TrueCar (TRUE) AI Stock Analysis

• Market Cap: $190.33M
• Dividend Yield: N/A
• Average Volume (3M): 744.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 6.18%
• EPS Growth: 28.04%
• Country: US
• Employees: 348
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.10
• Shares Outstanding: 88,940,050
• 10 Day Avg. Volume: 1,481,534
• 30 Day Avg. Volume: 744,906
• PEG Ratio: 0.28
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 1.92
• P/FCF Ratio: -2.12K
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: -14.90
• 1Y Price Target: $2.78
• Price Target Upside: 29.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $2.00 ▼(-6.54% Downside)

TrueCar's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation. While technical analysis provides some positive signals, the negative valuation metrics and lack of earnings call data further weigh down the score. The company needs to address its operational inefficiencies and improve its financial health to enhance its stock performance.

Positive Factors

Revenue Growth

The 12.4% YoY revenue growth indicates strong market demand and effective business strategies, supporting long-term growth potential.

Product Enhancements

Product enhancements like Actionable Insights improve user engagement and dealer satisfaction, strengthening competitive advantage.

OEM Revenue Increase

A 19.7% increase in OEM revenue highlights successful partnerships and diversification, enhancing revenue stability.

Negative Factors

Adjusted EBITDA

Negative adjusted EBITDA reflects ongoing operational inefficiencies, posing challenges to achieving profitability.

Franchise Dealer Turnover

High dealer turnover can disrupt network stability and affect revenue consistency, challenging long-term growth.

Macroeconomic Uncertainty

Economic uncertainties and tariffs can impact market conditions, affecting revenue forecasts and strategic planning.

TrueCar Business Overview & Revenue Model

Company Description

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides accurate, geographically specific, and real-time pricing information for consumers and dealers; TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. TrueCar, Inc. was incorporated in 2005 and is headquartered in Santa Monica, California.

How the Company Makes Money

TrueCar generates revenue primarily through its partnerships with automotive dealers and manufacturers. The company earns transaction fees from dealerships when a vehicle is sold through its platform, which is its main revenue stream. Additionally, TrueCar offers subscription-based services to dealerships, providing them with access to its platform and the ability to showcase their inventory. The company also benefits from strategic partnerships with other automotive companies and financial institutions, which can lead to additional revenue opportunities through advertising, lead generation, and co-marketing initiatives.

TrueCar Financial Statement Overview

Summary

TrueCar faces significant financial challenges, with declining revenue growth, negative profitability, and weak cash flow generation. While the company maintains a strong gross profit margin and low leverage, it must address operational inefficiencies and improve cash flow to enhance its financial position and support future growth.

Income Statement

TrueCar's income statement reveals challenges with profitability and growth. The company has experienced declining revenue growth, with a negative growth rate in the TTM period. Margins are under pressure, with a negative net profit margin and EBIT margin, indicating operational inefficiencies. However, the gross profit margin remains strong, suggesting the company can generate revenue efficiently, but struggles to control costs.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating shareholder returns. The equity ratio is stable, but the company needs to improve profitability to enhance financial stability.

Cash Flow

Cash flow analysis highlights significant challenges, with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is positive but low, indicating limited cash generation from operations. The company needs to improve cash flow management to support its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.22M	175.60M	158.71M	161.52M	231.70M	278.68M
Gross Profit	143.47M	149.21M	142.85M	145.31M	209.46M	257.13M
EBITDA	-5.69M	-18.17M	-35.79M	-45.46M	-12.90M	15.53M
Net Income	-18.61M	-31.05M	-49.77M	-118.69M	-38.33M	76.54M
Balance Sheet
Total Assets	148.69M	159.69M	204.32M	251.53M	387.67M	458.06M
Cash, Cash Equivalents and Short-Term Investments	103.19M	111.83M	135.11M	175.52M	245.22M	273.31M
Total Debt	9.88M	11.28M	14.41M	23.01M	31.55M	36.74M
Total Liabilities	34.51M	41.55M	44.10M	54.26M	57.88M	75.28M
Stockholders Equity	114.18M	118.14M	160.22M	197.27M	329.79M	382.78M
Cash Flow
Free Cash Flow	-19.00K	-159.00K	-34.22M	-40.82M	3.50M	28.84M
Operating Cash Flow	7.86M	7.70M	-22.41M	-29.14M	14.19M	39.12M
Investing Cash Flow	-7.87M	-7.86M	-11.81M	-8.03M	-4.21M	101.90M
Financing Cash Flow	-11.30M	-24.97M	-4.33M	-32.53M	-38.09M	-49.24M

TrueCar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUE, the sentiment is Negative. The current price of 2.14 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.19, and above the 200-day MA of 1.88, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUE.

TrueCar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	77 Outperform	$964.70M	18.75	36.81%	―	57.83%	293.63%
CARG	68 Neutral	$3.69B	26.18	35.39%	―	4.21%	―
ATHM	68 Neutral	$2.98B	13.46	5.87%	0.00%	-5.54%	-14.30%
MAX	61 Neutral	$834.20M	-592.59	―	―	64.86%	-112.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	58 Neutral	$854.80M	-13.44	-14.07%	―	6.65%	50.32%
TRUE	46 Neutral	$190.33M	-10.01	-15.37%	―	6.18%	28.04%

TrueCar Corporate Events

TrueCar Announces Merger Agreement with Fair Holdings

On October 14, 2025, TrueCar, Inc. announced its entry into a merger agreement with Fair Holdings, Inc., led by TrueCar founder Scott Painter. This all-cash transaction, valued at approximately $227 million, will result in TrueCar becoming a wholly-owned subsidiary of Fair Holdings. The merger aims to enhance TrueCar’s operations by leveraging the expertise of a syndicate of investors from automotive retail, finance, and technology sectors. The transaction is expected to close by early 2026, pending stockholder and regulatory approvals, and will result in TrueCar’s delisting from Nasdaq.