US Market News
2月前
Cars.com Reports First Quarter 2026 ResultsMay 7, 2026 7:30 AM
PR Newswire (US) Revenue grew in line with guidance to $180.2 million, up 1% year-over-year Net income increased to $5.0 million compared to net loss of ($2.0) million in the prior yearAdjusted EBITDA grew to $51.0 million, up 1% year-over-year; Adjusted EBITDA margin of 28.3% outperformed guidance of 26% to 27%Net cash provided by operating activities was $39.8 million compared to $29.5 million in the prior yearShare repurchases totaled 3.8 million shares for $33 million through April 30, 2026; 2026 repurchase target has been increased to $90 millionCHICAGO, May 7, 2026 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS), a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars, today released its financial results for the first quarter ended March 31, 2026. "We delivered revenue growth in line with guidance in the first quarter on the back of continued Marketplace momentum and Adjusted EBITDA margin above the high end of guidance," said Tobias Hartmann, Chief Executive Officer of Cars.com, Inc. "Disciplined execution on 2026 initiatives represents the first step in our evolution toward an interconnected product experience that drives value across our Marketplace and solutions suite. We are in the early innings of a plan to unlock platform differentiation, product integrations and AI enablement. To support this roadmap and establish a healthy foundation for future growth, we have reduced annual run-rate costs to operate with more agility and efficiency. Based on our progress to date and our commitment to returning value to shareholders, we also raised our full year share repurchase target. Looking ahead, we are focused on driving further financial and product improvements as we create a leading and trusted automotive marketplace experience."Financial Highlights
(in thousands, except per share data)Quarter Ended March 31,
2026
2025
Change %Revenue$ 180,223
$ 179,024
1 %Net income (loss)4,978
(2,013)
NMAdjusted net income26,651
23,956
11 %Adjusted EBITDA51,020
50,721
1 %Net income (loss) per diluted share0.08
(0.03)
NMAdjusted net income per diluted share0.45
0.37
22 % Key Metrics and Operational Highlights
(in millions, except dealer data)Quarter Ended
March 31,
2026
December 31,
2025
March 31,
2025
Change %Q/Q
Change %
Y/YAverage Monthly Unique Visitors25.8
21.7
29.0
19 %
(11 %)Traffic ("Visits")159.6
138.8
170.1
15 %
(6 %)Monthly Average Revenue Per Dealer ("ARPD")$ 2,473
$ 2,472
$ 2,473
NM
NMDealer Customers19,390
19,544
19,250
(1 %)
1 %
NM = Not meaningful Recent cost reductions and process and organizational improvements build a healthier foundation for future growth and are expected to yield $25-30 million in recurring annualized savings in 2027.New AI-powered features include conversational capabilities for the Cars.com Carson shopping assistant and model context protocol (MCP) integrations that embed Marketplace into agentic AI platforms.New Dealer App, available to all Marketplace customers, offers a broad range of on-the-go analytics to improve dealership efficiency across inventory, merchandising and leads.Q1 2026 ResultsRevenue for the first quarter was $180.2 million, up 1% compared to the prior year period. Subscription-based Dealer revenue of $163.0 million was up 2% year-over-year, supported by continued improvements in website and Marketplace value delivery, and Marketplace dealer customer growth. OEM and National revenue of $14.3 million was down 12% year-over-year due to continued OEM spending shifts.Total operating expenses for the first quarter were $163.6 million compared to $172.6 million in the prior year period, down 5% year-over-year. For the quarter, lower depreciation and amortization and improved marketing efficiencies more than offset severance-related costs. Adjusted operating expenses for the quarter were $145.9 million, down 6% year-over-year largely due to lower depreciation and amortization.Net income for the first quarter was $5.0 million, or $0.08 per diluted share, compared to Net loss of ($2.0) million, or ($0.03) per diluted share, in the year-ago period. The change in Net income is primarily attributable to lower depreciation and amortization. Adjusted net income for the first quarter was $26.7 million, or $0.45 per diluted share, compared to $24.0 million, or $0.37 per diluted share a year ago.Adjusted EBITDA for the first quarter was $51.0 million, or 28.3% of revenue, compared to $50.7 million, or 28.3% of revenue in the year-ago period. Adjusted EBITDA grew 1% year-over-year, in line with revenue growth.Cash Flow and Balance SheetNet cash provided by operating activities for the first quarter was $39.8 million, compared to $29.5 million in the prior year, which is largely attributable to compensation accruals and the 2024 federal tax refund. Free cash flow for the first quarter totaled $33.5 million, compared to $23.7 million in the prior year, primarily due to the aforementioned favorable working capital changes.Total debt outstanding was $455.0 million as of March 31, 2026. Total net leverage (as defined in the Company's credit facility) was 1.8x as of March 31, 2026. Total liquidity as of March 31, 2026 was $359.6 million, which is defined as Cash and cash equivalents of $64.6 million and revolver capacity of $295.0 million.Share RepurchaseThe Company repurchased 3.8 million shares of common stock for $32.9 million from January 1, 2026 to April 30, 2026, of which 2.5 million shares of common stock was repurchased for $20.2 million in the first quarter ended March 31, 2026. On April 9, 2026, the Company raised its fiscal 2026 share repurchase target to $90 million, a 50% increase over the prior target of $60-plus million, reflecting its commitment to returning capital to shareholders.As of April 30, 2026, approximately $141 million remains available under the current share repurchase authorization, which expires