Revenue growth remains highly volatile, evidenced by a 7.2% decline in 2025Q3, while the company continues to face challenges in achieving operating leverage despite maintaining a resilient 79.6% gross margin.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 181.22M | 175.6M | 158.71M | 161.52M | 231.7M | 278.68M | 335.05M | 353.57M | 323.15M | 277.51M | 259.84M | 206.65M | 133.96M | 79.89M |
| Revenue Growth % | 6.18% | 10.64% | -1.74% | -30.29% | -16.86% | -16.82% | -5.24% | 9.41% | 16.45% | 6.8% | 25.74% | 54.26% | 67.68% | - |
| Cost of Goods Sold | 37.75M | 26.39M | 15.86M | 16.21M | 22.24M | 21.55M | 27.83M | 31.15M | 28.23M | 25.17M | 23.66M | 17.51M | 15.29M | 13.56M |
| COGS % of Revenue | - | 15.03% | 9.99% | 10.04% | 9.6% | 7.73% | 8.31% | 8.81% | 8.73% | 9.07% | 9.1% | 8.47% | 11.42% | 16.97% |
| Gross Profit | 143.47M | 149.21M | 142.85M | 145.31M | 209.46M | 257.13M | 307.22M | 322.42M | 294.92M | 252.34M | 236.18M | 189.14M | 118.66M | 66.33M |
| Gross Margin % | 79.17% | 84.97% | 90.01% | 89.96% | 90.4% | 92.27% | 91.69% | 91.19% | 91.27% | 90.93% | 90.9% | 91.53% | 88.58% | 83.03% |
| Gross Profit Growth % | - | 4.45% | -1.69% | -30.63% | -18.54% | -16.3% | -4.71% | 9.32% | 16.87% | 6.84% | 24.87% | 59.39% | 78.9% | - |
| Operating Expenses | 177.72M | 186.39M | 199.32M | 271.01M | 242.94M | 275.64M | 368.07M | 351.58M | 328.58M | 291.24M | 300.16M | 236.64M | 141.29M | 138.28M |
| OpEx % of Revenue | - | 106.15% | 125.59% | 167.78% | 104.85% | 98.91% | 109.86% | 99.44% | 101.68% | 104.95% | 115.52% | 114.51% | 105.47% | 173.09% |
| Selling, General & Admin | 134.38M | 138.71M | 139.37M | 148.62M | 185.23M | 201.9M | 291.3M | 267.56M | 247.04M | 214.31M | 234.5M | 186.87M | 106.04M | 104.56M |
| SG&A % of Revenue | - | 78.99% | 87.82% | 92.01% | 79.94% | 72.45% | 86.94% | 75.67% | 76.45% | 77.23% | 90.25% | 90.43% | 79.16% | 130.88% |
| Research & Development | 29.09M | 29.64M | 42.25M | 46.09M | 41.43M | 44.93M | 56.11M | 61.35M | 59.07M | 53.58M | 48.02M | 36.56M | 23.68M | 21.96M |
| R&D % of Revenue | - | 16.88% | 26.62% | 28.53% | 17.88% | 16.12% | 16.75% | 17.35% | 18.28% | 19.31% | 18.48% | 17.69% | 17.68% | 27.49% |
| Other Operating Expenses | 4M | 18.04M | 17.7M | 76.3M | 16.28M | 28.81M | 20.66M | 22.68M | 22.47M | 23.34M | 13K | 37K | 18K | -18K |
| Operating Income | -34.24M | -37.18M | -56.47M | -125.69M | -33.48M | -18.52M | -60.86M | -29.16M | -33.66M | -38.9M | -63.98M | -47.51M | -22.63M | -71.95M |
| Operating Margin % | -18.9% | -21.17% | -35.58% | -77.82% | -14.45% | -6.64% | -18.16% | -8.25% | -10.42% | -14.02% | -24.62% | -22.99% | -16.89% | -90.07% |
| Operating Income Growth % | - | 34.16% | 55.08% | -275.46% | -80.81% | 69.57% | -108.68% | 13.37% | 13.46% | 39.2% | -34.68% | -109.94% | 68.55% | - |
| EBITDA | -18.99M | -18.17M | -35.79M | -105.23M | -12.9M | 7.26M | -34.22M | -6.49M | -11.19M | -15.55M | -46.34M | -34.29M | -11.79M | -61.68M |
| EBITDA Margin % | -10.48% | -10.35% | -22.55% | -65.15% | -5.57% | 2.61% | -10.21% | -1.83% | -3.46% | -5.6% | -17.83% | -16.59% | -8.8% | -77.2% |
| EBITDA Growth % | -36.89% | 49.22% | 65.99% | -715.52% | -277.64% | 121.23% | -427.52% | 42.04% | 28.05% | 66.43% | -35.12% | -190.78% | 80.88% | - |
