v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

16. Segment Information

 

The Company is organized into two reportable segments: UACC and CarStory. Corporate activities are presented in "corporate" and do not constitute a reportable segment. These activities include costs not directly attributable to the segments and are primarily related to costs associated with corporate and governance functions, including executive functions, corporate finance, legal, human resources, information technology, cyber security and other shared costs. Certain shared costs, including corporate administration, are allocated to segments based upon specific allocation of expenses. Corporate activities also include the runoff of legacy Vroom third party vehicle service and GAP policies sold prior to the Ecommerce Wind-Down. No operating segments have been aggregated to form the reportable segments.

 

The Company determined its operating segments based on how the chief operating decision maker (“CODM”) reviews the Company’s operating results in assessing performance and allocating resources. The Company’s CODM is the chief executive officer (“CEO”). During the period from January 15, 2025, to March 31, 2025, the CODM changed the profitability measure reviewed for the Company's segment from Adjusted EBITDA to Adjusted net income (loss). The CODM reviews Adjusted net income (loss) for each of the reportable segments. Adjusted net income (loss) is defined as net income (loss) from continuing operations less preferred stock dividends attributable to noncontrolling interests of subsidiary adjusted for stock compensation expense, severance expense, bankruptcy costs (which represent professional fees incurred related to the bankruptcy prior to filing of the petition and post-emergence), reorganization items, net (which relate to certain charges incurred during the bankruptcy proceedings, such as legal and professional fees incurred directly as a result of the bankruptcy proceeding, the write-off of deferred financing costs and discount on debt subject to compromise and other related charges), operating lease right-of-use assets impairment and long-lived asset impairment charges incurred by segment. All expense categories on the condensed consolidated statement of operations are significant and there are no other significant segment expenses that would require disclosure. There are no intra-entity sales and no significant expense categories regularly provided to the CODM beyond those disclosed in the consolidated statement of operations. The CODM manages the business using consolidated expense information, adjusted for items that are non-recurring or not core to the Company’s operating business as disclosed above, as well as regularly provided budgeted or forecasted expense information for each operating segment. The CODM does not evaluate operating segments using asset information as these are managed on an enterprise-wide group basis. Accordingly, the Company does not report segment asset information. As of March 31, 2026 and December 31, 2025, long-lived assets were predominantly located in the United States.

 

The UACC reportable segment represents UACC’s operations with its network of third-party dealership customers, including the purchases and servicing of vehicle installment contracts. The segment also includes the runoff portfolio of retail installment sale contracts originated for Vroom or purchased from Vroom prior to the Ecommerce Wind-Down.

 

The CarStory reportable segment represents sales of AI-powered analytics and digital services to automotive dealers, automotive financial services companies and others in the automotive industry.

 

Information about the Company’s reportable segments and corporate activities are as follows (in thousands):

 

 

Successor

 

 

Three months ended March 31,

 

 

 

Period from January 15 through March 31,

 

 

2026

 

 

 

2025

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

Interest income

$

42,476

 

$

—

 

$

—

 

$

42,476

 

 

 

$

37,157

 

$

—

 

$

—

 

$

37,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

3,439

 

 

—

 

 

—

 

 

3,439

 

 

 

 

4,618

 

 

—

 

 

—

 

 

4,618

 

Securitization debt

 

8,620

 

 

—

 

 

—

 

 

8,620

 

 

 

 

6,548

 

 

—

 

 

—

 

 

6,548

 

Total interest expense

 

12,059

 

 

—

 

 

—

 

 

12,059

 

 

 

 

11,166

 

 

—

 

 

—

 

 

11,166

 

Net interest income

 

30,417

 

 

—

 

 

—

 

 

30,417

 

 

 

 

25,991

 

 

—

 

 

—

 

 

25,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

24,823

 

 

—

 

 

(140

)

 

24,683

 

 

 

 

12,691

 

 

—

 

 

(1,591

)

 

11,100

 

Net interest income after losses and recoveries

 

5,594

 

 

—

 

 

140

 

 

5,734

 

 

 

 

13,300

 

 

—

 

 

1,591

 

 

14,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

1,139

 

 

—

 

 

—

 

 

1,139

 

 

 

 

1,254

 

 

—

 

 

—

 

 

1,254

 

Warranties and GAP income (loss), net

 

2,765

 

 

—

 

 

(79

)

 

2,686

 

 

 

 

3,571

 

 

—

 

 

508

 

 

4,079

 

CarStory revenue

 

—

 

 

1,333

 

 

—

 

 

1,333

 

 

 

 

—

 

 

2,392

 

 

—

 

 

2,392

 

Other income

 

2,007

 

 

34

 

 

—

 

 

2,041

 

 

 

 

2,235

 

 

62

 

 

184

 

 

2,481

 

Total noninterest (loss) income

 

5,911

 

 

1,367

 

 

(79

)

 

7,199

 

 

 

 

7,060

 

 

2,454

 

 

692

 

 

10,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

16,737

 

