Company: TRUE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001327318-25-000036
Chunk: 302

Company: TrueCar, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 302
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 revenue, and a $0.9 million increase due to the introduction of TCMS products, partially offset by a $1.4 million decrease in independent dealer revenue, and a $0.5 million decrease in OEM incentives revenue. Since some of our OEM arrangements target our affinity group marketing partners, we expect that OEM revenue may continue to fluctuate in future quarters as we enter into new, or terminate existing agreements with our affinity group marketing partners (refer to Part II, Item 1A, “Risk Factors”). Dealer revenue, OEM incentives revenue, and Other revenue represented 91.6%, 8.0%, and 0.4%, respectively, of revenues for the six months ended June 30, 2025 as compared to 90.0%, 9.5%, and 0.5%, respectively, for the same period in 2024.

Costs and Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization) Three Months Ended June 30,Six Months Ended June 30,  2025202420252024 (dollars in thousands)Cost of revenue (exclusive of depreciation and amortization)$11,149 $5,484 $20,039 $9,745 Cost of revenue (exclusive of depreciation and amortization) as a percentage of revenues23.7 %13.1 %21.8 %11.8 %

Three months ended June 30, 2025 compared to three months ended June 30, 2024. Cost of revenue increased $5.7 million, or 103.3%, for the three months ended June 30, 2025 as compared to the three months ended June 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 marketing costs associated with the expansion of TCMS products. We expect cost of revenue to increase along with the growth of TCWS and TCMS products.

Six months ended June 30, 2025 compared to six months ended June 30, 2024. Cost of revenue increased $10.3 million, or 105.6%, for the six months ended June 30, 2025 as compared to the six months ended June 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 

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marketing costs associated with the