in February 2028."Our performance year-to-date demonstrates our ability to establish a foundation for revenue growth at increasing operating margins. We were pleased to outperform our Adjusted EBITDA guidance, improve free cash flow conversion, and increase capital return to shareholders via an enhanced 2026 share repurchase commitment," said Sonia Jain, Chief Financial Officer of Cars.com, Inc. "Our cost reduction program is resulting in a healthier underlying cost structure that is aligned to our Marketplace strategy, which we believe is positioning us to continue growing both top- and bottom-line to create shareholder value."OutlookSecond Quarter 2026Revenue is expected to be flat to up 2% year-over-year, driven by continued Dealer revenue growth. OEM and National revenue is expected to remain under pressure, and guidance assumes that current advertising spending trends remain consistent for the quarter.Adjusted EBITDA margin is expected to be between 28.0% and 29.0%, reflecting operating efficiencies and a partial quarter of cost savings benefit from the cost reduction program undertaken in April.Full Year 2026
The Company reaffirms its full year 2026 guidance:Revenue is expected to be flat to up 2% year-over-yearAdjusted EBITDA margin is expected to be between 29.0% to 30.0%Q1 2026 Earnings CallAs previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars.com Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.About Cars CommerceCars.com Inc. (NYSE:CARS) is a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience with artificial intelligence ("AI") shopping tools and comprehensive vehicle reviews and content. Our interconnected ecosystem of products enables dealers and OEMs to sell more cars by efficiently leveraging our marketplace, dealer websites, trade and appraisal tools, and proprietary in-market media solutions. Learn more at www.carscommerce.inc.Non-GAAP Financial MeasuresThis earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net (loss) income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company's performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company's credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company's lenders, securities analysts, investors and other interested parties to evaluate companies in the Company's industry.While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.The Company defines Adjusted Net Income as GAAP net (loss) income excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.Key Metric DefinitionsAverage Monthly Unique Visitors ("UVs") and Traffic ("Visits"). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified upon first visit to an individual Cars.com property on an individual device/browser combination or installation of one of its mobile apps on an individual device. If a visitor accesses more than one of its web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measures UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media, or DealerClub websites.Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services and DealerClub, during the period divided by the monthly average number of Dealer Customers during the same period.Dealer Customers. Dealer Customers represent dealerships using the Company's products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Dealer Customer metrics do not include DealerClub.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as "believe," "expect," "project," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission ("SEC") on February 26, 2026 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.Cars Commerce Investor Relations Contact:
Katherine Chen
kchen@carscommerce.incCars Commerce Media Contact:
Christine Spinelli
pr@cars.com Cars.com Inc.Consolidated Statements of Income(In thousands, except per share data)(Unaudited)
Three Months Ended March 31,
2026
2025Revenue:
Dealer$ 163,007
$ 159,144OEM and National14,279
16,279Other2,937
3,601Total revenue180,223
179,024Operating expenses:
Cost of revenue and operations31,741
31,483Product and technology31,495
30,617Marketing and sales61,818
62,540General and administrative21,818
20,885Depreciation and amortization16,718
27,039Total operating expenses163,590
172,564Operating income16,633
6,460Nonoperating expenses:
Interest expense, net(7,231)
(7,668)Other expense, net(686)
(25)Total nonoperating expense, net(7,917)
(7,693)Income (loss) before income taxes8,716
(1,233)Income tax expense3,738
780Net income (loss)$ 4,978
$ (2,013)Weighted-average common shares outstanding:
Basic58,928
64,467Diluted59,594
64,467Net income (loss) per share:
Basic$ 0.08
$ (0.03)Diluted0.08
(0.03) Cars.com Inc.Consolidated Balance Sheets(In thousands, except per share data)
March 31, 2026
December 31, 2025
(unaudited)
Assets:
Current assets:
Cash and cash equivalents$ 64,598
$ 56,236Accounts receivable, net135,030
131,945Prepaid expenses14,181
15,491Other current assets4,221
7,920Total current assets218,030
211,592Property and equipment, net35,521
35,223Goodwill166,620
167,207Intangible assets, net 516,131
527,082Deferred tax assets, net85,499
88,594Investments and other assets, net31,612
32,720Total assets$ 1,053,413
$ 1,062,418Liabilities and stockholders' equity:
Current liabilities:
Accounts payable$ 29,307
$ 27,749Accrued compensation33,921
38,074Other accrued liabilities53,319
47,564Total current liabilities116,547
113,387Noncurrent liabilities:
Long-term debt, net451,819
451,516Deferred tax liabilities, net6,053
6,241Other noncurrent liabilities18,246
18,744Total noncurrent liabilities476,118
476,501Total liabilities592,665
589,888Commitments and contingencies
Stockholders' equity:
Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no shares
issued and outstanding as of March 31, 2026 and December 31, 2025,
respectively—
—Common Stock at par, $0.01 par value; 300,000 shares authorized; 57,191
and 58,636 shares issued and outstanding as of March 31, 2026 and
December 31, 2025, respectively572
