Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 236

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 236
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 changes in the overall market environment impact conversion rates and the efficiency of branded media spend. In addition, we expect to incur incremental branded media expenses to support further rollout of TrueCar+ and other initiatives.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024. Sales and marketing expenses increased $2.1 million, or 3.0%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by a $2.5 million increase in recurring employee-related expenses, a $2.6 million increase in affinity partner marketing, a $0.7 million increase in severance costs associated with the dealer sales and service team reorganization in addition to the departure of our former CRO, a $0.6 million increase in employee travel costs, and a $0.2 million increase in outsourced consulting and professional fees. Revenue share that we pay to our affinity marketing partners is tied to revenue and units and will fluctuate along with those results. These increases were partially offset by a $4.5 million decrease in costs related to branded media spend. We expect branded media spend to continue to fluctuate as changes in the overall market environment impact conversion rates and the efficiency of branded media spend. In addition, we expect to incur incremental branded media expenses to support further rollout of TrueCar+ and other initiatives.

Technology and Development Expenses Three Months Ended September 30,Nine Months Ended September 30,  2025202420252024 (dollars in thousands)Technology and development expenses$6,969 $7,179 $22,183 $22,735 Technology and development expenses as a percentage of revenues16.1 %15.4 %16.4 %17.6 %Capitalized software costs$1,942 $2,084 $6,363 $6,268 

Three months ended September 30, 2025 compared to three months ended September 30, 2024. Technology and development expenses decreased $0.2 million, or 2.9% for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was driven primarily by a decrease in recurring employee-related expenses.

Capitalized software costs decreased by $0.1 million, primarily due to a $0.1 million decrease