#USA #Santa Monica #TrueCar #NASDAQ TRUE #Automotive Marketplace

TrueCar Reports Q3 2025 Financial Performance

TrueCar, Inc. (NASDAQ: TRUE), a prominent player in the automotive digital marketplace, recently released its financial results for the third quarter ended September 30, 2025. The results reflect both promising gains in income and ongoing challenges in revenue generation, highlighting the dynamic state of the automotive market.

Financial Highlights

During the third quarter, TrueCar reported total revenues of $43.2 million, a decrease from $47.0 million in the previous quarter and $46.5 million from the same quarter last year. Despite this revenue decline, the company achieved a net income of $5.0 million, or $0.06 per share, a significant turnaround from a net loss of $(7.6) million in Q2 2025 and $(5.8) million in Q3 2024.

TrueCar's cash flow from operations improved significantly, amounting to $12.7 million, up from $(2.8) million in the second quarter of this year and $1.8 million in Q3 2024. Furthermore, free cash flow saw a positive shift, reported at $11.2 million, indicating the company’s effective management of its operational cash flow amidst challenging conditions.

Operating Metrics Insights

On the operational side, TrueCar had an average of 5.6 million unique visitors per month in Q3 2025 compared to 5.5 million in the previous quarter, although it was down from 6.9 million a year earlier. The total number of units sold stood at 87.5 thousand, a drop from 89.0 thousand in the previous quarter and 94.6 thousand in Q3 2024. Moreover, the number of franchise dealers decreased to 8,225, down from 8,292 in Q2 2025.

Strategic Considerations

The release of these results comes amidst the announcement of a pending acquisition. On October 15, 2025, TrueCar confirmed that it had entered into an agreement with Fair Holdings, Inc. to be acquired in an all-cash go-private transaction valued at $2.55 per share. This acquisition is led by Scott Painter, the company's founder, and has the backing of Alpha Auto 2, LLC. The deal is subject to stockholder approval and other necessary regulatory conditions and is expected to finalize in the fourth quarter of 2025 or early 2026.

The acquisition will mark a pivotal shift for TrueCar, transitioning it from a public company to a private entity. This move is anticipated to streamline operations and focus efforts on establishing a more personalized and efficient auto-shopping experience, as indicated in the company's forward-looking strategies.

Financial Measures and Future Outlook

TrueCar's management has emphasized its reliance on non-GAAP financial measures, such as Adjusted EBITDA and Free Cash Flow, to assess performance and make strategic decisions. While these metrics are valuable, they come with limitations, and stakeholders are advised to consider them alongside traditional GAAP results.

Importantly, TrueCar's management has decided not to hold an earnings conference call this quarter, which will affect how investors receive guidance on the company's future financial expectations.

As TrueCar navigates through these changes, it will continue to utilize its platform to enhance customer experiences and maintain strong relationships with its network of certified dealers. The commitment to transparency and fairness will remain at the core of its business model.

In summary, while TrueCar faces challenges reflected in the revenue decline, its strategic initiatives and improved earnings indicate potential for future growth. The upcoming acquisition could offer fresh opportunities as the company ventures into a new chapter. Stakeholders are encouraged to keep a close eye on developments as TrueCar approaches the conclusion of this transformative period.