586Additional paid-in capital1,397,696
1,413,994Accumulated deficit(936,516)
(941,494)Accumulated other comprehensive loss(1,004)
(556)Total stockholders' equity460,748
472,530Total liabilities and stockholders' equity$ 1,053,413
$ 1,062,418 Cars.com Inc.Consolidated Statements of Cash Flows(In thousands)(Unaudited)
Three Months Ended
March 31,
2026
2025Cash flows from operating activities:
Net income (loss)$ 4,978
$ (2,013)Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation6,175
9,661Amortization of intangible assets10,543
17,378Stock-based compensation 8,569
8,334Deferred income taxes3,003
(343)Provision for doubtful accounts607
359Amortization of debt issuance costs473
473Unrealized loss (gain) on foreign currency denominated transactions637
(12)Other, net182
958Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(3,845)
2,410Prepaid expenses and other assets5,739
970Accounts payable1,546
(4,696)Accrued compensation(4,458)
(8,420)Other liabilities5,659
4,396Net cash provided by operating activities39,808
29,455Cash flows from investing activities:
Payments for acquisitions, net of cash acquired—
(24,422) Capitalization of internally developed technology(6,000)
(4,984) Purchase of property and equipment(262)
(811) Proceeds from sale of equity investment—
9,481Net cash used in investing activities(6,262)
(20,736)Cash flows from financing activities:
Proceeds from Revolving Loan borrowings—
10,000 Payments of Revolving Loan borrowings and long-term debt—
(10,000) Payments for stock-based compensation plans, net(4,542)
(5,849) Repurchases of common stock(20,452)
(21,538)Net cash used in financing activities(24,994)
(27,387)Effect of exchange rate changes on Cash and cash equivalents(190)
(570)Net increase (decrease) in Cash and cash equivalents8,362
(19,238)Cash and cash equivalents at beginning of period56,236
50,673Cash and cash equivalents at end of period$ 64,598
$ 31,435Supplemental cash flow information:
Cash (received) paid for income taxes$ (3,504)
$ 1,321Cash paid for interest983
1,164 Cars.com Inc.Non-GAAP Reconciliations(In thousands, except per share data)(Unaudited)
Reconciliation of Net income to Adjusted EBITDA
Three Months Ended March 31,
2026
2025
Net income (loss)$ 4,978
$ (2,013)
Interest expense, net7,231
7,668
Income tax expense3,738
780
Depreciation and amortization16,718
27,039
Stock-based compensation, including related payroll tax expense8,815
8,703
Transaction-related and other one-time items8,854
8,519
Non-operating foreign exchange loss686
25
Adjusted EBITDA$ 51,020
$ 50,721
Reconciliation of Net income (loss) to Adjusted Net income
Three Months Ended March 31,
2026
2025
Net income (loss)$ 4,978
$ (2,013)
Stock-based compensation, including related payroll tax expense8,815
8,703
Amortization of intangible assets10,543
17,378
Transaction-related items6
2,930
Non-operating foreign exchange loss686
25
Other one-time items8,848
5,589
Income tax impact of adjustments(7,225)
(8,656)
Adjusted net income$ 26,651
$ 23,956
Adjusted net income per share, diluted$ 0.45
$ 0.37
Weighted-average common shares outstanding, diluted*59,594
65,137
* Weighted-average common shares outstanding, diluted, includes shares excluded from GAAP loss
per share due to the net loss position for the three months ended March 31, 2025.
Reconciliation of Net cash provided by operating activities to Free cash flow
Three Months Ended March 31,
2026
2025
Net cash provided by operating activities$ 39,808
$ 29,455
Capitalization of internally developed technology(6,000)
(4,984)
Purchase of property and equipment(262)
(811)
Free cash flow$ 33,546
$ 23,660
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended March 31, 2026:
As Reported
Adjustments (1)
Stock-Based Compensation
As AdjustedCost of revenue and operations$ 31,741
$ (931)
$ (242)
$ 30,568Product and technology31,495
(3,351)
(2,474)
25,670Marketing and sales61,818
(2,140)
(2,303)
57,375General and administrative21,818
(2,432)
(3,796)
15,590Depreciation and amortization16,718
—
—
16,718Total operating expenses$ 163,590
$ (8,854)
$ (8,815)
$ 145,921
Total nonoperating expense, net$ (7,917)
$ 686
$ —
$ (7,231)
(1) Includes severance, unrealized gains and losses on foreign currency denominated transactions, write-off of long-lived assets and transformation
and other exit costs.
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended March 31, 2025:
As Reported (1)
Adjustments (1)(2)
Stock-Based Compensation
As AdjustedCost of revenue and operations$ 31,483
$ (544)
$ (178)
$ 30,761Product and technology30,617
(2,139)
(2,513)
25,965Marketing and sales62,540
(2,356)
(2,187)
57,997General and administrative20,885
(3,480)
(3,825)
13,580Depreciation and amortization27,039
—
—
27,039Total operating expenses$ 172,564
$ (8,519)
$ (8,703)
$ 155,342
Total nonoperating expense, net$ (7,693)
$ 25
$ -
$ (7,668)
(1) Certain prior year balances have been reclassified to conform to the current year presentation.
(2) Includes severance, transaction-related items, write-off of long-lived assets, unrealized gains and losses on foreign currency denominated
transactions and transformation and other exit costs. View original content to download multimedia:https://www.prnewswire.com/news-releases/carscom-reports-first-quarter-2026-results-302765005.htmlSOURCE Cars.com Inc. Original: Cars.com Reports First Quarter 2026 Results
US Market News
4月前
Cars.com Announces Its 2026 Dealer of the Year AwardsMarch 18, 2026 7:30 AM
PR Newswire (US)
Largest Automotive Review Platform Delivers Guide to Car Shoppers Highlighting Top-Rated Dealers Across the U.S. and Canada CHICAGO, March 18, 2026 /PRNewswire/ -- Car-shopping marketplace Cars.com® (NYSE: CARS) today announced the winners of its Dealer of the Year Awards (DOTY), an annual honor awarded to the top automotive dealers across the U.S. and Canada and an important signal to car shoppers about the dealerships providing a standout car-buying experience.
