Vroom, Inc. reported a net loss of $165.1 million for the year ended December 31, 2024, compared to a net loss of $364.6 million in 2023. This improvement reflects a $252.6 million decrease in net loss from discontinued operations, resulting from the company's decision to wind down its ecommerce operations and used vehicle dealership business, a process substantially completed by March 29, 2024. The company incurred $15.8 million in severance and other personnel-related costs and $13.9 million in contract and lease termination costs related to this wind-down.
The company emerged from a prepackaged Chapter 11 bankruptcy case on January 14, 2025, after restructuring approximately $290 million in debt. As a result of the restructuring, approximately $290 million in debt was discharged, and all previously outstanding equity interests were cancelled. The company issued approximately 5.2 million shares of new common stock and 364,516 warrants. The company's common stock was suspended from trading on the Nasdaq Global Select Market in December 2024 due to the bankruptcy but was relisted on the Nasdaq Global Market in February 2025.
Vroom's remaining businesses, United Auto Credit Corporation (UACC) and CarStory, continued operations throughout the bankruptcy proceedings. UACC, an automotive finance company, serviced a portfolio of approximately 78,000 retail installment sales contracts with an aggregate principal outstanding balance of $1.0 billion as of December 31, 2024. CarStory, an AI-powered analytics and digital services platform, generated $11.6 million in revenue during 2024. The company's Long-Term Strategic Plan focuses on achieving pre-COVID cumulative net losses or lower, growing originations with pre-COVID cumulative net losses or lower, and lowering operating costs.
As of December 31, 2024, Vroom employed 710 employees, with 704 full-time. The company implemented significant workforce reductions in 2024, primarily impacting its former ecommerce operations. UACC's operations are subject to various federal, state, and local laws and regulations, including those related to consumer protection and debt collection. The company also faces risks related to cybersecurity, data privacy, and competition within the automotive finance and data analytics industries.
Vroom's outlook is tied to the success of its Long-Term Strategic Plan, which includes three models: Base, Growth, and Aggressive Growth. The company anticipates using its existing cash and cash equivalents, a new credit agreement, and UACC's Warehouse Credit Facilities to support operations for at least the next twelve months. However, the company acknowledges numerous risks, including those related to its financial condition, liquidity, and the ability to maintain and grow its UACC and CarStory businesses.
About Vroom, Inc.
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