Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 303

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 303
---
DA 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.

24

The following table presents a reconciliation of net loss to Adjusted EBITDA for each of the periods presented:

 Three Months Ended March 31, 20252024 (in thousands)Reconciliation of Net Loss to Adjusted EBITDA:  Net loss$(10,136)$(5,848)Non-GAAP adjustments: Interest income(1,068)(1,644)Depreciation and amortization3,898 4,585 Stock-based compensation3,346 2,632 Restructuring charges (1)— 1,112 Change in fair value of contingent consideration liability36 92 Interest accretion for terminated lease (2)116 — Provision for income taxes6 7 Adjusted EBITDA$(3,802)$936 

(1)The excluded amounts represent charges associated with the realignment of the Company’s leadership structure beginning in the third quarter of 2023. We consider these charges to be unrelated to our underlying results of operations and believe that their exclusion is appropriate to facilitate period-to-period operating performance comparisons.

(2)The excluded amount represents the accretion of interest on the lease liability associated with the terminated office lease at 1401 Ocean Avenue, Santa Monica, California. We consider these charges to be unrelated to our underlying results of operations and believe that their exclusion is appropriate to facilitate period-to-period operating performance comparisons.

25

Components of Operating Results 

Revenues

Our revenues are comprised primarily of dealer revenue and OEM incentives revenue. We recognize transaction revenue for certain of our Auto Buying Program and OEM incentives arrangements at the time introductions and incentives are delivered based upon expected subsequent vehicle sales between the Auto Buying