Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $10.93M
• Dividend Yield: N/A
• Average Volume (3M): 8.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -96.51%
• EPS Growth: 77.24%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Auto - Dealerships
• EPS (TTM): 7.46
• Shares Outstanding: 5,163,274
• 10 Day Avg. Volume: 5,673
• 30 Day Avg. Volume: 8,051
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.05
• Enterprise Value/Market Cap: 66.97
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: -5.22
• Enterprise Value/Ebitda: -1.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 38 Underperform
• Price Target: ―

Vroom, Inc. receives a low overall stock score due to significant financial challenges, marked by negative profitability and high leverage. While there is a slight positive trend in technical analysis, the valuation remains unattractive with a negative P/E ratio. The absence of earnings call data and corporate events limits further insights, reinforcing the need for strategic improvements to enhance financial stability.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. (VRM) is a leading e-commerce platform in the automotive industry, primarily focused on buying and selling used vehicles online. The company aims to transform the car buying and selling experience by providing consumers with a seamless, convenient, and transparent process. Vroom operates through its primary segments of vehicle sales, vehicle operations, and product financing, offering a wide range of vehicles and ancillary services directly to consumers across the United States.

How the Company Makes Money

Vroom, Inc. generates revenue primarily through the sale of used vehicles, which is their core business. The company acquires used cars from auctions, dealerships, and directly from consumers, reconditions them, and then sells them through its online platform. A significant portion of their revenue comes from the price differential between the purchase and sale of these vehicles. Additionally, Vroom offers vehicle financing solutions, extended warranty products, and vehicle insurance through partnerships, which contribute to its earnings. The company also earns revenue from fees associated with these financial products and services, thereby diversifying its income streams beyond direct vehicle sales.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces a challenging financial position characterized by declining revenues, negative profitability, and high leverage. The income statement reflects operational inefficiencies with negative net profit margins, while the balance sheet shows high financial risk due to negative equity and excessive liabilities. Cash flow improvements are minimal and insufficient to offset the broader financial concerns, indicating a need for strategic adjustments.

Income Statement

Vroom, Inc. has experienced significant revenue volatility with a declining trend from 2021 to 2023. The gross profit margin for 2023 was 18.1%, showing a decrease from the previous year. The company has consistently reported negative net income, leading to a negative net profit margin of -185% in 2023. The EBIT and EBITDA margins were both negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial position for Vroom, Inc. The debt-to-equity ratio is negative due to negative stockholders' equity, indicating financial instability. The equity ratio for 2023 was -2.1%, reflecting a significant reliance on debt financing. Overall, the company's balance sheet suggests a high risk due to excessive liabilities compared to its equity.

Cash Flow

Cash flow analysis reveals a challenging liquidity situation with negative operating and free cash flows. The operating cash flow to net income ratio for 2023 was mildly improved but still negative, suggesting inefficiencies in converting revenue into cash. However, Vroom, Inc. managed to slightly reduce its negative free cash flow in 2023 compared to 2022, indicating marginal improvements in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.61M	893.20M	1.95B	3.18B	1.36B
	Gross Profit
11.61M	161.95M	244.79M	202.10M	71.55M
	EBIT
-141.89M	-270.23M	-359.89M	-358.62M	-178.60M
	EBITDA
-43.11M	-274.20M	-392.61M	-334.99M	-188.41M
	Net Income Common Stockholders
-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.34M	140.07M	398.92M	1.13B	1.06B
	Total Assets
1.07B	1.48B	1.62B	2.37B	1.72B
	Total Debt
752.34M	1.23B	985.76M	1.14B	347.38M
	Net Debt
723.00M	1.10B	586.84M	7.58M	-708.84M
	Total Liabilities
1.10B	1.35B	1.14B	1.45B	496.95M
	Stockholders Equity
-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow		Free Cash Flow
-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
	Operating Cash Flow
-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
	Investing Cash Flow
132.57M	173.15M	-164.21M	-104.29M	-11.33M
	Financing Cash Flow
-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.93B	11.33	2.94%	3.90%	2.68%	-25.08%
PRTS	56 Neutral	$52.41M	―	-54.32%	―	-14.49%	-210.54%
GAN	51 Neutral	$91.53M	―	229.13%	―	7.02%	74.19%
RMBL	48 Neutral	$70.04M	―	-130.43%	―	-14.45%	78.09%
NEGG	47 Neutral	$116.77M	―	-45.59%	―	―	―
FFAI	40 Underperform	$119.10M	―	-186.28%	―	8.52%	98.75%
VRM	38 Underperform	$10.93M	―	-49.90%	―	-96.51%	77.24%

Vroom, Inc. Corporate Events

Vroom, Inc. Reports Q1 2025 Financial Results

On May 14, 2025, Vroom, Inc. announced its financial results for the first quarter ending March 31, 2025. The company reported a consolidated total available liquidity of $66.9 million, with a net loss of $6.5 million from continuing operations. Significant developments included the completion of a recapitalization of unsecured convertible senior notes, resulting in no long-term debt, and the extension of $400 million in warehouse agreements. The company also closed UACC’s 17th securitization transaction, issuing $324 million of fixed-rate asset-backed notes. These measures are part of Vroom’s strategy to strengthen its financial position and support long-term growth.

Vroom, Inc. Appoints Nikul Patel to Board

On April 24, 2025, Vroom, Inc. appointed Nikul Patel to its Board of Directors. Mr. Patel will participate in the company’s standard compensation program for non-employee directors, which includes cash and equity compensation. The appointment does not involve any other arrangements or family relationships with current directors or executive officers.

Vroom, Inc. Secures $25M Credit Line for Growth

On March 11, 2025, Vroom, Inc. announced its financial results for the fourth quarter and full year ending December 31, 2024, highlighting a net loss from continuing operations and a completed recapitalization of unsecured convertible senior notes. The company emerged without long-term debt, strengthening its balance sheet, and secured a $25 million line of credit in March 2025 to support its Long-Term Strategic Plan. Vroom also extended a warehouse agreement into 2026 and announced UACC’s 17th securitization transaction, issuing $324 million of asset-backed notes.