View the full list of Cars.com Dealer of the Year Award Winners. Cars.com hosts approximately 16 million consumer reviews¹ — and nearly 1.3 million² were submitted in 2025 alone to decide this year's Dealer of the Year winners. Award winners were chosen according to key drivers of repeat and referral business, including average star rating, total number of reviews and dealer response to those reviews."Buying a car is a big decision, and reviews offer the social proof consumers rely on to ensure they will have a great experience with a dealership. More than 90% of early-stage car shoppers are undecided on which dealership to choose. Our review data clearly shows consumers value fast, quality communication when making that decision," said Jamie Oldershaw, vice president of customer experience at Cars.com.The Dealer of the Year awards recognize dealerships that excel at listening and responding to consumer feedback for continuous improvement — and winners demonstrate high responsiveness to customer reviews: Nearly 90% of honorees actively respond to reviews, compared to just 52% of non-winning dealerships.³This year's Cars.com Dealer of the Year Award winners include:Regional Winners
Mid-Atlantic: Mercedes-Benz of Edison - A Ray Catena Dealership, Edison, NJMidwest: Phillips Chevrolet, Frankfort, ILNew England: White River Toyota, White River Junction, VTPlains: Reliable Lexus, Springfield, MORocky Mountain: Courtesy Acura, Littleton, COSoutheast: Honda of Concord, Concord, NCSouthwest: D&M Leasing - Fort Worth, Fort Worth, TXWest: Lexus of Pleasanton, Pleasanton, CANational Brand WinnersAcura: Hendrick Acura, Charlotte, NCAlfa Romeo: Alfa Romeo Fiat of Strongsville, Strongsville, OHAston Martin: Park Place LTD, Bellevue, WAAudi: Audi Springfield, Springfield, MOBentley: Avondale Premier Collection, Dallas, TXBMW: BMW of Springfield, Springfield, MOBuick: Woody Buick GMC of Gurnee, Gurnee, ILCadillac: Trent Cadillac Buick GMC, New Bern, NCChevrolet: Phillips Chevrolet, Frankfort, ILChrysler: ODaniel Chrysler Dodge Jeep Ram, Fort Wayne, INDodge: ODaniel Chrysler Dodge Jeep Ram, Fort Wayne, INFerrari: Ferrari Maserati Alfa Romeo of Fort Lauderdale, Fort Lauderdale, FLFiat: Glenbrook Dodge Chrysler Jeep Fiat, Fort Wayne, INFord: Seelye Ford of Kalamazoo, Kalamazoo, MIGenesis: Allen Turner Hyundai, Pensacola, FLGMC: Woody Buick GMC of Gurnee, Gurnee, ILHonda: Honda of Concord, Concord, NCHyundai: Allen Turner Hyundai, Pensacola, FLIneos: Crown Ineos Grenadier, Pensacola, FLInfiniti: Coulter Infiniti, Mesa, AZJaguar: Jaguar Land Rover St. Petersburg, St. Petersburg, FLJeep: ODaniel Chrysler Dodge Jeep Ram, Fort Wayne, INKia: Seelye Kia of Kalamazoo, Kalamazoo, MILamborghini: Lamborghini Dallas, Dallas, TXLand Rover: Land Rover Princeton, Princeton, NJLeasing Company: D&M Leasing - Fort Worth, Fort Worth, TXLexus: Reliable Lexus, Springfield, MOLincoln: Bozard Ford Lincoln, St. Augustine, FLLotus: Park Place LTD, Bellevue, WAMaserati: Foreign Cars Italia, Greensboro, NCMazda: Sport Mazda, Orlando, FLMcLaren: Avondale Premier Collection, Dallas, TXMercedes-Benz: Mercedes-Benz of Edison - A Ray Catena Dealership, Edison, NJMini: Mini of Charleston, Charleston, SCMitsubishi: RC Hill Mitsubishi-Ocala, Ocala, FLNissan: Mike Rezi Nissan, Atlanta, GAPolaris: California Custom Trailers & Powersports, Elk Grove, CAPorsche: Champion Porsche, Pompano Beach, FLRam: ODaniel Chrysler Dodge Jeep Ram, Fort Wayne, INRolls Royce: Braman Rolls-Royce West Palm Beach, West Palm Beach, FLSubaru: Subaru of Jacksonville, Jacksonville, FLToyota: Reliable Toyota, Springfield, MOUsed-Car Dealer: Dallas Lease Returns, Dallas, TXVolkswagen: City Volkswagen of Evanston, Evanston, ILVolvo: Hendrick Volvo Cars of Charleston, Charleston, SCPlatform for Progress: Dealer Reviews Fuel Improvements to the Car-Buying JourneyCars.com has the automotive industry's largest dealership review platform, which provides data-driven insights that empower both shoppers and dealerships before, during and after the car-buying journey. Cars.com offers tools to dealers such as Smart Response, an AI-assisted tool that decreases response time, increases quality and improves SEO/AEO performance. The result is stronger communication with existing customers and more visibility and insight for consumers who are starting the car-buying journey. Dealers can also access their personalized Experience Report to stay competitive and better serve consumers.Cars.com Dealer of the Year Award MethodologyThe Cars.com Dealer of the Year Awards are presented annually to the top automotive dealers with 25 or more reviews based on the dealership's average star rating and the total number of reviews written about the dealership during the 2025 calendar year, as well as management response rate to those reviews.¹ Internal Cars.com data, total reviews on the platform, February 2026
²Internal Cars.com data, total reviews captured Jan. 1-Dec. 31, 2025
³Internal Cars.com data, responsiveness to reviews, February 2026ABOUT CARS.COM®
Cars.com Inc. (NYSE:CARS) is a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience with artificial intelligence ("AI") shopping tools and comprehensive vehicle reviews and content. Our interconnected ecosystem of products enables dealers and OEMs to sell more cars by efficiently leveraging our marketplace, dealer websites, trade and appraisal tools, and proprietary in-market media solutions.Frequently Asked Questions: 2026 Cars.com Dealer of the Year AwardsHow are Cars.com Dealer of the Year winners selected?
