Toronto, Ontario--(Newsfile Corp. - Le 18 août/August 2025) - Treatment.com AI Inc. (TRUE) has announced a name and symbol change to Rocket Doctor AI Inc. (AIDR). Shares will begin trading under the new name and symbol and with a new CUSIP number on August 21 , 2025. Disclosure documents are available at www.thecse.com. Please note that all open orders will be canceled at the end of business on August 20, 2025. Dealers are reminded to re-enter their orders. _________________________________ Treat ...

```markdown [PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents TrueCar, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of comprehensive loss, stockholders' equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, driven by reduced cash and an accumulated deficit | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $92,518 | $111,835 | | Total current assets | $118,024 | $135,128 | | Total assets | $139,816 | $159,691 | | Total current liabilities | $26,194 | $32,893 | | Total liabilities | $33,458 | $41,554 | | Total stockholders' equity | $106,358 | $118,137 | [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) TrueCar reported increased revenues but continued net losses for the three and six months ended June 30, 2025, with a notable increase in cost of revenue | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $46,998 | $41,795 | $91,808 | $82,847 | | Cost of revenue | $11,149 | $5,484 | $20,039 | $9,745 | | Sales and marketing | $25,105 | $23,945 | $50,122 | $46,027 | | Loss from operations | $(8,579) | $(15,189) | $(19,777) | $(22,674) | | Net loss | $(7,627) | $(13,520) | $(17,763) | $(19,368) | | Net loss per share | $(0.09) | $(0.15) | $(0.20) | $(0.21) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from December 31, 2024, to June 30, 2025, due to net losses, partially offset by stock-based compensation, with prior-year repurchases also contributing | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $118,137 | $106,358 | | Net loss (6 months) | N/A | $(17,763) | | Stock-based compensation (6 months) | N/A | $7,026 | | Metric (in thousands) | December 31, 2023 | June 30, 2024 | | :-------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $160,215 | $143,884 | | Net loss (6 months) | N/A | $(19,368) | | Repurchase of common stock (6 months) | N/A | $(1,222) | | Stock-based compensation (6 months) | N/A | $6,188 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) TrueCar experienced a net decrease in cash, cash equivalents, and restricted cash for the six months ended June 30, 2025, primarily due to cash used in operating, investing, and financing activities | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(10,722) | $46 | | Net cash used in investing activities | $(4,640) | $(4,181) | | Net cash used in financing activities | $(3,955) | $(4,875) | | Net decrease in cash, cash equivalents and restricted cash | $(19,317) | $(9,010) | | Cash, cash equivalents and restricted cash at end of period | $92,518 | $127,954 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail TrueCar's business, accounting policies, and financial statements, including updates on contingent consideration, lease impairment, and American Express partnership termination [1. Organization and Nature of Business](index=12&type=section&id=1.%20Organization%20and%20Nature%20of%20Business) TrueCar, Inc. operates as a digital automotive marketplace, providing pricing transparency, connecting consumers with certified dealers, and enabling OEMs to target incentives - TrueCar is a digital automotive marketplace providing pricing transparency, connecting consumers with **TrueCar Certified Dealers**, and enabling OEMs to target incentives[28](index=28&type=chunk) - The platform is accessed through **TrueCar.com**, **TrueCar mobile applications**, and car buying websites operated for affinity group marketing partners[28](index=28&type=chunk) - Subsidiary TCDS offers **Trade and Payments solutions**, including 'Sell Your Car' and 'True Cash Offer' products, providing vehicle valuation and guaranteed trade-in prices[29](index=29&type=chunk)[84](index=84&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines TrueCar's accounting policies, including GAAP conformity, consolidation principles, use of estimates, single operating segment, cash and cash equivalents definition, and allowance for doubtful accounts methodology - The Company operates as a single operating segment, with the President and CEO as the chief operating decision maker[34](index=34&type=chunk) - Allowance for doubtful accounts is determined based on historical write-off experience, specific circumstances, and current/forecasted U.S. Gross Domestic Product[36](index=36&type=chunk)[37](index=37&type=chunk) | Allowances (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Allowances, at beginning of period | $669 | $965 | $783 | $1,118 | | Charged as a reduction of revenue | $741 | $548 | $1,375 | $977 | | Charged to bad debt expense | $206 | $151 | $237 | $369 | | Write-offs, net of recoveries | $(857) | $(804) | $(1,636) | $(1,604) | | Allowances, at end of period | $759 | $860 | $759 | $860 | - Recent accounting pronouncements (ASU 2023-09 and ASU 2024-03) are not expected to materially impact the Company's consolidated financial statements, but will affect annual disclosures[41](index=41&type=chunk)[42](index=42&type=chunk) [3. Fair Value Measurements](index=14&type=section&id=3.%20Fair%20Value%20Measurements) TrueCar measures fair value using a three-level hierarchy, with no Level 3 liabilities as of June 30, 2025, following the final payout on contingent consideration - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[46](index=46&type=chunk) | Asset/Liability (in thousands) | June 30, 2025 (Level 1) | December 31, 2024 (Level 1) | | :----------------------------- | :---------------------- | :-------------------------- | | Cash equivalents | $88,226 | $97,917 | | Liability (in thousands) | June 30, 2025 (Level 3) | December 31, 2024 (Level 3) | | :----------------------- | :---------------------- | :-------------------------- | | Contingent consideration, current | $0 | $3,964 | | Contingent consideration, non-current | $0 | $0 | - The Company made its **final payout** on the contingent consideration liability during the **six months ended June 30, 2025**, resulting in no remaining Level 3 liabilities[45](index=45&type=chunk)[48](index=48&type=chunk) [4. Property and Equipment, net](index=16&type=section&id=4.%20Property%20and%20Equipment,%20net) Net property and equipment decreased from December 31, 2024, to June 30, 2025, primarily due to accumulated depreciation, despite an increase in computer equipment and internally developed software | Property and Equipment (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Computer equipment and internally developed software | $90,748 | $86,255 | | Total property and equipment, net | $14,995 | $15,735 | | Accumulated depreciation | $(81,632) | $(76,399) | | Depreciation and Amortization (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total depreciation and amortization expense of property and equipment | $2,600 | $3,100 | $5,300 | $6,100 | | Amortization of internal use capitalized software development costs | $2,500 | $3,000 | $5,100 | $5,800 | [5. Commitments and Contingencies](index=16&type=section&id=5.%20Commitments%20and%20Contingencies) TrueCar is involved in legal proceedings, including a lawsuit regarding a terminated office lease where the right-of-use asset has been fully impaired, but the lease liability remains - The Company is engaged in litigation with its former landlord over a terminated office lease, having fully impaired the **$6.8 million right-of-use asset**, but a **$7.4 million lease liability** remains on the balance sheet[54](index=54&type=chunk)[55](index=55&type=chunk) - American Express terminated its affinity partnership with TrueCar, effective April 28, 2025. The companies agreed to discontinue marketing activities and liquidate a **$2.8 million marketing fund balance**, resulting in a **$1.4 million payment** to American Express and a reduction in TrueCar's sales and marketing expenses[57](index=57&type=chunk) [6. Stock-based Awards](index=17&type=section&id=6.