Vroom, Inc. (VRM)
NASDAQ:VRM
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Vroom, Inc.
(NASDAQ:VRM)
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Rating:48Neutral
Price Target:
$11.50
▼(-37.16% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by ongoing losses and high leverage despite improved equity, and by clearly bearish technicals with the stock trading below key moving averages. Offsetting factors include the turnaround to positive operating/free cash flow and corporate actions aimed at recapitalization, but valuation support is limited due to negative earnings and no dividend.
Positive Factors
Improved Cash Generation
Sustained positive operating and free cash flow indicates the business is generating internal liquidity after years of burn. This improves the company's ability to fund operations, service capital, and invest in strategic initiatives without relying solely on external financing, bolstering medium-term resilience.
Negative Factors
High Leverage
A debt-to-equity ratio near 6.7x materially limits financial flexibility and raises refinancing and covenant risks. High leverage increases interest burden, constrains strategic options, and magnifies downside if operating performance slips, making capital structure risk a persistent structural vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
Sustained positive operating and free cash flow indicates the business is generating internal liquidity after years of burn. This improves the company's ability to fund operations, service capital, and invest in strategic initiatives without relying solely on external financing, bolstering medium-term resilience.
Read all positive factors
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.98M
Dividend YieldN/A
Average Volume (3M)2.94K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth41.94%
EPS Growth72.15%
CountryUS
Employees704
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-12.76
Shares Outstanding5,207,627
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 Ratio1.52
Enterprise Value/Market Cap13.55
Enterprise Value/Revenue15.48
Enterprise Value/Gross Profit31.56
Enterprise Value/Ebitda-114.46
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’s revenue model has primarily been tied to (1) vehicle-related commerce and (2) finance operations. In its e-commerce used-vehicle business, the company generated revenue by selling vehicles to retail customers (recognizing the sale price of...
Vroom, Inc. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
35
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.36M | 112.27M | 11.61M | 893.20M | 1.95B | 3.18B |
| Gross Profit | 26.18M | 91.13M | 11.61M | 161.95M | 244.79M | 202.10M |
| EBITDA | -7.22M | 51.47M | -43.11M | -171.30M | -392.19M | -334.99M |
| Net Income | -65.74M | -7.96M | -165.12M | -365.54M | -451.91M | -370.91M |
Balance Sheet | ||||||
| Total Assets | 937.82M | 937.38M | 1.07B | 1.48B | 1.62B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 14.48M | 10.38M | 29.34M | 140.07M | 419.51M | 1.13B |
| Total Debt | 774.78M | 779.49M | 752.34M | 1.23B | 985.76M | 1.14B |
| Total Liabilities | 818.19M | 820.77M | 1.10B | 1.35B | 1.14B | 1.45B |
| Stockholders Equity | 98.42M | 116.62M | -30.95M | 122.15M | 475.24M | 915.19M |
Cash Flow | ||||||
| Free Cash Flow | 70.11M | 68.09M | -100.52M | -536.31M | -133.30M | -597.10M |
| Operating Cash Flow | 77.24M | 75.15M | -97.04M | -533.68M | -109.06M | -568.69M |
| Investing Cash Flow | -90.04M | -108.17M | 132.57M | 173.15M | -164.21M | -104.29M |
| Financing Cash Flow | 18.93M | 37.88M | -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 60 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% | |
57 Neutral | $289.12M | -11.83 | -61.46% | ― | -4.18% | 43.09% | |
51 Neutral | $718.84M | -6.61 | -34.78% | 4.97% | 2.61% | -257.25% | |
50 Neutral | $523.79M | -14.87 | 48.78% | ― | 79.27% | 98.99% | |
48 Neutral | $60.98M | -1,442.44 | -38.32% | ― | 41.94% | 72.15% | |
48 Neutral | $92.32M | -0.70 | -2.60% | ― | -2.67% | -1336.84% | |
43 Neutral | $9.41M | -0.67 | -543.84% | ― | ― | 91.89% |
* Consumer Cyclical Sector Average
VRM
Vroom, Inc.
12.65
-11.84
-48.35%
CRMT
America's Car-Mart
11.88
-36.21
-75.30%
CWH
Camping World Holdings
7.04
-8.31
-54.14%
RDNW
RideNow Group
7.75
5.77
291.41%
KXIN
Kaixin Auto Holdings
5.98
-438.94
-98.66%
UXIN
Uxin
2.38
-2.16
-47.58%
Vroom, Inc. Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
Vroom Reports Q1 2026 Results, Highlights Recapitalization Progress
Negative
May 15, 2026
Vroom, Inc. reported its first-quarter 2026 results on May 14, 2026, highlighting stockholders’ equity of $98.4 million, tangible book value of $86.5 million, and total available liquidity of $56.4 million as of March 31, 2026. The company p...
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...
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.