All awards are determined using consumer reviews submitted to Cars.com and DealerRater in 2025. Dealers must receive at least 25 verified consumer reviews in the 2025 calendar year to qualify. Eligible dealerships were evaluated based on three factors: average star rating, total review volume and management response rate to reviews.How many consumer reviews were considered for the 2026 awards?Nearly 1.3 million² reviews submitted to Cars.com in 2025 were evaluated to determine this year's Dealer of the Year award winners. Cars.com hosts nearly 16 million total dealership reviews — the most in the industry.²What is the difference between regional and national winners?
Regional winners represent the highest-rated dealerships within a geographic region. National Brand winners represent the top-rated dealership for each automotive brand.Why does review responsiveness matter for dealerships?
Active review engagement signals strong customer service, transparency, accountability and a commitment to continuous improvement. Nearly 90% of 2026 Dealer of the Year winners consistently responded to customer feedback, compared to just 52% of non-winning dealerships.³What tools does Cars.com offer to help dealers manage reviews?
Cars.com provides dealerships with data-driven tools that simplify reputation management. Smart Response is an AI-assisted tool that helps dealers craft timely, professional review replies, improving response quality and speed. Dealers also have access to a personalized Experience Report, which provides insights into buyer sentiment and operational performance.
View original content to download multimedia:https://www.prnewswire.com/news-releases/carscom-announces-its-2026-dealer-of-the-year-awards-302717354.htmlSOURCE Cars.com Inc.
Original: Cars.com Announces Its 2026 Dealer of the Year Awards
US Market News
4月前
Cars.com Reports Fourth Quarter and Full Year 2025 ResultsFebruary 26, 2026 7:30 AM
PR Newswire (US)
Record Full Year Revenue of $723 Million Driven by Dealer Revenue Growth
Expanded Customer Base to 19,544 Dealer Customers
Generated $152MM of Annual Net Cash Provided by Operating Activities
Repurchased 7.1 Million Shares for $86 Million and Retired 9% of Shares OutstandingCHICAGO, Feb. 26, 2026 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS), a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars, today released its financial results for the fourth quarter and year ended December 31, 2025.
"The Cars.com marketplace and product suite is positioned to capture growing demand for trusted data insights, simple end-to-end tools, and an AI-oriented user experience. Our focus is squarely on driving further financial improvements in 2026 by leveraging and enhancing our marketplace flywheel. We plan to develop more interconnectivity across our solutions to amplify differentiation and unlock product adoption. At the same time, we will evaluate our cost structure to operate more efficiently. We look forward to sharing updates as we execute our strategy to create value for all stakeholders," said Tobias Hartmann, Chief Executive Officer of Cars.com, Inc.Financial Highlights (in thousands, except per share data)Quarter Ended December 31,
Year Ended December 31,
2025
2024
Change %
2025
2024
Change %Revenue$ 183,903
$ 180,431
2 %
$ 723,239
$ 719,152
1 %Net income7,398
17,304
(57 %)
20,052
48,188
(58 %)Adjusted net income27,385
32,508
(16 %)
108,134
114,923
(6 %)Adjusted EBITDA54,896
55,488
(1 %)
211,146
209,717
1 %Net income per diluted share0.12
0.26
(54 %)
0.32
0.72
(56 %)Adjusted net income per diluted share0.44
0.49
(10 %)
1.71
1.71
NM
NM = Not meaningful Key Metrics and Operational Highlights (in millions, except dealer data)Quarter Ended
December 31,
2025
September 30,
2025
December 31,
2024
Change %
Q/Q
Change %
Y/YAverage Monthly Unique Visitors21.7
25.5
23.1
(15 %)
(6 %)Traffic ("Visits")138.8
156.2
143.8
(11 %)
(3 %)Monthly Average Revenue Per Dealer ("ARPD")$ 2,472
$ 2,460
$ 2,475
NM
NMDealer Customers19,544
19,526
19,206
NM
2 % Dealer Customers grew to 19,544 dealers due to focused commercial execution and continued Marketplace adoption, and extended the streak of sequential customer growth in every quarter of 2025Marketplace Premium+ subscriber base more than doubled quarter-over-quarter during Q4AccuTrade Connected reached 1,180 subscribers in Q4 and total appraisals grew over 75% year-over-yearMarket Area Expansion launched nationwide on Cars.com in January following a successful pilot in Q4, providing consumers with richer search results that include shippable vehicles from non-local dealershipsQ4 2025 ResultsRevenue for the fourth quarter was $183.9 million, up 2% compared to the prior year period and setting a quarterly record. Subscription-based Dealer revenue of $164.4 million was up 3% year-over-year primarily from marketplace and website repackaging benefits, as well as Marketplace customer growth. OEM and National revenue of $16.2 million was down 9% year-over-year, reflecting changes in spending by OEM partners.Total operating expenses for the fourth quarter were $162.2 million compared to $160.7 million in the prior year period, growing at a moderate pace of 1% year-over-year. The biggest contributors to the increase were additional marketing investments, severance-related costs, and stock-based compensation, which were substantially offset by lower depreciation and amortization expenses. Adjusted operating expenses for the quarter were $145.5 million, down 3% year-over-year as greater marketing investments were more than offset by lower depreciation and amortization.Net income for the fourth quarter was $7.4 million, or $0.12 per diluted share, compared to Net income of $17.3 million, or $0.26 per diluted share, in the year-ago period. The change in Net income is primarily