v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 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 June 30,

 

 

2026

 

 

 

2025

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

Interest income

$

43,605

 

$

—

 

$

—

 

$

43,605

 

 

 

$

45,748

 

$

—

 

$

—

 

$

45,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

3,396

 

 

—

 

 

—

 

 

3,396

 

 

 

 

3,259

 

 

—

 

 

—

 

 

3,259

 

Securitization debt

 

8,586

 

 

—

 

 

—

 

 

8,586

 

 

 

 

9,883

 

 

—

 

 

—

 

 

9,883

 

Total interest expense

 

11,982

 

 

—

 

 

—

 

 

11,982

 

 

 

 

13,142

 

 

—

 

 

—

 

 

13,142

 

Net interest income

 

31,623

 

 

—

 

 

—

 

 

31,623

 

 

 

 

32,606

 

 

—

 

 

—

 

 

32,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses (gains), net of recoveries

 

10,757

 

 

—

 

 

(94

)

 

10,663

 

 

 

 

20,922

 

 

—

 

 

(1,422

)

 

19,500

 

Net interest income after losses and recoveries

 

20,866

 

 

—

 

 

94

 

 

20,960

 

 

 

 

11,684

 

 

—

 

 

1,422

 

 

13,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

925

 

 

—

 

 

—

 

 

925

 

 

 

 

1,259

 

 

—

 

 

—

 

 

1,259

 

Warranties and GAP income, net

 

3,203

 

 

—

 

 

88

 

 

3,291

 

 

 

 

3,673

 

 

—

 

 

(28

)

 

3,645

 

CarStory revenue

 

—

 

 

1,297

 

 

—

 

 

1,297

 

 

 

 

—

 

 

1,846

 

 

—

 

 

1,846

 

Other income

 

3,119

 

 

37

 

 

—

 

 

3,156

 

 

 

 

1,978

 

 

35

 

 

54

 

 

2,067

 

Total noninterest income

 

7,247

 

 

1,334

 

 

88

 

 

8,669

 

 

 

 

6,910

 

 

1,881

 

 

26

 

 

8,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

16,352

 

 

1,266

 

 

1,133

 

 

18,751

 

 

 

 

17,443

 

 

1,581

 

 

2,067

 

 

21,091

 

Professional fees

 

989

 

 

42

 

 

953

 

 

1,984

 

 

 

 

1,433

 

 

(67

)

 

647

 

 

2,013

 

Software and IT costs

 

3,179

 

 

2

 

 

63

 

 

3,244

 

 

 

 

2,688

 

 

3

 

 

729

 

 

3,420

 

Depreciation and amortization

 

1,381

 

 

101

 

 

—

 

 

1,482

 

 

 

 

628

 

 

114

 

 

—

 

 

742

 

Interest expense on corporate debt

 

765

 

 

—

 

 

298

 

 

1,063

 

 

 

 

698

 

 

—

 

 

—

 

 

698

 

Other expenses

 

2,053

 

 

102

 

 

419

 

 

2,574

 

 

 

 

2,152

 

 

136

 

 

544

 

 

2,832

 

Total expenses

 

24,719

 

 

1,513

 

 

2,866

 

 

29,098

 

 

 

 

25,042

 

 

1,767

 

 

3,987

 

 

30,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit) provision for income taxes from continuing operations

 

—

 

 

31

 

 

(55

)

 

(24

)

 

 

 

—

 

 

33

 

 

26

 

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

(691

)

 

—

 

 

—

 

 

(691

)

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

3,993

 

$

(156

)

 

 

 

 

 

 

$

(5,334

)

$

124

 

 

 

 

 

 

 

 

Successor

 

 

Six months ended June 30,

 

 

 

Period from January 15 through June 30,

 

 

2026

 

 

 

2025

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

 

 

UACC

 

CarStory

 

Corporate

 

Total

 

Interest income

$

86,081

 

$

—

 

$

—

 

$

86,081

 

 

 

$

82,905

 

$

—

 

$

—

 

$

82,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse credit facility

 

6,835

 

 

—

 

 

—

 

 

6,835

 

 

 

 

7,877

 

 

—

 

 

—

 

 

7,877

 

Securitization debt

 

17,206

 

 

—

 

 

—

 

 

17,206

 

 

 

 

16,431

 

 

—

 

 

—

 

 

16,431

 

Total interest expense

 

24,041

 

 

—

 

 

—

 

 

24,041

 

 

 

 

24,308

 

 

—

 

 

—

 

 

24,308

 

Net interest income

 

