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]

Financial Performance - Revenue increased to $47.0 million in Q2 2025, a 12% year-over-year increase compared to $41.8 million in Q2 2024 [7] - Non-GAAP expenses increased to $48.2 million in Q2 2025, a 16% year-over-year increase compared to $41.7 million in Q2 2024 [7] - Adjusted EBITDA was negative $1.2 million in Q2 2025, compared to positive $0.1 million in Q2 2024, resulting in a margin of -2% [7] Traffic and Dealer Network - Traffic decreased to 5.5 million average monthly unique visitors in Q2 2025, a 29% year-over-year decrease compared to 7.7 million in Q2 2024 [9] - Total dealer count decreased slightly to 11,177 in Q2 2025, a 3% year-over-year decrease compared to 11,474 in Q2 2024 [9] - Franchise dealer count remained relatively stable at 8,292 in Q2 2025, a 0% year-over-year change compared to 8,274 in Q2 2024 [9] - Independent dealer count decreased to 2,885 in Q2 2025, a 10% year-over-year decrease compared to 3,200 in Q2 2024 [9] Unit Sales - Total units sold remained flat at 89,000 in Q2 2025, a 0% year-over-year change compared to 89,000 in Q2 2024 [9] - Units sold through TrueCar.com decreased by 2% year-over-year [29] - New car units increased by 6% year-over-year, while used car units decreased by 8% year-over-year [31] Revenue Breakdown - Net franchise revenue increased by 1% year-over-year [15] - Net independent revenue decreased by 11% year-over-year [15] - Other dealer product revenue increased by 129% year-over-year [15]

Core Insights - TrueCar reported Q2 2025 GAAP revenue of $47.0 million, exceeding analyst expectations by $2.35 million, but faced a significant net loss and a substantial miss on earnings per share, with GAAP EPS at ($7.60) compared to the estimated ($0.06) [1][2] - The company made progress in product innovation and customer experience, but ongoing margin pressure and cash burn tempered the positive revenue growth [1] Financial Performance - GAAP revenue increased by 12.4% year-over-year from $41.8 million in Q2 2024 to $47.0 million in Q2 2025 [2] - GAAP EPS was ($7.60), significantly below the estimate of ($0.06) [2] - Net loss improved to ($7.6 million) from ($13.5 million) in the previous year, a 43.7% reduction [2] - Free cash flow was negative at ($4.8 million), worsening from ($3.6 million) year-over-year [2] Business Overview - TrueCar operates an online platform that simplifies the car-buying process by connecting consumers with certified auto dealers [3] - The company focuses on product innovation, particularly through its end-to-end online retailing solution, TrueCar+, and data-driven tools for dealers and consumers [4] Operational Highlights - Unique visitor traffic declined from 7.7 million to 5.5 million, attributed to a strategic reduction in lower-intent marketing [5] - GAAP gross margin decreased from 86.9% in Q2 2024 to 76.3% in Q2 2025 due to increased spending on lower-margin products [6] - Dealer revenue grew by 12.1%, with franchise dealer stability and significant gains from vehicle sourcing products [9] Product Developments - Key enhancements included the launch of "Actionable Insights" for dealers and the "Motivated Buyer" feature utilizing machine learning [7] - TrueCar+ showed significant improvements, including a 115% increase in add-to-cart rates and a 40% rise in daily credit application submissions [11] Market Position and Challenges - TrueCar's new vehicle unit sales grew 6.2% year-over-year, outperforming the broader market's 2.8% growth [8] - The company faced challenges with a 28.6% drop in unique visitor count and declining dealer sentiment, particularly among independent dealers [12] - Management did not provide formal financial guidance for the upcoming quarters, citing uncertainty in the automotive market [13]

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]

