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Vroom, Inc.
(NASDAQ:VRM)
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Rating:49Neutral
Price Target:
$9.50
▼(-6.68% Downside)
Action:Reiterated
Date:09/30/26
The score is held down primarily by weak and unstable profitability and a debt-heavy balance sheet. Positive operating/free cash flow provides some near-term support, but technicals are only neutral with the stock still far below the 200-day average, and valuation metrics are unattractive/unclear due to negative earnings and no dividend. Corporate financing actions modestly improve liquidity and funding flexibility but do not fully offset fundamental risk.
Positive Factors
Positive cash generation
Positive operating and free cash flow show that the business is currently generating cash despite reported accounting losses. If maintained, this can support ongoing finance operations, reduce dependence on external capital, and provide resources for balance-sheet management over the next several quarters.
Negative Factors
Severe profitability deterioration
The sharp TTM decline in revenue and deeply negative gross and net margins show that current earnings quality is weak. Persistent losses reduce internally generated capital, limit the ability to absorb adverse credit outcomes, and make sustained profitability dependent on operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Positive operating and free cash flow show that the business is currently generating cash despite reported accounting losses. If maintained, this can support ongoing finance operations, reduce dependence on external capital, and provide resources for balance-sheet management over the next several quarters.
Read all positive factors
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.82M
Dividend YieldN/A
Average Volume (3M)46.92K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth100.60%
EPS Growth69.18%
CountryUS
Employees652
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-11.12
Shares Outstanding5,234,356
10 Day Avg. Volume6,845
30 Day Avg. Volume46,923
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.89
Price to Sales (P/S)0.92
P/FCF Ratio1.52
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vroom, Inc. Business Overview & Revenue Model
Company Description
Vroom, Inc. operates as an online automotive retail platform, focusing on the sale of pre-owned vehicles throughout the United States. The company offers a comprehensive digital ecosystem that manages all aspects of the car ownership journey, from...
How the Company Makes Money
Vroom’s revenue model has historically been tied to transactions and services associated with used-vehicle sales and vehicle financing. Key ways the company has made money include: (1) Retail vehicle sales: revenue from selling used cars to consum...
Vroom, Inc. Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
33
Negative
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.64M | 112.27M | 11.61M | 893.20M | 1.95B | 3.18B |
| Gross Profit | 67.79M | 91.13M | 11.61M | 161.95M | 244.79M | 202.10M |
| EBITDA | 35.33M | 51.47M | -43.11M | -171.30M | -392.19M | -334.99M |
| Net Income | -56.61M | -7.96M | -165.12M | -365.54M | -451.91M | -370.91M |
Balance Sheet | ||||||
| Total Assets | 941.35M | 937.38M | 1.07B | 1.48B | 1.62B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 16.36M | 10.38M | 29.34M | 140.07M | 419.51M | 1.13B |
| Total Debt | 778.62M | 779.49M | 752.34M | 1.23B | 985.76M | 1.14B |
| Total Liabilities | 820.33M | 820.77M | 1.10B | 1.35B | 1.14B | 1.45B |
| Stockholders Equity | 99.79M | 116.62M | -30.95M | 122.15M | 475.24M | 915.19M |
Cash Flow | ||||||
| Free Cash Flow | 70.80M | 68.09M | -100.52M | -536.31M | -133.30M | -597.10M |
| Operating Cash Flow | 77.50M | 75.15M | -97.04M | -533.68M | -109.06M | -568.69M |
| Investing Cash Flow | -97.35M | -108.17M | 132.57M | 173.15M | -164.21M | -104.29M |
| Financing Cash Flow | 27.82M | 37.88M | -165.99M | 97.34M | -469.49M | 797.71M |
Vroom, Inc. Technical Analysis
Negative
10.18
Price Trends
9.32
Positive
9.36
Negative
13.06
Negative
Market Momentum
0.01
Positive
45.44
Neutral
46.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Negative. The current price of 10.18 is above the 20-day moving average (MA) of 9.96, above the 50-day MA of 9.32, and below the 200-day MA of 13.06, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 46.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRM.
Vroom, Inc. Risk Analysis
Vroom, Inc. disclosed 60 risk factors in its most recent earnings report. Vroom, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vroom, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $68.82B | 21.68 | 46.57% | ― | 53.98% | 159.43% | |
72 Outperform | $2.78B | 16.14 | 56.25% | ― | 6.01% | 47.62% | |
58 Neutral | $7.82B | 26.24 | 4.80% | ― | 4.09% | -40.01% | |
56 Neutral | $5.21B | 7.59 | 33.18% | ― | -0.06% | 35.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $51.82M | -0.83 | -51.30% | ― | 100.60% | 69.18% | |
45 Neutral | $290.37M | -4.72 | 73.63% | ― | 97.00% | -42.04% |
* General Sector Average
VRM
Vroom, Inc.
9.34
-16.86
-64.35%
AN
AutoNation
164.99
-59.39
-26.47%
KMX
CarMax
55.89
9.47
20.40%
CVNA
Carvana Co
63.04
-12.10
-16.11%
CARG
CarGurus
29.73
-8.15
-21.52%
UXIN
Uxin
1.37
-2.12
-60.74%
Vroom, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Vroom Raises $20 Million via Preferred Equity Financing
Positive
Sep 30, 2026
On September 30, 2026, Vroom Automotive, LLC issued 16,000 Series A1 preferred units and 4,000 Series B1 preferred units to SPE Holdings 2026-1 for gross proceeds of $20 million, under newly updated LLC and purchase agreements. The preferred units...
Business Operations and StrategyPrivate Placements and Financing
Vroom Extends Warehouse Credit Facility Commitment Termination Date
Positive
Aug 28, 2026
On August 26, 2026, Vroom, Inc.’s subsidiaries United Auto Credit Corporation and UACC Auto Financing Trust V executed an eleventh amendment to their Amended and Restated Warehouse Agreement with Capital One, N.A. as administrative agent. Th...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Vroom Achieves First-Ever Quarterly Profit and Strengthens Balance Sheet
Positive
Aug 4, 2026
Vroom reported its second-quarter 2026 results on August 4, 2026, highlighting the first positive net income and adjusted net income in the company’s history for the quarter ended June 30, 2026. The achievement was driven in part by improved...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Vroom Extends And Eases Key Warehouse Credit Facility
Positive
Jul 7, 2026
On June 30, 2026, Vroom’s subsidiaries United Auto Credit Corporation and UACC Auto Financing Trust IV amended their long-standing Warehouse Credit Facility, extending the commitment termination date from July 2, 2026 to June 2, 2027. The mo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.