%20Stock-based%20Awards) TrueCar's stock-based compensation includes stock options, restricted stock units (RSUs), and performance stock units (PSUs), with significant remaining expense recognized over several years | Stock-based Awards (in thousands, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation expense | $6,625 | $5,821 | | Amount capitalized to internal-use software | $401 | $367 | | Total stock-based compensation cost | $7,026 | $6,188 | - Remaining stock-based compensation expense for non-vested restricted stock units was **$20.2 million**, expected to be recognized over **2.9 years**[61](index=61&type=chunk) - Remaining stock-based compensation expense for non-vested performance stock units was **$8.4 million**, expected to be recognized over **2.2 years**[62](index=62&type=chunk) [7. Income Taxes](index=19&type=section&id=7.%20Income%20Taxes) TrueCar recorded minimal income tax expense for the three and six months ended June 30, 2025 and 2024, primarily due to state income taxes, maintaining a full valuation allowance against its net deferred tax assets | Income Tax (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Provision for income taxes | $3 | $3 | $9 | $10 | - The Company maintains a full valuation allowance against its net deferred tax assets, as it is more likely than not that they will not be realized[66](index=66&type=chunk)[103](index=103&type=chunk) - The 'One Big Beautiful Bill Act,' signed into law on July 4, 2025, contains changes to corporate taxation, which the Company is currently evaluating[69](index=69&type=chunk) [8. Net Loss Per Share](index=19&type=section&id=8.%20Net%20Loss%20Per%20Share) TrueCar reported basic and diluted net losses per share of **$(0.09)** and **$(0.20)** for the three and six months ended June 30, 2025, respectively, with no share repurchases during the period | Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(7,627) | $(13,520) | $(17,763) | $(19,368) | | Weighted average common shares outstanding | 87,865 | 91,849 | 87,587 | 91,542 | | Net loss per share, basic and diluted | $(0.09) | $(0.15) | $(0.20) | $(0.21) | - As of June 30, 2025, **12.6 million anti-dilutive shares** were excluded from the diluted loss per share calculation, including options, unvested restricted stock units, and performance stock units[71](index=71&type=chunk) - The Company had no share repurchases during the **six months ended June 30, 2025**, and has a remaining **authorization of $80 million** under its share repurchase program, which expires December 31, 2026[72](index=72&type=chunk) [9. Revenue Information](index=20&type=section&id=9.%20Revenue%20Information) TrueCar disaggregates revenue into dealer revenue, OEM incentives revenue, and other revenue, with dealer revenue remaining the largest and showing growth for the periods ended June 30, 2025 | Revenue Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Dealer revenue | $43,224 | $38,556 | $84,063 | $74,602 | | OEM incentives revenue | $3,601 | $3,008 | $7,374 | $7,872 | | Other revenue | $173 | $231 | $371 | $373 | | Total revenues | $46,998 | $41,795 | $91,808 | $82,847 | - Dealer revenue represented **91.9%** and **91.6% of total revenues** for the three and six months ended June 30, 2025, respectively[117](index=117&type=chunk)[118](index=118&type=chunk) - Contract assets for estimated variable consideration were **$0.9 million** at June 30, 2025, and **$1.0 million** at December 31, 2024, primarily for leads delivered where consideration was conditional on subsequent vehicle sales[74](index=74&type=chunk) [10. Segment Reporting](index=21&type=section&id=10.%20Segment%20Reporting) TrueCar operates as a single operating segment, with all principal operations and long-lived assets maintained in the United States, and consolidated net income as its primary measure of profit or loss - The Company has one operating segment, with all principal operations, decision-making functions, and long-lived assets maintained in the United States[34](index=34&type=chunk)[78](index=78&type=chunk) | Expense Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $46,998 | $41,795 | $91,808 | $82,847 | | Headcount expense | $16,113 | $14,374 | $35,332 | $30,792 | | Branded media | $4,590 | $6,700 | $8,844 | $12,006 | | Partner marketing | $9,332 | $8,794 | $18,805 | $15,862 | | Net loss | $(7,627) | $(13,520) | $(17,763) | $(19,368) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of TrueCar's business, analyzes its financial performance, and discusses key metrics and liquidity, highlighting revenue growth, increased cost of revenue, and efforts to manage sales and marketing expenses [Overview](index=22&type=section&id=Overview) TrueCar operates a digital automotive marketplace connecting car buyers with Certified Dealers and OEMs, aiming for a personalized and efficient online car buying experience - TrueCar is a leading automotive digital marketplace focused on creating a personalized and efficient online car buying experience[81](index=81&type=chunk) - The platform provides market-based pricing data, VIN-based offers, and connects consumers with TrueCar Certified Dealers and OEMs for targeted incentives[83](index=83&type=chunk) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $47.0 | $41.8 | $91.8 | $82.8 | | Net loss | $(7.6) | $(13.5) | $(17.8) | $(19.4) | [Market Environment](index=23&type=section&id=Market%20Environment) The automotive market faces significant macroeconomic disruptions, including supply-chain issues, semiconductor shortages, and high interest rates, which impact consumer sentiment and dealer inventory - Macroeconomic factors like supply-chain disruptions, automotive semiconductor chip shortages, and high interest rates continue to impact the U.S. economy and consumer sentiment[87](index=87&type=chunk) - New tariffs announced in 2025 on vehicles, component parts, and raw materials are expected to increase costs and potentially lead to lower inventory levels and reduced consumer demand[87](index=87&type=chunk) - Dealers may reduce inventory due to prolonged high interest rates and increasing vehicle costs, potentially impacting TrueCar's network and product offerings[87](index=87&type=chunk) [Non-GAAP Financial Measures](index=24&type=section&id=Non-GAAP%20Financial%20Measures) TrueCar uses Adjusted EBITDA as a key non-GAAP operating performance measure, excluding items like interest income, depreciation, stock-based compensation, and restructuring charges, to facilitate period-to-period comparisons - **Adjusted EBITDA** is a non-GAAP measure used to assess operational performance, excluding interest income, depreciation and amortization, stock-based compensation, and restructuring charges[89](index=89&type=chunk)[90](index=90&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(7,627) | $(13,520) | $(17,763) | $(19,368) | | Adjusted EBITDA | $(1,170) | $98 | $(4,972) | $1,000 | - Restructuring charges, impairment of ROU assets, and interest accretion for terminated leases are excluded from **Adjusted EBITDA** as they are considered unrelated to underlying operations[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Components of Operating Results](index=26&type=section&id=Components%20of%20Operating%20Results) TrueCar's operating results are primarily driven by dealer and OEM incentives revenue, with key expenses including cost of revenue, sales and marketing, technology and development, and general and administrative - Revenues are primarily comprised of dealer revenue and OEM incentives revenue, recognized based on introductions and incentives delivered[97](index=97&type=chunk) - Cost of revenue includes data costs, licensing fees, website operations, wholesale vehicle acquisition, and marketing for TCMS customers[98](index=98&type=chunk) - Sales and marketing expenses cover digital customer acquisition, advertising, affinity group partner marketing fees, and employee-related costs[99](index=99&type=chunk) - Technology and development expenses are mainly employee-related, third-party contractor fees, software costs, and product development[100](index=100&type=chunk) - General and administrative expenses include employee-related costs for executive, finance, legal, and HR functions, as well as professional service fees and bad debt[101](index=101&type=chunk) - The Company maintains