Vroom, Inc. (VRM) AI Stock Analysis
VRM AI stock analysis summary
AI ResearchVroom, Inc. (VRM) operates an end-to-end e-commerce platform for pre-owned vehicles. The company's revenue declined at a 5-year CAGR of -39.3% from FY2020 to FY2025, while generating TTM revenue of $208.1M with a net profit margin of -27.8%. As of June 30, 2026, Vroom carries significant financial leverage with net debt of $762.3M against a market capitalization of $46.5M.
- Market cap
- $46.5M
- Revenue (TTM)
- $208.1M
- P/E
- —
- 1Y return
- -65.7% S&P 500 16.8%
- Avg. target
- $80.00 795.9% vs last close
Bull case
- Vroom generated positive operating cash flow of $75.2M and free cash flow of $68.1M in FY2025.
- Annual revenue rebounded by 867.0% in FY2025 to $112.3M, reducing net losses to -$8.0M from -$165.1M in FY2024.
- The stock trades at a price-to-book ratio of 0.5x and a price-to-sales ratio of 0.2x, below peer medians.
Bear case
- The balance sheet carries substantial leverage with total debt of $778.6M against just $16.4M in cash as of June 30, 2026.
- Share count expanded by 204.6% over a 5-year period, significantly diluting existing shareholders.
- Trailing twelve-month net profit margin remained negative at -27.8%, with EPS of -$11.23.
What Vroom does
Vroom, Inc. is a U.S. automotive retail company specializing in e-commerce operations for pre-owned vehicles. Established in 2012 and based in New York, the company provides an integrated end-to-end platform covering buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. Formerly known as Auto America, Inc. until its rebrand in July 2015, Vroom emphasizes strict vehicle reconditioning standards and quality assurance inspections while offering digital car shopping and flexible financing solutions.
Growth and profitability
Vroom's annual revenue contracted significantly over recent fiscal years, falling from $3.18B in FY2021 to $1.95B in FY2022 and $893.2M in FY2023. Revenue hit a low of $11.6M in FY2024 before increasing 867.0% to $112.3M in FY2025. Net income improved from -$370.9M in FY2021 and -$165.1M in FY2024 to -$8.0M in FY2025. In FY2025, operating margin turned slightly positive to 0.2%, and free cash flow reached $68.1M. For the trailing twelve months ended June 30, 2026, revenue stood at $208.1M, with quarterly revenue falling 4.2% year-over-year and EPS at -$11.23.
Balance sheet and cash flow
As of June 30, 2026, Vroom held $16.4M in cash and short-term investments alongside total debt of $778.6M, resulting in net debt of $762.3M. Total assets were $941.3M and shareholders' equity was $99.8M, representing a debt-to-equity ratio of 7.80. The company maintained a current ratio of 2.18. In FY2025, operating cash flow was $75.2M and capital expenditures were $7.1M. Over the past five years, the company's share count increased 204.6%.
Valuation and performance
Vroom trades at an enterprise value of $811.2M and a market capitalization of $46.5M. The stock trades at a price-to-sales multiple of 0.2x and a price-to-book multiple of 0.5x, compared to a median price-to-sales of 3.2x for its US-listed Financial Services peers. Its EV/EBITDA multiple is 338.4x versus the peer median of 11.7x. Over the past year, Vroom shares declined 65.7%, trailing the S&P 500 (SPY) gain of 16.8%.
What analysts expect
Wall Street analysts set a mean price target of $80.00 for Vroom, which is 795.9% above its last close of $8.93 on October 16, 2026. Over the last four quarters, the company beat EPS estimates 1 time. Vroom's next scheduled earnings report date is November 9, 2026.
Key risks and what to watch
- A debt-to-equity ratio of 7.80 and net debt of $762.3M create liquidity and debt servicing risks against cash of $16.4M.
- Revenue shrank at a 5-year CAGR of -39.3% from FY2020 to FY2025, with recent quarterly revenue down 4.2% year-over-year.
- The stock demonstrates high volatility, characterized by a beta of 1.63 and a 1-year decline of 65.7%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this VRM AI stock analysis
This page is an AI-written research summary of Vroom, Inc. (VRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: VRM income statement, VRM balance sheet, VRM key metrics, VRM chart. See the VRM stock overview for the latest quote and news.
VRM AI stock analysis FAQ
What is Vroom's current market capitalization and debt level?
As of October 16, 2026, Vroom has a market capitalization of $46.5M. As of June 30, 2026, the company holds total debt of $778.6M and net debt of $762.3M.
Does Vroom pay a dividend?
Vroom does not pay a dividend.
What are analysts forecasting for VRM stock?
Analysts have established a mean price target of $80.00, representing a 795.9% premium over the last closing price of $8.93.
When is Vroom's next earnings announcement?
Vroom is scheduled to report its next financial results on November 9, 2026.