Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 325

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 325
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 for new capital expenditures or any other contractual commitments;

•Adjusted EBITDA does not reflect the restructuring charges associated with the reorganization of the Company’s dealer sales and service organization or the realignment of the Company’s leadership structure that began in the third quarter of 2023 and concluded in the second quarter of 2024;

•Adjusted EBITDA does not reflect severance charges associated with the departure of our former Chief Revenue Officer (“CRO”);

•Adjusted EBITDA does not reflect changes in the fair value of our contingent consideration liability;

•Adjusted EBITDA does not reflect impairment charges on our ROU assets associated with subleasing;

•Adjusted EBITDA does not reflect interest accretion for the terminated office lease at 1401 Ocean Avenue, Santa Monica, California;

•Adjusted EBITDA does not consider the potentially dilutive impact of shares issued or to be issued in connection with stock-based compensation;

•Adjusted EBITDA does not reflect the legal, accounting, and other third-party fees and costs incurred by us in connection with the evaluation and negotiation of potential merger and acquisition transactions;

•Adjusted EBITDA does not reflect gain on legal settlements recorded within other income; and

•other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including our net income (loss), our other GAAP results, and various cash flow metrics. In addition, in evaluating Adjusted EBITDA you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving Adjusted EBITDA, and you should not infer from our presentation of Adjusted EBITDA that our future results will not be affected by these expenses or any unusual or non-recurring items.

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The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods presented:

 Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024 (in thousands)Reconciliation of Net Income (Loss) to Adjusted EBITDA:  Net income (loss)$4,997 $(5,831)$(12,766)$(25,199)Non-GAAP adjustments: Interest income(950)(1,560)(2,973)(4,876)Depreciation and amortization2,569