a full valuation allowance against its net deferred tax assets, resulting in income tax expense primarily from state income taxes[103](index=103&type=chunk) [Key Metrics](index=27&type=section&id=Key%20Metrics) TrueCar's key metrics show a decrease in average monthly unique visitors due to a more targeted customer acquisition approach, while units and monetization increased | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Average Monthly Unique Visitors | 5,453,525 | 7,723,265 | 5,651,639 | 7,724,448 | | Units | 88,991 | 88,904 | 175,259 | 167,807 | | Monetization | $526 | $468 | $522 | $491 | | Franchise Dealer Count | 8,292 | 8,274 | 8,292 | 8,274 | | Independent Dealer Count | 2,885 | 3,200 | 2,885 | 3,200 | - Average monthly unique visitors **decreased by 29.4%** (3 months) and **26.8%** (6 months) year-over-year, primarily due to a focus on more efficient and targeted customer-acquisition spend[107](index=107&type=chunk) - **Units increased slightly by 0.1%** (3 months) and **4.4%** (6 months) year-over-year, mainly driven by units attributable to affinity partners[110](index=110&type=chunk) - **Monetization increased by 12.4%** (3 months) and **6.3%** (6 months) year-over-year, primarily due to fluctuations in units and wholesale revenue[111](index=111&type=chunk) - Independent dealer count decreased due to industry consolidations and the Company's prioritization of franchise activations[114](index=114&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) TrueCar's revenues increased for both the three and six months ended June 30, 2025, driven by vehicle sourcing products and franchise dealer revenue, despite a significant increase in cost of revenue | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $46,998 | $41,795 | $91,808 | $82,847 | | Cost of revenue | $11,149 | $5,484 | $20,039 | $9,745 | | Sales and marketing | $25,105 | $23,945 | $50,122 | $46,027 | | Technology and development | $7,095 | $7,433 | $15,214 | $15,556 | | General and administrative | $8,812 | $15,438 | $18,896 | $24,924 | | Depreciation and amortization | $3,416 | $4,684 | $7,314 | $9,269 | | Net loss | $(7,627) | $(13,520) | $(17,763) | $(19,368) | - Total revenues **increased by 12.4%** for the three months and **10.8%** for the six months ended June 30, 2025, primarily due to **growth in vehicle sourcing products** (Sell Your Car and TCWS) and franchise dealer revenue[117](index=117&type=chunk)[118](index=118&type=chunk) - Cost of revenue **increased by 103.3%** for the three months and **105.6%** for the six months ended June 30, 2025, driven by increased wholesale exchange transactions and TCMS product expansion[119](index=119&type=chunk)[120](index=120&type=chunk) - Sales and marketing expenses **increased by 4.8%** (3 months) and **8.9%** (6 months) year-over-year, mainly due to higher employee-related expenses and affinity partner marketing spend, partially offset by decreased branded media spend[122](index=122&type=chunk)[123](index=123&type=chunk) - General and administrative expenses **decreased by 42.9%** (3 months) and **24.2%** (6 months) year-over-year, primarily due to a **$7.0 million decrease** in facilities-related expenses from a prior-year impairment charge[129](index=129&type=chunk)[130](index=130&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) TrueCar's liquidity at June 30, 2025, was **$92.5 million** in cash and cash equivalents, with existing liquidity expected to fund activities for at least 12 months despite cumulative losses - As of June 30, 2025, TrueCar's principal liquidity source was **$92.5 million in cash and cash equivalents**[134](index=134&type=chunk) - The Company has incurred cumulative losses of **$611.1 million** through June 30, 2025, and anticipates additional losses[135](index=135&type=chunk) - Cash used in operating activities for the **six months ended June 30, 2025**, was **$10.7 million**, primarily due to net loss and changes in operating assets and liabilities[139](index=139&type=chunk) - Cash used in financing activities for the **six months ended June 30, 2025**, was **$4.0 million**, including a **$2.8 million final payment** for the Digital Motors acquisition's contingent consideration[143](index=143&type=chunk) [Contractual Obligations and Known Future Cash Requirements](index=34&type=section&id=Contractual%20Obligations%20and%20Known%20Future%20Cash%20Requirements) There have been no material changes to TrueCar's contractual obligations and known future cash requirements since December 31, 2024, as detailed in the company's Annual Report on Form 10-K - No material changes in contractual obligations and known future cash requirements have occurred since December 31, 2024[145](index=145&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) TrueCar's critical accounting estimates, which involve significant judgments and assumptions, remain unchanged since December 31, 2024, as outlined in its Annual Report on Form 10-K - No material changes in critical accounting policies impacted by judgments, assumptions, and estimates since December 31, 2024[146](index=146&type=chunk) [Recent Accounting Pronouncements](index=34&type=section&id=Recent%20Accounting%20Pronouncements) Information on new accounting pronouncements not yet effective is provided in Note 2 to the condensed consolidated financial statements - Refer to Note 2 for details on new accounting pronouncements not yet effective[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) TrueCar is exposed to market risks from changes in interest rates, inflation, and currency exchange rates, with no material changes to these exposures since December 31, 2024 - The Company is exposed to market risk from changes in interest rates, inflation, and currency exchange rates[148](index=148&type=chunk) - There have been no material changes to market risk exposure since December 31, 2024[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) TrueCar's management concluded that its disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, with no material changes in internal control over financial reporting identified - Disclosure controls and procedures were evaluated as effective at the reasonable assurance level as of June 30, 2025[150](index=150&type=chunk) - No material changes in internal control over financial reporting occurred during the period covered by this report[151](index=151&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) TrueCar is involved in various legal proceedings arising in the ordinary course of business, with specific details provided in Note 5 to the condensed consolidated financial statements - The Company is subject to various legal proceedings arising from normal business activities[154](index=154&type=chunk) - Details of legal proceedings are disclosed in Note 5 'Commitments and Contingencies' of the condensed consolidated financial statements[154](index=154&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Investing in TrueCar's common stock involves significant risks, including those related to the automotive ecosystem, economic conditions, operational challenges with new offerings, reliance on dealer networks and data providers, intense competition, complex regulatory frameworks, and potential litigation [Risks Related to Our Business and Industry](index=38&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) TrueCar's business faces numerous risks, including macroeconomic conditions affecting the automotive industry, challenges in rolling out new offerings, dependence on dealer networks and data providers, intense competition, and a complex regulatory environment [Automotive Ecosystem Risks (Tariffs, Inventory, Supply Chain, Labor)](index=38&type=section&id=Our%20business%20is%20subject%20to%20risks%20related%20to%20the%20larger%20automotive%20ecosystem,%20including%20tarif%20s,%20inventory%20and%20global%20supply%20chain%20challenges,%20labor%20and%20other%20factors.) TrueCar's business is highly sensitive to the automotive ecosystem, facing risks from tariffs increasing costs and reducing inventory, ongoing supply-chain disruptions, and potential labor disputes - Tariffs on foreign goods, including vehicles and parts, may increase costs, reduce inventory, and negatively impact TrueCar's business[157](index=157&type=chunk) - Automobile