TrueCar (TRUE) AI Stock Analysis

• Market Cap: $194.58M
• Dividend Yield: N/A
• Average Volume (3M): 744.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• 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: 88,848,870
• 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: 0.44
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: -14.90
• 1Y Price Target: $2.78
• Price Target Upside: 21.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▼(-12.66% Downside)

TrueCar's stock score reflects significant financial challenges, including negative profitability and weak cash flow, which are the most impactful factors. Technical analysis shows moderate strength, while valuation remains unattractive due to a negative P/E ratio. The earnings call provides some optimism with revenue growth and strategic advancements, but ongoing operational challenges and macroeconomic uncertainties temper this outlook.

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. is a technology company that operates in the automotive sector, primarily focusing on providing an online platform for car buyers and sellers. The company connects consumers with a network of certified dealers, offering a transparent car buying experience that includes pricing information and vehicle inventory. TrueCar's core products and services include its website and mobile application, which facilitate new and used car sales, as well as tools for consumers to research vehicle pricing and compare offers from various dealerships.

How the Company Makes Money

TrueCar generates revenue mainly through its subscription and transaction-based models. The company earns money by charging automotive dealers a subscription fee for access to its platform, where they can gain leads and potential sales from customers. Additionally, TrueCar earns transaction fees when a vehicle is sold through its platform, which is typically a percentage of the sale price. The company also collaborates with various automotive manufacturers and financial institutions, which can provide additional revenue streams through partnerships and advertising arrangements. These relationships enhance TrueCar's market presence and contribute to its overall earnings.

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: Positive
• Last Price: 2.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUE, the sentiment is Positive. The current price of 2.29 is below the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.12, and above the 200-day MA of 1.98, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRUE.

TrueCar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	73 Outperform	$951.03M	18.16	36.81%	―	57.83%	293.63%
CARG	68 Neutral	$3.38B	23.47	35.39%	―	4.21%	―
ATHM	68 Neutral	$3.09B	14.65	5.87%	6.98%	-5.54%	-14.30%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAX	59 Neutral	$843.98M	―	―	―	64.86%	-112.92%
NXDR	51 Neutral	$670.51M	―	-14.07%	―	6.65%	50.32%
TRUE	50 Neutral	$194.58M	-6.55	-15.37%	―	6.18%	28.04%

TrueCar Corporate Events

TrueCar’s Q3 2025 Results and Acquisition News

TrueCar Inc., a prominent player in the automotive digital marketplace, connects car buyers and sellers through its network of Certified Dealers, offering a streamlined and transparent auto shopping experience. In its latest earnings report for the third quarter of 2025, TrueCar reported a total revenue of $43.2 million, a decline from both the previous quarter and the same period last year. Despite the drop in revenue, the company achieved a net income of $5.0 million, a significant turnaround from the losses reported in previous quarters.

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.

The most recent analyst rating on (TRUE) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on TrueCar stock, see the TRUE Stock Forecast page.

TrueCar Announces Termination of Chief Revenue Officer

On August 28, 2025, TrueCar, Inc. announced the termination of its Chief Revenue Officer, Jay Ku, effective September 1, 2025, without cause. The company plans to enter into a release and separation agreement with Mr. Ku, which includes severance benefits in line with his employment agreement.

The most recent analyst rating on (TRUE) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on TrueCar stock, see the TRUE Stock Forecast page.

TrueCar Inc’s Earnings Call: Growth Amid Challenges

TrueCar Inc’s recent earnings call painted a picture of optimism tempered with caution. The company celebrated significant revenue growth and product advancements, particularly in the OEM segment and digital retail innovations with TrueCar+. However, challenges such as negative adjusted EBITDA and dealer network optimization issues were also acknowledged. Despite these hurdles, TrueCar remains hopeful about its long-term growth prospects, even amidst macroeconomic uncertainties.

TrueCar Inc. Reports Strong Q2 2025 Revenue Growth

TrueCar Inc., a digital automotive marketplace, connects car buyers and sellers through its network of Certified Dealers, offering a personalized and efficient auto shopping experience. In its latest earnings report for Q2 2025, TrueCar Inc. highlighted a 12.4% year-over-year increase in total revenue, reaching $47 million, marking its highest quarterly revenue since Q3 2021. The company also reported a reduced net loss of $7.6 million, down from $13.5 million in the same period last year, despite a decrease in adjusted EBITDA to a loss of $1.2 million. Key performance metrics included a 19.7% growth in OEM revenue and a 6.2% increase in new unit sales volume, outperforming the industry’s 2.8% growth rate. TrueCar’s strategic focus on product enhancements and marketing efficiency has led to significant improvements in lead quality and cost per sale. The launch of new features like Actionable Insights and Motivated Buyer badging has strengthened dealer engagement, while consumer-facing updates have made the platform more intuitive and transparent. Looking ahead, TrueCar remains committed to commercializing its TC+ digital retailing experience by year-end, aiming to capture a greater share of online car buyers and enhance its competitive edge in the digital automotive marketplace.