Vroom — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $9.8 million for the third quarter of 2026, a $16.9 million year-over-year improvement compared to the same period in 2025.
• Net loss attributable to controlling interest and common shareholders was $10.5 million for the quarter.
• Adjusted net loss for the quarter was $8.7 million, representing a $30.0 million decrease compared to the trailing twelve months ended September 30, 2025.
• Stockholders' equity was $91.1 million as of September 30, 2026, with tangible book value of $80.2 million.
• Total available liquidity was $64.2 million as of September 30, 2026, comprising $33.0 million in cash and cash equivalents, $4.2 million available under warehouse credit facilities, and $27.0 million from a delayed draw facility.
• Interest income for the quarter was $43.7 million, down 2.6% year-over-year.
• Total interest expense was $11.9 million, down 10.4% year-over-year.
• Realized and unrealized losses, net of recoveries, were $20.4 million, a 52.8% decrease year-over-year.
• Total expenses for the quarter were $27.8 million, an increase of 12.2% year-over-year, driven by higher professional fees ($2.5 million vs. $1.5 million) and software/IT costs ($3.3 million vs. $3.1 million).
• For the nine months ended September 30, 2026, net loss from continuing operations was $28.3 million, compared to a $42.5 million loss for the Successor period in 2025.

Guidance and Future Outlook:

• Updated full-year 2026 indirect origination volume guidance to a range of $460 million to $485 million.
• Updated full-year 2026 adjusted net loss guidance to a range of $30 million to $35 million.
• Management expects continued benefits from the rebuilt internal customer scoring model implemented in September 2025.
• Forward-looking statements indicate expectations regarding credit performance, lifetime loss expectations, and the impact of rising interest rates and seasonality on legacy vintages.

Business Segments and Product Lines:

• UACC (United Auto Credit Corporation): Adjusted net loss for the quarter was $5.8 million, a 77.5% improvement year-over-year. Net interest income after losses and recoveries improved to $11.2 million from a loss of $12.0 million in the prior year period.
• CarStory: Reported revenue of $1.3 million for the quarter, a 6.4% decrease year-over-year. Adjusted net loss for the segment was $0.1 million.
• Corporate: Reported a loss from continuing operations before taxes of $9.8 million for the quarter.
• Launched the Next-Generation FastLane dealer portal as part of investments in the Next-Generation Technology Platform.

Market and Competitive Landscape:

• The company serves the independent and franchise dealer market nationwide through its UACC subsidiary.
• Credit performance improvements are attributed to a rebuilt internal customer scoring model, which reduced mark-to-market losses significantly year-over-year.
• Seasonality, rising interest rates, and higher lifetime loss expectations on legacy vintages underwritten prior to September 2025 contributed to a quarter-over-quarter increase in net loss.

Risks and Challenges:

• Legacy vintages underwritten prior to the implementation of the rebuilt internal customer scoring model carry higher lifetime loss expectations.
• Rising interest rates and seasonality impact net loss figures.
• Fresh start accounting applied following the January 14, 2025, emergence from Chapter 11 proceedings means financial statements after that date are not comparable to prior periods.
• Forward-looking statements involve substantial uncertainty regarding future costs, expenses, and market conditions.

Management Commentary and Tone:

• CEO Tom Shortt stated that adjusted net loss improved significantly year-over-year due to the benefits of the rebuilt internal customer scoring model.
• CFO Jon Sandison highlighted the strengthening of the balance sheet through the issuance of preferred stock units in Vroom Automotive for $20 million in gross proceeds.
• Management noted the completion of the 19th securitization transaction on October 15, 2026, issuing approximately $234.2 million in fixed-rate asset-backed securities.
• The tone reflects confidence in the new scoring model and disciplined expense management, while acknowledging ongoing challenges with legacy loan vintages.

Other Key Points:

• Issued preferred stock units in subsidiary Vroom Automotive for aggregate gross proceeds of $20 million during the third quarter.
• Completed the 19th securitization transaction on October 15, 2026, with an aggregate principal amount of approximately $234.2 million.
• Vroom discontinued its ecommerce operations and used vehicle dealership business pursuant to its Value Maximization Plan.
• The company emerged from a voluntary Prepackaged Chapter 11 Case on January 14, 2025, triggering fresh start accounting.
• Preferred stock dividends attributable to noncontrolling interests of the subsidiary were $0.7 million for the quarter.