| D&A (Non-Cash Add-back) | 15.25M | 19.01M | 20.68M | 20.46M | 20.57M | 25.78M | 26.64M | 22.68M | 22.47M | 23.34M | 17.65M | 13.21M | 10.84M | 10.28M |
| EBIT | -20.94M | -37.18M | -56.47M | -65.92M | -33.48M | -10.25M | -60.86M | -30.27M | -32.4M | -38.52M | -63.86M | -47.41M | -22.49M | -71.74M |
| Net Interest Income | 4.24M | 6.15M | 6.72M | 2.56M | 52K | 462K | 2.48M | 140K | -1.35M | -2.15M | -336K | -321K | -1.87M | -3.13M |
| Interest Income | 4.24M | 6.15M | 6.72M | 2.56M | 52K | 462K | 2.48M | 2.79M | 1.26M | 376K | 107K | 59K | 121K | 229K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.65M | 2.61M | 2.53M | 443K | 380K | 1.99M | 3.36M |
| Other Income/Expense | 15.64M | 6.15M | 6.72M | 4.45M | -4.68M | -1.33M | 1.2M | 665K | -1.35M | -2.15M | -323K | -284K | -1.85M | -3.15M |
| Pretax Income | -18.6M | -31.03M | -49.75M | -121.25M | -38.16M | -19.84M | -59.66M | -28.5M | -35.01M | -41.05M | -64.31M | -47.79M | -24.48M | -75.1M |
| Pretax Margin % | -10.26% | -17.67% | -31.35% | -75.06% | -16.47% | -7.12% | -17.81% | -8.06% | -10.83% | -14.79% | -24.75% | -23.13% | -18.27% | -94.01% |
| Income Tax | 13K | 15K | 17K | -2.56M | 206K | -6K | -1.32M | -177K | -2.16M | 655K | 606K | 640K | 579K | -606K |
| Effective Tax Rate % | -0.07% | -0.05% | -0.03% | 2.11% | -0.54% | 0.03% | 2.21% | 0.62% | 6.18% | -1.6% | -0.94% | -1.34% | -2.37% | 0.81% |
| Net Income | -18.61M | -31.05M | -49.77M | -118.69M | -38.33M | 76.54M | -54.89M | -28.32M | -32.85M | -41.71M | -64.91M | -48.43M | -25.06M | -74.5M |
| Net Margin % | -10.27% | -17.68% | -31.36% | -73.48% | -16.54% | 27.47% | -16.38% | -8.01% | -10.17% | -15.03% | -24.98% | -23.44% | -18.7% | -93.25% |
| Net Income Growth % | 31.31% | 37.61% | 58.07% | -209.65% | -150.07% | 239.45% | -93.81% | 13.78% | 21.24% | 35.75% | -34.03% | -93.28% | 66.37% | - |
| Net Income (Continuing) | -18.61M | -31.05M | -49.77M | -118.69M | -38.37M | -19.84M | -58.34M | -31.71M | -32.85M | -41.71M | -64.91M | -48.43M | -25.06M | -74.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 40K | 96.38M | 3.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.21 | -0.34 | -0.55 | -1.30 | -0.40 | 0.72 | -0.52 | -0.28 | -0.35 | -0.49 | -0.79 | -0.68 | -0.40 | -1.18 |
| EPS Growth % | 27.34% | 38.18% | 57.69% | -225% | -155.56% | 238.46% | -85.71% | 20% | 28.57% | 37.97% | -16.18% | -70% | 66.1% | - |
| EPS (Basic) | - | -0.34 | -0.55 | -1.30 | -0.40 | 0.72 | -0.52 | -0.28 | -0.35 | -0.49 | -0.79 | -0.68 | -0.40 | -1.18 |
| Diluted Shares Outstanding | 88.94M | 90.16M | 89.77M | 91.45M | 97.35M | 106.31M | 105.81M | 102.15M | 94.86M | 84.48M | 81.91M | 70.84M | 62.96M | 62.96M |
| Basic Shares Outstanding | 88.53M | 90.16M | 89.77M | 91.45M | 97.35M | 106.31M | 105.81M | 102.15M | 94.86M | 84.48M | 81.91M | 70.84M | 62.96M | 62.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent negative operating margins
According to recent financial filings, TrueCar's revenue growth has exhibited significant volatility, swinging from a 7.2% decline in 2025Q3 to a 12.4% increase in 2025Q2, suggesting that the company's top-line performance remains highly sensitive to seasonal demand shifts and ongoing challenges in its dealer network.
