Cars.com (CARS) investor relations material

Executive summary

• Q3 revenue was $181.9M, up slightly YoY; Adjusted EBITDA rose 2% to $55.8M, with a 30.7% margin.

• Marketplace revenue grew 5% YoY as lead volume rose nearly double digits; traffic and visitor declines moderated to mid-single digits.

• Cost and process initiatives generated $30M–$35M in annualized operating savings, supporting product investment and shareholder returns.

Financial highlights

• Q3 revenue was $181.9M versus $181.6M a year earlier; Dealer revenue rose 1% to $163.4M, while OEM and National declined 3% to $15.7M and Other fell 18% to $2.8M.

• Operating expenses fell 7% to $153.0M; adjusted operating expenses declined 5% to $142.4M.

• Net income was $16.3M versus $7.7M, or $0.30 versus $0.12 diluted EPS; adjusted net income was $32.3M versus $30.4M, or $0.58 versus $0.48 adjusted diluted EPS.

• Operating income rose 72% to $28.9M from $16.8M; lower amortization contributed to the increase.

• Adjusted EBITDA was $55.8M, up 2% YoY; its 30.7% margin exceeded the high end of quarterly guidance.

Outlook and guidance

• FY2026 revenue guidance was reaffirmed at flat to 2% growth and adjusted EBITDA margin at 29%–30%; revenue was expected toward the lower end and margin toward the higher end.

• Q4 marketing-budget spend-down could generate incremental media revenue and move results closer to the revenue-range midpoint; current expectation remained toward the lower end.

• Marketplace tailwinds were expected to persist; initiatives target stable or growing solutions and media products in 2027.

• Website development was expected to stabilize, with an improving growth outlook in 2027; near-term headwinds remained for websites, trade and appraisal products.