inventory shortages, exacerbated by semiconductor chip issues, have reduced dealer participation and increased competition for marketing spend[158](index=158&type=chunk)[159](index=159&type=chunk) - Labor disputes, strikes, or similar activities in the automotive supply chain could reduce inventory and demand, adversely affecting TrueCar's business[160](index=160&type=chunk) [Economic Conditions Impacting Consumer Demand](index=38&type=section&id=Economic%20and%20other%20conditions%20that%20impact%20consumer%20demand%20for%20automobiles,%20including%20interest%20rates,%20inflation,%20tarif%20s%20and%20fuel%20prices,%20may%20have%20a%20material%20adverse%20ef%20ect%20on%20our%20business,%20financial%20condition%20and%20results%20of%20operations.) Consumer demand for automobiles is highly susceptible to economic conditions such as interest rates, inflation, tariffs, and fuel prices, which can reduce purchasing power and negatively impact dealer inventory decisions - Consumer demand for new and used automobiles declines during recessionary periods and is affected by economic uncertainties like tariffs, rising energy costs, and inflation[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - Interest rate increases significantly impact automobile affordability and dealer inventory purchases, potentially reducing vehicle sales[166](index=166&type=chunk) - Changes in governmental policy, such as the elimination of federal tax credits for electric vehicles, could negatively impact consumer demand for cars sold by TrueCar Certified Dealers[165](index=165&type=chunk) [Lead Quality and Quantity Decline](index=39&type=section&id=Decreases%20in%20the%20quality%20or%20quantity%20of%20the%20leads%20we%20provide%20to%20dealers%20adversely%20af%20ect%20our%20business%20and%20revenue%20by,%20among%20other%20things,%20decreasing%20our%20unit%20volume%20and%20causing%20some%20dealers%20on%20our%20network%20to%20lose%20faith%20in%20our%20value%20proposition%20and%20choose%20to%20leave%20our%20network%20or%20insist%20on%20lower%20subscription%20rates.) A decline in the quality or quantity of leads provided to dealers directly impacts TrueCar's unit volume and revenue, potentially leading to dealer dissatisfaction, network departures, or demands for lower subscription rates - Lead quality and quantity are critical for business success, influencing unit volume and dealer satisfaction[169](index=169&type=chunk) - Macroeconomic factors (interest rates, inventory shortages, inflation) have caused lead quality and quantity challenges since 2021[171](index=171&type=chunk) - Diminished lead quality or quantity can lead to dealers leaving the network or insisting on lower subscription rates, harming revenue[170](index=170&type=chunk) [New Offerings Rollout (TrueCar+ Challenges)](index=40&type=section&id=If%20we%20are%20not%20successful%20in%20rolling%20out%20new%20of%20erings,%20including%20our%20TrueCar+%20of%20ering,%20providing%20a%20compelling%20value%20proposition%20to%20consumers%20and%20dealers%20using%20those%20of%20erings,%20integrating%20our%20current%20and%20future%20of%20erings%20into%20such%20experiences%20or%20appropriately%20monetizing%20them,%20our%20business%20and%20prospects%20would%20be%20adversely%20af%20ected.) The successful rollout of TrueCar+, an end-to-end car-buying experience, is critical but faces significant technical and integration challenges, with failure to scale or monetize effectively adversely affecting business - The success of **TrueCar+'s end-to-end car-buying experience** is critical but faces technical difficulties, including integration with dealer software platforms and accurate pricing calculations[172](index=172&type=chunk)[173](index=173&type=chunk) - The **TrueCar+ pilot program** in the San Francisco Bay Area may not expand sufficiently to positively impact business, revenue, and operations[174](index=174&type=chunk) - Failure to successfully roll out a scalable **TrueCar+ offering** or monetize it effectively would adversely affect business, revenue, and operating results[174](index=174&type=chunk) [Dealer Revenue Reliance](index=40&type=section&id=The%20growth%20of%20our%20business%20relies%20significantly%20on%20our%20ability%20to%20maintain%20and%20increase%20the%20revenues%20that%20we%20derive%20from%20dealers%20in%20our%20network%20of%20TrueCar%20Certified%20Dealers.%20Failure%20to%20do%20so%20would%20harm%20our%20financial%20performance.) TrueCar's financial performance heavily depends on maintaining and increasing revenues from its TrueCar Certified Dealers, requiring new product development, dealer support, and effective management of subscription rates - Most revenues are derived from **TrueCar Certified Dealers**, requiring new product development, support for active dealers, and effective management of subscription rates[175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) - Inability to convince subscription-based dealers of value or manage subscription rates during unit volume declines could lead to lower rates or network termination[180](index=180&type=chunk) - Maintaining and growing the franchise dealer count, especially high-volume brands, and optimizing geographic coverage are crucial for business growth[181](index=181&type=chunk)[182](index=182&type=chunk) [Loss of Critical Mass of Dealers](index=41&type=section&id=The%20loss%20of%20a%20critical%20mass%20of%20dealers,%20either%20nationally%20or%20in%20any%20given%20geographic%20area,%20could%20deprive%20us%20of%20the%20data%20we%20need%20to%20provide%20certain%20of%20our%20key%20features,%20our%20inventory%20supply%20and%20certain%20key%20elements%20of%20our%20platform's%20consumer-facing%20functionality,%20any%20of%20which%20would%20negatively%20af%20ect%20our%20business.) Losing a significant number of dealers would severely impact TrueCar's ability to provide essential data for pricing information, used-car inventory, and platform functionality, diminishing organic search traffic and harming user experience - Reliance on dealer data is crucial for providing users with pricing information and maintaining used-car inventory counts[184](index=184&type=chunk) - Loss of a critical mass of dealers could diminish organic search traffic and negatively affect monthly unique visitors[185](index=185&type=chunk) - Recent decreases in independent dealer count, due to industry consolidations or business closures, have impacted the ability to present a wide array of dealers and inventory[185](index=185&type=chunk) [Product Changes Impact (TCWS, TCMS)](index=42&type=section&id=Changes%20we%20make%20to%20our%20products,%20including%20as%20they%20relate%20to%20TrueCar+,%20may%20impact%20how%20such%20products%20are%20viewed%20by%20our%20dealers%20and%20consumers.) Changes to TrueCar's products, particularly with the rollout of TrueCar+, may negatively impact dealer and consumer perception, introducing new risks related to regulatory compliance and inventory liquidation - The **TCWS business model**, supporting 'Trade' and 'Sell Your Car' products, introduces risks related to compliance with automobile dealer laws and efficient liquidation of used car inventory[186](index=186&type=chunk) - New and untested products, including **TrueCar+ features**, may be modified, paused, or ceased, potentially leading to negative perceptions from consumers and dealers[187](index=187&type=chunk) - The success of **TrueCar Marketing Solutions (TCMS)** is not guaranteed, and resources dedicated to these offerings may detract from other product development[187](index=187&type=chunk) [Compelling Car-Buying Experience](index=42&type=section&id=If%20we%20are%20unable%20to%20provide%20a%20compelling%20car-buying%20experience%20to%20our%20users,%20the%20number%20of%20transactions%20between%20our%20users%20and%20TrueCar%20Certified%20Dealers,%20and%20the%20number%20of%20TrueCar%20Certified%20Dealers,%20could%20decline,%20and%20our%20revenue%20and%20results%20of%20operations%20would%20suf%20er%20harm.) TrueCar's revenue and operations depend on providing a compelling car-buying experience, influenced by product innovation, personalized experiences, dealer compliance, and data access, with failure leading to declining transactions and loss of users - The ability to provide a compelling car-buying