[Stockholder Letter](index=2&type=section&id=Stockholder%20Letter) [Letter from Leadership](index=2&type=section&id=To%20Our%20Fellow%20Stockholders) TrueCar's Q2 2025 performance emphasizes strategic focus on product development and progress towards TrueCar+ commercialization by year-end - Strategic approach involves focusing on controllable factors and resource allocation prioritizing product development, deferring certain sales and marketing investments[2](index=2&type=chunk) - Accelerated key product enhancements to strengthen competitive advantage and deliver greater value to dealers and consumers through the TrueCar platform[2](index=2&type=chunk) - Continued progress towards commercializing TrueCar+ (TC+) by year-end[2](index=2&type=chunk) Q2 2025 Key Performance Measures | Metric | Q2 2025 | YoY Change | | :-------------------------------- | :---------------- | :--------- | | Total Revenue | $47.0 million | +12.4% | | Net Loss | ($7.6 million) | Decreased from ($13.5 million) | | Adjusted EBITDA | ($1.2 million) | Decreased from $0.1 million | | OEM Revenue | $3.6 million | +19.7% | | New unit sales volume | | +6.2% (vs. industry's 2.8%) | | Prospect Close Rate | Highest since Q2 2021 | | | Average cost per sale (non-Affinity Partner units) | | Nearly 30% improvement YoY | [Core Product Enhancements](index=2&type=section&id=Core%20Product%20Enhancements) TrueCar enhanced dealer tools and redesigned consumer pages to improve lead quality, close rates, and transparency - Launched **Actionable Insights** in the Dealer Portal, providing personalized, data-driven recommendations to optimize dealer performance (e.g., flagging aged inventory, recommending price adjustments)[4](index=4&type=chunk) - Introduced **Motivated Buyer badging**, leveraging machine learning to identify and highlight high-intent shoppers for faster, more targeted follow-up by dealers[5](index=5&type=chunk) - Completed a full redesign of the **Search Results Page (SRP)** and **Vehicle Detail Page (VDP)** to make the consumer experience more intuitive, transparent, and trustworthy, aiming for improved engagement and lead volume[8](index=8&type=chunk) - Strengthened the post-prospect experience with a redesigned email providing a clear, receipt-style breakdown of the "out-the-door" price and prominent calls to action[9](index=9&type=chunk) [TC+ Advancements](index=3&type=section&id=TC%2B%20Advancements) TrueCar advanced TC+ commercialization with CDK DMS integration and a revamped checkout flow, improving consumer engagement - Completed engineering work and began testing for the integration of CDK's DMS with TC+, streamlining the dealer experience and driving operational efficiency[11](index=11&type=chunk) - Released a major revamp of the TC+ consumer checkout flow, introducing a new "Checkout Center" for a guided purchasing process with greater transparency and features like dynamic deal receipts and F&I product pages[12](index=12&type=chunk) - Observed significant improvements since the new TC+ experience went live[13](index=13&type=chunk) TC+ Consumer Engagement Metrics Improvement | Metric | Improvement | | :-------------------------------- | :------------ | | Add-to-cart rate | 115% increase | | Daily credit application submissions | 40% lift | | F&I attachment rates | 2x improvement | - Future priorities include completing back-end DMS integration, expanding financing partner integrations (e.g., universal prequalification, co-applicants), and building seamless online-to-offline transaction off-ramps[14](index=14&type=chunk) [Market Outlook and Strategic Drivers](index=4&type=section&id=Market%20Outlook%20and%20Strategic%20Drivers) Market faces mixed OEM tariff responses and stable supply; TrueCar sees opportunities in sourcing despite dealer sentiment risks - OEMs showed mixed responses to tariffs; some held prices steady, while others (Toyota, BMW) announced increases for July, with new vehicle inventory expected to remain fairly stable over the next two quarters, though lower YoY[15](index=15&type=chunk) - New vehicle retail sales in the second half of 2025 are likely to trend **5-10% lower** than prior year levels[15](index=15&type=chunk) - Dealer sentiment declined **22% QoQ** in Q2, but the decline among franchise dealers was more muted at **8% QoQ**, with stable new vehicle supply expected to mitigate risk to marketing spend[16](index=16&type=chunk) - OEM incentive spending contracted QoQ in Q2 and is likely to trend lower YoY in H2 2025; one OEM program was paused after exceeding its