market capitalization of $87.6M.
Financials based on reported quarter end 2025-12-31
Price: $16.83
▼ -0.06 (-0.36%)
Market Cap: 87.62M
NASDAQ · time unavailable
CEO: Thomas H. Shortt
Sector: Consumer Cyclical
Industry: Auto - Dealerships
IPO Date: 2020-06-09
Website: https://www.vroom.com
Vroom, Inc. (VRM) - Company Information
Market Cap: 87.62M · Sector: Consumer Cyclical
Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.
Analyst Sentiment
Based on 14 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 5 sources)
Consensus Price Target
Low
$2
Median
$4
High
$51
Average
$17
Potential Upside: 1.1%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Vrms (VRM) reported revenue of $28.4M and a net loss of $11.4M (EPS: -$2.19) for the most recent quarter ending 2025-12-31. Net margin was about -40%, reflecting continued profitability pressure. On the cash flow side, operating cash flow was $21.3M and free cash flow (FCF) was $19.8M, with relatively modest capex of $1.47M—suggesting near-term cash generation despite accounting losses. Balance sheet leverage remains heavy: total assets were $937.4M versus $820.8M of liabilities, leaving equity of $116.6M and net debt of $769.1M. This capital structure creates sensitivity to earnings and refinancing conditions. Valuation-wise, VRM is trading at $13.63, with very strong 1-year price momentum (+154.3%) even though the stock has reversed recently (-48.0% over 6 months; -34.6% YTD). Analyst targets are highly dispersed (low $1.50 to high $51, consensus $17.02), consistent with elevated uncertainty around turnaround prospects. Total shareholder returns are currently dominated by capital appreciation rather than cash returns (dividends: $0; buybacks not provided)."
Revenue Growth
Revenue is reported at $28.4M, but no prior-period comparison was provided in the dataset to confirm growth or contraction trends. Score reflects limited visibility into momentum.
Profitability
Net loss of $11.4M and EPS of -$2.19 imply weak profitability. Approximate net margin is ~-40%, indicating substantial inefficiency relative to revenue.
Cash Flow Quality
FCF of $19.8M versus operating cash flow of $21.3M indicates positive cash generation and low capex intensity (~$1.5M). Dividends are $0, and buybacks were not provided.
Leverage & Balance Sheet
Net debt of $769.1M on equity of $116.6M points to high leverage and limited balance-sheet resilience. Liabilities (>$820M) are a large share of total assets.
Shareholder Returns
Share price has surged over the last year (+154.3%), which is the primary driver of shareholder value in the dataset. Cash returns are currently absent (dividends paid: $0); buybacks not provided.
Analyst Sentiment & Valuation
With the stock at $13.63 and a consensus target of $17.02, implied upside is modest, but dispersion is very wide (low $1.50 to high $51), signaling uncertainty. Profitability metrics (negative EPS) limit valuation support from earnings.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what: Management’s Q3 message is progress on unit economics and cost actions, but earnings are still being dominated by UACC mark-to-market and realized losses. Adjusted EBITDA loss widened to $64.5M (worsened by $8.2M sequentially). The company updated full-year 2023 adjusted EBITDA guidance to a $225M–$245M loss range and year-end cash to $137M–$162M, reflecting continued UACC-related headwinds. In the Q&A, pressure intensified around the $33M “other loss item,” which the company tied to (1) UACC 2023-1 residual portfolio mark-to-market and (2) additional loans originated since 2023-1—without giving a Vroom-vs-UACC split. Liquidity risk is also implicit: an analyst cited ~$40M–$50M per quarter cash burn and only ~4–5 quarters of runway under a choppier credit backdrop. Management responded by announcing early-stage plans to raise capital (no terms), while simultaneously saying aged inventory is down to only a few hundred cars and should be immaterial for 2024.
