v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information [Abstract]  
Segment Information

17. Segment Information

As a result of the Ecommerce Wind-Down during the three months ended March 31, 2024, the Company revised its reportable segments. The Company is now organized into two reportable segments: UACC and CarStory. Corporate activities are presented in “corporate” and do not constitute a reportable segment. These activities include costs not directly attributable to the segments and are primarily related to costs associated with corporate and governance functions, including executive functions, corporate finance, legal, human resources, information technology, cyber security and other shared costs. Certain shared costs, including corporate administration, are allocated to segments based upon specific allocation of expenses. Corporate activities also include the runoff of legacy Vroom third party vehicle service and GAP policies sold prior to the Ecommerce Wind-Down as well as certain Vroom contracts, primarily Software and IT related, that have been renegotiated and right-sized to account for reduced headcount following the Ecommerce Wind-down. The Company retrospectively restated segment results for the comparative period to conform to the new presentation. No operating segments have been aggregated to form the reportable segments.

The Company determined its operating segments based on how the chief operating decision maker (“CODM”) reviews the Company’s operating results in assessing performance and allocating resources. The Company’s CODM is the chief executive office (“CEO”). The CODM reviews Adjusted EBITDA for each of the reportable segments. Adjusted EBITDA is defined as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense, depreciation and amortization expense, stock compensation expense, bankruptcy costs, reorganization items, severance expense related to the continuing operations, gain on debt extinguishment and long-lived asset impairment charges, incurred by the segment. All expense categories on the consolidated statement of operations are significant and there are no other significant segment expenses that would require disclosure. There are no intra-entity sales and no significant expense categories regularly provided to the CODM beyond those disclosed in the consolidated statement of operations. The CODM manages the business using consolidated expense information, adjusted for items that are non-recurring or not core to the Company’s operating business as disclosed above, as well as regularly provided budgeted or forecasted expense information for each operating segment. The CODM does not evaluate operating segments using asset information as these are managed on an enterprise-wide group basis. Accordingly, the Company does not report segment asset information. As of December 31, 2024 and December 31, 2023, long-lived assets were predominantly located in the United States.

The UACC reportable segment represents UACC’s operations with its network of third-party dealership customers, including the purchases and servicing of vehicle installment contracts. The segment also includes the runoff portfolio of retail installment sale contracts originated for Vroom or purchased from Vroom prior to the Ecommerce Wind-Down.

The CarStory reportable segment represents sales of AI-powered analytics and digital services to automotive dealers, automotive financial services companies and others in the automotive industry.

Information about the Company’s reportable segments and corporate activities are as follows (in thousands):

 

Year Ended December 31,
   

2024

  

2023
   

UACC

  

CarStory

  

Corporate

  

Total

  

UACC

  

CarStory

  

Corporate

  

Total

Interest income

  

$

203,962

 

  

$

—

  

$

(2,129

)

  

$

201,833

 

  

$

180,970

 

  

$

—

  

$

(2,488

)

  

$

178,482
   

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Interest expense:

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Warehouse credit facility

  

 

29,276

 

  

 

—

  

 

—

 

  

 

29,276

 

  

 

19,914

 

  

 

—

  

 

—

 

  

 

19,914

Securitization debt

  

 

30,084

 

  

 

—

  

 

—

 

  

 

30,084

 

  

 

21,979

 

  

 

—

  

 

—

 

  

 

21,979

Total interest expense

  

 

59,360

 

  

 

—

  

 

—

 

  

 

59,360

 

  

 

41,893

 

  

 

—

  

 

—

 

  

 

41,893

Net interest income

  

 

144,602

 

  

 

—

  

 

(2,129

)

  

 

142,473

 

  

 

139,077

 

  

 

—

  

 

(2,488

)

  

 

136,589
   

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Realized and unrealized losses, net of recoveries

  

 

98,629

 

  

 

—

  

 

21,239

 

  

 

119,868

 

  

 

92,372

 

  

 

—

  

 

30,169

 

  

 

122,541

Net interest income after losses and recoveries

  

 

45,973

 

  

 

—

  

 

(23,368

)

  

 

22,605

 

  

 

46,705

 

  

 

—

  

 

(32,657

)

  

 