budget[17](index=17&type=chunk) - Opportunities exist in vehicle sourcing products (Sell Your Car, TrueCar Wholesale Exchange) to address dealers' growing emphasis on expanding used-car supply, evidenced by a nearly **40% increase** in Sell Your Car subscribers in H1 2025[18](index=18&type=chunk) - Refined go-to-market strategy by reducing and consolidating dealer sales and service teams, aiming to increase share of dealer marketing spend and deepen partnerships, expecting approximately **$500 thousand** of monthly headcount savings starting Q3[19](index=19&type=chunk) [Future Outlook](index=6&type=section&id=Future%20Outlook) TrueCar aims for long-term growth through TC+ and core product enhancements, expecting H2 2025 Adjusted EBITDA profitability and positive Free Cash Flow - Strong conviction that TC+ will play a critical role in the future of automotive retail, with **71% of surveyed dealers** viewing the shift to online vehicle sales as permanent (up from 53% in Dec 2024)[20](index=20&type=chunk) - Expected results from recent core product enhancements in H2 2025 and beyond, including dealer network expansion and unit sales growth[20](index=20&type=chunk) - Positioned to deliver Adjusted EBITDA profitability and positive Free Cash Flow over the second half of 2025 due to cost elimination and maximized financial flexibility[20](index=20&type=chunk) [Market Environment](index=8&type=section&id=Market%20Environment) [Vehicle Sales Volumes](index=8&type=section&id=Vehicle%20Sales%20Volumes) Q2 2025 saw mixed new and used vehicle sales trends, with new sales up YoY but declining in May/June, and persistent affordability challenges [New Vehicle Retail Sales](index=8&type=section&id=New%20Vehicle%20Retail%20Sales) New vehicle retail sales in Q2 2025 totaled 3.6 million units, increasing YoY and QoQ but contracting in May and June, while average APR and monthly payments rose - New vehicle retail sales in Q2 2025: **3.6 million units** (+2.8% YoY, +6.4% QoQ), in line with 2019 pre-pandemic levels[26](index=26&type=chunk) - Sales showed strength in March/April but contracted to a **2% YoY increase in May** and a **5% YoY decline in June**[26](index=26&type=chunk) New Vehicle Loan Affordability Metrics (Q2 2025) | Metric | Q2 2025 | QoQ Change (from Q1 2025) | YoY Change (from Q2 2024) | | :-------------------- | :-------- | :-------------------------- | :------------------------ | | Average APR | 7.2% | +0.3% (from 6.9%) | Steady at 7.2% | | Average Amount Financed | $44.2 thousand | +$0.7 thousand (from $43.5k) | +$1.4 thousand (from $42.8k) | | Average Loan Term | 70 months | +1 month (from 69 months) | | | Average Monthly Payment | $802 | +$10 (from $792) | +$19 (from $783) | [Used Vehicle Retail Sales](index=9&type=section&id=Used%20Vehicle%20Retail%20Sales) Used vehicle retail sales in Q2 2025 decreased QoQ but increased YoY, with affordability challenged by higher average financed amounts and monthly payments despite a slight APR decrease - Used vehicle retail sales in Q2 2025: **4.5 million units** (-0.5% QoQ, +3.8% YoY)[30](index=30&type=chunk) Used Vehicle Loan Affordability Metrics (Q2 2025) | Metric | Q2 2025 | QoQ Change (from Q1 2025) | YoY Change (from Q2 2024) | | :-------------------- | :-------- | :-------------------------- | :------------------------ | | Average Amount Financed | $30.9 thousand | +$0.9 thousand (from $30.0k) | +4.3% (from $29.6k) | | Loan APR | 10.7% | -0.3% (from 11.0%) | -5.8% (from 11.4%) | | Average Monthly Payment | $585 | +$7 (from $578) | +$12 (from $573) | [Inventory and Supply Trends](index=10&type=section&id=Inventory%20and%20Supply%20Trends) Average new vehicle inventory and days' supply declined QoQ and YoY in Q2 2025, primarily for domestic brands, while some foreign brands saw increases [New Vehicle Inventory & Days' Supply](index=10&type=section&id=New%20Vehicle%20Inventory%20%26%20Days'%20Supply) Average new vehicle inventory in Q2 2025 was 2.6 million units, declining QoQ and YoY, with days' supply also decreasing to 47 days - Average new vehicle inventory in Q2 2025: **2.6 million units** (-5.9% QoQ, -5.3% YoY), the first YoY decline since Q2 2022[35](index=35&type=chunk) - QoQ inventory decline primarily driven by domestic brands (**76%**), Japanese brands (**17%**), and European brands (**11%**)[35](index=35&type=chunk) - Average new vehicle days' supply in Q2 2025: **47 days** (down from 53 days QoQ and 51 days YoY)[36](index=36&type=chunk) [New Vehicle Days' Supply by Brand](index=12&type=section&id=New%20Vehicle%20Days'%2

