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Vroom, Inc.
(NASDAQ:VRM)
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Rating:49Neutral
Price Target:
$9.00
▼(-11.59% Downside)
Action:Reiterated
Date:08/29/26
The score is held down primarily by weak and unstable profitability and a leveraged balance sheet, even though current cash generation is positive. Technicals are mixed with longer-term downtrend pressure despite modestly improving shorter-term signals. Valuation support is limited due to a negative P/E and no dividend yield data, while corporate events modestly improve the outlook by extending and easing key funding facilities.
Positive Factors
Positive Cash Generation
Positive operating and free cash flow shows that the finance platform is currently converting operations into liquidity despite accounting losses. If sustained, this can support lending activity, debt service and operating resilience, although historical volatility limits confidence.
Negative Factors
Severe Profitability Weakness
The sharp revenue contraction and deeply negative margins indicate that recent cash generation has not yet translated into durable earnings. Persistent losses weaken internal capital formation and leave performance highly sensitive to credit and funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Cash Generation
Positive operating and free cash flow shows that the finance platform is currently converting operations into liquidity despite accounting losses. If sustained, this can support lending activity, debt service and operating resilience, although historical volatility limits confidence.
Read all positive factors
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.69M
Dividend YieldN/A
Average Volume (3M)16.47K
Price to Earnings (P/E)―
Beta (1Y)0.73
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. Volume25,528
30 Day Avg. Volume16,471
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. 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.01B | 18.04 | 56.25% | ― | 6.01% | 47.62% | |
73 Outperform | $82.08B | 25.77 | 46.57% | ― | 53.98% | 159.43% | |
68 Neutral | $7.02B | 9.64 | 33.18% | ― | -0.06% | 35.87% | |
60 Neutral | $8.98B | 39.31 | 3.67% | ― | -1.69% | -58.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $56.69M | -0.97 | -51.30% | ― | 100.60% | 69.18% | |
36 Underperform | $255.18M | -5.19 | 56.97% | ― | 94.12% | -12.61% |
* General Sector Average
VRM
Vroom, Inc.
10.83
-16.88
-60.92%
AN
AutoNation
212.36
-14.82
-6.52%
KMX
CarMax
63.29
1.91
3.11%
CVNA
Carvana Co
74.59
0.15
0.20%
CARG
CarGurus
33.74
-2.20
-6.12%
UXIN
Uxin
1.16
-2.26
-66.08%
Vroom, Inc. Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Vroom Stockholders Back Board, Auditor and Executive Pay
Positive
Jun 12, 2026
Vroom, Inc. held its Annual Meeting of Stockholders on June 11, 2026, with approximately 82.15 percent of outstanding common stock represented, reflecting strong shareholder participation in corporate governance. Stockholders elected seven directo...
Business Operations and StrategyPrivate Placements and Financing
Vroom Adjusts Warehouse Credit Facilities to Enhance Liquidity
Neutral
Jun 3, 2026
On May 29, 2026, Vroom, through subsidiaries United Auto Credit Corporation and UACC Auto Financing Trust IV, amended its long-standing Warehouse Credit Facility One, extending the commitment termination date from June 2, 2026 to July 2, 2026, whi...
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.