62,040

 

 

—

 

 

—

 

 

62,040

 

 

 

 

58,597

 

 

—

 

 

—

 

 

58,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized losses, net of recoveries

 

35,580

 

 

—

 

 

(233

)

 

35,346

 

 

 

 

33,612

 

 

—

 

 

(3,012

)

 

30,600

 

Net interest income after losses and recoveries

 

26,460

 

 

—

 

 

233

 

 

26,694

 

 

 

 

24,985

 

 

—

 

 

3,012

 

 

27,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

2,064

 

 

—

 

 

—

 

 

2,064

 

 

 

 

2,513

 

 

—

 

 

—

 

 

2,513

 

Warranties and GAP income (loss), net

 

5,968

 

 

—

 

 

9

 

 

5,977

 

 

 

 

7,244

 

 

—

 

 

480

 

 

7,724

 

CarStory revenue

 

—

 

 

2,630

 

 

—

 

 

2,630

 

 

 

 

—

 

 

4,238

 

 

—

 

 

4,238

 

Other income

 

5,126

 

 

71

 

 

—

 

 

5,197

 

 

 

 

4,213

 

 

97

 

 

238

 

 

4,548

 

Total noninterest (loss) income

 

13,158

 

 

2,701

 

 

9

 

 

15,868

 

 

 

 

13,970

 

 

4,335

 

 

718

 

 

19,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

33,089

 

 

2,509

 

 

2,299

 

 

37,897

 

 

 

 

31,137

 

 

2,941

 

 

3,080

 

 

37,158

 

Professional fees

 

4,353

 

 

94

 

 

2,057

 

 

6,504

 

 

 

 

4,502

 

 

(67

)

 

2,925

 

 

7,360

 

Software and IT costs

 

6,144

 

 

4

 

 

257

 

 

6,405

 

 

 

 

4,774

 

 

3

 

 

1,045

 

 

5,822

 

Depreciation and amortization

 

2,616

 

 

206

 

 

—

 

 

2,822

 

 

 

 

1,107

 

 

210

 

 

—

 

 

1,317

 

Interest expense on corporate debt

 

1,526

 

 

—

 

 

749

 

 

2,275

 

 

 

 

1,178

 

 

—

 

 

—

 

 

1,178

 

Impairment charges

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

3,479

 

 

—

 

 

677

 

 

4,156

 

Other expenses

 

4,020

 

 

195

 

 

767

 

 

4,982

 

 

 

 

3,822

 

 

274

 

 

1,106

 

 

5,202

 

Total expenses

 

51,748

 

 

3,008

 

 

6,129

 

 

60,885

 

 

 

 

49,999

 

 

3,361

 

 

8,833

 

 

62,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes from continuing operations

 

—

 

 

57

 

 

111

 

 

168

 

 

 

 

39

 

 

49

 

 

121

 

 

209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

(1,262

)

 

—

 

 

—

 

 

(1,262

)

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income

$

(10,983

)

$

(286

)

 

 

 

 

 

 

$

(6,168

)

$

963

 

 

 

 

 

 

 

 

 

 

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

 

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 June 30,

 

 

Six months ended June 30,

 

 

Period from January 15 through June 30,

 

 

 

Period from January 1 through January 14,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

2025

 

Adjusted net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UACC

$

3,993

 

 

$

(5,334

)

 

$

(10,983

)

 

$

(6,168

)

 

 

$

(5,910

)

CarStory

 

(156

)

 

 

124

 

 

 

(286

)

 

 

963

 

 

 

 

(153

)

Total

$

3,837

 

 

$

(5,210

)

 

$

(11,269

)

 

$

(5,205

)

 

 

$

(6,063

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

(1,162

)

 

 

(1,149

)

 

 

(2,305

)

 

 

(1,446

)

 

 

 

(134

)

Severance expense

 

(182

)

 

 

(7

)

 

 

(182

)

 

 

(28

)

 

 

 

(4

)

Impairment charges

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,479

)

 

 

 

—

 

Corporate (loss) income from continuing operations

 

(2,629

)

 

 

(2,566

)

 

 

(5,997

)

 

 

(5,224

)

 

 

 

256

 

Reorganization items

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

51,036

 

Preferred stock dividends attributable to noncontrolling interests of subsidiary

 

691

 

 

 

—

 

 

 

1,262

 

 

 

—

 

 

 

 

—

 

Net income (loss) from continuing operations

$

555

 

 

$

(8,932

)

 

$

(18,491

)

 

$

(15,382

)

 

 

$

45,090