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	)