The inconsistent revenue trajectory indicates that the company has yet to establish a stable, recurring growth engine following its strategic pivot. Investors should monitor whether the recent contraction in 2025Q3 reflects a structural weakening in dealer demand or merely temporary fluctuations in the automotive retail cycle.
Based on reported figures, TrueCar maintains a structurally high gross margin profile, consistently hovering near 80% despite recent quarterly fluctuations, which underscores the inherent scalability of its digital lead-generation platform compared to more capital-intensive automotive retail models that operate with significantly lower margins.
While the gross margin remains a bright spot, the inability to translate this high-margin revenue into positive operating income suggests that the cost of delivering these leads is not the primary bottleneck. The company appears to possess strong pricing power, yet this is currently overshadowed by the high costs required to acquire and retain dealer participation.
As reported in financial statements, TrueCar continues to struggle with negative operating margins, which reached -17.0% in 2025Q3, indicating that the company has failed to achieve the necessary operating leverage to scale its business model profitably despite maintaining a high gross profit margin of $34.4 million.
The persistent gap between gross profit and operating income suggests that SG&A expenses remain disproportionately high relative to revenue generation. This lack of operating leverage warrants further investigation into whether the current investment in digital retailing tools will eventually yield efficiency gains or if the cost structure is fundamentally misaligned with current market scale.
Based on the provided data, TrueCar's net income figures are frequently distorted by non-operating items and consistent stock-based compensation expenses, which averaged over $3 million per quarter, suggesting that GAAP profitability remains elusive and heavily reliant on accounting adjustments rather than core operational performance improvements.
The reliance on stock-based compensation as a primary tool for talent retention in a competitive tech environment effectively dilutes shareholder value without a corresponding improvement in bottom-line results. Analysts should be cautious of the 2025Q3 net income spike, as it appears to be an outlier rather than a sustainable trend toward GAAP profitability.
As highlighted in recent SEC filings, the company's reliance on paid marketing channels to drive traffic creates a precarious cost structure, where the cost of customer acquisition frequently outpaces the revenue generated, raising significant concerns about the long-term sustainability of its current digital retailing strategy.
Short-sellers may focus on the company's inability to achieve positive operating cash flow, which suggests that the business model may be fundamentally flawed in its current iteration. The risk of being bypassed by OEM-direct digital retailing platforms poses a material threat that could render the company's core value proposition obsolete.
Quick answers to the most common questions about buying TRUE stock.
For fiscal year 2024, TrueCar, Inc. (TRUE) reported total revenue of $175.6M. This represents a 119.8% increase compared to $79.9M in 2012.
TrueCar, Inc. (TRUE) reported a net loss of $31.0M for the fiscal year ending 2024.
TrueCar, Inc. (TRUE) reported an operating income of $-37.2M, resulting in an operating profit margin of -21.2%. This margin reflects the operational efficiency of the business before interest and taxes.
TrueCar, Inc. (TRUE) generated $149.2M in gross profit for the year, representing a gross profit margin of 85.0%. This demonstrates the company's core pricing power and production efficiency.