experience is crucial for maintaining transactions and dealer network size[188](index=188&type=chunk) - Key factors include user-friendly **TrueCar+ offerings**, personalized experiences, new product launches, continuous improvement, dealer compliance, and access to sufficient data[192](index=192&type=chunk) - Failure to provide a compelling experience could lead to declining transactions, loss of users to competitors, and reduced lead quality for dealers[188](index=188&type=chunk) [Manufacturer Incentive Programs](index=43&type=section&id=The%20failure%20to%20attract%20manufacturers%20to%20participate%20in%20our%20car%20manufacturer%20incentive%20programs,%20or%20to%20induce%20manufacturers%20to%20remain%20participants%20in%20those%20programs,%20could%20reduce%20our%20growth%20or%20have%20an%20adverse%20ef%20ect%20on%20our%20operating%20results.) TrueCar's OEM incentives revenue, which accounted for approximately **8.0% of revenue** for the six months ended June 30, 2025, is volatile and dependent on manufacturers' participation, with low inventory and tariffs potentially reducing spending - **OEM incentives revenue** accounted for approximately **8.0% of total revenue** for the **six months ended June 30, 2025**[189](index=189&type=chunk) - Manufacturer participation is volatile, with incentives often unilaterally set and modified, and can be reduced by low inventory levels or tariffs[189](index=189&type=chunk) - The termination of the American Express affinity partnership in April 2025, which previously generated a significant majority of manufacturer promotional revenue, will adversely impact this revenue stream[191](index=191&type=chunk) [Affinity Partner Relationships](index=44&type=section&id=A%20significant%20reduction%20in%20the%20number%20of%20cars%20purchased%20from%20our%20TrueCar%20Certified%20Dealers%20by%20members%20of%20our%20af%20inity%20group%20marketing%20partners%20would%20reduce%20our%20revenue%20and%20harm%20our%20operating%20results.) TrueCar's financial performance heavily relies on its affinity group marketing partners, with risks including partnership terminations, de-emphasis of car-buying programs, or unfavorable changes to economic terms - A majority of cars purchased by TrueCar users are matched through affinity group marketing partners, making these relationships critical[193](index=193&type=chunk) - Termination of key partnerships, such as USAA in 2020 and American Express in April 2025, has materially impacted units and revenues[194](index=194&type=chunk) - Risks include partners terminating relationships, de-emphasizing car-buying programs, or unfavorable changes to economic terms, which could harm revenue and brand perception[198](index=198&type=chunk)[199](index=199&type=chunk) [Negative Perception by Industry Participants](index=45&type=section&id=If%20key%20industry%20participants,%20including%20car%20dealers,%20af%20inity%20partners%20and%20automobile%20manufacturers,%20perceive%20us%20in%20a%20negative%20light%20or%20our%20relationships%20with%20them%20suf%20er%20harm,%20our%20ability%20to%20grow%20and%20our%20financial%20performance%20may%20be%20damaged.) TrueCar's growth and financial performance are vulnerable to negative perceptions or strained relationships with key industry participants, including car dealers, affinity partners, and automobile manufacturers - Negative perceptions or strained relationships with **TrueCar Certified Dealers**, affinity partners, and automobile manufacturers can damage growth and financial performance[200](index=200&type=chunk) - Dealers may leave the network due to dissatisfaction with value proposition, competition, or influence from industry associations or large dealer groups[202](index=202&type=chunk)[204](index=204&type=chunk) - Automobile manufacturers' marketing guidelines (e.g., MAAP) can discourage dealer participation, and past regulatory challenges have led to significant dealer attrition[205](index=205&type=chunk)[201](index=201&type=chunk) [Business Restructuring Effectiveness](index=46&type=section&id=Actions%20that%20we%20have%20taken%20and%20may%20take%20in%20the%20future%20to%20restructure%20our%20business%20in%20alignment%20with%20our%20strategic%20priorities%20may%20not%20be%20as%20ef%20ective%20as%20anticipated.) TrueCar's past workforce reductions (e.g., **24% in June 2023**, **10% in June 2025**) aimed at enhancing productivity and efficiency may not yield anticipated benefits, carrying risks such as unwanted employee attrition and loss of institutional knowledge - Strategic restructurings, including workforce reductions (e.g., **24% in June 2023**, **10% in June 2025**), aim to enhance productivity and streamline operations[208](index=208&type=chunk) - Risks include unwanted employee attrition, damage to employer reputation, and loss of institutional knowledge and expertise[208](index=208&type=chunk) - Failure to realize anticipated savings and efficiencies from restructuring efforts could harm business, results of operations, and financial condition[209](index=209&type=chunk) [Executive and Management Transitions](index=46&type=section&id=Our%20business%20could%20be%20adversely%20af%20ected%20by%20executive%20and%20other%20transitions%20in%20our%20senior%20management%20team%20or%20if%20any%20vacancies%20cannot%20be%20filled%20with%20qualified%20replacements%20in%20a%20 timely%20manner.) Management turnover, including significant executive changes in 2023, can adversely affect TrueCar's business by diverting attention, causing loss of institutional knowledge, and disrupting operations - Management turnover, including significant executive changes in 2023, can divert attention and negatively affect business[210](index=210&type=chunk)[211](index=211&type=chunk) - Loss of senior management's knowledge and expertise is difficult to replace, and transitions can cause a learning curve for new executives[210](index=210&type=chunk)[212](index=212&type=chunk) - Inability to timely fill vacant roles with qualified candidates could lead to increased employee turnover and harm business, growth, and financial performance[212](index=212&type=chunk) [Inability to Retain/Attract Qualified Personnel](index=46&type=section&id=An%20inability%20to%20retain,%20attract%20and%20integrate%20qualified%20personnel%20could%20harm%20our%20ability%20to%20develop%20and%20successfully%20grow%20our%20business.) TrueCar's success depends on attracting and retaining highly qualified employees, with workforce reductions, competitive compensation challenges, and the shift to remote work potentially harming morale and recruiting efforts - Success depends on retaining and attracting qualified employees, including executives, engineers, and data scientists[213](index=213&type=chunk) - Workforce reductions can adversely affect employee morale, retention, and recruiting efforts, and may incur severance costs[214](index=214&type=chunk) - Stock price volatility and past temporary reductions in executive salaries and bonuses can negatively impact the competitiveness of compensation packages, hindering recruiting and retention[215](index=215&type=chunk) [Changes in Technology and Consumer Demands](index=47&type=section&id=We%20may%20fail%20to%20respond%20adequately%20to%20changes%20in%20technology%20and%20consumer%20demands%20that%20could%20lead%20to%20decreased%20demand%20for%20automobiles%20on%20our%20platform.) TrueCar must adapt to rapid changes in automotive technology and consumer demands, such as self-driving cars, ride-sharing, and increased remote work, which could decrease demand for traditional car purchases - Changes in automotive technology (self-driving, ride-sharing) and consumer demands (remote work) could **decrease demand** for car purchases[217](index=217&type=chunk) - TrueCar cannot currently monetize direct-to-consumer sales by manufacturers (e.g., Tesla, Rivian), and new offerings to do so could alienate franchise dealers[218](index=218&type=chunk) - Failure to adjust the business model in response to industry developments like 'build-to-order' models or changing consumer demands could adversely affect growth and financial performance[218](index=218&type=chunk) [Limited Product