attributable to the $10.8 million gain on the sale of an equity investment, which was recorded in the prior period. Adjusted net income for the fourth quarter was $27.4 million, or $0.44 per diluted share, compared to $32.5 million, or $0.49 per diluted share a year ago.Adjusted EBITDA for the fourth quarter was $54.9 million, or 29.9% of revenue, compared to $55.5 million, or 30.8% of revenue in the year-ago period. Adjusted EBITDA declined 1% year-over-year, in-line with higher marketing costs that were mostly offset by operating efficiencies in cost of revenue and general and administrative expenses.Full Year ResultsRevenue for fiscal year 2025 totaled $723.2 million, a new full year record, increasing $4.1 million, or 1% year-over-year. Subscription-based Dealer revenue was up 1% year-over-year, driven by Solutions customer growth and repackaging, and partially offset by Marketplace declines in the first half of the year and lower Dealer Media spending. OEM and National revenue was down 1% year-over-year, reflecting changes in OEM spending in the second half of the year.Total operating expenses for the year were $663.0 million, compared to $665.7 million in 2024. Adjusted Operating Expenses for the year were $603.9 million, a 2% decrease year-over-year that was driven by a meaningful decline in depreciation and amortization. Depreciation and amortization expense decreased 14% year-over-year, primarily due to certain assets being fully depreciated and amortized as compared to the prior-year period, and partially offset by accelerated depreciation associated with the amended headquarters lease.Net income for the year totaled $20.1 million, or $0.32 per diluted share, compared to Net income of $48.2 million, or $0.72 per diluted share in the prior year. The change in Net income is primarily attributable to changes in the fair value of contingent consideration associated with prior acquisitions, and the gain on the sale of an equity investment, which were both recorded in the prior year. Adjusted net income for the year was $108.1 million, or $1.71 per diluted share, compared to $114.9 million, or $1.71 per diluted share a year ago.Adjusted EBITDA for the year totaled $211.1 million, or 29.2% of revenue, compared to $209.7 million, or 29.2% of revenue, in the prior year period. Adjusted EBITDA grew 1% year-over-year, largely mirroring revenue performance during this period.Cash Flow and Balance SheetNet cash provided by operating activities for the twelve-month period ended December 31, 2025 was $151.6 million, compared to $152.5 million in the prior year, which is largely attributable to the increase in earnout payments associated with the D2C Media acquisition. Free cash flow for the twelve-month period ended December 31, 2025 totaled $125.7 million, compared to $128.1 million in the prior year.Total debt outstanding was $455.0 million as of December 31, 2025. Total net leverage (as defined in the Company's credit facility) was 1.9x as of December 31, 2025. Total liquidity as of December 31, 2025 was $351.2 million, which is defined as Cash and cash equivalents of $56.2 million and revolver capacity of $295.0 million.Share RepurchaseShare repurchase activity in 2025 reflected a strong commitment to returning value to shareholders. Approximately 1.9 million shares of common stock were repurchased for $22.0 million in the fourth quarter, bringing total repurchases to 7.1 million shares for $86.0 million in 2025. This performance was at the high end of the fiscal 2025 share repurchase target range of $70 to $90 million, which was also raised midyear from the original target of $60 to $70 million.The existing share repurchase program was approved in February 2025, under which approximately $174 million in repurchase authorization remained as of December 31, 2025. The current share repurchase program expires in February 2028."We executed on key growth initiatives to deliver both revenue and Adjusted EBITDA results that were in-line with our outlook. Our asset-light model and operating leverage continues to power strong cash generation, and we utilized nearly 70% of free cash flow for share repurchases in support of our stated capital allocation policy to meaningfully return capital to shareholders," said Sonia Jain, Chief Financial Officer of Cars.com, Inc. "Looking ahead, our focus is on further scaling our marketplace through sustainable operational improvements and delivering profitable growth for long-term value creation."OutlookFirst Quarter 2026First quarter revenue is expected to be flat to up 1% year-over-year, based on a favorable Q4 exit rate for subscription-based Marketplace and website products that is slightly offset by near-term pressure in OEM advertising spending.First quarter Adjusted EBITDA margin is expected to be between 26.0% and 27.0%, reflecting underlying revenue mix change and slightly elevated technology and compensation expenses.Full Year 2026Full year 2026 revenue is expected to be flat to up 2% year-over-year. Dealer revenue growth is expected to be driven by Marketplace and website repackaging, customer base growth, and further product adoption. OEM and National revenue is expected to be pressured on a full year basis due to continuing shifts in OEM advertising investments. Full year 2026 Adjusted EBITDA margin is expected to be between 29.0% to 30.0%.Q4 2025 Earnings CallAs previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.About Cars Commerce
