TrueCar Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Wyatt Swanson - D.A. Davidson & Co - Analyst : Hey, thanks for taking the question. This is Wyatt on for Tom. Could you maybe provide an update on how TrueCar is looking to grow just some additional details around your used vehicle initiatives and how you think about that opportunity in light of auto tariffs?

Question: Wyatt Swanson - D.A. Davidson & Co - Analyst : Got it. That's really helpful color. Thanks, both of you. Just a follow up, could you give an update on your capital allocation priorities and some color as to whether you plan to ramp up your buyback again?

Question: Wyatt Swanson - D.A. Davidson & Co - Analyst : Got it. Thank you.

Question: Ryan Powell - B. Riley Securities Holdings Inc - Analyst : Great. Hi. Thanks for taking our questions. This is Ryan Powell on for Naved. So we wanted to ask on the decline of franchise dealers. I think we saw 44 turnover in the quarter. Just wondering about trends to expect from here? And then secondly, on the highest prospect close rate since second-quarter '21, what factors are contributing to this? Is this a function of higher lead quality? Curious about your thoughts. Thanks.

Question: Ryan Powell - B. Riley Securities Holdings Inc - Analyst : Got it. That makes sense. Thank you. And then also curious on dealer engagement with new actionable insights and motivated buyer features since the launch.

Question: Ryan Powell - B. Riley Securities Holdings Inc - Analyst : Got it. Thank you.

Question: Chris Pierce - Needham & Company LLC - Analyst : Hey, kind of a two-part question. Good morning. If I look at things on a sequential basis, you saw momentum in dealer revenue. But going back to the last question, is it -- dealer count matters less, but it's units and units per dealer and the modest uptick in units drove that momentum? Or did you take some pricing action, or it's about having the right dealers and more units on the system? I just kind of want to understand the momentum in that business and how to think about it going forward? And then the second part is you drove this momentum by pulling back on internal investments. So I'm just kind of curious the right way to think about the internal investments you had messaged prior and maybe the level of spend going forward given the growth you're showing while pulling back on that spend.

Question: Chris Pierce - Needham & Company LLC - Analyst : Got it. And then just lastly for me. I know in the past couple of years, we've talked about increasing OEM incentive revenues. And I know why dealers -- OEMs wouldn't feel the need to incentivize for the tariff pull forward. But if we talk about -- we're talking about prices going higher and where incentives are as a percentage of transaction price now, I'm just kind of curious why you're less bullish on OEM incentive revenue. Is it just lower supply? Is it directly correlated to lower revenues, lower OEM incentive revenues? Or it's -- like what's the correlation there? Because I'm thinking it's going to be harder for OEMs to sell higher-priced cars, but it seems like you guys are coming at it from a different perspective.

Question: Chris Pierce - Needham & Company LLC - Analyst : Okay, thanks for everything.

Question: Rajat Gupta - JPMorgan Securities LLC - Analyst : Thank you for taking the question. Just wanted to -- I don't know if you addressed this earlier. I am just hopping around different earnings calls. Any color you can provide us on the second-half outlook as it relates to just the non-dealer product side of things, just the franchise independent revenue cadence, customer count versus just average revenue per dealer? Any kind of framework you could provide us you might have visibility into in the second half? And I have a quick follow up. (multiple speakers) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 1:00PM, TRUE.OQ - Q2 2025 TrueCar Inc Earnings Call

Question: Rajat Gupta - JPMorgan Securities LLC - Analyst : Got it. Thanks for the detailed color. And just I had a broader question zooming out on just agentic AI. Obviously, that continues to evolve with tools that can autonomously search, compare, even transact on behalf of consumers. How do you see this affecting TrueCar's marketplace model? Are there plans to integrate or partner with such agents just to stay central in the car-buying journey? Any thoughts on that would be helpful. Thank you.

Question: Rajat Gupta - JPMorgan Securities LLC - Analyst : Got it. That's great color. Thanks for taking the question and good luck.