Enhancement/Growth](index=48&type=section&id=Our%20ability%20to%20enhance%20our%20current%20product%20of%20erings,%20or%20grow%20complementary%20product%20of%20erings,%20may%20be%20limited,%20which%20could%20negatively%20impact%20our%20growth%20rate,%20revenues%20and%20financial%20performance.) TrueCar's ability to enhance existing or grow new product offerings, including TrueCar+, is critical but faces limitations such as significant resource investment, potential lack of adoption, and adherence to stringent technical standards - Introducing new or enhanced products, like **TrueCar+**, involves significant resource investment and may not be successful or demonstrate value to dealers/consumers[219](index=219&type=chunk)[220](index=220&type=chunk) - Adherence to stringent technical standards (accessibility, security) from contractual counterparties can divert resources and negatively affect reputation and relationships[221](index=221&type=chunk) - Failure to incorporate AI, machine learning, and other emerging technologies, or issues with third-party software integration, could make products less competitive and harm business[222](index=222&type=chunk) [Product/Investment Decisions (Short-term vs. Long-term)](index=48&type=section&id=We%20may%20make%20product%20and%20investment%20decisions%20that%20do%20not%20prioritize%20short-term%20financial%20results%20and%20may%20not%20produce%20the%20long-term%20benefits%20that%20we%20expect.) TrueCar's strategic product and investment decisions, such as the replatforming of its technology and current focus on TrueCar+, prioritize long-term financial performance over short-term results - Product and investment decisions, like technology replatforming and **TrueCar+ development**, prioritize long-term financial performance[223](index=223&type=chunk) - Investments in AI and machine learning are costly and may not result in expected benefits[223](index=223&type=chunk) - New features or products may attract users away from proven monetization methods, potentially having a negative impact on short-term monetization rates[224](index=224&type=chunk) [Failure to Maintain/Increase Revenue or Reduce Expenses](index=49&type=section&id=Failure%20to%20maintain%20or%20increase%20our%20revenue,%20or%20to%20reduce%20our%20expenses%20as%20a%20percentage%20of%20revenue,%20would%20adversely%20af%20ect%20our%20financial%20condition%20and%20profitability.) TrueCar's financial condition and profitability are at risk if it fails to maintain or increase revenue or reduce expenses as a percentage of revenue - Significant future investments in business development, product launches, dealer network growth, and technology may not result in increased revenue or growth[226](index=226&type=chunk) - Marketing expenditures may not always result in sufficient revenue to cover user acquisition costs, limiting growth[242](index=242&type=chunk) - Costs related to unused office space from the remote workforce transition continue to be incurred, and offsetting these liabilities is not guaranteed[227](index=227&type=chunk) [Inability to Adapt to Market Changes](index=49&type=section&id=We%20cannot%20predict%20whether%20we%20will%20be%20able%20to%20maintain%20or%20grow%20our%20business.%20If%20we%20are%20unable%20to%20successfully%20respond%20to%20changes%20in%20the%20market,%20our%20business%20could%20be%20harmed.) TrueCar's ability to maintain or grow its business is uncertain, as it must continuously adapt to evolving market dynamics - Business growth is uncertain and depends on adapting to evolving market dynamics[228](index=228&type=chunk) - Revenue growth is dependent on the success of **TrueCar+**, expanding the dealer network, increasing transactions, and growing OEM incentive programs[228](index=228&type=chunk) - Failure to adjust strategy in response to market changes, such as declining dealer belief in services or impacts from inventory shortages, could harm business and financial condition[228](index=228&type=chunk)[229](index=229&type=chunk) [Reliance on Data Providers](index=49&type=section&id=We%20rely%20on%20relationships%20with%20data%20providers%20and%20may%20experience%20interruptions%20in%20the%20data%20feeds%20or%20API%20services%20they%20provide,%20which%20could%20adversely%20af%20ect%20our%20current%20and%20future%20services%20and%20other%20product%20of%20erings,%20including%20TrueCar+,%20and%20otherwise%20negatively%20af%20ect%20our%20business.) TrueCar heavily relies on third-party data providers for essential automobile purchase data, which is crucial for billing, demonstrating value to dealers, and platform functionality - Reliance on third-party data providers (dealers, DMS, aggregators) is critical for automobile purchase data, billing, and demonstrating value to dealers[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - Interruptions in data feeds can delay invoicing, impact revenue recognition, and degrade user experience and platform functionality[233](index=233&type=chunk)[234](index=234&type=chunk) - Cybersecurity incidents affecting data providers, like CDK Global in June 2024, pose risks to data access and could lead to compliance costs and legal liability[233](index=233&type=chunk)[305](index=305&type=chunk) [Reliance on Internet Search Engines](index=50&type=section&id=We%20rely,%20in%20part,%20on%20Internet%20search%20engines%20to%20drive%20traf%20ic%20to%20our%20website,%20and%20if%20we%20fail%20to%20appear%20prominently%20in%20the%20search%20results,%20our%20traf%20ic%20would%20decline,%20and%20our%20business%20would%20be%20adversely%20af%20ected.) TrueCar's website traffic depends significantly on internet search engines like Google and Bing, both through organic search results and paid advertising - Reliance on internet search engines (Google, Bing) for website traffic through organic search and paid keywords[236](index=236&type=chunk) - Changes in search algorithms, increased competition for paid advertisements, or the rise of voice recognition/AI in search could reduce traffic and increase advertising costs[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - Failure to maintain high search rankings or manage rising advertising costs could harm business and operating results[236](index=236&type=chunk)[238](index=238&type=chunk) [User Communication Preferences](index=51&type=section&id=In%20some%20cases,%20our%20users%20may%20make%20certain%20elections%20that%20impact%20the%20methods%20by%20which%20dealers%20can%20communicate%20with%20them.%20If%20consumers%20or%20dealers%20do%20not%20see%20value%20in%20this%20functionality,%20or%20if%20it%20results%20in%20privacy%20concerns,%20our%20business%20could%20be%20negatively%20af%20ected.) TrueCar allows users to choose communication methods with dealers, which may be perceived as less valuable by dealers if it leads to fewer sales, and privacy concerns related to third-party vendors could harm its reputation - Users can select communication methods with dealers, but if dealers perceive text-message connections as less valuable, it could negatively affect business[239](index=239&type=chunk) - Privacy concerns related to third-party vendors facilitating communications could harm TrueCar's reputation and business[240](index=240&type=chunk) [Marketing and Branding Efforts](index=51&type=section&id=The%20success%20of%20our%20business%20relies%20heavily%20on%20our%20marketing%20and%20branding%20ef%20orts,%20especially%20with%20respect%20to%20the%20TrueCar%20website%20and%20our%20branded%20mobile%20applications,%20as%20well%20as%20those%20ef%20orts%20of%20the%20af%20inity%20group%20marketing%20partners%20whose%20websites%20we%20power,%20and%20these%20ef%20orts%20may%20not%20be%20successful.) TrueCar's business success is heavily dependent on effective marketing and branding for its website, mobile apps, and affinity partner platforms, requiring high expenditures that may not always yield sufficient revenue - Success relies heavily on marketing and branding efforts for **TrueCar.com**, mobile applications, and affinity group partner websites[241](index=241&type=chunk) - Marketing expenditures (e.g., **$95.6 million in 2024**) are significant, but incremental spend may not always result in sufficient revenue to cover user acquisition costs[241](index=241&type=chunk)[242](index=242&type=chunk) - Digital marketing effectiveness is impacted by evolving data privacy restrictions (e.g., Apple's iOS, Meta's platform changes) and potential governmental regulations on tracking technologies[246](index=246&type=chunk) [Consumer/Dealer Response to Branding](index=52&type=section&id=If%20consumers%20and%20dealers%20do%20not%20respond%20positively%20to%20our%20branding,%20our%20financial%20performance%20and%20our%20ability%20to%20grow%20unique%20visitor%20traf%20ic%20and%20expand%20our%20dealer%20network%20could%20be%20negatively%20af%20ected.) TrueCar's financial performance and growth depend on positive consumer and dealer response to its branding efforts, with negative publicity or perceived lack of user value potentially diminishing trust and affecting brand recognition - Positive consumer and dealer response to branding is crucial for financial performance and **growth of user traffic** and dealer network[247](index=247&type=chunk) - Maintaining and enhancing the brand depends on maintaining user and dealer trust and delivering value[248](index=248&type=chunk) - Complaints or negative publicity, regardless of validity, can diminish confidence and adversely affect the brand and business[249](index=249&type=chunk) [Competitive Market](index=52&type=section&id=We%20participate%20in%20a%20highly%20competitive%20market,%20and%20pressure%20from%20existing%20and%20new%20companies%20may%20adversely%20af%20ect%20our%20business%20and%20operating%20results.) TrueCar operates in a highly competitive market, facing rivals from online automotive sites, OEMs, online retailers, and offline services, often with greater resources, which can impede its dealer network expansion and technological development - TrueCar faces significant competition from various entities, including internet search engines, online automotive sites, OEMs, online automobile retailers, and offline services[250](index=250&type=chunk)[258](index=258&type=chunk) - Competitors may have greater financial, technical, and marketing resources, potentially developing new technologies (e.g., AI) that render TrueCar's offerings less competitive[253](index=253&type=chunk)[254](index=254&type=chunk) - Mergers or partnerships among competitors, or challenges faced by competitors, could adversely affect TrueCar's ability to compete effectively and its revenue[255](index=255&type=chunk)[256](index=256&type=chunk) [Complex Legal and Regulatory Framework](index=53&type=section&id=We%20are%20subject%20to%20a%20complex%20framework%20of%20laws%20and%20regulations,%20including,%20among%20others,%20those%20concerning%20vehicle%20sales,%20advertising%20and%20brokering,%20many%20of%20which%20are%20unsettled,%20still%20developing%20and%20contradictory,%20which%20have%20in%20the%20past,%20and%20could%20in%20the%20future,%20subject%20us%20to%20claims,%20challenge%20our%20business%20model%20or%20otherwise%20harm%20our%20business.) TrueCar operates within a complex and evolving regulatory framework, including laws governing motor vehicle sales, advertising, brokering, insurance, and financial products, with non-compliance or unfavorable interpretations leading to significant penalties and business disruptions - The advertising and sale of motor vehicles are highly regulated, and TrueCar's products/services could be deemed subject to these regulations, leading to penalties or business disruption[259](index=259&type=chunk) - Laws regulating brokering, 'bird-dog' payments, and advertising are subject to multiple interpretations and can impose inconsistent requirements, potentially leading to costly litigation or business suspensions[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk) - TrueCar is subject to evolving privacy laws (e.g., CCPA, state-level legislation) and federal advertising regulations (e.g., FTC's CARS Rule), which can increase compliance costs and potential liability[272](index=272&type=chunk)[276](index=276&type=chunk)[297](index=297&type=chunk) - Expansion of t

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $47 million, an increase of $5.2 million or 12.4% year over year, marking the highest quarterly revenue since Q3 2021 [5] - Net loss decreased to $7.6 million from $13.5 million in the same period last year [5] - Adjusted EBITDA was reported at negative $1.2 million [5] Business Line Data and Key Metrics Changes - OEM revenue reached $3.6 million, growing by $600,000 or 19.7% year over year [5] - New unit sales volume increased by 6.2% year over year, compared to the industry's growth of 2.8% in new vehicle retail sales [5] - Prospect close rates during the quarter were the highest since Q2 2021, attributed to improved lead quality and marketing efficiency [5][34] Market Data and Key Metrics Changes - The company noted a shift in dealer priorities towards vehicle sourcing initiatives due to constrained new vehicle supply, emphasizing the importance of used vehicle availability [24] - A significant increase in online vehicle sales penetration was reported, with 71% of surveyed dealers viewing the shift to online sales as permanent, up from 53% in December 2024 [16] Company Strategy and Development Direction - The company is focused on enhancing the TrueCar Plus platform and aims to commercialize it by year-end, which is seen as critical for future growth [16] - Recent product enhancements aim to improve lead quality and dealer engagement, including actionable insights and motivated buyer features [9][10] - The strategy includes expanding dealer partnerships and integrating more OEM incentives into the platform [16][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite macroeconomic uncertainties, highlighting the importance of a modern marketplace for automotive retail [16] - The company is prepared to navigate various revenue growth scenarios and aims for adjusted EBITDA profitability and positive free cash flow in 2025 [17] - Management acknowledged the challenges posed by tariffs and interest rates but emphasized the ongoing demand for vehicles [20][21] Other Important Information - The company has made significant progress in integrating with key DMS providers to streamline dealer operations [11] - Enhancements to the consumer experience, such as redesigned search results and vehicle detail pages, are expected to improve engagement and conversion rates [10][12] Q&A Session Summary Question: Update on TrueCar's growth and used vehicle initiatives - Management emphasized the importance of enabling consumers to find the right vehicles, whether new or used, and highlighted efforts to support dealers in sourcing used vehicles directly from consumers [20][24] Question: Capital allocation priorities and share buyback plans - Management indicated openness to share repurchases as part of their capital allocation strategy, especially as they aim for free cash flow breakeven [26][27] Question: Trends regarding franchise dealer turnover and prospect close rates - Management noted that dealer turnover is not a major concern and attributed the high prospect close rates to improved dealer engagement and marketing efficiency [31][34] Question: Momentum in dealer revenue and internal investments - Management explained that revenue growth is driven by a combination of factors, including unit growth and improved dealer efficiency, while also focusing on enhancing the dealer and consumer experience [39][45] Question: OEM incentive revenue outlook - Management remains optimistic about OEM incentive revenue, viewing it as a significant opportunity despite current market challenges [46][49] Question: Second half outlook for non-dealer product revenue - Management expressed caution in providing specific revenue forecasts due to market uncertainties but highlighted the importance of maintaining a healthy dealer network [52][56] Question: Impact of AI on TrueCar's marketplace model - Management acknowledged the relevance of AI in the automotive retail space and emphasized the importance of their affinity network in maintaining consumer trust [61][64]

SUPPLEMENTAL MATERIALS Second Quarter 2025 Quarter Ended June 30, 2025 SUPPLEMENTAL MATERIALS Important Information This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including our expectations regarding future expected revenue growth and free cash flow, are forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may prove incorrect, any of whi ...