 

1,243

 

 

1,166

 

 

19,146

 

 

 

 

13,694

 

 

1,360

 

 

1,013

 

 

16,067

 

Professional fees

 

3,364

 

 

52

 

 

1,104

 

 

4,520

 

 

 

 

3,069

 

 

—

 

 

2,278

 

 

5,347

 

Software and IT costs

 

2,965

 

 

2

 

 

194

 

 

3,161

 

 

 

 

2,086

 

 

—

 

 

316

 

 

2,402

 

Depreciation and amortization

 

1,235

 

 

105

 

 

—

 

 

1,340

 

 

 

 

479

 

 

96

 

 

—

 

 

575

 

Interest expense on corporate debt

 

761

 

 

—

 

 

451

 

 

1,212

 

 

 

 

480

 

 

—

 

 

—

 

 

480

 

Impairment charges

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

3,479

 

 

—

 

 

677

 

 

4,156

 

Other expenses

 

1,967

 

 

93

 

 

348

 

 

2,408

 

 

 

 

1,670

 

 

138

 

 

562

 

 

2,370

 

Total expenses

 

27,029

 

 

1,495

 

 

3,263

 

 

31,787

 

 

 

 

24,957

 

 

1,594

 

 

4,846

 

 

31,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

—

 

 

26

 

 

166

 

 

192

 

 

 

 

39

 

 

16

 

 

95

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

(571

)

 

—

 

 

—

 

 

(571

)

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

(14,976

)

$

(130

)

 

 

 

 

 

 

$

(834

)

$

839

 

 

 

 

 

 

 

 

 

 

Predecessor

 

 

Period from January 1 through January 14,

 

 

2025

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

Interest income (expense)

 

7,254

 

$

—

 

$

(71

)

$

7,183

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

Warehouse credit facility

 

1,017

 

 

—

 

 

—

 

 

1,017

 

Securitization debt

 

1,178

 

 

—

 

 

—

 

 

1,178

 

Total interest expense

 

2,195

 

 

—

 

 

—

 

 

2,195

 

Net interest income (loss)

 

5,059

 

 

—

 

 

(71

)

 

4,988

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

7,647

 

 

—

 

 

(855

)

 

6,792

 

Net interest income (loss) after losses and recoveries

 

(2,588

)

 

—

 

 

784

 

 

(1,804

)

 

 

 

 

 

 

 

 

 

Noninterest (loss) income:

 

 

 

 

 

 

 

 

Servicing income

 

192

 

 

—

 

 

—

 

 

192

 

Warranties and GAP income (loss), net

 

390

 

 

—

 

 

(83

)

 

307

 

CarStory revenue

 

—

 

 

432

 

 

—

 

 

432

 

Other income

 

66

 

 

13

 

 

34

 

 

113

 

Total noninterest (loss) income

 

648

 

 

445

 

 

(49

)

 

1,044

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Compensation and benefits

 

2,398

 

 

326

 

 

99

 

 

2,823

 

Professional fees

 

172

 

 

13

 

 

112

 

 

297

 

Software and IT costs

 

367

 

 

2

 

 

88

 

 

457

 

Depreciation and amortization

 

817

 

 

240

 

 

—

 

 

1,057

 

Interest expense on corporate debt

 

85

 

 

—

 

 

91

 

 

176

 

Impairment charges

 

—

 

 

—

 

 

—

 

 

—

 

Other expenses

 

262

 

 

20

 

 

89

 

 

371

 

Total expenses

 

4,101

 

 

601

 

 

479

 

 

5,181

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

—

 

 

5

 

 

—

 

 

5

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

Adjusted net loss

$

(5,910

)

$

(153

)

 

 

 

 

 

The reconciliation between reportable segment Adjusted net (loss) income to consolidated loss from continuing operations as follows (in thousands):

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months ended March 31,

 

 

Period from January 15 through March 31,

 

 

 

Period from January 1 through January 14,

 

 

 

2026

 

 

2025

 

 

 

2025

 

Adjusted net income (loss)

 

 

 

 

 

 

 

 

 

 

UACC

 

$

(14,976

)

 

$

(834

)

 

 

$

(5,910

)

CarStory

 

 

(130

)

 

 

839

 

 

 

 

(153

)

Total

 

$

(15,106

)

 

$

5

 

 

 

$

(6,063

)

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

(1,142

)

 

 

(297

)

 

 

 

(134

)

Severance expense

 

 

—

 

 

 

(21

)

 

 

 

(4

)

Impairment charges

 

 

—

 

 

 

(3,479

)

 

 

 

—

 

Corporate income (loss) from continuing operations

 

 

(3,369

)

 

 

(2,658

)

 

 

 

256

 

Reorganization items

 

 

—

 

 

 

—

 

 

 

 

51,036

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

 

571

 

 

 

—

 

 

 

 

—

 

Net (loss) income from continuing operations

 

$

(19,046

)

 

$

(6,450

)

 

 

$

45,090