TRUE (TrueCar) Operating Margin %: -17.01% (As of Sep. 2025)


TRUE TrueCar Inc TRUE
52 GF Score
Price $2.54
GF Value $3.13
! 7 Warning Signs
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What is TrueCar Operating Margin %?

TrueCar TRUE 52 Operating Margin % is -17.01% as of Sep. 2025. GuruFocus rates TRUE with a GF Score™ of 52/100 and a GF Value™ of $3.13. The stock has 7 warning signs investors should review.

Operating Margin % is calculated as Operating Income divided by its Revenue. TrueCar's Operating Income for the three months ended in Sep. 2025 was $-7.3 Mil. TrueCar's Revenue for the three months ended in Sep. 2025 was $43.2 Mil. Therefore, TrueCar's Operating Margin % for the quarter that ended in Sep. 2025 was -17.01%.

Warning Sign:

TrueCar Inc operating margin has been in a 5-year decline. The average rate of decline per year is -27.9%.

The historical rank and industry rank for TrueCar's Operating Margin % or its related term are showing as below:

TRUE' s Operating Margin % Range Over the Past 10 Years
Min: -40.81   Med: -16.31   Max: -3.68
Current: -18.9


TRUE's Operating Margin % is not ranked
in the Interactive Media industry.
Industry Median: 2.99 vs TRUE: -18.90

TrueCar's 5-Year Average Operating Margin % Growth Rate was -27.90% per year.

TrueCar's Operating Income for the three months ended in Sep. 2025 was $-7.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was $-34.2 Mil.


TrueCar  (NAS:TRUE) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


TrueCar Operating Margin % Related Terms


TrueCar Operating Margin % Historical Data

* Premium members only.

The historical data trend for TrueCar's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TrueCar Operating Margin % Chart

TrueCar Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.68 -14.45 -40.81 -35.58 -21.17

TrueCar Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -15.87 -15.40 -24.99 -18.25 -17.01

TRUE vs ZIP, DIBS, CMCM: Operating Margin % Comparison

For the Internet Content & Information subindustry, TrueCar's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TrueCar Operating Margin % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, TrueCar's Operating Margin % distribution charts can be found below:

* The bar in red indicates where TrueCar's Operating Margin % falls into.


TRUE
52GF Score
TrueCar Inc TRUE
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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TrueCar Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

TrueCar's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=-37.18 / 175.598
=-21.17 %

TrueCar's Operating Margin % for the quarter that ended in Sep. 2025 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2025 ) / Revenue (Q: Sep. 2025 )
=-7.348 / 43.207
=-17.01 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -17.01% mean?
TrueCar (TRUE) has a Operating Margin % of -17.01% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on TrueCar and its competitors.
Is TrueCar's Operating Margin % too high?
TrueCar's current Operating Margin % is -17.01%. Overall, TrueCar has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does TrueCar's Operating Margin % compare to ZIP and DIBS?
TrueCar's Operating Margin % of -17.01% can be compared against companies in the Interactive Media industry. The industry median Operating Margin % is 2.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on TrueCar and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TrueCar's current Operating Margin % is -17.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TrueCar stock overvalued right now?
TrueCar (TRUE) has a current Operating Margin % of -17.01%. The stock's GF Value™ is $3.13, compared to a current price of $2.54 — trading 18.8% below its estimated fair value. The current Operating Margin % is -17.01%. TrueCar's overall GF Score™ is 52/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For TrueCar (TRUE), the current Operating Margin % is -17.01% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TrueCar (TRUE) Overvalued in 2026?

Based on GuruFocus' analysis, TrueCar stock appears to be undervalued. The current stock price of $2.54 is trading 18.8% below its estimated GF Value™ of $3.13.

Key valuation signals for TRUE:

  • Operating Margin %: -17.01%
  • GF Value™: $3.13 vs. price of $2.54 (18.8% below fair value)
  • GF Score™: 52/100 with 7 warning signs

No single metric tells the full story. See the TRUE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TrueCar Business Description

Address 225 Santa Monica Boulevard, 12th Floor, Santa Monica, CA, USA, 90401
TrueCar Inc is a data-driven online platform operating on common technology infrastructure, powered by proprietary data and analytics. It also customizes and operates its platform for affinity group marketing partners, including financial institutions like PenFed and American Express; membership-based organizations like Consumer Reports, AARP, Sam's Club, and AAA; and employee buying programs for large enterprises such as IBM and Walmart. The Company has one operating segment, with three distinct service offerings: Dealer products and services, OEM incentives, and other.
52GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.54
Price
$3.13
GF Value