14,048
   

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Noninterest (loss) income:

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Servicing income

  

 

6,501

 

  

 

—

  

 

—

 

  

 

6,501

 

  

 

10,041

 

  

 

—

  

 

—

 

  

 

10,041

Warranties and GAP income (loss), net

  

 

7,789

 

  

 

—

  

 

(10,399

)

  

 

(2,610

)

  

 

7,871

 

  

 

—

  

 

(2,158

)

  

 

5,713

CarStory revenue

  

 

—

 

  

 

11,610

  

 

—

 

  

 

11,610

 

  

 

—

 

  

 

12,384

  

 

—

 

  

 

12,384

Gain on debt extinguishment

  

 

—

 

  

 

—

  

 

—

 

  

 

—

 

  

 

—

 

  

 

—

  

 

37,878

 

  

 

37,878

Other income

  

 

8,334

 

  

 

692

  

 

1,824

 

  

 

10,850

 

  

 

3,209

 

  

 

444

  

 

5,457

 

  

 

9,110

Total noninterest (loss) income

  

 

22,624

 

  

 

12,302

  

 

(8,575

)

  

 

26,351

 

  

 

21,121

 

  

 

12,828

  

 

41,177

 

  

 

75,126
   

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Expenses:

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Compensation and benefits

  

 

76,374

 

  

 

10,293

  

 

10,626

 

  

 

97,293

 

  

 

67,807

 

  

 

8,953

  

 

9,940

 

  

 

86,700

Professional fees

  

 

3,506

 

  

 

152

  

 

8,377

 

  

 

12,035

 

  

 

5,395

 

  

 

341

  

 

8,816

 

  

 

14,552

Software and IT costs

  

 

10,397

 

  

 

215

  

 

4,471

 

  

 

15,083

 

  

 

10,116

 

  

 

197

  

 

9,288

 

  

 

19,601

Depreciation and amortization

  

 

22,683

 

  

 

6,403

  

 

—

 

  

 

29,086

 

  

 

22,685

 

  

 

6,428

  

 

—

 

  

 

29,113

Interest expense on corporate debt

  

 

2,396

 

  

 

—

  

 

3,430

 

  

 

5,826

 

  

 

1,680

 

  

 

—

  

 

4,296

 

  

 

5,976

Impairment charges

  

 

5,159

 

  

 

—

  

 

—

 

  

 

5,159

 

  

 

—

 

  

 

—

  

 

—

 

  

 

—

Other expenses

  

 

9,457

 

  

 

414

  

 

6,422

 

  

 

16,294

 

  

 

7,809

 

  

 

584

  

 

9,295

 

  

 

17,687

Total expenses

  

 

129,972

 

  

 

17,477

  

 

33,326

 

  

 

180,776

 

  

 

115,492

 

  

 

16,503

  

 

41,635

 

  

 

173,629
   

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

Adjusted EBITDA

  

$

(29,808

)

  

$

912

  

 

 

 

  

 

 

 

  

$

(23,185

)

  

$

3,399

  

 

 

 

  

 

 

The reconciliation between reportable segment Adjusted EBITDA to consolidated loss from continuing operations before provision for income taxes is as follows (in thousands):

 

Year Ended
December 31,
   

2024

  

2023

Adjusted EBITDA by Segment

  

 

  

 

  

 

  

 

UACC

  

$

(29,808

)

  

$

(23,185

)

CarStory

  

 

912

 

  

 

3,399

 

Total

  

$

(28,896

)

  

$

(19,786

)
   

 

  

 

  

 

  

 

Interest expense on corporate debt

  

 

(2,396

)

  

 

(1,680

)

Interest income on cash and cash equivalents

  

 

2,864

 

  

 

2,481

 

Depreciation and amortization

  

 

(29,086

)

  

 

(29,113

)

Stock compensation expense

  

 

(3,077

)

  

 

(3,243

)

Severance

  

 

(800

)

  

 

—

 

Impairment charges

  

 

(5,159

)

  

 

—

 

Corporate loss from continuing operations before reorganization items and provision for income taxes

  

 

(65,270

)

  

 

(33,114

)

Loss from continuing operations before reorganization items and provision for income taxes

  

$

(131,820

)

  

$

(84,455

)