Cars.com Inc. (NYSE:CARS) is a trusted audience-powered and data-driven technology platform that simplifies buying and selling cars. The flagship Cars.com marketplace connects millions of consumers to dealerships across the U.S., powering the car buying experience with artificial intelligence ("AI") shopping tools and comprehensive vehicle reviews and content. Our interconnected ecosystem of products enables dealers and OEMs to sell more cars by efficiently leveraging our marketplace, dealer websites, trade and appraisal tools, and proprietary in-market media solutions. Learn more at www.carscommerce.inc.Non-GAAP Financial MeasuresThis earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net (loss) income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company's performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company's credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company's lenders, securities analysts, investors and other interested parties to evaluate companies in the Company's industry.While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.The Company defines Adjusted Net Income as GAAP net (loss) income excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.Key Metric DefinitionsAverage Monthly Unique Visitors ("UVs") and Traffic ("Visits"). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified upon first visit to an individual Cars.com property on an individual device/browser combination or installation of one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measures UVs and Traffic via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C Media, or DealerClub websites.Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services and DealerClub, during the period divided by the monthly average number of Dealer Customers during the same period.Dealer Customers. Dealer Customers represent dealerships using the Company's products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Dealer Customer metrics do not include DealerClub.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as "believe," "expect," "project," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission ("SEC") on February 26, 2026 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.Cars Commerce Investor Relations Contact:
Katherine Chen
kchen@carscommerce.inc
408.768.6847Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.inc
312.601.5692Cars.com IncConsolidated Statements of Income(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024Revenue:
Dealer$ 164,423
$ 159,551
$ 644,053
$ 640,722OEM and National16,209
17,745
65,305
65,894Other3,271
3,135
13,881
12,536Total revenue183,903
180,431
723,239
719,152Operating expenses:
Cost of revenue and operations31,177
31,730
123,328
124,332Product and technology28,671
29,931
117,330
117,875Marketing and sales59,377
54,019
239,365
232,280General and administrative26,474
20,287
91,124
83,985Depreciation and amortization16,466
24,683
91,842
107,182Total operating expenses162,165
160,650
662,989
665,654Operating income21,738
19,781
60,250
53,498Nonoperating expenses:
Interest expense, net(7,439)
(7,739)
(30,382)
(32,197)Other income, net570
8,064
4,438
40,562Total nonoperating (expense) income, net(6,869)
325
(25,944)
8,365Income before income taxes14,869
20,106
34,306
61,863Income tax expense7,471
2,802
14,254
13,675Net income$ 7,398
$ 17,304
$ 20,052
$ 48,188Weighted-average common shares outstanding:
Basic60,258
65,071
62,386
66,006Diluted61,730
66,802
63,264
67,387Net income per share:
Basic$ 0.12
$ 0.27
$ 0.32
$ 0.73Diluted0.12
0.26
0.32
0.72 Cars.com IncConsolidated Balance Sheets(In thousands, except per share data)
December 31, 2025
December 31, 2024Assets:
Current assets:
Cash and cash equivalents$ 56,236
$ 50,673Accounts receivable, net131,945
133,741Prepaid expenses15,491
13,782Other current assets7,920
16,134Total current assets211,592
214,330Property and equipment, net35,223
40,704Goodwill167,207
143,279Intangible assets, net527,082
585,690Deferred tax assets, net88,594
100,530Investments and other assets, net32,720
27,332Total assets$ 1,062,418
$ 1,111,865Liabilities and stockholders' equity:
Current liabilities:
Accounts payable$ 27,749
$ 33,498Accrued compensation38,074
36,295Other accrued liabilities47,564
47,092Total current liabilities113,387
116,885Noncurrent liabilities:
Long-term debt, net451,516
455,288Deferred tax liabilities, net6,241
6,773Other noncurrent liabilities18,744
21,434Total noncurrent liabilities476,501
483,495Total liabilities589,888
600,380Commitments and contingencies
Stockholders' equity:
Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no shares
issued and outstanding as of December 31, 2025 and December 31, 2024,
respectively—
—Common Stock at par, $0.01 par value; 300,000 shares authorized; 58,636
and 64,391 shares issued and outstanding as of December 31, 2025 and
December 31, 2024, respectively586
643Additional paid-in capital1,413,994
1,473,986Accumulated deficit(941,494)
(961,546)Accumulated other comprehensive loss(556)
(1,598)Total stockholders' equity472,530
511,485Total liabilities and stockholders' equity$ 1,062,418
$ 1,111,865 Cars.com IncConsolidated Statements of Cash Flows(In thousands)
Year Ended December 31,
2025
2024Cash flows from operating activities:
Net income$ 20,052
$ 48,188Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation29,016
26,677Amortization of intangible assets62,826
80,505Stock-based compensation31,327
30,553Deferred income taxes11,450
11,894Provision for doubtful accounts1,961
3,389Amortization of debt issuance costs1,911
2,249Unrealized (gain) loss on foreign currency denominated transactions(2,081)
3,697Changes in fair value of contingent consideration—
(33,473)Gain on sale of equity investment—
(10,846)Other, net2,354
662Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable601
(12,321)Prepaid expenses and other assets(2,259)
(5,390)Accounts payable(5,685)
11,104Accrued compensation880
5,313Other liabilities(714)
(9,677)Net cash provided by operating activities151,639
152,524Cash flows from investing activities:
Payments for acquisitions, net of cash acquired(24,769)
(216) Capitalization of internally developed technology(21,619)
