Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 235

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 235
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 compared to three months ended September 30, 2024. Cost of revenue increased $1.1 million, or 13.8%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily due to an increase in the number of vehicles acquired and sold through the wholesale exchange as well as an increase in dealer management system (“DMS”) feed costs. We expect cost of revenue to increase along with the growth of the TCWS product.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024. Cost of revenue increased $11.4 million, or 65.0%, for the nine months ended September 30, 2025 as compared to the nine months ended 

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September 30, 2024. The increase was primarily due to an increase in the number of vehicles acquired and sold through the wholesale exchange, in addition to increases in marketing costs associated with the expansion of TCMS products, recurring employee-related expenses, outsourced consulting and professional fees, and DMS feed costs. We expect cost of revenue to increase along with the growth of TCWS and TCMS products.

Sales and Marketing Expenses Three Months Ended September 30,Nine Months Ended September 30,  2025202420252024 (dollars in thousands)Sales and marketing expenses$23,059 $25,049 $73,181 $71,076 Sales and marketing expenses as a percentage of revenues53.4 %53.8 %54.2 %54.9 %

Three months ended September 30, 2025 compared to three months ended September 30, 2024. Sales and marketing expenses decreased $2.0 million, or 7.9%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was primarily driven by a $1.4 million decrease in costs related to branded media spend, a $0.8 million decrease in recurring employee-related expenses, a $0.2 million decrease in other marketing costs, and a $0.2 million decrease in spend associated with outsourced consulting and professional fees. These decreases were partially offset by a $0.4 million increase in severance costs associated with the departure of our former CRO. We expect branded media spend to continue to fluctuate as