Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 177

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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At September 30, 2025, total remaining stock-based compensation expense for non-vested performance stock units was $6.5 million, which is expected to be recognized over a weighted-average period of 2.6 years. For the three months ended September 30, 2025 and 2024, the Company recorded $1.0 million and $0.9 million in stock-based compensation expense for performance stock units, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded $3.2 million and $2.5 million in stock-based compensation expense for performance stock units, respectively.Stock-based Compensation CostThe Company recorded stock-based compensation cost relating to stock options, restricted stock units, and performance stock units in the following categories on the accompanying condensed consolidated statements of comprehensive income (loss) (in thousands): Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024Cost of revenue$94 $66 $275 $180 Sales and marketing523 434 1,631 1,349 Technology and development479 496 1,542 1,524 General and administrative2,070 1,957 6,343 5,721 Total stock-based compensation expense3,166 2,953 9,791 8,774 Amount capitalized to internal-use software189 187 590 554 Total stock-based compensation cost$3,355 $3,140 $10,381 $9,328 

7.    Income Taxes

In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company’s annual estimated effective tax rate differs from the statutory rate primarily as a result of state taxes and changes in the Company’s valuation allowance.The Company recorded income tax expense of less than $0.1 million for the three and nine months ended September 30, 2025 and 2024. The Company’s provision for income taxes for the three and nine months ended September 30, 2025 and 2024 reflects state income tax expense. The Company continues to maintain a full valuation allowance as it is more likely than not that the Company’s net deferred tax assets will not be realized.There were no material changes to the Company’s unrecognized