Company: TRUE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001327318-25-000006
Chunk: 146

Company: TrueCar, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 146
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 Adjusted EBITDA does not reflect changes in the fair value of our contingent consideration liability;

•    Adjusted EBITDA does not reflect the legal, accounting, consulting and other third-party fees and costs incurred by us in connection with the evaluation and negotiation of potential merger and acquisition transactions;

•    Adjusted EBITDA does not reflect the charges associated with the Restructuring Plan initiated and completed in the second quarter of 2023 to improve efficiency and reduce expenses or a realignment of the Company’s leadership structure initiated in the third quarter of 2023;

•    Adjusted EBITDA does not reflect interest accretion for the terminated office lease at 1401 Ocean Avenue, Santa Monica, California;

•    Adjusted EBITDA does not consider the potentially dilutive impact of shares issued or to be issued in connection with stock-based compensation; and

•    other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including our net loss, our other GAAP results, and various cash flow metrics. In addition, in evaluating Adjusted EBITDA you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving Adjusted EBITDA, and you should not infer from our presentation of Adjusted EBITDA that our future results will not be affected by these expenses or any unusual or non-recurring items.

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The following table presents a reconciliation of net loss to Adjusted EBITDA for each of the periods presented: Year EndedDecember 31, 202420232022 (in thousands)Reconciliation of Net Loss to Adjusted EBITDA:   Net loss$(31,048)$(49,766)$(118,685)Non-GAAP adjustments:   Interest income(6,147)(6,718)(2,565)Depreciation and amortization18,035 17,699 16,520 Stock-based compensation11,730 14,299 17,681 Gain from equity method investment (1)— — (1,845)Change in fair value of contingent consideration liability372 931 359 (Gain) loss from lease exit (2)— (1,477)214 Impairment of right-of-use assets (3)6,880 2