Operational efficiency has improved with a transition to $17.1M in free cash flow for 2026Q1, supported by a significant reduction in capital expenditures to $1.5M.
| Cash from Operations | 77.24M | 75.15M | -97.04M | -533.68M | -109.06M | -568.69M | -355.25M | -215.64M | -64.91M |
| Operating CF Margin % | - | 66.94% | -835.81% | -59.75% | -5.6% | -17.86% | -26.17% | -18.09% | -7.59% |
| Operating CF Growth % | 495.31% | 177.45% | 81.82% | -389.33% | 80.82% | -60.08% | -64.75% | -232.2% | - |
| Net Income | -65.76M | -54.05M | -138.24M | -85.1M | -451.91M | -370.91M | -202.8M | -142.98M | -85.18M |
| Depreciation & Amortization | 4.12M | 3.35M | 29.09M | 29.11M | 38.71M | 13.21M | 4.65M | 6.16M | 6.93M |
| Stock-Based Compensation | 3.25M | 5.18M | 5.88M | 6.89M | 11.96M | 13.41M | 13.25M | 2.76M | 1.16M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -23.86M | 9.47M | 0 | 6.06M | 2.3M |
| Other Non-Cash Items | 127.82M | 115.72M | -1.05M | -478.87M | 13.76M | 12.49M | 30.37M | 357K | 279K |
| Working Capital Changes | 8.7M | 4.95M | 7.28M | -5.73M | 302.28M | -246.36M | -200.73M | -87.99M | 9.6M |
| Change in Receivables | 1.26M | 1.4M | 417K | -7.24M | 78.06M | -53.21M | -32.07M | -18.43M | 9.05M |
| Change in Inventory | 0 | 0 | 0 | 159.76M | 403.92M | -312.21M | -224.49M | -92.88M | 11.9M |
| Change in Payables | 0 | 0 | 0 | -7.94M | -24.28M | 19.32M | 14.07M | 4.04M | -6.53M |
| Cash from Investing | -90.04M | -108.17M | 132.57M | 173.15M | -164.21M | -104.29M | -11.33M | -3.53M | 12.79M |
| Capital Expenditures | -7.13M | -7.06M | -3.49M | -2.62M | -24.23M | -28.41M | -11.33M | -3.53M | -2.06M |
| CapEx % of Revenue | 13.36% | 6.29% | 30.03% | 0.29% | 1.24% | 0.89% | 0.83% | 0.3% | 0.24% |
| Acquisitions | 0 | 0 | 0 | 0 | -267.49M | -75.88M | 0 | 0 | 14.85M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -82.91M | -101.11M | 136.06M | 175.78M | 127.51M | 0 | 0 | 0 | 14.85M |
| Cash from Financing | 18.93M | 37.88M | -165.99M | 97.34M | -469.49M | 797.71M | 1.24B | 275.24M | 132.38M |
| Debt Issued (Net) | -11.43M | 39.82M | -14.45M | 222.4M | -465.28M | 808.57M | 155.77M | 52.29M | -13.39M |
| Equity Issued (Net) | 21.22M | 0 | 0 | 2.4M | 0 | 5.77M | 1.09B | 221.68M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.82M | 0 |
| Other Financing | 9.14M | -1.94M | -151.54M | -127.46M | -4.21M | -16.62M | -5.61M | 1.27M | 145.77M |
| Net Change in Cash | 6.13M | 4.86M | -130.45M | -263.19M | -742.76M | 124.74M | 870.45M | 56.08M | 80.25M |
| Free Cash Flow | 70.11M | 68.09M | -100.52M | -536.31M | -133.3M | -597.1M | -366.58M | -219.16M | -66.97M |
| FCF Margin % | 131.38% | 60.65% | -865.84% | -60.04% | -6.84% | -18.75% | -27% | -18.39% | -7.83% |
| FCF Growth % | 165.14% | 167.74% | 81.26% | -302.33% | 77.68% | -62.88% | -67.26% | -227.24% | - |
| FCF per Share | 13.48 | 13.10 | -55.44 | -307.67 | -77.33 | -350.13 | -399.84 | -2037.31 | -627.32 |
| FCF Conversion (FCF/Net Income) | -1.07x | -9.44x | 0.59x | 1.46x | 0.24x | 1.53x | 1.75x | 1.51x | 0.76x |
| Interest Paid | 12.85M | 0 | 57.69M | 40.46M | 34.91M | 15.96M | 8.54M | 12.61M | 7.74M |
| Taxes Paid | 469K | 0 | 0 | 5.36M | 2.41M | 403K | 163K | 157K | 212K |
Subprime credit default exposure
According to recent financial disclosures, Vroom exhibits a consistent disconnect between net income and operating cash flow, with the company reporting negative net income of $19.1M alongside positive operating cash flow of $18.6M in 2026Q1, highlighting a reliance on non-cash adjustments and working capital shifts.
The persistent negative OCF/NI ratio suggests that the company's reported losses are being partially offset by accounting treatments rather than core operational profitability. Investors should monitor whether this cash generation is sustainable or merely a byproduct of liquidating legacy assets and managing accruals during the restructuring phase.
As reported in quarterly filings, Vroom has transitioned from a cash-burning entity to generating positive free cash flow, reaching $17.1M in 2026Q1 compared to a $111.3M outflow in 2023Q4, signaling a successful, albeit painful, reduction in capital-intensive retail operations.
While the FCF trajectory appears to be improving, the underlying cause is the aggressive shedding of the retail business model rather than organic growth in the finance and data segments. This improvement warrants caution, as the company's ability to maintain positive FCF without the scale of its former retail operations remains unproven.
Based on the provided cash flow data, Vroom's capital expenditure has moderated significantly, falling to $1.5M in 2026Q1 from a peak of $3.3M in 2023Q4, reflecting a strategic pivot away from the heavy infrastructure requirements of a national used-vehicle dealership network.
The reduction in CapEx/Rev intensity suggests that the company is no longer investing in physical reconditioning centers or logistics hubs. This shift implies that future capital requirements will be primarily focused on technology and data infrastructure, which may lower the barrier to entry but also reduces the company's physical moat.
As noted in recent financial statements, Vroom's working capital changes have been a primary driver of cash flow variability, with a $3.8M inflow in 2026Q1 following a massive $61.3M inflow in 2023Q4, indicating significant fluctuations tied to the wind-down of inventory and receivables.
The volatility in working capital suggests that the company is still in the process of clearing out legacy balance sheet items. Analysts should be wary of interpreting these inflows as recurring operational efficiency, as they are likely temporary benefits from the liquidation of the retail business.
Quick answers to the most common questions about buying VRM stock.
Vroom, Inc. (VRM) generated $75.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vroom, Inc. (VRM) generated $68.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Vroom, Inc. (VRM) spent $7.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.