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]

Financial Performance - Total revenues for Q1 2025 were $44,810,000, representing a 9.0% increase from $41,052,000 in Q1 2024[18] - Net loss for Q1 2025 was $10,136,000, compared to a net loss of $5,848,000 in Q1 2024, indicating a 73.0% increase in losses year-over-year[18] - Operating expenses for Q1 2025 totaled $56,008,000, an increase of 15.4% from $48,537,000 in Q1 2024[18] - The company reported a comprehensive loss of $10,136,000 for Q1 2025, compared to a comprehensive loss of $5,848,000 in Q1 2024[18] - Adjusted EBITDA for Q1 2025 was a loss of $3.8 million, compared to a positive $936,000 in Q1 2024[103] - The net loss for the three months ended March 31, 2025, was $10.1 million, compared to a net loss of $5.8 million for the same period in 2024[128][129] Assets and Liabilities - Total current assets decreased to $122,080,000 as of March 31, 2025, down from $135,128,000 at December 31, 2024, a decline of 9.7%[15] - Total liabilities decreased to $33,909,000 as of March 31, 2025, down from $41,554,000 at December 31, 2024, a reduction of 18.4%[15] - Stockholders' equity decreased to $111,096,000 as of March 31, 2025, from $118,137,000 at December 31, 2024, a decline of 5.9%[15] - Cash and cash equivalents at the end of Q1 2025 were $98,026,000, down from $111,835,000 at the end of Q4 2024, a decrease of 12.3%[22] Revenue Sources - Dealer revenue increased to $40.8 million in Q1 2025, up 13.5% from $36.0 million in Q1 2024[71] - For the three months ended March 31, 2025, approximately 8.5% of the company's revenue was derived from arrangements with car manufacturers to promote vehicle sales through consumer incentives, down from 9.6% for the year ended December 31, 2024[178] - The termination of the partnership with American Express in April 2025, which accounted for approximately 5% of the company's units in the twelve months prior to the termination notice, is expected to negatively impact revenue from manufacturer arrangements[182] Expenses - Cash used in operating activities for Q1 2025 was $(7,895,000), compared to cash provided of $2,049,000 in Q1 2024[22] - Stock-based compensation expense for the three months ended March 31, 2025, totaled $3.3 million, up from $2.6 million in Q1 2024, reflecting a 26.3% increase[63] - Sales and marketing expenses rose by $2.94 million, or 13.3%, to $25.02 million, accounting for 55.8% of revenues compared to 53.8% in 2024[115] - General and administrative expenses increased by $0.6 million, or 6.3%, to $10.08 million, accounting for 22.5% of revenues compared to 23.1% in 2024[119] Market and Economic Conditions - The macroeconomic environment continues to pose challenges, including limited new vehicle inventories and rising vehicle costs, impacting financial results[84] - The company acknowledges that economic conditions affecting consumer demand for automobiles, such as interest rates and inflation, may materially impact its business and financial condition[152] - Consumer prices increased by 9.1% during the twelve months ended June 30, 2022, impacting purchasing behavior and car sales[157] Operational Challenges - The company aims to roll out the TrueCar+ offering, which integrates various car-buying processes into a single platform, but faces technical challenges in scaling this offering[162] - The company is currently unable to effectively respond to rapid changes in technology and consumer demands, which could lead to decreased demand for automobiles on its platform[208] - The company may need to implement further measures to reduce operating costs and improve margins, but success is not guaranteed[200] Dealer Relationships - The company relies significantly on revenues from TrueCar Certified Dealers, and failure to maintain or increase these revenues would harm financial performance[164] - The company has observed a decrease in independent dealers due to industry consolidations and financial pressures, which may affect dealer network stability[170] - The company’s ability to attract manufacturers to participate in incentive programs is critical, as failure to do so could reduce growth and harm operating results[179] Strategic Initiatives - In June 2023, the company announced a strategic restructuring plan, resulting in a workforce reduction of approximately 24%[199] - The company is focused on enhancing its software ecosystem and improving customer acquisition efficiency[80] - The company has fully impaired the right-of-use asset associated with a lease amounting to $6.8 million as of March 31, 2025[55]