Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 188

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 188
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 6,880 Interest accretion for terminated lease (3)107 125 334 210 Transaction costs (4)727 1 2,535 1 Other income (5)(11,397)— (11,397)— Provision for income taxes2 3 11 13 Adjusted EBITDA$(410)$201 $(3,574)$1,235 

(1)The excluded amounts represent charges associated with the departure of our former CRO in the third quarter of 2025, the reorganization of the dealer sales and service organization in the second quarter of 2025, and the realignment of the Company’s leadership structure which began in the third quarter of 2023 and concluded in the second quarter of 2024. 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 impairment charges on our ROU assets associated with certain of our existing office locations. 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.

(3)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.

(4)The excluded amount represents external legal, accounting, and other third-party fees and costs incurred in connection with negotiating the Merger. In the comparable prior periods we did not adjust for transaction costs due to the confidential nature of the Merger. We have made that change and adjusted the prior period and year-to-date amounts presented herein to maintain comparability between the periods.

(5)The excluded amount represents a gain on legal settlement resulting from the CDK Settlement Agreement.

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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 Program user and the dealer. 

Costs and Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization). Cost of revenue includes expenses related to the fulfillment of our services, consisting primarily of data costs and licensing fees paid to third-party service providers and