TrueCar (TRUE 21.74%), a digital automotive marketplace connecting car buyers with certified dealers, released its earnings report for the second quarter of fiscal 2025 on August 6, 2025. The most important takeaway was GAAP revenue was $47.0 million, exceeding analyst expectations by $2.35 million, but offset by a significant net loss and a severe miss on earnings per share; GAAP EPS was ($7.60), well below the estimated ($0.06). The period saw substantial progress in product innovation and customer experi ...

Company Performance - TrueCar reported a quarterly loss of $0.05 per share, better than the Zacks Consensus Estimate of a loss of $0.06, and an improvement from a loss of $0.06 per share a year ago, resulting in an earnings surprise of +16.67% [1] - The company posted revenues of $47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.67%, compared to year-ago revenues of $41.79 million [2] - Over the last four quarters, TrueCar has surpassed consensus revenue estimates three times [2] Stock Performance - TrueCar shares have declined approximately 56.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for TrueCar is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $48.46 million, and for the current fiscal year, it is -$0.19 on revenues of $186.98 million [7] - The estimate revisions trend for TrueCar was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Services industry, to which TrueCar belongs, is currently in the bottom 38% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Q2 2025 Stockholder Letter VOTA TrueCar To Our Fellow Stockholders We are pleased to report the following performance measures and operational highlights from the second quarter of 2025: As we articulated in our last stockholder letter, our approach to navigating the evolving tariff landscape involves a relentless focus on the factors we can control and a resource allocation strategy that prioritizes initiatives likely to yield positive returns regardless of the prevailing market environment. In the second ...

Time: 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) Live call and webcast will occur on August 7 at 9:00 a.m. ET SANTA MONICA, Calif., July 31, 2025 /PRNewswire/ -- TrueCar, Inc., (NASDAQ:TRUE) will report financial results for the second quarter ended June 30, 2025 on Wednesday August 6, 2025 after market close, in a stockholder letter that will be accessible from the company's Investor Relations website at ir.truecar.com. Jantoon Reigersman, President and Chief Executive Officer, and Oliver Foley, Chief ...

Core Insights - Treatment.com AI Inc. has launched its latest Medical Education Suite (MES), an AI-powered platform for clinical skills assessment, successfully deployed at the University of Minnesota Medical School [1][5] - The MES aims to enhance the delivery and evaluation of Objective Structured Clinical Examinations (OSCEs) by providing scalable, rigorous, and cost-effective solutions [1][5] Group 1: Deployment and Implementation - The MES was deployed with over 240 third-year medical students, marking the first large-scale implementation of computer-simulated patient cases developed through the Global Library of Medicine (GLM) [2][5] - The deployment demonstrated complete technical reliability and seamless integration into the existing OSCE workflow at the University of Minnesota [2][6] Group 2: Features and Benefits - The MES incorporates AI-simulated patients and real-time scoring, which supports faster, accurate, and objective assessments, potentially leading to approximately 40% cost savings for the University of Minnesota [5][6] - The platform is designed to reduce faculty preparation and administrative workload while providing objective evaluations aligned with clinical learning objectives [6][8] Group 3: Educational Impact - Early feedback indicates that the MES enhances the student learning experience and strengthens the reliability of OSCE results, helping students build stronger clinical skills [4][6] - The platform combines AI-simulated patients with automated feedback, allowing faculty to assess various competencies such as diagnostic reasoning and clinical prioritization [4][6] Group 4: Future Prospects - Treatment.com AI is engaging with various medical schools to extend the MES offering across North America, the UK, and other international OSCE markets [8] - Preliminary results of the MES's accuracy and precision were presented at the AAMC's 2025 Group on Information Resources meeting, with further scientific publications planned [7]

Core Insights - Treatment.com AI Inc. has launched its latest Medical Education Suite (MES), an AI-powered platform aimed at enhancing clinical skills assessment in medical education [1][7] - The University of Minnesota Medical School has successfully deployed the MES with over 240 third-year medical students, marking a significant step in the integration of AI in medical training [2][4] Company Overview - Treatment.com AI utilizes artificial intelligence and clinical expertise to address inefficiencies in the healthcare sector, developing the Global Library of Medicine (GLM) to support healthcare professionals [9] - The MES is designed to provide scalable, rigorous, and cost-effective Objective Structured Clinical Examinations (OSCEs), improving the educational experience for medical students [1][3] Deployment and Features - The MES was implemented seamlessly into the University of Minnesota's existing OSCE workflow, demonstrating complete technical reliability during deployment [2][4] - Key features of the MES include AI-simulated patients, real-time scoring, and automated feedback, which enhance the objectivity and consistency of student evaluations [4][8] Cost Efficiency - The University of Minnesota reported approximately 40% cost savings in administrative expenses due to the implementation of the MES [8][7] - The platform aims to reduce faculty preparation and administrative workload while aligning evaluations with clinical learning objectives [8][4] Future Prospects - Treatment.com AI is actively engaging with various educational institutions to expand the MES offering across North America, the UK, and other international markets [6][7] - Preliminary results regarding the accuracy and precision of the GLM as applied in the MES were presented at the AAMC's 2025 Group on Information Resources meeting, with further scientific publications in preparation [5][7]