Growth Catalysts
- E-commerce units grew ~11% sequentially
- E-commerce GPPU increased from $2,954 to $3,144 sequentially (+~6%) driven by higher mix of unaged units
- Sequential recovery from selling aged inventory and shifting more inventory financing to Floorplan Facility (recovered ~$48M cash/inventory)
Business Development
- Partnered with the state of West Virginia to launch its national digital titles clearinghouse (Vroom has access to transfer out-of-state titles into Vroom’s name to reduce processing timelines)
Financial Highlights
- Adjusted EBITDA loss: $64.5M (sequential loss worsened by $8.2M; +15%)
- Negative drivers: higher realized net losses + unfavorable mark-to-market on finance receivables at UACC
- Guidance update (full-year 2023): adjusted EBITDA loss of $225M to $245M (range updated primarily due to higher realized losses and negative UACC mark-to-market)
- Guidance update (year-end cash & cash equivalents): $137M to $162M
- Liquidity/cash: Q3 cash & cash equivalents ended at $209M (down $29.3M sequentially); released ~$48M cash/inventory but partially offset by restricted cash increase of ~$14M
- Q4 liquidity commentary: expects ~$60M available liquidity at UACC at end of Q4; potential additional ~$20M if selling residual certificates (up to ~$230M year-end midpoint liquidity)
- Analyst Q&A: 'Other loss item' increased to $33M (from ~$5M prior year/quarter); company attributed to (1) UACC residual portfolio 2023-1 mark-to-market losses and (2) additional loans originated since 2023-1; company does not break out Vroom vs UACC contribution
Capital Funding
- Announced plan to pursue raising capital to scale the business (began 'early stages'; no terms disclosed)
- Potential forms mentioned: private investment, additional convertible debt, at-the-market (ATM), or rights offering
- Balance sheet actions: repurchased ~$292.5M at face value of convertible notes for ~$103.4M (incl. accrued interest), weighted average repurchase price ~$0.35 on the dollar
- Liquidity: ~$73M available liquidity at UACC end of Q3 + $209M cash & cash equivalents = ~$282M total available liquidity
Strategy & Ops
- Aged inventory progress: legacy title issues drove 34% of units sold >180 days (down from 80% in Q2; 77% in Q1; 75% in Q4 2022; 49% in Q3 2022); target Q4 aged mix <20%
- Q&A on aged inventory exiting 2023: company said only 'a few hundred cars or less' remain aged; expects only 'a little bit left at the end of the year' and 'nothing that we would view as material going into 2024'
- Cost actions: reduced adjusted SG&A by $3.1M sequentially (on 11% higher unit volume); reduced titling/registration/support costs per unit by 15% sequentially; marketing costs per unit by 13% sequentially; fixed costs per unit by 15% sequentially; logistics costs per unit down 7% sequentially
- Reported longer-run improvements (management claims): titling/registration costs per unit reduced 46%; 99.7% of customers received registrations before expiration of initial temporary tag in Sep 2023; reduced annualized marketing costs $22M and annualized fixed costs $59M; annualized run-rate cost reductions $235M since Q2 2022 and $440M since Q1 2022
Market Outlook
- Full-year 2023 adjusted EBITDA loss guidance: $225M to $245M
- Year-end 2023 cash & cash equivalents guidance: $137M to $162M
- Q4 liquidity expectation: ~$60M available liquidity at UACC (plus up to ~$20M potential from selling residual certificates in Q4)
Risks & Headwinds
- UACC portfolio credit/valuation volatility: unfavorable mark-to-market on finance receivables (driving the $8.2M sequential adjusted EBITDA deterioration and the 'other loss item' to $33M)
- Analyst follow-up clarified 'other loss item' progression near-term depends on (a) continued UACC residual portfolio 2023-1 mark-to-market and (b) additional loan originations since 2023-1; company does not provide Vroom vs UACC split
- Legacy titling/registration issues: management cites this as the 'challenging year' driver impacting GPPU all year
- Macro/rates: Fed funds rate cited at 5.33% vs 77 bps in May 2022; warehouse interest rates increased by ~500 bps, increasing cost of funds and compressing spreads
- Aged vehicle mix burden: 34% of units sold were >180 days in Q3 (legacy issues); management expects normalization as sell-through continues
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the VRM Q3 2023 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.