Vroom, Inc. (VRM)
NASDAQ:VRM
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Vroom, Inc.
(NASDAQ:VRM)
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Rating:45Neutral
Price Target:
$14.00
▼(-23.50% Downside)
Action:ReiteratedDate:03/27/26
The score is held down primarily by weak financial performance (ongoing losses and negative gross profitability) and a bearish technical trend (price below key moving averages with negative MACD). Improvements in leverage/liquidity and the turn to positive 2025 cash flow, plus supportive financing/securitization events, provide some offset, but valuation metrics provided do not add support.
Positive Factors
Deleveraged Balance Sheet
A materially deleveraged balance sheet (zero debt and positive equity in 2025) reduces fixed interest burdens and increases financial flexibility. This structural improvement supports capital allocation, reduces bankruptcy risk, and gives management runway to invest in operations and strategic initiatives over the medium term.
Negative Factors
Negative Gross Profit
Negative gross profit means the company sold vehicles or services below direct cost, signaling broken core unit economics. Without structural improvements to sourcing, reconditioning, pricing, or logistics, negative gross margins will prevent sustainable operating profit and undermine long-term viability of the retail model.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged Balance Sheet
A materially deleveraged balance sheet (zero debt and positive equity in 2025) reduces fixed interest burdens and increases financial flexibility. This structural improvement supports capital allocation, reduces bankruptcy risk, and gives management runway to invest in operations and strategic initiatives over the medium term.
Read all positive factors
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.24M
Dividend YieldN/A
Average Volume (3M)2.94K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-81.31%
EPS Growth87.13%
CountryUS
Employees704
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-2.19
Shares Outstanding5,206,073
10 Day Avg. Volume2,692
30 Day Avg. Volume2,937
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.89
Price to Sales (P/S)0.92
P/FCF Ratio1.63
Enterprise Value/Market Cap11.36
Enterprise Value/Revenue16.77
Enterprise Value/Gross Profit35.07
Enterprise Value/Ebitda16.39
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 e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company...
How the Company Makes Money
Vroom historically generated revenue primarily from (1) retail used-vehicle sales: purchasing used cars (from auctions, consumers, and other channels), reconditioning and merchandising them online, then selling to consumers; revenue was recognized...
Vroom, Inc. Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 112.27M | 11.61M | 893.20M | 1.95B | 3.18B |
| Gross Profit | 91.13M | 11.61M | 161.95M | 244.79M | 202.10M |
| EBITDA | 51.47M | -43.11M | -171.30M | -392.19M | -334.99M |
| Net Income | -7.96M | -165.12M | -365.54M | -451.91M | -370.91M |
Balance Sheet | |||||
| Total Assets | 937.38M | 1.07B | 1.48B | 1.62B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 10.38M | 29.34M | 140.07M | 419.51M | 1.13B |
| Total Debt | 779.49M | 752.34M | 1.23B | 985.76M | 1.14B |
| Total Liabilities | 820.77M | 1.10B | 1.35B | 1.14B | 1.45B |
| Stockholders Equity | 116.62M | -30.95M | 122.15M | 475.24M | 915.19M |
Cash Flow | |||||
| Free Cash Flow | 63.32M | -100.52M | -536.31M | -133.30M | -597.10M |
| Operating Cash Flow | 70.53M | -97.04M | -533.68M | -109.06M | -568.69M |
| Investing Cash Flow | -106.58M | 132.57M | 173.15M | -164.21M | -104.29M |
| Financing Cash Flow | 23.98M | -165.99M | 97.34M | -469.49M | 797.71M |
Vroom, Inc. Technical Analysis
Neutral
18.30
Price Trends
23.58
Negative
25.47
Negative
Market Momentum
-1.10
Negative
45.72
Neutral
67.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Neutral. The current price of 18.3 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 23.58, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRM.
Vroom, Inc. Risk Analysis
Vroom, Inc. disclosed 62 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $260.43M | -3.84 | -268.06% | ― | -12.43% | 66.92% | |
50 Neutral | $616.45M | -20.84 | 46.72% | ― | ― | ― | |
49 Neutral | $103.53M | -0.70 | -2.60% | ― | 2.07% | -117.51% | |
46 Neutral | $9.82M | -0.39 | -543.84% | ― | -99.25% | 90.38% | |
45 Neutral | $74.24M | -12.98 | -38.32% | ― | -81.31% | 87.13% | |
42 Neutral | $667.35M | -6.80 | -30.55% | 4.97% | 6.58% | -72.69% |
* Consumer Cyclical Sector Average
VRM
Vroom, Inc.
14.26
-15.11
-51.45%
CRMT
America's Car-Mart
12.47
-31.20
-71.44%
CWH
Camping World Holdings
6.48
-6.40
-49.69%
RDNW
RideNow Group
6.78
4.42
186.68%
KXIN
Kaixin Auto Holdings
5.94
-376.56
-98.45%
UXIN
Uxin
2.99
-0.42
-12.32%
Vroom, Inc. Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Vroom Reports Reduced 2025 Losses and Liquidity Position
Positive
Mar 26, 2026
On March 26, 2026, Vroom reported its fourth-quarter and full-year 2025 results, highlighting stockholders’ equity of $116.6 million and tangible book value of $104.2 million as of December 31, 2025. The company also reported consolidated to...
Business Operations and StrategyPrivate Placements and Financing
Vroom’s UACC completes subprime auto loan securitization transaction
Positive
Feb 6, 2026
On February 5, 2026, UACC executed an asset-backed securitization in which it sold approximately $274.9 million of subprime motor vehicle retail installment sales contracts to a depositor entity, which in turn transferred them to a newly formed se...
Business Operations and StrategyPrivate Placements and Financing
Vroom Raises $22.5 Million via New Preferred Units
Positive
Jan 21, 2026
On January 16, 2026, Vroom Automotive LLC, a subsidiary of Vroom, Inc., issued 15,000 Series A preferred units and 7,500 Series B preferred units to SPE Holdings 2026-1 for total gross proceeds of $22.5 million under a new preferred unit purchase ...
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.