Group 1 - TrueCar, Inc. will report its financial results for the second quarter ended June 30, 2025, on August 6, 2025, after market close [1] - A live call and webcast to discuss the results will be hosted by the CEO and CFO on August 7, 2025, at 9:00 a.m. Eastern Time [2][3] - TrueCar is a leading automotive digital marketplace connecting auto buyers and sellers with a network of Certified Dealers, aiming to enhance the online auto shopping experience [4] Group 2 - TrueCar provides a suite of vehicle discovery tools, price ratings, and market context for new, used, and Certified Pre-Owned vehicles [4] - The company powers auto-buying programs for over 250 leading brands, including Sam's Club, AAA, and Navy Federal Credit Union [4]

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]

Core Insights - Treatment.com AI Inc.'s Rocket Doctor has been selected for the 2025 Heal.LA Bioscience and Healthcare Accelerator Cohort, aimed at enhancing access to healthcare in underserved communities [2][3] - The accelerator program will provide Rocket Doctor with strategic mentorship, regulatory support, and access to a network of healthcare leaders and potential partners, facilitating its growth in the U.S. market [4][8] - Rocket Doctor's innovative, physician-led platform utilizes AI-enabled tools to deliver remote care, focusing on communities with limited access to healthcare services [3][5] Company Overview - Rocket Doctor is a technology-driven digital health platform that allows healthcare providers to manage virtual or hybrid practices, aiming to redefine modern healthcare by removing barriers to care [6][8] - The platform is designed to empower healthcare providers with AI-powered tools, enabling them to deliver high-quality care remotely, particularly to underserved populations across North America [6][10] - Treatment.com AI is focused on improving healthcare efficiency through its Global Library of Medicine, which supports healthcare professionals by reducing administrative burdens and enhancing patient care quality [10]

Core Insights - Treatment.com AI Inc.'s Rocket Doctor has been selected for the 2025 Heal.LA Bioscience and Healthcare Accelerator, aimed at enhancing access to healthcare in underserved communities [2][3] - The accelerator will provide Rocket Doctor with strategic mentorship, regulatory support, and access to a network of healthcare leaders and potential partners, facilitating its growth in the U.S. market [4][8] - Rocket Doctor's innovative, physician-led platform utilizes AI-enabled tools to deliver remote care, focusing on communities with limited access to healthcare [3][5] Company Overview - Rocket Doctor is a technology-driven digital health platform that allows healthcare providers to manage virtual or hybrid practices, aiming to redefine modern healthcare by removing barriers to care [6] - The platform is designed to empower healthcare providers with AI-powered tools, enabling high-quality care delivery, particularly in underserved and remote areas across North America [6][10] - Treatment.com AI is focused on improving healthcare efficiency through its Global Library of Medicine, which supports healthcare professionals by reducing administrative burdens and enhancing patient care quality [10]