Company: TRUE
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-033025
Chunk: 93

Company: TrueCar, Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 93
---
 transaction costs, interest accretion for terminated leases, restructuring charges, goodwill impairment, other income, and income taxes. We have provided below a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. Adjusted EBITDA should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP. In addition, our Adjusted EBITDA measure may not be comparable to similarly titled measures of other organizations as they may not calculate Adjusted EBITDA in the same manner as we calculate this measure. We use Adjusted EBITDA as an operating performance measure as it is (i) an integral part of our reporting and planning processes; (ii) used by our management and Board to assess our operational performance, and together with operational objectives, as a measure in evaluating employee compensation and bonuses; and (iii) used by our management to make financial and strategic planning decisions regarding future operating investments. We believe that using Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis because it excludes variations primarily caused by changes in the excluded items noted above. In addition, we believe that Adjusted EBITDA is widely used by investors, securities analysts, rating agencies and other parties in evaluating companies as measures of financial performance and debt-service capabilities. 68

TABLE OF CONTENTS 2025 ANNUAL PROXY STATEMENT

We define free cash flow as cash flow from operating activities less capital expenditures. Free cash flow should not be considered as an alternative to cash flow from operating activities or any other measure of liquidity calculated and presented in accordance with GAAP. In addition, our free cash flow measure may not be comparable to similarly titled measures of other organizations as they may not calculate free cash flow in the same manner as we calculate this measure. We use free cash flow as a liquidity measure because it is used by management to make financial and strategic planning decisions based on cash availability after funding the needs of our primary business activities. We believe that using free cash flow facilitates comparison of cash available for potential future investment opportunities because it excludes cash flows that are not in support of the core business operations and funds from external financing. The following table presents a reconciliation of net loss to Adjusted EBITDA for each of the periods presented:

| ​ 
 ​ | ​                                                          
 ​                                                          | ​ 
 ​ | ​ 
 ​ | 2024 |   |         |   | ​ | ​ | 2023 |   |         |   |