(21,381) Purchase of property and equipment(4,286)
(3,000) Proceeds from sale of equity investment9,481
— Purchase of convertible note receivable(8,206)
—Net cash used in investing activities(49,399)
(24,597)Cash flows from financing activities:
Proceeds from Revolving Loan borrowings10,000
— Payments of Revolving Loan borrowings and long-term debt(15,000)
(30,000) Payments for stock-based compensation plans, net(4,715)
(7,475) Repurchases of common stock(86,907)
(49,179) Payments of contingent consideration—
(27,435) Payments of debt issuance costs and other fees—
(1,869)Net cash used in financing activities(96,622)
(115,958)Effect of exchange rate changes on Cash and cash equivalents(55)
(494)Net increase in Cash and cash equivalents5,563
11,475Cash and cash equivalents at beginning of period50,673
39,198Cash and cash equivalents at end of period$ 56,236
$ 50,673Supplemental cash flow information:
Cash paid for income taxes$ 2,568
$ 6,487Cash paid for interest29,955
32,525 Cars.com IncNon-GAAP Reconciliations(In thousands, except per share data)(Unaudited)
Reconciliation of Net income to Adjusted EBITDA
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024Net income$ 7,398
$ 17,304
$ 20,052
$ 48,188Interest expense, net7,439
7,739
30,382
32,197Income tax expense7,471
2,802
14,254
13,675Depreciation and amortization16,466
24,683
91,842
107,182Stock-based compensation, including related payroll tax expense9,189
7,166
32,351
32,373Transaction-related and other one-time items7,501
(6,989)
24,110
(27,644)Non-operating foreign exchange (gain) loss(568)
2,783
(1,845)
3,746Adjusted EBITDA$ 54,896
$ 55,488
$ 211,146
$ 209,717
Reconciliation of Net income to Adjusted Net income
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024Net income$ 7,398
$ 17,304
$ 20,052
$ 48,188Stock-based compensation, including related payroll tax expense9,189
7,166
32,351
32,373Amortization of intangible assets10,527
17,312
62,826
80,505Transaction-related items2,569
2,744
11,099
(21,722)Non-operating foreign exchange (gain) loss(568)
2,783
(1,845)
3,746Other one-time items4,932
(9,733)
13,011
(5,922)Income tax impact of adjustments(6,662)
(5,068)
(29,360)
(22,245)Adjusted net income$ 27,385
$ 32,508
$ 108,134
$ 114,923
Adjusted net income per share, diluted$ 0.44
$ 0.49
$ 1.71
$ 1.71Weighted-average common shares outstanding, diluted61,730
66,802
63,264
67,387
Reconciliation of Net cash provided by operating activities to Free cash flow
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024Net cash provided by operating activities$ 37,118
$ 30,007
$ 151,639
$ 152,524Capitalization of internally developed technology(5,488)
(4,611)
(21,619)
(21,381)Purchase of property and equipment(385)
(954)
(4,286)
(3,000)Free cash flow$ 31,245
$ 24,442
$ 125,734
$ 128,143
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2025:
As Reported
Adjustments (1)
Stock-Based
Compensation
As AdjustedCost of revenue and operations$ 31,177
$ —
$ (223)
$ 30,954Product and technology28,671
(233)
(1,705)
26,733Marketing and sales59,377
(1,052)
(967)
57,358General and administrative26,474
(6,216)
(6,294)
13,964Depreciation and amortization16,466
—
—
16,466Total operating expenses$ 162,165
$ (7,501)
$ (9,189)
$ 145,475
Total nonoperating expense, net$ (6,869)
$ (568)
$ —
$ (7,437)
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit
costs, and write-off of long-lived assets and other
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2024:
As Reported (1)
Adjustments (1)(2)
Stock-Based
Compensation
As AdjustedCost of revenue and operations$ 31,730
$ —
$ (149)
$ 31,581Product and technology29,931
(891)
(2,642)
26,398Marketing and sales54,019
(224)
(1,360)
52,435General and administrative20,287
(2,742)
(3,015)
14,530Depreciation and amortization24,683
—
—
24,683Total operating expenses$ 160,650
$ (3,857)
$ (7,166)
$ 149,627
Total nonoperating income (expense), net$ 325
$ (8,063)
$ —
$ (7,738)
(1) Certain prior year balances have been reclassified to conform to the current year presentation
(2) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit
costs, and write-off of long-lived assets and other
Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2025:
As Reported
Adjustments (1)
Stock-Based
Compensation
As AdjustedCost of revenue and operations$ 123,328
$ (602)
$ (848)
$ 121,878Product and technology117,330
(4,200)
(8,999)
104,131Marketing and sales239,365
(3,850)
(6,230)
229,285General and administrative91,124
(18,051)
(16,274)
56,799Depreciation and amortization91,842
—
—
91,842Total operating expenses$ 662,989
$ (26,703)
$ (32,351)
$ 603,935
Total nonoperating expense, net$ (25,944)
$ (4,438)
$ —
$ (30,382)
(1) Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and
write-off of long-lived assets and other
Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2024:
As Reported (1)
Adjustments (1)(2)
Stock-Based
Compensation
As AdjustedCost of revenue and operations$ 124,332
$ —
$ (922)
$ 123,410Product and technology117,875
(3,944)
(11,388)
102,543Marketing and sales232,280
(951)
(5,722)
225,607General and administrative83,985
(11,768)
(14,341)
57,876Depreciation and amortization107,182
—
—
107,182Total operating expenses$ 665,654
$ (16,663)
$ (32,373)
$ 616,618
Total nonoperating income (expense), net$ 8,365
$ (40,561)
$ —
$ (32,196)
(1) Certain prior year balances have been reclassified to conform to the current year presentation
(2) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit
costs, and write-off of long-lived assets and other
View original content to download multimedia:https://www.prnewswire.com/news-releases/carscom-reports-fourth-quarter-and-full-year-2025-results-302697992.htmlSOURCE Cars.com Inc.
Original: Cars.com Reports Fourth Quarter and Full Year 2025 Results
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